Last week, EMC announced and published his Q4 2011 earning. I am interested on IIG (Information Intelligence Group) numbers: let’s see the year over year earning (data in thousands US$) :
From the earnings call transcript the board reported that:
(…) This quarter, our Information Intelligence Group made their core Documentum, Captiva and Document Sciences products available as a private cloud offering, using internally-developed VCUBE technology. They also demonstrated new Big Data use cases using their Documentum xCP technology. Revenue was roughly flat from Q4 a year ago as IIG caps a year of transition and stabilization of its product portfolio and operations.
(….) On top of this, we hold the leading position in the vast majority of these. As a result, we continue to expect our high-end storage and IIG business to grow in the range of 1% to 10%. We see our unified storage line, RSA and consulting, growing in the 10% to 19% range. And we expect our higher growth businesses, including VMware, Isilon, BRS and VCE, to remain on track for 20% or higher compound annual growth over the 4-year period.
What we can see is that product revenue is going down but professional services revenue is growing. Imho, I am supposing that EMC is selling his IIG software portfolio to big customers, the only ones that can pay for expensive services. I don’t have information about the average IIG Q4 / FY deal so I can only suppose that; I am supposing that OSS (Alfresco and others) are growing in market share, especially for little or medium deals (20.000 / 100.000 US$). For high end ecm applications, I think that EMC is still in a strong position.
If you look the graph, you can see that the product revenue trend is well defined. I think this (not good) trend will continue until EMC will release Documentum 7. I think that customers are really interested on a completely new platform from EMC, a platform that can manage big data and that can provide endless scalability like the announced NGIS, the Next Generation Information Server. I think that Documentum 7 will define just the short-term trend, maybe improving IIG product revenue: the long-term trend will be defined by the NGIS but EMC should define a clear roadmap about this software.
What is your point of view about EMC Documentum and Information Intelligence Group portfolio? Share your thoughts, posting a comments or linking this post to your blog.