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On the heels of Dell purchasing EMC for $sixty seven billion and Western Digital buying SanDisk for $19 billion, HP is selling off its TippingPoint network safety business to TrendMicro for $300 million. TippingPoint is a provider of next-generation intrusion programs and network protection solutions, and HP says that in future it is going to resell network security capabilities from companions (together with TrendMicro) in place of personal its personal assets.
The circulate is available in increase of HP completing a damage-up of its company into computing device and corporate services, a move it introduced final 12 months can be complete by the end of this fiscal year.
HP became rumored in September to be shopping TippingPoint for between $200 million and $300 million. The deal is anticipated to within sight the end of this autumn.
fashion Micro says that the deal will encompass security know-how, IP, trade expertise and TippingPoint’s client base. It could be combining TippingPoint’s business with its existing community protection operations in a brand new company unit referred to as community protection.
at the same time, HP says that it's pulling out of having its own network security enterprise and will as an alternative associate with third parties for such capabilities “in an effort to invest in other areas of our security portfolio.” HP says that after the deal closes it's going to continue to associate with TippingPoint as a “strategic consumer and associate.”
vogue Micro and HP have had a strategic partnership in place considering 2014. vogue Micro is positioning this as its way of completing the latitude of security solutions that they can offer to agencies, while keeping some continuity in the HP relationship.
“organizations need a layered probability defense working seamlessly throughout the business to address threats before, all over and after an assault,” referred to Eva Chen, CEO of style Micro in an announcement. “This new next-technology network protection answer combines our most reliable-in-type network breach detection system, with confirmed intrusion prevention and response capabilities from TippingPoint. Given our tenure with both HP and TippingPoint know-how, we are excited in regards to the agility of this acquisition and the cost it'll create for consumers.”
the upward thrust in cloud computing and IP-every thing has ended in an increase in malicious hacking and other cybercrime, and that in flip has resulted in a plenty bigger priority for community safety investments among enterprises.
but on the same time, because the space turns into extra subtle, it looks like we might also see yet extra companies emerge that center of attention simply on safety as opposed to attempting to offer a full stack of IT features.
TippingPoint became part of HP in 2010, when its old owner 3Com became got by using HP for $2.7 billion. before that, 3Com purchased TippingPoint in 2005 for $442 million — making today’s $300 million fee whatever thing of a steal.
Hewlett-Packard referred to on Thursday that it would sell a new line of networking switches which are manufactured via a Taiwanese business and depend on Linux-primarily based, open-source software from one more company.
HP, once on the center of high-tech manufacturing, will now not make the new networking gadget however will act as a reseller, offering each online ordering and worldwide guide for the product.
it is the most consequential announcement from HP on the grounds that its chief executive, Meg Whitman, introduced ultimate October that the company would split into two separate companies. One should be focused on enterprise, and the other on client-type products.
The networking stream, firmly in the enviornment of business expertise, indicates the category of changes HP and other older tech giants have to make to live on in a reworking industry.
In its last fiscal yr, HP took in $2.6 billion from its proprietary networking enterprise, which begun in earnest in 2009. within the long term, low-priced, open-source networking equipment could threaten HP’s latest business, notably if the open-source items make anticipated good points in vigor and capacity.
HP isn't the handiest networking device maker threatened through the altering market.
Cisco programs continues to be by means of far the greatest maker of networking apparatus, with $47 billion in annual revenue, and it depends closely on proprietary products.
Networking apparatus has been considered an important a part of HP’s future, besides the fact that children.
“We see a shift,” spoke of Mark Carroll, the manager expertise officer of HP’s networking company. “The traditional market, the one-dealer market, is transitioning to many suppliers.” by offering an open-source product consisting generally of mass-market chips, the considering runs, HP may be ready to dislodge Cisco.
Mr. Carroll referred to as HP’s embody of open source “an evolution” of his business’s method. “You analyze which markets are transforming into and go there,” he stated.
bought advanced and proprietary mixtures of servers, facts storage, networking and application for decades, valued clientele at the moment are annoying techniques that can be organized in alternative ways, with open-supply utility they could tinker with in-residence. the brand new methods promise advantages in velocity, can charge and innovation.
furthermore, new entrants are affecting the company. groups now count on Amazon’s computing-rental business for a lot of wants. facebook final week introduced an open-supply swap intended to undermine prices and pace innovation in the industry.
Mr. Carroll observed HP “completely” sees fb’s change “playing in the same space” as HP’s open-supply networking.
The actual manufacturer of the HP containers, Accton technology, has been making equipment for HP for two decades. The open-supply application could be provided by means of Cumulus Networks, which closing year introduced it would deliver Dell with utility for cost effective networking packing containers. The Cumulus relationship with HP is not unique, and HP might add extra suppliers in the future.
HP “desires the application and repair margins and to put off being in the hardware business,” talked about JR Rivers, chief govt and one of the vital founders of Cumulus. “You’ll see other networking suppliers get on board with this.”
