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CRN: In that regard, talk about VSPEX. Compare and contrast VSPEX and the market opportunity with VCE. Why did you introduce it? And how important and big an opportunity is it compared to VCE?
Tucci: They’re both massive opportunities. First of all, they’re both very much focused on the channel. The VCE is aimed for the middle and higher ends of the market. It’s totally baked, in a can. The VSPEX is aimed at the middle and down. And we are giving you proven, tested blueprints, if you will, a recipe where you can take EMC storage, take your pick of networking, take your pick of x86 server, and take your pick of hypervisor, even though VMware is part of the family.
You’ve heard me say this a number of times. This world really is all about, this wave of change is really all about a efficiency, and better costs, a whole new way of controlling your IT, whether it’s in your data center, or a public data center, or hybrids. Substituting automation for old management tools, real true automation. A whole new level of choice. And this is where VSPEX lights the light on all of these. And that’s going to give you unmatched agility.
VSPEX just lights the light. When we say we’re gonna give you choice, we give you choice.
CRN: Dell and HP both have the networking piece. They own it. And the server piece. Do you think you need to own these technologies? Do you need to buy that? Or come out with your own server?
Tucci: No, we don’t. Look, we're a technology company unlike, say, a Dell. We spend over 11.5 percent of revenue on R&D. That’s a big number. And what are we spending it on? This year’s forecast is $2.5 billion spent on R&D. That’s a lot of money. We’re very focused on virtualization and cloud. It’s on storage. It’s on information protection. It’s on information security, and information intelligence and analytics.
That is a vast subset of the things that the two companies you mentioned, Dell or HP, or IBM, are doing. But a much higher percentage of revenue. In HP’s case, more than twice. In Dell’s case, more than 10 times the percentage. And we’re spending it only right there. And we’re going deep.
And, of course, what we don’t have—servers—what we don’t have—networking—we partner.
I don’t want to be all things to all people. I want to do the things I just mentioned extremely well, and have truly distinctive best-of-breed products. Not good-enough products. Truly distinctive, best-of-breed products.
NEXT: EMC Partnering With Other Vendors
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