EMC Following Symantec Says New Chief
EMC Following Symantec Says New Chief
July 13th, 2006:Bill Robbins, Incoming Senior Vice President of Symantec Asia Pacific and Japan, says EMC’s purchase of RSA shows the wisdom of the company’s Veritas merger.
Robbins says, “We look at the EMC merger with RSA security as a positive, because it validates what we (Symantec/Veritas) did almost 18 months ago. Like almost all players in the technology market the early mover has the competitive advantage and we are doing this by offering both information security and availability”.
The statements reflect Symantec’s determination to make financial markets understand what it insists was a ‘good decision’. After it was announced that Symantec was considering the merger the company’s share price plummeted and is currently around US $16 per share, half its value prior to the merger with Veritas. Robbins, who previously worked as vice president of Veritas Software in Northern Europe, has just taken up the regional VP position with Symantec.
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EMC has had similar problems getting analysts to accept the benefits of its US $2.1 billion cash purchase of RSA Security last month. Following a mixed reception to the deal EMC’s share value has continued to decline. EMC has blamed the shortfall on delayed orders from customers, and on customers switching from the DMX-2 to the DMX-3 version of the Symmetrix disk array faster than anticipated, causing it to sell out of the newer box.