VCE Vblock Demand Hits Billion Dollar Run Rate Three Years After Launch

VCE Vblock Demand Hits Billion Dollar Run Rate Three Years After Launch 
Cisco-EMC Joint Venture Surpasses 1,000 Vblock Systems Shipped, Named
#1 in Market Share by Gartner Group 
SAN JOSE, CA and HOPKINTON, MA -- (Marketwire) -- 02/20/13 --  Cisco
(NASDAQ: CSCO) and EMC (NYSE: EMC) today announced that demand for
their VCE(TM) joint venture's products and services has surpassed the
$1 billion dollar annual run rate milestone* -- heralding VCE as one
of the fastest-growing companies in IT industry history -- and that
VCE has shipped its 1,000th Vblock(TM) converged infrastructure
system in slightly over three years since the company's inception.
These milestones come as VCE prepares for the largest product launch
in its history, which will be broadcast live tomorrow at 8:00 a.m.
PST / 11:00 a.m. EST.  
VCE Milestone Achievements: 

--  $1 Billion Annual Run Rate - In its most recent quarter, demand for
    VCE products and services surpassed a $1 billion annual run rate,
    solidifying VCE's place as one of the fastest-growing companies in IT
    industry history.
--  1,000th Vblock System Sold - After two years of product availability,
    VCE recently shipped the 1,000th Vblock system.
--  #1 Market Share - Gartner has named VCE the leader in the integrated
    infrastructure segment with a commanding 57.4 percent market share,
    underscoring the transformative impact VCE is having on their
    customers' ability to accelerate cloud computing adoption.

