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EMC Bans MSG

Shutters its media solutions group as part of overall cutbacks

EMC Corp. (NYSE: EMC) has quietly pulled the plug on its media solutions group (MSG) as part of a move to cut back its R&D costs.

During an abysmal third-quarter earnings call last month, EMC said it would reduce its annual spending on research and development from close to $1 billion a year to less than $800 million, to bring its costs in line with its lowered revenue projections (see EMC Bombs Big-Time).

The media solutions group is the first unit within EMC to fall under the hammer.

At its peak two years ago, the MSG organization comprised more than 200 people, according to EMC officials. The majority of these employees have either been laid off, or have been absorbed into other areas of the company.

The group oversaw the Celerra Media Server, a file server optimized for video files and streaming media. This was discontinued earlier this year due to a lack of demand.

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