Jotus Joseph M. Tucci, among the world's best CEOs in 2011 Barron's. The most influential magazine in the US investment community has a slightly different focus on other business media lists, and CEO-led companies are key determinants of capital market performance.
Indeed, the Chairman and CEO of the EMC Company's board of directors led the company's renaissance over the past 10 years, and the company became one of the top ten best stocks of the Wall Street Journal in the past 20 years. "He is a Steve in the Business application field," the American media said of him.
this March, EMC valued more than $60 billion trillion, and its acquisition of VMware value of 40 billion U.S. dollars (2004 acquisition price of 625 million). They are also ranked after Apple, Microsoft, IBM, and Google in IT companies, based on market capitalisation.
in the interview with this reporter, Jotus will these attributed to the success of "pre-sentencing future" vision and create "profit and growth of dual engine" ability.
in 2003, Jotus began to develop a strategy for the struggling EMC to clarify future business directions, including "Storage, backup, security, virtualization, cloud computing, Big data" six business directions, and invest 14.5 billion of dollars for strategic mergers and acquisitions to enrich the portfolio, The purchase of more than 70 companies also gave him a nickname, "Elegant acquisition of a madman."
"Enterprise strategy must be balanced, to balance the relevant business should be grouped together, the business as far as possible to do a wide range, so the chances of success is much greater." "Jotus told us the considerations behind such a grand layout and said that the division of business gradients around" cloud computing, Big Data "has now been done.
in this industry-looking person, this is the IT industry ushered in a new wave, disruptive technology and rich business opportunities have emerged, to do is to grasp and occupy a leadership position. Will the inertia of his success continue in the company's development? This is a focus of the next 10 global technology industry.
challenges cannot be
"21st century": When you arrived at EMC, the company was "very bad", why take this challenge?
Jotus: EMC was brilliant in the 1990 's and I don't think it's a risky thing to accept EMC's invitation as CEO in 2002. The IT industry was in the "glacier century" of the dotcom bust, and the industry was depressed.
I join the judgment is that the industry is named "Information", I believe there will be more information to be created, information needs to have their own home, storage is the home of information, and EMC in high-end storage business is the leading. And the company's financial situation is not very bad, in the bank has 4 billion of dollars in cash, no debt.
I got into Wang computer before is really high risk. At that time, Wang had entered the bankruptcy protection process, the bank has only 60 million U.S. dollars of deposits, the annual income decline 30%, 2 billion of corporate debt, while the company in word processing, office automation and e-mail business are losing, there is no possibility to take back the business. My family thinks I'm crazy.
"21st century": what else does EMC attract?
Jotus: In addition to the company's excellent business, the company's culture is very good.
I think there must be four things to be a successful CEO in any company. The first is to recruit the best talent; the second is to make a team of these people, and the third is to get the team to work passionately with the same strategy, goals and vision, and to make the customer successful, which is our success.
is an example of former Intel CTO Henry Kissinger. He is very intelligent, experienced, is able to team combat personnel, can contribute to the company's strategy. So in fact, a company's CEO can also be called CRO (R-Recruit) "Chief recruit." As CEO, these four things basically occupy me most of the time, a lot of staff recruitment I will personally pay attention to.
Dual engine Strategy
21st Century: When you took office, you immediately expanded EMC's business area.
Jotus: I have always been convinced that the enterprise strategy must be balanced, to balance the relevant business should be grouped together to do a wide range of business as far as possible, so the chances of success will be much greater.
The first strategy, EMC is the "king" of high-end storage, to keep this location high-end storage, and then into a broader midrange storage and even low-end storage market, and become a leading manufacturer.
the second is to expand the relevant business, store information, data, you need to protect them, which involves backup products, security products, such as access to data identity management and protection.
"21st century": Today, EMC business has expanded to six layouts, "Storage, backup, security, virtualization, cloud computing, big data." How do you plan your business gradients? Which are cash cows? What are the future strategic levels of business?
Jotus: An enterprise's balanced development needs two engines, one is the growth engine, the other is the profit engine, so as to keep the income increase, but also to invest in new business, to ensure sustainable development. So the right statement is that some businesses are in the early stages of the strategy, and some are in the late stages of the strategy. With this gradient division, you can ensure that the company in the constantly changing it tide is always on the top of the tide.
with such a gradient division, cloud computing, large data, large-scale horizontal scalability, predictive data analysis, these businesses are in fact in the embryonic stage; storage, data backup, data security and even virtual computing are all upfront investment, and now bring us fruitful business.
