India: A Strategic Market for EMC
Since the start of its operations in India in 2000, EMC has scaled many heights. EMC has witnessed stellar growth in India during the last three years not only in terms of revenues but also in manpower. What sets the company apart from competition is its wide range of storage platforms, management software and consulting services, coupled with complete client focus and strong channel strategy. VARIndia recently talked to EMC Senior Vice-President Steve Leonard who was on a visit to India.
“India is key for EMC’s expanding global business as the country is remarkable in various ways. The vast number of scientists and engineers and the priority given to education set it apart from other countries of the world. The booming economy coupled with the government’s intensive focus on IT and e-governance makes India an exciting place,” says Steve Leonard,”Senior Vice-President, EMC Corporation, & President, EMC Asia-Pacific/Japan, EMC Corporation.
Steve Leonard sees a great future for Hopkinton, Massachusetts-based EMC in India. “We look forward to providing the technology and solutions that can help India progress towards its goal of becoming one of the world’s leading information-based societies,” adds Steve. He held meetings with government officials. The message is clear. India, which has become crucible of IT market and opportunities, occupies a pride of place in the EMC’s scheme of things.
In the recent past, EMC is on the prowl for acquisitions. Its most recent acquisition has been the security major, RSA, for $2.1 billion in cash and options. During the past three years, the company has swallowed nearly 22 companies spending more than US$4.5 billion in the process. Backup-recovery firm Dantz, data content management specialist Documentum and virtualization outfit VMWare are among the most notables. The majority of these acquisitions are software companies. This has something to do with EMC’s transition from a storage vendor a few years back to, what Steve calls, an infrastructure management company.
By acquiring and integrating these organizations, EMC’s revenues from software alone have catapulted it to the seventh-largest company in the world with software revenues. In order to better leverage these assets and to go to market in an effective manner, EMC has created the EMC Software Group (ESG).
“With a wide range of storage platforms, management software and consulting services, EMC has all the three components to fulfil a complete ILM solution,” says Steve.
EMC has been involved with the Indian market since 2000 and already runs business offices in”Delhi, Mumbai, Bangalore, Kolkata and Chennai. The company also operates customer support and logistics centres (Delhi, Mumbai, Bangalore, Chennai and Hyderabad) throughout the country to address the customers’ base. It has three proof-of-concept (POC) solution centres in New Delhi, Mumbai and Bangalore.
“As a leading information management vendor in India, EMC has witnessed tremendous growth in the country over the last three years. We look forward to grow and solidify our leadership position in the Indian market,” says Steve.
EMC has plans to invest $500 million in India over the next five years. The capital will be used to grow the Indian market for information management, expand its sales and marketing infrastructure and boost its R&D presence in the country. ”“We will use this investment to strengthen our marketing strategy in India. This will help us in maintaining our leadership position,” says Steve.
“In terms of manpower, EMC already has around 800-strong workforce in India. The company plans to double the workforce in the next two years.”
EMC has a large portfolio of customers in India spread across diverse verticals – Telecom, Manufacturing, Technology, Financial sector and SME. The company plans to tap the other verticals, including the government sector and healthcare.
As EMC undergoes transformation from a Storage Company to a complete information Management Company, its channel strategy has also acquired a new dimension. Once a direct sales-focussed company, EMC took the channel route with the launch of the Velocity partner programme in 2005. In order to focus on the SME market, the company has launched a product called Insignia, and Select Technologies has been assigned the responsibility of distributing this product.
In India, the company has over 50 Velocity Resellers, focussed on different geographies and verticals. Through its partners and distribution network, the company offers its storage platforms, software and services to over 30 cities and towns in the country.
EMC has already landed big-name partners such as Wipro Infotech, Tata Elxsi and HCL Infosystems, Tata Consultancy Services and CMC Limited. Apart from having global relationship with Dell, its strong alliances with technology companies like Microsoft, Oracle, SAP and Cisco.
Redington is EMC’s regional distributor in the region. Additionally, EMC recently announced a global OEM and expanded technology agreement with Intel, focussed on growing the storage requirements of small and medium businesses in the emerging markets like India and China. The company offers a comprehensive 3-day training programme for partners’ resources starting from the basic fundamentals of storage and extending to all information management solutions offerings.
To enhance the skill sets in storage solutions in India, EMC has launched EMC Academy Programme (EAP), industry’s first programme aimed at developing a resource pool of skilled information management and storage professionals. The company has already aligned with 26 educational institutes across India.