Formed in November 2009 by Cisco and EMC, with investments from VMware
and Intel, VCE pioneered a new segment of the market with the
innovative VCE Vblock pre-integrated converged infrastructure -- the
industry's first completely integrated IT offering with end-to-end
vendor accountability.  
VCE is the only company to engineer, manufacture, deliver and fully
support its converged infrastructure offering with end-to-end
multi-vendor visibility, enabling the leading time-to-market and one
of the lowest total cost-of-ownership (TCO) for converged cloud
infrastructure. The Vblock converged infrastructure is designed to
standardize processes and product life cycle management to
significantly improve application availability and help enable VCE's
seamless support experience. 
Executive Quotes: 
John Chambers, Chairman and CEO, Cisco 
"VCE is the outstanding result of the long-standing and successful
partnership between EMC and Cisco. VCE continues to lead the
converged infrastructure market and is one of the fastest growing
companies in the history of IT. By allowing companies to focus on
business innovation instead of technology integration, VCE represents
the future of IT. Together with EMC, we intend to lead this industry
for years to come." 
Joe Tucci, Chairman and CEO, EMC 
"Three years ago, Cisco and EMC announced that we would change the
course of IT, and we did. VCE is ushering in a new era of IT
transformation. Dynamic, agile IT drives dynamic, agile business and
VCE has enabled companies of all sizes to realize game-changing
benefits with converged infrastructure. This is just the beginning of
what we will achieve in our joint venture with Cisco through our
shared vision, continued investments, and the strength of and
commitment to our partnership." 
Praveen Akkiraju, CEO, VCE 
"In any major industry transition, technology innovation powers
business productivity advances. The transformational improvements VCE
brings to our customers by simplifying IT deployments and operations
has earned their trust and loyalty, and in turn, fueled VCE's rapid
growth. Our deep experience accelerating customer data center
modernization efforts positions us well to drive the next wave of
innovation in converged infrastructure and converged data center
Customer and Partner Quotes: 
Stephen Rayda, Chief Technology Officer, Purdue Pharma, LP 
"The cloud is built differently today -- more dynamic, with
virtualized resources that enable us to conduct business in a more
agile manner. Today, our infrastructure can be operated from
anywhere, but that wasn't the case in the past and underscores the
fundamental changes taking place in the data center evolution. VCE
gets this shift and makes implementing core infrastructure more
simple and pre-packaged." 
Bryan Martin, Chairman and CEO, 8x8 
"Vblock Systems represent the platinum standard for tier-one business
applications and provide businesses with the confidence to entrust
mission-critical applications to the cloud."   
About Cisco
 Cisco (NASDAQ: CSCO) is the worldwide leader in IT that
helps companies seize the opportunities of tomorrow by proving that
amazing things can happen when you connect the previously
unconnected. For ongoing news, please go to 
About EMC
 EMC Corporation is a global leader in enabling businesses
and service providers to transform their operations and deliver IT as
a service. Fundamental to this transformation is cloud computing.
Through innovative products and services, EMC accelerates the journey
to cloud computing, helping IT departments to store, manage, protect
and analyze their most valuable asset -- information -- in a more
agile, trusted and cost-efficient way. Additional information about
EMC can be found at 
About VCE 
 VCE, formed by Cisco and EMC with investments from VMware
and Intel, accelerates the adoption of converged infrastructure and
cloud-based computing models that dramatically reduce the cost of IT
while improving time to market for our customers. VCE, through the
Vblock System, delivers the industry's first completely integrated IT
offering with end-to-end vendor accountability. VCE's pre-packaged
solutions are available through an extensive partner network, and
cover horizontal applications, vertical industry offerings, and
application development environments, allowing customers to focus on
business innovation instead of integrating, validating and managing
IT infrastructure. Learn more about Vblock Systems. 
* Demand run rate is an annualized calculation of orders received in
the applicable period by VCE, VMware, EMC and Cisco for the sale of
VCE Vblock products and related services. 
Cisco and the Cisco logo are trademarks or registered trademarks of
Cisco and/or its affiliates in the U.S. and other countries. A
listing of Cisco's trademarks can be found at Third-party trademarks mentioned are the
property of their respective owners. The use of the word partner does
not imply a partnership relationship between Cisco and any other
EMC is a registered trademark of EMC Corporation in the United States
and/or other countries. All other trademarks used are the property of
their respective owners. 
VCE and Vblock are registered trademarks or trademarks of VCE Company
LLC or its affiliates in the United States and/or other countries.  
Forward-Looking Statements  
This release contains "forward-looking statements" as defined under
the Federal Securities Laws. Actual results could differ materially
from those projected in the forward-looking statements as a result of
certain risk factors, including but not limited to: (i) adverse
changes in general economic or market conditions; (ii) delays or
reductions in information technology spending; (iii) the relative and
varying rates of product price and component cost declines and the
volume and mixture of product and services revenues; (iv) competitive
factors, including but not limited to pricing pressures and new
product introductions; (v) component and product quality and
availability; (vi) fluctuations in VMware, Inc.'s operating results
and risks associated with trading of VMware stock; (vii) the
transition to new products, the uncertainty of customer acceptance of
new product offerings and rapid technological and market change;
(viii) risks associated with managing the growth of our business,
including risks associated with acquisitions and investments and the
challenges and costs of integration, restructuring and achieving
anticipated synergies; (ix) the ability to attract and retain highly
qualified employees; (x) insufficient, excess or obsolete inventory;
(xi) fluctuating currency exchange rates; (xii) threats and other
disruptions to our secure data centers or networks; (xiii) our
ability to protect our proprietary technology; (xiv) war or acts of
terrorism; and (xv) other one-time events and other important factors
disclosed previously and from time to time in EMC's filings with the
U.S. Securities and Exchange Commission. EMC disclaims any obligation
to update any such forward-looking statements after the date of this
This release may be deemed to contain forward-looking statements,
which are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These statements include,
among others, statements regarding the VCE partnership, VCE's impact
for its customers, Cisco and EMC continuing to lead the industry for
years to come, and VCE driving the next wave of innovation in
converged infrastructure and converged data center operations.
Readers are cautioned that these forward-looking statements are only
predictions and may differ materially from actual future events or
results due to a variety of factors, including, among other things,
the ability of the companies to partner successfully, the ability to
achieve expected benefits of the partnership, business and economic
conditions and growth trends in the networking industry, customer
markets and various geographic regions, increased competition, global
economic conditions and uncertainties in the geopolitical environment
and other risk factors set forth in Cisco's most recent reports on
Form 10-K and 10-Q filed on September 12, 2012 and February 19, 2013,
respectively. Any forward-looking statements in this release are
based on limited information currently available to Cisco, which is
subject to change, and Cisco will not necessarily update the
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