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'We are always looking for acquisition'– Chris Gahagan

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DQW Bureau
New Update





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What is the current focus for your India operations?



Our India operations have grown considerably and we are quite

pleased with this. In the month of January this year we announced that we are

going to double the 20 member team at Bangalore within one year. But due to

vibrancy in the mar-ket, we have exceeded the 50-digit number as of now and we

would be increasing this multi fold as we are focusing on India as a major

source for our development.

At present, there is a core team of about 20 software pro-fessionals

working on state of the art storage solution that is at least two years ahead of

its times. So it is this kind of futuri-stic development that is taking place at

our Bangalore facility.

As of now we have about 9,000 sq ft of space but as we

expand, we will be moving out to a new facility very soon. There is a lot of

work going on at Bangalore on the Visual SAN line of product and as we move

forward the center will see a lot of activity in terms of new pro-ducts.

Considerable part of our $ 100 million will go into this R&D facility at

Bangalore.

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Why do you think that acquisition is the right way to

securing intellect for the company on the long run?



Over the past three years we have acquired 10 companies

including one from India. All our acquisitions add value to the overall strategy

of the com-pany, which is to provide inte-lligent storage solutions. As storage

evolves, this intellige-nce is coming from the soft-ware, so major portion of

our acquisition come from the software arena and rest part is from hardware.

With the help of acquisition we try to bring in different

val-ues and product lines to our portfolio. This gives us dual benefits of

increasing the over-all intellect for the company as well as working with new

clients in different niche areas. However, it is not only acqui-sition that we

bet on. We have a strong policy towards R&D. In fact, for the last year we

spent more than $ 800 million only on R&D activity. This is much more than

what our closest competition spends on an average. To strengthen our R&D

focus, we have spent more than $ 2 billion in the development and construction

of an interoperatibility lab in the US. We are simulating different kind of

customer environments in this lab and it is quite necessary for the success of a

product.

Why has managing infor-mation suddenly become such a

hot area? Where is the storage business headed?



It is been long since we have seen that storage needs the

combination of strong infor-mation management skills and that is what we are

doing. Org-anizations across the world have realized that beside stan-dalone

storage there is a need for strong information mana-gement tools. This has been

a challenge for almost all the organizations managing their storage needs and

information lifecycle management meets this challenge directly and dyn-amically

by enabling a custo-mer to manage

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information based on its changing value to the business over

time. It means mapping the value of information and the resources to manage it

to meet the busi-ness goals–all at the right time. So moving forward we

definitely see that there would be a strong focus on infor-mation management.

Beside, there is a certain need to convert the unstru-ctured

data into the structured format in the market and that’s where our recent

acquisition of Documentum is important. As of now over 60 percent of data is

unstructured and all this is going to be converted into the structured format by

various means and Documentum is all set to tap this niche market segment.

Information lifecycle mana-gement (ILM) seems to be

drawing lot of attention these days with almost all the storage players coming

up with their version of the solution. How is EMC placed in this space?



ILM is a platform to manage information and storage is a part

of that. In fact our acquisi-tion of Legato–which had more than 31,000

customers worldwide, 500 customer fac-ing staff and over 400 part-ners–has

considerably helped us create a space for ourselves in this segment.

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ILM is doing pretty well in the market as of now and our

channel partners in India — HCL, Wipro, Tata Elxci have done a great job in

terms of increasing the market reach. We will con-tinue to explore new partners

in this part of the world. We also have global alliances with Dell and Datacraft

for the implementation of our products.

What is happening on the acquisition front for the

company as of now? Any new plans to acquire storage focused companies in this

region?



We are always looking up for the inorganic growth. As of now

we are in the process of completing our acquisition of Documentum. We initiated

the process in the month of October 2003 and we will be completing the

proceedings by the end of first quarter for the next year.

EMC has done quite well in terms of revenues–we are

expecting to garner about $ 6 billion for the financial year 2003.

(CyberMedia News Service)

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