EMC CEO of Greater China: Huawei in 10,000 dollar cloud computing market

EMC Global Senior vice president, Greater China President Ye Chenghui (Tencent Science and Technology map)

March 2 News, EMC Greater China's president Ye Chenghui yesterday in an interview with Tencent Technology, said the company's strategy in China from the private cloud to the mixed cloud, which is a very important reason customers have public cloud demand. Ye Chenghui revealed that the promotion of small and medium-sized enterprises will remain one of the focus of the Chinese market, from this income has accounted for the total income of the landfilled. To this end, EMC has specifically developed a 10,000-dollar entry-level product, with the main competitor being Huawei.

The following is an interview with the Leaf-hui text record:

Media: About the joint venture, how is digital China?

Ye Chenghui: We have a lot of applications in the Shenzhou Digital company that we can sell and they do the service. There is more collaboration behind the cloud, and then there are no announcements, but we'll have a little more cloud computing to work with.

Media: You mentioned in your speech at the conference that EMC is now a very good opportunity to have a unified computing platform now, what is the future of the market?

Ye Chenghui: I think Chinese customers are divided into several the first storage and server separate procurement has been China's standards, most customers have been separate procurement, let me say several words, the first large government departments do Cloud Center, they will not find a factory, will certainly find a total package, may be digital Shenzhou, In charge of the city to help me do different modules of things, these general chamber of Commerce to find different manufacturers, such as Shenzhou Digital to do a safe city, may find EMC responsible for the storage structure of this piece. The server is more and more unimportant. Because do these modules, in fact, is the X86 module, with which brand difference is not big.

The second one of its strong it capabilities of users, such as China Mobile, they will always have their own products, will not say you total package to me, I buy your products. He will choose the server, who is the cheapest, this year can use IBM server, next year can use HP server, he will be tender form, his own service team to deepen this thing.

The third is small and medium-sized enterprises, will prefer to use atoms users. Now is the storage and the server separate purchase, why are we good? Previously we were most afraid to see IBM, HP has bought a server, may be bundled together, these we do not even have the opportunity to compete. But EMC is good and bad, and in recent years the majority of customer purchases are separate.

Media: I'm looking at the data. At the end of 2011, cloud computing targets shifted to the mixed cloud segment, where the hybrid cloud might involve a link to the public cloud, what is EMC's initiative or plan?

Ye Chenghui: EMC is not planning to do Google, or Microsoft, do not want to do the public cloud. Why used to say to do a private cloud, now do a hybrid cloud. We do the private cloud global development, we increasingly help the public cloud government, or telecommunications, or service providers to provide a private cloud structure, we do this service, they also want to unite his public cloud. As we've been talking about private cloud, the business behind EMC is much more connected to the public cloud, and it's just that private cloud customers don't feel good. We will help our clients do the joint public cloud in it, only the public cloud project EMC has, but the proportion of EMC business is very small.

Media: In the last five-year plan, every time we talk about software business is the most worried, difficult to complete business goals. What is the hardest thing to accomplish in the future China strategy? In addition to the five-year plan last year, there are very specific target data, what first, what second, or how many, but the next strategy does not have a specific number?

Ye Chenghui: I also learned a lesson, five years ago I was very specific, backup archive I want to row first, storage hardware does not say. Behind the discovery of EMC mergers too fast. When I said backup ranked first, the company sold data domain certainly ranked first, why not say software today? I think the EMC strategy is more than just software, and today data domain has software in it that becomes a solution. The headquarters asked me how to integrate the new company. are actually hardware,

Media: Is there the hardest thing to accomplish?

Ye Chenghui: I think the hardest thing to do is that the U.S. headquarters always feel that China's growth is very, very fast, he did not realize that he bought a company, most of the companies are 90% in the United States market, like data domain in China, only three people, buy when there are customers, but not many. But the United States has become so big that when he gives me a goal to grow, it's a lot of times. Buying companies are already big in the United States, so it will be easier to grow, and my growth will be more difficult.

