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EMC Salivates Over Software

NEW YORK -- At its annual analyst meeting here today, EMC Corp. (NYSE: EMC) executives put their high-powered storage hardware story in their back pockets, emphasizing the software side of the house in identifying information lifecycle management (ILM) products as the next major growth area for the company.

Joe Tucci, EMC's president and CEO, said ILM will help the company to "fatten up the storage space" by expanding its addressable market. He described ILM as the ability to provide "information about information" to help customers better manage their storage infrastructures.

"When I talk to CIOs around the world about it, they actually salivate," he said. [Ed. note: Hmm... that rings a bell.]

He said EMC's two key competitors in this space -- which includes backup and recovery, archiving, and replication software -- are Veritas Software Corp. (Nasdaq: VRTS) and IBM Tivoli. "If we execute properly in the backup market, we can be very disruptive," Tucci said.

EMC's pending acquisition of Legato Systems Inc. (Nasdaq: LGTO) will fill in key parts of the ILM strategy. Legato will bring its Networker backup software, as well as email and database archiving tools (see EMC Gobbles Legato and Behind EMC's New Software Splash).

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