'Information explosion will drive cloud computing'

by Abhinna Shreshtha    Nov 11, 2010

Manoj ChughManoj Chugh, president (India & SAARC) of EMC, heads the storage giant’s operations in the country. An industry veteran, with more than seven years in the company, Chugh provides his insights on how the business and IT landscape has changed and how EMC fits in this new environment. Excerpts.

Everyone is talking about cloud computing. What is EMC’s vision for the cloud?

We are very optimistic about the cloud. It’s the only way that companies having complex, heterogeneous silos of information can manage their systems. Earlier resources were tied to an application but virtualization has now changed this. Another factor that will drive the adoption of cloud computing is information explosion. Take India for example, where data is expected to grow 60-65 percent in the next five years. With data growing at this rate, cloud computing will become more and more relevant to businesses of tomorrow.

Through your partnership with VMware and Cisco, EMC has a strong, holistic product line, in addition to your own separate portfolio. What is your go-to-market strategy?
There are two options for the customer. Either he can go through the virtual computing environment (VCE) coalition, consisting of VMware, Cisco, and EMC, and get pre-fabricated, pre-packaged solutions. The advantage that this has is that there is a single point of contact in terms of services and support. Of course, customers can also directly buy piecemeal from EMC and then get virtualization and other solutions from other vendors to build their own stack.

What do you have to say about rumors that EMC is planning to sell of VMware?
VMware is our most profitable company. It is making a lot of money for us. Why would anyone want to sell of something that is making money?

EMC has been making acquisitions in a number of different segments. Why is this so?
Our acquisitions have always been very strategic in nature. As the company evolves, it needs to determine how to expand its horizons and explore new areas. This is what drives our acquisition strategy. For example, earlier we were only focused on the enterprise, but with the acquisition of iomega, we now have a good consumer product portfolio too.
It is good to explore new areas, but more important is to get your acquisitions to work with your existing products and solutions.

What has changed for EMC in the last few years?
One of our recent developments is that we have added a lot of depth to our top management. We have been actively recruiting some great people from the industry to our management team. At the same time, we have also promoted few of our own people and given them additional responsibilities. I am particularly proud of the way we have maintained a balance between the two - recruitment and promotions.
On the business side, telecom was traditionally the largest vertical for EMC. But, since 2004-05 we started concentrating in new verticals like IT/ITeS and manufacturing. As of now, our main revenue comes from IT/ITeS, government, telecom, manufacturing, and BFSI. We also entered the consumer segment this year. So you see, we have been working on diversifying into new verticals to have a less lop-sided structure to our business.

You said government is a major vertical for you. Does the NID project interest you?
Yes, it definitely does. We are in active dialogues with system integrators to see how we can be a part of the NID, but nothing is concrete right now. Other than the NID project, we are also involved with state governments like Maharashtra, Andhra Pradesh, West Bengal, Tamil Nadu and Gujarat on their state data center and mission mode projects.