EMC started on a journey to the cloud ten years ago, long before the term “cloud” became popular, laying the foundation for more focused efforts that began in 2004. In April 2009, ESG published an initial audit of EMC’s achievements, which were impressive: $74 million in data center equipment savings, $12+ million in power and space savings, and dramatic increases in productivity, efficiency, and resource utilization. This update examines EMC’s efforts over the past year, and reveals an acceleration of savings and a launch pad for further success.

In 2004, EMC faced challenges familiar to most IT organizations: unrelenting growth of applications, servers, and storage arrays in the data center that strained the capacity of existing resources. The projected cost of a new, energy-efficient data center was extremely high, about $120 million. Senior management asked EMC IT to follow the advice that EMC gives its own customers: investigate whether greater efficiency would allow them to “do more with less” and squeeze additional life out of the current resources. Subsequent analysis revealed that by reducing costs, increasing efficiency, and improving business processes, EMC could avoid that costly data center expansion and instead extend the useful life of its 30-year-old Westborough, Massachusetts data center.

EMC’s priorities are no different from other organizations—as ESG’s 2010 IT spending survey reveals, reducing capital and operational costs, as well as improving business processes, remain top priorities for most companies. However, cost is not the only consideration this year; they also expect to increase focus on security, return on investment, and compliance over the next 12-18 months.


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