NEW YORK -- EMC Corp. (NYSE: EMC) unveiled a new software organization at its annual Analyst Day here today, then promptly turned it loose on rivals Veritas Software Corp. (Nasdaq: VRTS) and IBM Corp. (NYSE: IBM).
The newly formed EMC Software Group brings EMCs open software Legato and Documentum businesses together, forming an organization with 1,600 developers, 865 sales people, and a target of $1.5 billion in revenues this year. Former Documentum CEO Dave DeWalt and EMC vet Mark Lewis will hold EVP titles and head the group. Legato president Dave Wright remains with EMC as an EVP outside the software group. CEO Joe Tucci said Wright will work with large strategic accounts and partners.
The software leaders revealed immediate plans to go after Veritass storage software market share and long-range plans to battle IBM on the virtualization front. Up to now, Legatos backup and recovery software has been EMCs most direct competitor to Veritas, which dominates the backup market and also sells management and utility computing software.
Legato and Documentum had been run as separate divisions since EMC acquired them last year for a combined $3 billion (see EMC Cops Documentum and EMC Gobbles Legato). Tucci says the $1.5 billion revenue goal represents a 19 percent growth over 2003 using full-year sales of Legato and Documentum as comparison. The entities that now form the software group will share finance, legal, HR, and IT resources, and they will work together on development projects. VMWare, the third software company EMC acquired last year, remains a separate group (see EMC Gobbles VMware).
DeWalt calls the new combined software group an independent pillar within EMC and says its 2004 mission is to take share from the storage software leader.