EMC Press Release

EMC Announces Preliminary Q2 Financial Results And New Executive Appointments

EMC Executive David Goulden Appointed President & COO
VMware CEO Paul Maritz To Join EMC as Chief Strategist
EMC Executive Pat Gelsinger To Join VMware as CEO
EMC Executives Howard Elias and Jeremy Burton Broaden Responsibilities

Contact

Michael Gallant 508-293-6357 michael.gallant@emc.com

HOPKINTON , Mass. – July 17, 2012 – EMC Corporation (NYSE:EMC) today announced preliminary second-quarter 2012 results: record Q2 consolidated revenues of approximately $5.31 billion, up 10% over Q2 2011, and record Q2 non-GAAP earnings per weighted average diluted share (EPS) of $0.39, up 11% over Q2 2011. EMC continues to expect to achieve its full-year 2012 goals of $22 billion in revenue and non-GAAP EPS of $1.70. EMC will discuss further details about Q2 2012 results and full-year business outlook during its previously scheduled earnings call at 8:30 a.m. ET on Tuesday, July 24.

EMC today also announced a series of senior executive appointments to further position the company for its next phase of growth. The appointments highlight the depth and breadth of EMC's executive management team and mark the next step in the implementation of the company's long-standing executive succession plan.

Joe Tucci, Paul Maritz, Pat Gelsinger and David Goulden will participate in a financial analyst conference call today at 1:30 p.m. PT / 4:30 p.m. ET to discuss these executive changes and the opportunity ahead. The call will be broadcast live at http://ir.vmware.com or you may dial-in: 1-800-369-3179, pass code: 0717.

“EMC and VMware have delivered strong results over the past decade and have developed world-class management teams,” said Joe Tucci, EMC Chairman and CEO. “Today we are witnessing an extraordinary transformation in the IT industry unlike anything we have seen before – a major shift to Cloud Computing, Big Data applications and delivering IT-as-a-Service. To capitalize on this tremendous opportunity we are positioning our executive talent so that we can benefit from their exceptional professional strengths with the goal of further advantaging EMC and VMware to deliver long-term value to our respective shareholders.”

Key among the executive appointments to drive future growth, EMC announced that:

• David Goulden, Executive Vice President and CFO, has been appointed President and COO of EMC Corporation, reporting to Tucci.
• Pat Gelsinger, EMC President and COO of Information Infrastructure Products, has been appointed CEO of VMware (NYSE:VMW), effective September 1 st , and will also join the VMware Board of Directors.
• Paul Maritz, VMware's present CEO, is joining EMC as Chief Strategist, reporting to Tucci, effective September 1 st . Maritz will remain on the VMware Board of Directors.

Tucci said, “With these changes, David will assume responsibility for EMC's Information Infrastructure business, Pat will now lead Cloud Infrastructure at VMware, and Paul will look across our technology strategy with a particular focus on Big Data and the next generation of cloud-oriented applications that will be built on top of these foundations.”

Goulden (53), a 10-year senior EMC veteran, will effective immediately assume full responsibility for EMC's Business Units, Sales and Customer Operations, Services, Marketing and G&A functions. Goulden's experience at EMC has been broad based and has included managing Global Sales, Marketing, Alliances and Business Development. He has also been instrumental in making M&A a core competency for EMC by playing a leading role in nearly 70 acquisitions since 2003. Goulden will also continue to serve as EMC's CFO, a position he has held since 2006.

“David Goulden is a remarkable executive and proven leader with an extraordinary command of EMC's business,” said Tucci. “He has led just about every aspect of our business, driven major change initiatives across the company and helped design innovative business models. He and his team have also been instrumental to EMC's long-term financial success. All of this coupled with David's broad EMC experience and deep industry knowledge makes him the perfect choice to become President and COO.”

Goulden said, “EMC is very well positioned to benefit from almost every major trend in IT – flash storage, converged infrastructure, Big Data and cloud security to name just a few. I look forward to continuing to execute on EMC's strategy and working with such a talented team who embody EMC's high-performance culture. ”

In joining EMC, Maritz (57), will be driving our efforts in EMC's technology strategy with a particular focus in Big Data and the next generation of cloud-oriented applications. Maritz, who was one of the early leaders of Microsoft before becoming CEO of VMware, will also assume responsibility for EMC's CTO Office, M&A, strategic investments and emerging technologies.

