EMC moves its egg head and divides in three

EMC has announced a major internal re-organisation to help it fight off increasing pressure from arch-rivals IBM and Hitachi Data Systems.

The storage giant will split into three new units: hardware, software, and sales and support. EMC claims this will allow it to focus on new areas of growth and technology innovation.

The company is also moving Moshe Yannai, the chief engineer for its flagship product Symmetrix, into a more consultative role. Some sources claim he strongly opposed the idea of splitting the company into three.

All three units will be headed by executives reporting directly to EMC's president and CEO Joe Tucci.

Tucci said in a statement: "These operating units, under the leadership of three of EMC's most accomplished and respected executives, will enable faster time to market for new products, greater manufacturing efficiencies and even higher levels of customer satisfaction."

The restructuring comes just a month after the company announced its controversial decision to make software for rival hardware vendors.

The company has been battling with IBM and Hitachi Data Systems this year, having lost market share to both. It also posted massive losses and announcing job cuts.

Industry experts gave their backing to today's news. Graeme Rowe, marketing director at storage consultancy Postiv, said EMC seems more focused now.

He told silicon.com: "EMC had to think of a way to change direction in order to retain its top spot in the sector.

"They have clearly identified the next big thing, storage management software, which is massively growing area. Dedicating one whole unit to software will allow the company to arm itself better for the long battle ahead."