self explanatory

1. EMTM 561—Professor Gilmont
May 21, 2010
Presented by: Joe Raimondo

2. EMC Corporation—The Opportunity
45

3. Role of R&D
EMC maintains its market
leadership by focusing first on • EMC is the only major storage company to build its own
technology leadership.
products 'from A to Z‘
To maintain its technical • EMC Does not rely on R&D/product development
superiority, EMC has adopted a
traditional approach to R&D partners like LSI or OEM partners like Hitachi.
spending, targeting 12 percent of
revenue as a benchmark.
In addition to greatly expanding its
global R&D footprint, EMC targets • EMC recently released its V-Max next-generation Symmetrix
strategic acquisitions to add to its
technical capabilities.
architecture for supporting virtual data centers.
• V-Max resulted from extensive internal development effort
• EMC’s cloud computing coalition and partnership with Cisco
and VMWare has placed EMC’s R&D effort at the heart of
expanding this effort.
• SAP’s private cloud storage to run on EMC’s Vblock

4. Culture/Style
EMC pursues blended strategy of
centralized R&D investment • Platform-based product strategy leads to emphasis on
coordination with distributed
accountability among its 16 global
incremental approaches
R&D sites. • New platform models take years to develop and evolve
In addition to greatly expanding its through internal development and acquisition
global R&D footprint, EMC targets
strategic acquisitions to add to its
technical capabilities.
• End-to-end development strategy puts extra pressure on R&D
Simultaneous “loose-tight”
management of R&D centers
allowing substantial local autonomy • Big company vs. entrepreneurial approaches – maintain
while maintaining enterprise
perspective and span of control. creative tension
• EMC’s acquisitions have provided it with development
resources in new technologies and markets

5. Integration with Corporate Strategy
EMC has two CTOs – one with a
purely technology portfolio and one • CTO reports to EVP for Corporate Strategy
who serves as a “CTO for
marketing.” Technology and market • Also Global CTO for Marketing report
development are intimately
entwined.
EMC also depends on an extensive
• EMC's broad portfolio of hardware and software generally
network of partnerships and
relationships. Its technical
relies on different management interfaces and processes
organization must be suitably
flexible to provide resources
• Coordinating R&D and acquisition strategy is challenging;
EMC’s CTO organization also
participates closely in evaluation of product portfolio still has issues with integration
potential acquisitions as well as
integration of technical resources
• Risk of NIH syndrome
post-acquisition. • Acquisitions have overlapped with home-grown
Coordination between internal technologies
development and acquisition is a
challenge.

6. Effectiveness of R&D Technology
EMC’s has developed the capability
to consistently roll out new • The long-term future of the company depends on product
generations of technology.
and platform innovation in the face of massive potential
In addition, it has a track record or
integrating new technologies into growth in its core areas.
legacy platforms .
• EMC raising research and development spending in 2010 will
be up 20 percent.
• Shows executive-level trust and sponsorship for R&D
• Technology leadership team has developed and executed a
plan for expanding the market impact of investments in new
product development.

7. Unique Strengths and Weaknesses
EMC’s close coordination between
technology and market • EMC’s adopts best practices from industry leaders,
development results
• Borrows IBM’s world-renowned R&D operation
EMC has established a track record • Partners with Cisco, well-known for acquisition
of successful integration of
acquisitions. integration
EMC’s large legacy installed base is
a substantial attractor for R&D
management; drawing resources • Coordination of efforts in complex ecosystem (partners,
into markets that are susceptible to
rapid declining and collapse.
standards, implementers, academic)
• Product integration is sometimes faulted by customers
• Premium pricing strategy can be threatened by competition
• Loss of premium pricing could threaten R&D

8. Conclusions
EMC’s Third-generation R&D
approach serves it well in its • Demonstrable close coordination of R&D and corporate strategy
strategic imperative to be a
technology leader. (CTO reporting to EVP for Strategy)
• Demonstrable close coordination of R&D and marketing
• Blended strategy of centralized-decentralized development
• Technology management constantly resolving “buy vs. build”
decision when evaluating investments

9. Dominant
Competitive Position
VMWare
RSA
Strong
Clarion
Symmetrix Celerra
Favorable Docume
ntum
CLARiiON
Data
Domain
Vplex
Mozy
Iomega Ionix Atmos
Tenable
Weak
Base Key Pacing
Competitive Impact