EMC CEO Joe Tucci admitted that the company had been guilty of "some overpayment" when it bought RSA Security for US$2.1 billion last year.
Tucci said he "probably" paid too much for RSA but as far as acquisitions go there is always some sort of premium paid. "Its [RSA Security] market value at the time was around $1.6 billion and we paid $500 million more than that but it was a very competitive bidding process which came down to us and one other party," he said while not disclosing the other party.
Responding to analysts' claims the acquisition was over-priced, Tucci said he is confident these same market analysts will change their tune in the future. "Time will prove that RSA is a great asset and this was a great acquisition," he added.
"We have spent $7 billion in recent years acquiring technology; we will grow our services organisation through partnerships."
Tucci nominated Accenture and EDS as examples of partnering opportunities to build the company's services capability.
Tucci said the RSA acquisition is a good fit describing EMC as an infrastructure company.
"We operate the company in two parts; there is virtualization infrastructure and information infrastructure," he said adding that there will be plenty more acquisitions throughout the year but they will be much smaller, certainly not in the league of RSA or Documentum.
Tucci went on to say that the gem in EMC's crown is VMWare as the spotlight is on virtualisation. EMC is planning to offer 10 percent of VMWare in an initial public offering mid-year.
"I always knew I was going to do this [the IPO] but everything is about timing and the market is really heating up right now," he said adding that when EMC bought VMWare in 2004 it had 300 staff.