The second problem is integration, large customer integration, and they don't realize that the solution is good for them, just when the hardware is available. These things are a lot of pressure on us to do many research and development companies. There will always be Taiwanese manufacturers, or local manufacturers, who are mostly cheap and don't need too much foresight and protection. They put us under a lot of pressure when their prices are low. The acquisition company is the United States-centric company, the second Chinese customer price pressure.

Media: What is the estimated share of EMC's SME revenue in China this year? What are the needs of these small and medium-sized enterprises for mixed cloud?

Ye Chenghui: Our goal is almost 35%-40%. Our SMEs grew very fast, and I felt they didn't talk too much about mixed clouds, small and medium-sized enterprises have not yet reached that point, or say I want to store, rarely said I want to cloud, or mixed cloud, this is a I need to store, or data mining applications, or need a huge storage applications, this more. Shanyun words are not much.

Media: Now many enterprises to build their own private cloud, in fact, some private cloud content should be a higher level, each enterprise built public cloud, will not form new information blocking?

Ye Chenghui: That's why mixing clouds, individuals or businesses, wants to put my own stuff in the public cloud as much as possible. This is a conflict, if 100% do not need protection, all of the public cloud can also be, but the real business is very few. Most of the private cloud is done first. When your public cloud application is connected to a private cloud approach, it is not a big problem. Like Alibaba Business-to-business, in fact, he and many enterprises, you can say is cloud, also can say not cloud. His model is a bit like the public cloud, the enterprise also needs its own things to connect with him, this model is also the future of the hybrid cloud approach. In particular, Chinese companies, I think still want to have their own private cloud, more than the United States, Australia.

Media: How does a private cloud connect to a public cloud?

EMC worker: EMC between the private cloud and the public cloud, the general public cloud is one-way, and it's hard to come back in the public cloud. EMC infrastructure is most important, you want to build your own private cloud, some applications are placed above the public cloud, EMC has a solution, let it move back and forth. It's no problem to move from a private cloud to a public cloud. It is not a manufacturer that can do this.

Media: EMC's top six channel partners are on the scene, after the launch five years ago, said Dell is a very important sales partner, now six channel partners to occupy more than EMC sales, the past few years, EMC to do one thing, gradually om accounted for by channel partners. These six are domestic very top, they are according to what way to divide the market?

Ye Chenghui: I think the tide has been helping us OEM, not much different from a few years ago. Dell has changed a lot, Dale, a few years ago, but now there's something to work with, something that is my competitor, and a certain area that competes with us. Today's data does not drop for EMC in China, sooner or later.

From my point of view, I must hope that the larger the six have done, the better, I do not want Dell to do the bigger the better, to me a little benefit. So these six are I cultivated, you say six how to divide? We and other manufacturers are also a bit different, other manufacturers are areas, east China to who, south China to whom. There are some products, this product to one, another product to a family. We have no such points, six have their own level two representatives. Shenzhen is from the point of view of small and medium-sized enterprises, the last thing to sell may be two level, three agents directly facing customers, not the six, not EMC.

From the point of view of selling things are level two or three agent, so I do not want to divide their area. Sometimes it comes back you don't know who the real end user is, you sell 10,000 dollars of products, it is impossible to install each product in which place, I can not manage. I don't understand how competitors can divide this, I don't think so. I mainly and six can sell, if he two agent to sell things, through his words, there are return points to the level two agent, we hope that the center of more than six distribution, but also hope that 1400 speed Alliance can make money.

Media: When you took office, EMC two hundred or three hundred people, now 2500 people, are growing very fast. Although EMC research and Development Center is guided by the United States, EMC China invests a lot in research and development, especially 2500 people, about one thousand or two thousand of whom belong to the research and development team, and what is the U.S.-led EMC research and development system that will benefit the Chinese market?

Ye Chenghui: A few years ago, he was one of the global research and development teams. But I also spend a lot of energy on it. For example, Shenyang and Wuxi do research and Development Solutions Center, we do research and development team to send personnel with the government to do, we also send solutions to people, together in different research and development methods in China. They will build a small cloud center in Shenyang, in Beijing. This is one of the ways.

The second developer I asked to communicate with customers in real time, perhaps 10 hours of research and development, the next 10 hours may see customers, customer staff and research and development personnel contact.

