Joe Tucci: Why The Channel Is 'Absolutely Critical'

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CRN: Dell and HP 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 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.


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