“Paul Maritz is one of the brightest minds in the IT industry. He has created a compelling and lasting vision that has transformed VMware from a technology leader in virtualization to a category leader in cloud computing,” said Tucci. “Paul leaves VMware in an enviable strategic position and in great financial health. We are delighted to have Paul join the leadership team at EMC and look forward to working with him as he leads our technology strategy and directs our efforts on Big Data and emerging applications.”

Pat Gelsinger (51) joined EMC in 2009 as President and COO of EMC Information Infrastructure Products. Gelsinger has overseen the introduction of the largest product set in EMC history, accelerated EMC's push into unified storage and led EMC into new market segments including Big Data and flash storage.

“Pat Gelsinger's leadership and technology vision have both transformed and strengthened EMC's broad product portfolio since his arrival,” said Tucci. “Pat's unique experience in understanding how software can add value to standard hardware building blocks, as well as his deep understanding of the x86 partner ecosystem and his track record running large scale organizations make him the natural choice to further enhance VMware's competitive positioning and lead VMware through its next phase of growth.”

Howard Elias and Jeremy Burton Broaden Responsibilities

Veteran IT executive, Howard Elias (55), currently EMC's President and COO of Information Infrastructure Services with responsibility for EMC Support, Education, Consulting and Pre-Sales assumes added responsibilities for EMC's Solutions Group and EMC's corporate shared services including manufacturing operations, Corporate IT, Centers of Excellence (COEs). Since joining EMC in 2003, Elias has at various times led EMC's marketing, sales enablement, technology alliances, M&A and new ventures groups.

Jeremy Burton (44), currently EMC's Chief Marketing Officer, will take on an expanded role as Executive Vice President, Product Operations and Marketing. Burton has over 20 years experience in the technology industry, most recently as CEO of Serena Software and previously as Group President of Symantec's Security & Data Management Group and Executive Vice President of the Data Management Group at Veritas. Burton assumes responsibility for EMC's cross business unit product operations, corporate go-to-market functions, OEM and volume channel initiatives.

“The business we have built is at the intersection of three of the most transformative secular trends in the history of IT – Cloud, Big Data and Trust, and I've never been more excited about the opportunity ahead for EMC,” said Tucci. “I remain fully committed and energized to lead this great company as Chairman and CEO through at least 2013.”

Additional Resources

• EMC Executive biographies and headshots
• Connect with EMC via Twitter , Facebook , YouTube , LinkedIn and ECN

About EMC

EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing .  Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset — information — in a more agile, trusted and cost-efficient way. Additional information about EMC can be found atwww.EMC.com

VMware Announces Changes in Executive Leadership and Preliminary Second Quarter Financial Results

VMware News Releases

VMware Announces Changes in Executive Leadership and Preliminary Second Quarter Financial Results

Pat Gelsinger will succeed Paul Maritz as Chief Executive Officer.  Maritz to remain on VMware Board of Directors, joins EMC as Chief Strategist. VMware announces record revenues.

PALO ALTO, Calif., July 17, 2012

VMware today announced that Paul Maritz will be succeeded in the post as Chief Executive Officer of VMware, effective September 1, 2012, by Pat Gelsinger, currently president and chief operating officer, EMC Information Infrastructure Products.  Maritz will remain a board member of VMware and will take on a new technology strategist role at EMC. Gelsinger will also be named to VMware’s Board of Directors, effective September 1, 2012.   

Joe Tucci, Paul Maritz and Pat Gelsinger will participate in a financial analyst conference call today at 1:30 p.m. PT to discuss these executive changes and the opportunity ahead. The call will be broadcast live at http://ir.vmware.com  or you may dial-in: 1-800-369-3179, pass code: 0717.

VMware also announced preliminary second quarter results, including record quarterly revenues of approximately $1.123 billion, up 22% over second quarter 2011, versus guidance of $1.100 billion to $1.120 billion, and second quarter non-GAAP operating margins of approximately 32% versus guidance of 30.25% to 31.25%.  VMware expects full-year 2012 revenues to be between $4.540 billion and $4.635 billion with non-GAAP operating margins between 30.25% and 31.25%. VMware will discuss further details about its second quarter results and full-year business outlook during its earnings call at 2:00 p.m. Pacific Time on Monday, July 23, 2012.

