emc

Amazon, Inc. (AMZN) is in the clouds. So are Google, Inc. (GOOG), EMC (EMC) and Cisco (CSCO). Now, Microsoft Corporation (MSFT) is joining them, having announced on Tuesday its new Windows Azure cloud computing system. The new product will be released on January 1, 2010 -- a new solution for a new year.

Azure will deliver an online platform for the software development set to build their own mousetraps and provide plenty of storage space for users. Testing began a year ago, and full live version will be celebrated next year. For the first month, Azure will be free. The charges start in February.

Neither company is saying a thing yet, but word is Cisco Systems (NASDAQ: CSCO) and EMC (NYSE: EMC) are joining up to sell a new collection of products designed to deliver cloud computing capabilities, Reuters reports. Called vBlock, the cloud solution is intended to help the companies compete more effectively with IBM (NYSE: IBM) and Hewlett-Packard (NYSE: HPQ).

The partnership, which no one is admitting to, involves a joint venture between Cisco and EMC that will sell vBlock. The former will supply the networking equipment and servers, with the latter kicking in the storage gear and virtualization technology through its VMWare (NYSE: VMW) subsidiary. The joint venture will put the systems together, integrate the components for clients, and make the whole pile of cables and silicon work. A formal announcement is expected next week.

Windows 7, the latest operating system from Microsoft (NASDAQ: MSFT), is expected to help jumpstart some IT spending. Intel (NASDAQ: INTC) also sees this happening. A new operating system often means a chance to upgrade from dated equipment that isn't worth upgrading, especially with favorable pricing for technology right now. Everything's coming together for a strong 2010 for the high-tech sector, so it's also worth watching Hewlett Packard (NYSE: HPQ), Dell (NASDAQ: DELL) and EMC (NYSE: EMC).

A lot of earnings reports were issued last week. The market was busy sorting them all out. I'm going to take a fast look at several of the issuing companies.

American Express (NYSE: AXP): Don't leave home without it. Good advice for the card, perhaps, but what about the company? Should your portfolio leave home and forget this stock? I'd say so. It's not that American Express lost the earnings game. On the contrary, Bloomberg reported a beat. American Express earned 44 cents per share from continuing operations, adjusted. This was six pennies ahead of forecasts. Okay, I applaud such performance. And shares are way off the single-digit 52-week low. Thing is, I'm in love with another card business. Visa (NYSE: V). As I've stated before, I enjoy the beauty of Visa's lower-risk model. It doesn't have to put up with loan risk. Yes, the situation at American Express might be improving, but I'm not going to buy this one.

To get a valuation juiced up, all it takes is two bidders. And, that's what Data Domain (NASDAQ: DDUP) got. The data deduplication company has been the target of two rival bidders: NetApp (NASDAQ: NTAP) and EMC (NYSE: EMC).

Well, today the wrangling stopped -- with EMC as the victor. The company has agreed to shell out $2.4 billion for Data Domain.

A race has broken out for Data Domain Inc (NASDAQ: DDUP). NetApp Inc. (NASDAQ: NTAP) offered $1.5 billion for the company two weeks ago, and EMC Corp. (NYSE: EMC) decided it had to get in on the action, upping the ante to $1.8 billion yesterday. Data Domain shares gained 16% on the news in late trading yesterday, resulting in EMC's bid carrying a 17% premium.

EMC sees Data Domain as its ticket into the market for software-based storage management, as the target company's products help reduce the amount of disk space needed to store data. With large, high-profile clients like AT&T Inc. (NYSE: T) and the U.S. Defense Department, Data Domain was able to double its top line to $274 million in 2008. It pulled in net income of $21.6 million last year, up from a loss of $3.7 million in 2007.

For software operator EMC (NYSE: EMC), a key goal was to hit $15 billion in revenues in 2008. Unfortunately, the company missed the mark by about $100 million.

Going into Q3, EMC was on track to hit its goal, but, of course, the economy went into a tailspin in Q4, and EMC couldn't avoid the impact. In the quarter, the company's revenues inched up 5% to $4.02 billion. Net income was $288 million, or $0.14 per share.

Unfortunately, the outlook looks fairly bad for 2009. Based on a variety of surveys, IT spending could drop 10% for the first half of this year.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Apollo Group Inc. (NYSE: APOL) posted its third straight quarter of growth as enrollment soared.
• Caterpillar Inc. (NYSE: CAT) earnings prospects will pick up after the first quarter, predicts Jim Cramer.
• Coach Inc. (NYSE: COH) lowered its guidance due to slower traffic and sales during the holiday season.
• EMC Corp. (NYSE: EMC) reaffirmed its revenue and earnings guidance and announced job cuts.
• Google Inc. (NASDAQ: GOOG) was upgraded as Wall Street's Q4 and full-year estimates came down.
• KB Home (NYSE: KBH) failed to narrow its loss as much as expected but beat revenue estimates.
• Logitech International (NASDAQ: LOGI) withdrew its guidance and said it was cutting its global workforce.
• Mosaic Co. (NYSE: MOS) posted strong Q2 results that easily beat earnings expectations (is it a buy?).
• Navistar International Corp. (NYSE: NAV) 2009 outlook fell short of estimates but it predicted 2010 growth.
• Premier Exhibitions Inc. (NASDAQ: PRXI) worse-than-expected Q3 numbers resulted in an downgrade.
• Satyam Computer Sciences Ltd. (NYSE: SAY) admited that it had been inflating earnings for years.
• Super Micro Computer Inc. (NASDAQ: SMCI) was downgraded after preliminary results missed estimates.
• Time Warner Inc. (NYSE: TWX) now expects a loss in 2008 rather than the profit in its previous guidance.
• WD-40 Co. (NASDAQ: WDFC) topped Q1 expectations but also lowered its guidance, sending shares lower.

For more earnings highlights, see Intel, Walmart, Chevron, Family Dollar, Monsanto and others

Upcoming earnings releases include Alcoa Inc. (NYSE: AA), Infosys (NASDAQ: INFY), Linear Technologies (NASDAQ: LLTC) , Xilinx (NASDAQ: XLNX), Genentech (NYSE: DNA), Intel (NASDAQ: INTC), Marshall & Ilsley (NYSE: MI), Sealy (NYSE: ZZ), Johnson Controls (NYSE: JCI).

Visit AOL Money & Finance for more earnings coverage.