The third thing we do when we do products in the United States, often do not consider Chinese characteristics. In the future, there are Chinese specific ways to expect products, such as Chinese-specific features, which may not necessarily be the same as American products. Because most of our production has come to China, all the previous production is in Ireland, now all production is in Shenzhen, so there is a big difference.

Media: You also talked about the need for the Chinese market, and you said in your speech, what are EMC's specific plans for mass storage?

Ye Chenghui: I didn't participate in the research and development program, so I didn't know what I was going to develop behind the project. But I'm involved. That is to say, I see the requirements of Chinese customers are not the same as the requirements of American customers, how do we do our function can be different from the United States, while there is a Chinese research and development in the inside. For example, all services in the United States can be resolved in real time, with EMC having a line attached to the customer, and what the customer has a problem that EMC can see. Chinese customers often do not allow this, the only way to have problems when the engineer to go, and then through the customer to see how the problem. This function is very large, if only the U.S. developers, there is no new demand, perhaps he only the military needs.

Research and development in China is doing, how to achieve a more perfect support. But I think this kind of function will see more and more, in order to Chinese customer demand.

Media: EMC provides cloud core technology in cloud computing, cloud services are made by local Chinese vendors, and later support and maintenance are done by local manufacturers.

Ye Chenghui: This is EMC's best advantage. For example IBM, Access partners like IBM, they have to rely on services to be profitable, and now the hardware is not much profit. Service profit words, IBM hope that all services by themselves, will not be given to partners to do, and will not give the cloud general contractor to do, become he wants to do, this side do not want to do. EMC benefits We do not have this baggage, like HP also has the baggage, acquired EDS hope to do a lot of service.

Our headquarters do not need to work with our eco-chain to do services, so I can with like digital China, Yi Tong Company, I have with them in the service above have a competitive relationship. Because they are listed companies, listed companies like to do the best service, the big Chinese companies want to do the service, he and EMC cooperation, it is good that EMC does not need to compete with him for service.

Media: Microsoft has a very clear wiring diagram, the next step to achieve server virtualization, and then separate, and then apply. Do we have a detailed recommendation to our customers?

Ye Chenghui: We have, in the entire cloud architecture inside step-by-step how to go, we have, and we have the EMC case, because we go cloud for almost seven or eight years, the first step how to do virtualization, the second step is not the core application in the inside, the third step to put the core application inside, the fourth step how to do it and services. In fact, 40,000 of our in-house employees do this. But how to do the cloud center, every government department, every customer is different, there is no picture inside. But how to do a virtual architecture center, Virtual Cloud Center, in the cloud inside we have.

Media: Just talking about cloud computing, what is the role of EMC at this level in terms of two patterns of cloud computing, the pattern of offense and defense, Cisco, and EMC data power?

Ye Chenghui: When we push, I think it's different from the VCE architecture. American push VCE mainly how to help customers to build the center, we found that the customer must identify with virtualization, do not identify the need for virtualization Mega LAUNCH, must identify with the storage as the center, but also to recognize the Cisco Blade technology. It's not that you can't use a different server.

When we do, we definitely want to use Cisco to drive with EMC, VMware three blocks. But also do not tie the dead, if just push VCE, the customer said I do not like to use Cisco, we push behind when it is difficult to push. We first know the customer to three manufacturers agree, we push. Cisco would certainly like to think so. This is the relationship now.

Media: I have two questions, you mention the Chinese market forecasts, but also to the U.S. headquarters and domestic differences in understanding, as well as the cloud computing bubble problem, whether the past five years, EMC as the domestic market expectations is too high? Does the second question mean that EMC will focus more on localization in the future? Will there be more independent rights in China or in the Greater China region?

Ye Chenghui: For the first five years, hope is still a little faster. I think from my understanding of the EMC Greater China and a few years ago, the headquarters is very poor, you said that there will be no investment headquarters 2500 people, so they certainly want to invest in China, I told them every day is not you vote not investment, where you vote? For example, he's just adding sales and service markets, and I hope that the future of EMC's Greater China growth comes from not being in service, it's on cloud computing, someone doing the package, and EMC doing the architecture. This is not the same as the headquarters hope, in the United States, Australia is our total package. There are difficulties in China, as American companies want to do the total package, no city to the cloud to their total package. So I give the United States the hope that I will definitely grow, but I want to localize my growth goals and work with local companies, local governments and local projects.