“VMware has an extraordinary opportunity to help customers transform IT and deliver fundamentally more value to the businesses they serve,” commented Paul Maritz, chief executive officer, VMware. “I’m very proud to have been part of an exceptional team of people who have accomplished a great deal over the past four years. VMware has not only transformed current IT practices but is leading in bringing Cloud Computing approaches and infrastructure to enterprises – on-premise and off.”

Maritz added, “Pat, with his deep passion for technology and track record, will complement the strong management team that is already in place at VMware, recently strengthened by the promotion of Carl Eschenbach to Chief Operating Officer. This all means that I can devote my time to developing the strategy of EMC as it relates to big data and a new generation of cloud-oriented applications.”

Having spent 30 years at Intel before joining EMC, Pat has unique expertise in the x86 architecture and ecosystem underpinning the vast majority of virtualized environments today, which is broadly recognized as the foundation for Cloud Computing.  At Intel, Pat was Senior Vice President and Co-General Manager of Intel's Digital Enterprise Group, the company's largest business group accounting for more than half of Intel's annual revenue. Under Gelsinger's leadership, that group was responsible for Intel's enterprise products including clients (PC's), Server, Embedded, Communications, Visualization and Storage products.

Gelsinger said, “The next generation of software defined-datacenters will be built by combining software with standardized hardware building blocks. VMware is uniquely positioned to be the leader in this endeavor and deliver a whole new level of value to customers and its existing important ecosystem partners.  For more than ten years I have interacted with the team at VMware and have developed a deep appreciation for the people and technology of this remarkable company. I am really excited about the mission and becoming part of the team.”

 “In Pat and Paul, we are fortunate to have two world-class leaders,” said Joe Tucci, chairman of VMware’s Board of Directors. “The strong teams that we now have in place at VMware and EMC allow me to ask Pat and Paul to take on two of the defining challenges and opportunities of the new, unfolding IT era: Cloud Infrastructure and big data. They have unique backgrounds and skills, and I look forward to continuing to work with both of them.”

Tucci continued, “I want to personally thank and congratulate Paul for all he’s accomplished over the past four years helping transform VMware from a technology leader in virtualization to an industry leader in Cloud Computing, and I’m excited that he’ll now be working full time on these new opportunities.”

About VMware
VMware (NYSE: VMW) is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2011 revenues of $3.77 billion, VMware has more than 350,000 customers and 50,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

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IBM Study Reveals Critical Shift in the Role of Chief Information Security Executives Globally

Analysis of 130+ interviews presents a new class of security chiefs; CISO role follows the evolution of CIO and CFO with more strategic organizational responsibilities

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ARMONK, N.Y. - 03 May 2012: A new IBM (NYSE: IBM) study reveals a clear evolution in information security organizations and their leaders with 25 percent of security chiefs surveyed shifting from a technology focus to strategic business leadership role.

Source: Data from the IBM Center for Applied Insights study, “Finding a strategic voice: Insights from the 2012 IBM Chief Information Security Officer Assessment.”

Influencers are much more likely to have elevated information security to a strategic priority, according to the IBM Center for Applied Insights study, “Finding a strategic voice: Insights from the 2012 IBM Chief Information Security Officer Assessment.”

In IBM's first study of senior security executives, its Center for Applied Insights interviewed more than 130 security leaders globally and discovered three types of leaders based on breach preparedness and overall security maturity. Representing about a quarter of those interviewed, the "Influencer" senior security executives typically influenced business strategies of their firms and were more confident and prepared than their peers—the "Protectors" and "Responders." 

Overall, all security leaders today are under intense pressure, charged with protecting some of their firm's most valuable assets – money, customer data, intellectual property and brand.  Nearly two-thirds of Chief Information Security Executives (CISOs) surveyed say their senior executives are paying more attention to security today than they were two years ago, with a series of high-profile hacking and data breaches convincing them of the key role that security has to play in the modern enterprise. More than half of respondents cited mobile security as a primary technology concern over the next two years.  Nearly two-thirds of respondents expect information security spend to increase over the next two years and of those, 87 percent expect double-digit increases.

