NEW YORK (Reuters) - EMC Corp EMC.N sees technology spending in its markets rising slightly more than the overall industry and expects to gain one or two points of share in network storage this year, its chief financial officer said on Monday.
EMC expects total information technology growth of about 5 percent in 2008 compared with a 7 percent rise a year ago.
“We believe that the markets that we address this year will grow a little faster than the IT average,” CFO David Goulden told the Reuters Global Technology, Media and Telecoms Summit in New York.
EMC commands a 30 percent share of the network storage market, and based on current 2008 growth expectations “we’d probably gain a point or two of share,” Goulden said.
Goulden said EMC’s relevant markets could grow at about a 7 percent rate. Within that, the company expects to boost revenue at a 9 percent rate, excluding its VMware Inc (VMW.N) unit.
While EMC does not expect a U.S. economic downturn to clear up for several quarters, the sheer amount of information that corporations need to accumulate and protect will still keep them spending on IT.
“That level of growth still reflects a solid investment in a huge IT industry,” Goulden said. “I think it’s because people are struggling with the amount of information in their businesses.”
Goulden also said EMC’s board does not want to reduce its 86 percent stake in VMware because the business software maker will play a crucial part in EMC’s future growth strategy.
“I think there is a lot of misunderstanding” about EMC’s plans for VMware, he said. “I’m reluctant to talk about it because the more you talk about it, the more people think it might happen,” he said, referring to a possible tax-free spin-off or further sale of EMC’s stake in VMware.
(For summit blog: summitnotebook.reuters.com/)
Reporting by Jim Finkle and Michele Gershberg; editing by Jeffrey Benkoe