EMC Corporation (EMC) announced that the Houston-based cash handling company Loomis has completed the installation of Avamar, EMC’s backup and data recovery product.
With the installation of EMC’s next-generation backup and recovery offerings, Loomis now expects to obtain a higher return on investment (ROI) through the elimination of 99% of surplus data on virtual machine backups, resulting in a 232% increase in backup performance from Data Domain and also by eliminating tape and tape drives from 67 remote locations.
Loomis has a wide network of cash handling operations across the U.S. and their operation involves cash deliveries to ATMs, banks and other sites. With the deployment of EMC’s Avamar, Loomis has now adopted the technology to increase its operational efficiency by limiting the risk of financial exposure from interruption of daily transactional cycles.
It will also help the company to solve compliance issues by matching the individual requirements of the 67 field offices, corporate data centers and disaster recovery sites and virtualized data stores to EMC products.
EMC, a leading developer and provider of information infrastructure technology and solutions, has invested $ 40.0 million in the cloud infrastructure business and expects to drive growth from its cloud computing initiatives. New products, as well as cloud computing initiatives are expected to drive revenue growth for 2011 and beyond.
We believe the increasing adoption of cloud-based technology will be a key growth driver for EMC. According to research firm IDC, storage is the fastest growing cloud service and its revenue is expected to grow from $ 1.6 billion in 2009 to over $ 6.0 billion in 2013. Spending on public IT cloud services is expected to grow five times the IT industry rate in 2011, up 30% from 2010, according to IDC.
However, EMC continues to face aggressive competition in the storage, networking and virtualization space from system vendors such as International Business Machines Corp. (IBM), NetApp Inc. (NTAP), Hewlett-Packard Co. (HPQ), Unisys Corp. (UIS) and Hitachi Data Systems.
Currently, EMC has a Zacks #2 Rank, which translates to a short-term Buy rating. We also maintain our long-term Neutral recommendation on the stock.
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