Tucci Sounds Off On Activist Investor Pressure, R&D, And The EMC Federation


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Innovation Is Expensive

Tucci said EMC invests about 12 percent of its revenue in R&D, and about 8 percent on mergers and acquisitions. It all adds up to about $5 billion in R&D investment.

He highlighted six key investments from recent years: NSX, AirWatch, Pivotal, ScaleIO, XtremIO and DSSD. Those six investments cost EMC $6 billion, Tucci said, and it takes vision to see the day when they'll start providing return.

"Those six investment areas … did $1 billion in revenue last year. This year they'll do $2 billion, they're still going to lose money," Tucci said. "But we're putting power behind our vision and our mission, and again, it's all for you."



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