Media: Does it mean that future decisions in China will be very independent?

Ye Chenghui: Now that there is a lot of independence, the power that EMC headquarters gives me is still very large. Last July a lot of foreigners came over, we open a will how to grow China, I asked the things they have solved. So I think EMC's support for me, or for EMC China, is sufficient.

Media: Vnx customer application in China?

Ye Chenghui: It is already in order, cannot say production. Production needs a period of time, there are telecommunications customers, financial customers, there are government departments.

Media: How much do you do with EMC alone?

Ye Chenghui: EMC does more. I think also back to the Chinese companies to buy the habit, they still do not like me all. Many companies look at different things, Chinese companies feel that the habit of buying a little gap with the United States. America ultimately has to be simple, all tied together best. Chinese customers are different, or want to separate, separate each individual tender, tender finish I have the ability to slowly learn.

Media: Why?

Ye Chenghui: In fact, there are many different reasons, the first Chinese IT department, more than the United States, Australia. Most of Australia has no IT department. But China is still accustomed to use my people, so I am not willing to reduce staff control, there are some people have a lot of different opinions, hope that they have value. Our customers feel that although the bundle is easy to use, I do not need easy to use, I have someone. You can separate, I can have caught the place, tell the boss I made this one. All bundled together are made by your manufacturers, that my value is somewhere.

Media: Staff cost is too low?

Ye Chenghui: It's not so low now, it's a lot higher than it was six or seven years ago. But habits are not changed, not Chinese enterprises do not need IT staff, total package. It is easy to cite many examples in Australia and the United States.

Media: A business outsourcing to you, there is no difference in cost?

Ye Chenghui: I can find it, I don't quite remember. Because I have not sold the total package in China, Hong Kong has, Australia has.

Media: Hong Kong?

Ye Chenghui: I lift Australia, I remember an example. is a bank, about 100 U.S. dollars four years total package data Center architecture, its cost may be about 150, so the province 30%, not only this may be flexible, or it application time a little faster.

Media: I sometimes interview enterprises, their concept is also changing, including the use of telecommunications to the school, instead of improving the quality of service, so that professional people do professional things.

Ye Chenghui: This is right, but your interview will find a phenomenon, even if outsourced, do not want to accidentally package an American manufacturer. Why do you always say EMC China plays differently from America? Wuxi City outsourcing to China Telecom, you said that EMC can do, a lot of economic factors can not give you.

Media: Is the reason for establishing a joint venture?

Ye Chenghui: Important reason. For example, with the Shenzhou digital, I always pack Shenzhou digital can, outsourcing or total package of EMC certainly not, HP certainly not, Cisco spend so much strength total package City, also not many. I think Chinese business is different from other countries.

Media: IBM win Wuxi?

Ye Chenghui: Wuxi It total package is China Telecom. You can ask the Wuxi IBM Cloud Center how, knew. I don't discuss their technical problems.

Media: The company form are all foreign companies.

Ye Chenghui: IBM is different, his service requirements are very very high, unlike EMC. EMC headquarters does not say that services account for your income 15%,IBM is required.

Media: I add a question, vnx facing the market of small and medium enterprises below 10,000 dollars, is it special to face the Chinese market?

Ye Chenghui: Also not, the world has this product, but we study this product, also studied a lot of Huawei this grade of products, outside China can do such a comprehensive price competitor is still not much, our headquarters is very fancy China market, also study a lot of Huawei products.

EMC staff: When we were developing this product, we were in the early stages of educating them on the low end of the Chinese market, such as customer needs, competitors, and how you use the top.

Ye Chenghui: Why do we come out very early in the Chinese admin interface? Because our products do not necessarily have Chinese, there are Chinese words is also the product released six months or longer before the Chinese can come out, but this product we are relatively early participation in, this is our Chinese research and development team also involved in product development, so we very early on the demand to the headquarters, so they develop the entire product, Although it is a global product, it also combines our requirements. Thank you!