Rather than just reactively responding to security incidents, the CISO's role is shifting more towards intelligent and holistic risk management– from fire-fighting to anticipating and mitigating fires before they start.  Several characteristics emerged as notable features among the mature security practices of "Influencers" in a variety of organizations:

• Security seen as a business (versus technology) imperative: One of the chief attributes of a leading organization is having the attention of business leaders and their boards. Security is not an ad hoc topic, but rather a regular part of business discussions and, increasingly, the culture. In fact, 60 percent of the advanced organizations named security as a regular boardroom topic, compared to only 22 percent of the least advanced organizations.  These leaders understand the need for more pervasive risk awareness – and are far more focused on enterprise-wide education, collaboration and communications.  Forward-thinking security organizations are more likely to establish a security steering committee to encourage systemic approaches to security issues that span legal, business operations, finance, and human resources. Sixty-eight percent of advanced organizations had a risk committee, versus only 26 percent in the least advanced group.
• Use of data-driven decision making and measurement: Leading organizations are twice as likely to use metrics to monitor progress, the assessment showed (59 percent v. 26 percent). Tracking user awareness, employee education, the ability to deal with future threats, and the integration of new technologies can help create a risk-aware culture. And automated monitoring of standardized metrics allows CISOs to dedicate more time to focusing on broader, more systemic risks.
• Shared budgetary responsibility with the C-suite: The assessment showed that within most organizations, CIOs typically have control over the information security budget. However, among highly ranked organizations, investment authority lies with business leaders more often. In the most advanced organizations, CEOs were just as likely as CIOs to be steering information security budgets. Lower ranking organizations often lacked a dedicated budget line item altogether, indicating a more tactical, fragmented approach to security.  Seventy-one percent of advanced organizations had a dedicated security budget line item compared to 27 percent of the least mature group.

"This data painted a profile of a new class of CISO leaders who are developing a strategic voice, and paving the way to a more proactive and integrated stance on information security," said David Jarvis, author of the report and senior consultant at the IBM Center for Applied Insights. "We see the path of the CISO is now maturing in a similar pattern to the CFO from the 1970s, the CIO from the 1980s – from a technical one to a strategic business enabler. This demonstrates how integral IT security has become to organizations."

Recommendations to Evolve the Security Role in an Enterprise
To create a more confident and capable security organization, IBM recognizes that security leaders must construct an action plan based on their current capabilities and most pressing needs. The report offers prescriptive advice from its findings on how organizations can move forward based on their current maturity level.

For example, those "Responders" in the earliest stage of security maturity can move beyond their tactical focus by establishing a dedicated security leadership role (like a CISO); assembling a security and risk committee measuring progress; and automating routine security processes to devote more time and resources to security innovation.

"Security in a hyper-connected era presents a new set of challenges, but these can be greatly eased by implementing innovative practices and adopting a more integrated, holistic approach," said Marc van Zadelhoff, an author of the report and vice president of Strategy, IBM Security Systems. "CISOs that prioritize these factors can help their organizations significantly improve business processes and achieve measurable success in their progress toward building a risk-aware culture that is agile and well-equipped to deal with future threats."

About the Assessment The IBM Center for Applied Insights study, "Finding a strategic voice: Insights from the 2012 IBM Chief Information Security Officer Assessment," included organizations spanning a broad range of industries and seven countries. During the first quarter of 2012, the Center conducted double-blind interviews with 138 senior business and IT executives responsible for information security in their enterprises. Nearly 20 percent of the respondents lead information security in enterprises with more than 10,000 employees; 55 percent are in enterprises with 1,000 to 9,999 employees.

To access the full study, visit ibm.com/smarter/cai/security.

About IBM Security
IBM's security portfolio provides the security intelligence to help organizations holistically protect their people, data, applications and infrastructure. IBM offers solutions for identity and access management, security information and event management, database security, application development, risk management, endpoint management, network security and more. IBM operates the world's broadest security research and development organization and delivery organization. This comprises nine security operations centers, nine IBM Research centers, 11 software security development labs and an Institute for Advanced Security with chapters in the United States, Europe and Asia Pacific. IBM monitors 13 billion security events per day in more than 130 countries and holds more than 3,000 security patents.

For more information on IBM security, please visit: www.ibm.com/security.