EMC's Pivotal Buy to Boost Big Data

Through this acquisition, EMC is expected to increase its capacity to provide services and products in 'Big Data' segment. Large organizations are always on the look out for efficient ways to manage the vast amount of data that are generated while the business process and store them for references related to quick and effective business decisions. This presents the big data management companies an enormous possibility. In a recent report from market technology firm IDC, Big Data market in 2015 will reach $16.5 billion from $3.2 billion in 2010.

Further, the company will expectedly reach out to larger number of emerging businesses and large organizations that are trying to implement cloud infrastructure, Big Data, mobile and social applications. EMC is expected to invest into Pivotal's industry-tested products and services.  

We believe that EMC's vast product portfolio, which has products suitable for any kind of budget, will boost its market share going forward. In addition, with strong balance sheet and incremental earnings, the company's strategic acquisitions will have a positive impact eventually. 

Beside the increasing adoption of cloud computing research will significantly drive the demand for EMC's virtual infrastructure products, which in turn is expected to be accretive to top-line growth going forward. Furthermore, EMC's leading position in the emerging economies of the Asia-Pacific and Africa will boost its profitability, as higher earnings from these markets will offset a sluggish growth in the Americas and Western Europe going forward.

However, increasing competition from companies just as International Business Machines Corp. and Hitachi Data Systems in the big data segment are the nearly term head winds.