Analysts Expect EMC's Revenues to Rise to $7.1 Billion in 4Q15

(Continued from Prior Part)

EMC restructuring to cost $250 million

Last month, EMC (EMC) approved a restructuring initiative and announced that a significant number of employees would be laid off. The restructuring plan was announced in July 2015. EMC stated that operational efficiencies would reduce yearly expenses by $850 million. The entire process is expected to be completed by the end of 2016 and is projected to cost $250 million. This will include severance pay for employees who will be laid off.

EMC constitutes 2.8% of the SPDR Morgan Stanley Technology ETF (MTK).

EMC offers cloud integration across data centers

In November 2015, EMC announced the availability of a range of products and services designed to integrate storage and data protection systems to private and public clouds.

As shown in the above chart, cloud computing is expected to leverage data centers. Cisco’s (CSCO) Global Cloud Index Report states that approximately 83% of data center traffic will be cloud traffic by the end of 2019. Tech heavyweight Amazon’s (AMZN) Web Services has announced plans to build data centers in India (INDA) this year, whereas Oracle (ORCL) is planning to open a cloud data center in Brazil. Microsoft will establish its cloud centers in Canada.

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Browse this series on Market Realist:

• Part 1 - EMC Will Announce Its 4Q15 Results on January 27

• Part 2 - EMC’s Share in the External Disk Storage System Segment Fell

• Part 3 - EMC Leads the Market in the Total Disk Storage System Space