In the last 8 years, EMC spent a little over $3B per year on organic R&D and acquisitions. This year alone, EMC spent over $2B on R&D, and between $1-3B a year acquiring new strategic companies. This is a $24.5B investment over an 8 year period—and it’s accelerating.Last year EMC spent over $3B (almost $2B on R&D), and over $3B on acquiring new technology companies. This year, the world expected EMC to earn $19.6B in revenue; EMC is expected to spend over $2B on R&D, and have $4B in free cash flow (used primarily for M&A).EMC is accelerating our investments so that we can better serve our customers and partners.
What does this investment look like? You can see how EMC’s strategies and acquisitions have changed over the past few years, beginning with Enterprise Storage in 2003, up through Information Lifecycle Management, Information & Virtual Infrastructure, to Journey to the Cloud, and Cloud Meets Big Data.EMC’s cumulative 8 year technology investment includes $10.5B in R&D and $14B in M&A.
We’ve dedicated ourselves to the mission of helping customersBELOW ARE NOTES ONLY, NOT FOR MONITOR:EMC has dedicated ourselves to a mission of helping customers on a journey to cloud computing during a time of tremendous opportunity—a time of transforming IT.----------------------------------… That’s what we mean by “transforming IT.” It’s not just about transforming the infrastructure. It’s about transforming the role IT and IT managers perform in the enterprise: less devoted to break/fix, repair and maintenance, and more time and dollars invested in discovering new value for the business, being more innovative and less reactive.We’re on this journey to the cloud with our customers. Last year we spoke in depth around private cloud. This year our point of view has broadened in terms of what cloud means, as well as our move up the stack in applications, middleware, and repositioning our existing assets to be leaders in bringing our collective view of the hybrid cloud to our products and our customers.We’re also perfectly positioned at the intersection of cloud with enterprise data, our core legacy business -- and big data -- a huge, new, emerging core business for our future. And we’re smack in the middle of those worlds. EMC has dedicated ourselves to a mission of helping customers on a journey to cloud computing during a time of tremendous opportunity—a time of transforming IT.
Larry: Describe GTM Model and how you leverage partners?John: Describe GTM Model and how you leverage partners?Role partners play when there are multiple EMC technologies? Such as Isilon, BRS, etc. What role can partners play in pulling those pieces together?To both: What do you want from our channel partners? What does the dream partner look like?(Iven comments that reps sometimes are afraid to give control over to the “totally competent” partner)What do you expect from partners – training, lead gen, sales campaigns, etc.John: Some partners believe that our reps are too involved in their sales cycles and are too involved in pricing discussions. Do you agree? If so, is it because our reps are control freaks or our partners are not fully competent? Or both?Larry: Many of our large partners focus on the same enterprise accounts we do. How do you manage that? Do we have solid Rules of Engagement our reps will live by when a partner brings an incremental opportunity in an ent account?Larry and John: Partners are terrified of our reps taking deals direct after they’ve invested a great deal of time and effort in a sales campaign. At the 11th hour, reps will say that “the customer asked to buy direct”, and offer a referral fee. How can partners – and our reps – minimize the possibility of this happening?Larry and John: I talked about trust at the beginning of the program, and this goes to that point. Many partners I talk to love NetApp and tolerate EMC, even while doing a lot of business with us. How do we create a “passionate” channel that loves to work with us? How can we increase the level of trust between our sales org and our partners’?Larry: Why did you champion the VNXe as channel only, even in the enterprise?Final thoughts by Larry, John, Iven
We are continuing our investments in the region:Last year we had 7 offices.. This year we have 12 office .. This is almost double of last year.We continue to invest in the COE in Egypt without any interruption to the hiring for it in Egypt .. As a matter of fact we hired 50 new engineers since the beginning of the year
Here’s the segments we serve (we’ll show product names on the next slide):(Slide builds)On the left, customers have their enterprise apps, traditional apps like SAP, Oracle, Microsoft, as well as new apps like Spring, Ruby on Rails, and DocumentumxCP. And underneath that, in the storage layer, you have enterprise storage for high end, midrange and SMB requirements.On the right are the emerging Big Data applications for the 90% of the digital universe that is unstructured data. A lot of this consumer generated unstructured data does not fit in a traditional, relational database model. Underneath this, you have scale-out NAS and distributed primary storage.Then, below that, we have the backup and archive layer.Then, software for security, information management, and federation of data centers.Then, in the middle, we have data analytics to help customers extract value from their vast quantities of information that they’ve stored, whether structured data in traditional enterprise apps, or unstructured data.
Fundamentally, we see the opportunity for EMC, working with our partners, our customers, and our long-time friends to change IT. We can make IT roles more powerful, and more significant as we bring about radical transformation of both IT and business. Finally, we’ve taken just a brief look into the future and some of the things that are coming down the pipeline that will continue to drive the radical changes described earlier within the keynote: lasting change driven from radical transforming technologies. Thank you very much.