Tucci said EMC expects to spell out the integration of the two companies more fully at its Aug. 6 meeting with financial analysts in New York.
EMC expects revenue from Legato to be consolidated early in the fourth quarter, and that the deal will be slightly accretive to 2004 revenues. Tucci acknowledged that Legato may lose revenue from two key partners -- Sun Microsystems Inc. (Nasdaq: SUNW) and Hewlett-Packard Co. (NYSE: HPQ) -- which view EMC as a mortal competitor. However, he said, EMC expects the overall increase in run rate to offset any lost business from Sun or HP.
Meanwhile, Tucci said EMC expects to do one more acquisition "of substantial size" to reach its goal of having software represent 30 percent of revenue. For the first quarter of 2003, software was $299 million, or 22 percent of total revenue, although just one-third of that ($99 million) was from its Open Software products.
"There are segments that we're interested in that we're looking at... I've never said where we're going to hunt... but Legato plus reasonable growth will not get us to 30 percent, and that is still our target," Tucci said.
Rumors of an EMC/Legato tie-up have been swirling for years. So why did EMC wait until now to pull the trigger? For one thing, the deal is entirely tax-free, said Bill Teuber, EMC's CFO: "That's obviously an important point for both parties."
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