The logical
of
mergers and acquisitions
"21st Century": business development, you also dominate a lot of mergers and acquisitions. The most classic is the acquisition of VMware, spending 625 million of dollars, now valued at 40 billion dollars. What is the basis of this acquisition? Appears to be unrelated to the storage business.
Jotus: In fact at that time wanted to buy VMware only saw two points, these two points are right.
first of all, see that virtualization will be a very large market, because at that time before the virtualization technology, X86 Average server utilization is only 7%, and is a single core, when in fact, we all saw multi-core technology is definitely the future of the server, Virtualization technology enables any company that uses X86 servers to improve their server utilization.
Second, EMC had a storage market that couldn't get in, what was it? Is the storage inside the server. What EMC was doing was networked storage, which is shared by multiple servers. Using VMware's virtualization technology to improve server utilization requires server-shared storage, which can be achieved by virtualization technology.
we observe that virtualization technology will be the technology that triggers great changes in the IT industry, so we are moving forward a step further, using VMware's virtual technology to further spread the strategy. We know that VMware is now doing virtualization computing, but we believe it will do more to become an operating system for the next generation of data centers. The next step is large data and predictive data analysis.
This is the evolution of EMC's entire business and strategy from the original storage center, one step at a time to catch up and lead the entire IT development trend. The law of the IT industry is falling backwards, with EMC earning about $5.4 billion trillion in 2002, 2011-year revenue reaching 22 billion dollars, and revenue achieving 4 times times the growth, which is more broadly related to product lines and business.
"21st century": What are the support from EMC in the process of VMware's success?
Jotus: 1th We have implemented the right mergers and acquisitions model, keeping VMware's independent entity running, and not letting it disappear into our products. We even allowed him to work with our biggest competitor. Of course, EMC also has a lot of input, such as sales force.
"21st century": increase investment, special sales, specifically Which?
Jotus: We quickly introduced VMware's virtualization technology to the CIO of the world's most important companies. Before the acquisition, the CIO of about 10 companies knew that, less than a year after the takeover, CIOs in almost all major companies knew. Especially in emerging markets such as China and Brazil, VMware is almost entirely borrowing EMC's offices in these countries and we are recruiting them. When their business develops to a certain extent, they operate independently.
Overall, VMware is constantly strengthening its own technology, EMC increased investment, and ultimately achieve a win. It's also critical that we give 10% of VMware's shares to VMware's employees as an incentive.
Large Data Empire
"21st century": your personal experience of the past decade, such as textbooks in the same industry, and constantly confirm the changes. What changes do you think are most important?
Jotus: What was it like in the early 2002, someone talking about cloud? Will anyone talk about it as a service? And no one thought of parallel computing and virtualization? It was unimaginable at that time. That's why I still work in the CEO position at this age because there are a lot of new, big things going on and I'm still interested in the job.
recalls several great waves of it, the era of Mainframe, the age of microprocessors, the era of microprocessor, the era of client servers, and the era of distributed computing. Will find that any big wave transition period has two characteristics, the first subversive technology appears, the second contains a wealth of opportunities.
ago in the mainframe era, the computer era, there will be more than 20 companies to do the same products, but now the only remaining is IBM, the other companies either disappeared, or a career change. There are companies like Google and Alibaba, but it may not be possible to imagine a company that existed a few years ago. And in the IT industry, we know that the most valuable company is Apple, when Apple was almost forgotten, but now it has risen to the highest value of a company, which is the characteristics of the IT industry.
now ushered in the next big wave, we have entered the cloud computing, the era of large data.
"21st century": we know that you are about to retire, to choose a successor, how many important qualities are necessary?
Jotus: The real leader, always the company first, the company is the first, and then their own team second, they are always in the last. There is a real leader to practice, you ask others to work hard, you have to work hard first, you want others to observe the professional ethics, you should be a moral lofty person.
"21st century": What is your personal definition and understanding of leadership?
Jotus: Can lead a company to expand its business, to ensure that the company's profit growth, build the company's dual engine (growth and profit engine).
Author: Hou Jiyong
(Responsible editor: The good of the Legacy)
