EMC, ACCENTURE, ORACLE FOURTH QUARTER 2009 REPORT - TBR HIGHLIGHTS - Sponsored Whitepaper

What a difference a year makes (for the better) Even though revenue declined during 2009, EMC returned to growth in 4Q09 and heads into 2010 with high expectations; the company is projecting 14% revenue growth and 20% non- GAAP operating margins. EMC’s performance and outlook in 4Q09 is a 180-degree change from 4Q08, when revenue increased by double-digits, but the company faced a highly uncertain 2009. EMC is reaping the benefits of preparing for the worst EMC’s experience during the last economic downturn led it to keep a watchful eye on changing economic conditions. The company was quick to react to the current economic downturn, and began rationalizing its expense structuring before the recession impacted its financials. EMC’s operating leverage will continue to rise during 2010, providing more funds for investment and driving sustained operating income growth as revenue continues to increase.

Accenture is seeing positive momentum in the market; however, it will take time for the company to recover Accenture’s 4Q09 (fiscal 1Q10) net revenue was down 10.6% year-to-year in U.S. dollars due to economic headwinds. Operating margin for the quarter was 13.9%, up from 13.5% in 4Q08. While the market environment remains uncertain, Accenture is seeing stabilization in some sectors, providing positive expectations for the future. TBR believes Accenture’s growth will gradually accelerate in fiscal 2H10, but it will take several quarters for the company to achieve a sustained turnaround.

As part of our ongoing coverage of leading vendors, trends and areas of investment in the IT services industry, TBR is focusing on the fast-growing Business Intelligence (BI) services market. After a series of interviews with executives from prominent vendors, including IBM, Accenture, Deloitte, HP and TCS in December, TBR published a white paper on BI services. Below is a summary of our key findings:

Leading BI vendors such as Accenture continued to experience BI services growth despite the challenging economic environment in 2008-2009 and contracting overall services revenue. BI services provide greater transparency into business cost structures, improve financial and sales forecasting, and allow companies to make better TCS TCS use of their IT investments to support business 1.5% IBM 1.5% strategies. IBM Deloitte Deloitte 6.2% 6.2% 1.2% Accenture and IBM GS, for example, expect 1.2% double-digit revenue growth in their BI and Accenture Accenture information management practices in 2009 and 5.8% 5.8% expect further acceleration of growth for this area in 2010.