The initial target valued clientele for the product, accessible in March, are telecommunications and fiscal agencies. both use a lot of cloud computing, mobility, social media and big-data materials in their information centers.
“each big tech company is going through this: We built an excellent company in the old world. Now how will we use that cash to be primary within the new one?” observed Jeremy Burton, president for items and marketing of EMC, the area’s biggest maker of information storage device.
last April, HP announced a joint venture with Foxconn, an extra Taiwanese contract company, to supply within your means computing device servers for cloud computing. IBM, unhappy with the income margins in low-conclusion servers, sold its company to Lenovo of China. Dell has become a privately held enterprise with a view to refashion itself for a company know-how world full of cloud computing and open-supply utility.
EMC has bought a number of software, networking and computing organizations, Mr. Burton stated, and is in the system of giving away extra application that used to bring in proprietary salary, hoping to promote agencies other items according to the free stuff.
“It’s a large event for every person, absolutely,” Mr. Burton stated. “Some will make it.”
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How much of a company’s journey toward sustainability is driven by the personal passions of its CEO? Based on the conversations Barron’s had recently with several corporate chieftains, quite a lot. That’s one of the insights from our second annual sustainability ranking of public companies.
Consider Voya Financial (ticker: VOYA), the insurer and retirement-savings company that vaulted to No. 6 this year from No. 46 last year. Even before Voya separated from Dutch parent ING and went public in 2013, its CEO was already planning something fairly radical: diversity in its management ranks and gender parity on the board. “We very consciously wanted to send a message that diversity and inclusion were very high on our list,” Rod Martin, Voya’s chief executive, told Barron’s. To Martin, it was the right thing to do—“there’s so much evidence that companies that have done this perform better.” By 2018, Voya had diversified its board; half of the executive committee members were women, and the stock had beaten the S&P 500 index twofold.
Or consider Hubert Joly of No. 1–ranked Best Buy (BBY). He dates his sustainability commitment to when he was a child in France and saw the environmental damage being done to the Alps. He traces it through early adulthood as he developed a spiritual practice, and then to an encounter with a worldly client when he was a young McKinsey consultant.
For investors, it has paid off. In a tough 2018, in which the S&P 500 lost 4.2% and the Russell 1000 fell 4.6%, the 100 most sustainable companies on our list lost 3.2%. Calvert Research and Management, the sustainability powerhouse owned by Eaton Vance (EV), compiled Barron’s list, basing the rankings on hundreds of metrics that address environmental, social, and corporate governance, or ESG, factors. “We’re beginning to get more and more recognition from the markets,” says Calvert CEO John Streur. “Companies can be differentiated based on how well they manage their environmental and social impact, and the strength of their governance. The list shows who’s creating a better company, long term, for long-term investors.”Special Report: The 100 Most Sustainable Companies
There are significant changes in the top 10 from last year, including the entry of Voya, and Best Buy’s ascent to No. 1 from third last year. You might notice that some of the top companies are headquartered in California. That makes sense: The state is home to tough environmental regulations and governance initiatives. “You can’t say it’s causal, but it’s explanatory,” Streur says.
To create the rankings, Calvert analyzed the 1,000 largest publicly held U.S. companies (by stock market value) and scored them on more than 200 key indicators and 28 issues. Calvert then sorted the data into five key categories: shareholders, employees, customers, planet, and community. (The shareholders category might include executive compensation, for example, and the customers category might include data security or product safety.) Each corporation received a rating from zero to 100 in each category.
Finally, Calvert produced a single rating for all of the companies, weighted according to how material each category is for their industry: Emissions are less critical for a bank’s score than they are for a trucking company’s, for example. It also excluded companies that didn’t meet the Calvert Principles for Responsible Investment.
Illustration by Lynne Carty
Source: Calvert Research and Management, a unit of Eaton Vance
The lowest overall score in the universe was 27; the median was 55. The average score for the best 100 was 66.6, leaving room for improvement. What’s more, the best 100 scored marginally worse than the previous year’s, which averaged 68.7. While scores rose as companies boosted diversity, says Calvert analyst Chris Madden, Calvert also increased penalties for companies with late filings, restatements, or other actions that could concern shareholders.
Separately, we asked Calvert for a list of the most sustainable publicly traded companies outside the U.S. You can see it in the nearby table.
Across the U.S., sustainability has become a priority in many areas. This year, California’s new law mandating that companies based there have at least one woman board member takes effect. Other states, such as New Jersey, are considering similar legislation, on the theory that diverse boards perform better and are less susceptible to groupthink. Institutional Shareholder Services predicts that the number of all-male boards, now at an all-time low, will continue to decline. Boards, once somnolent, are being asked to address a variety of risks, such as those from climate change, or other ESG concerns and behavior that can influence corporate performance. Technology companies, for example, are increasingly scrutinized over their protection of user data. The pressure isn’t coming just from progressive states: Much of it is being driven by professional money managers, who are adding ESG factors to their investment strategies.
No. 1-ranked Best Buy, headquartered outside Minneapolis, moved up from third last year. Its shares fell 20% last year amid concerns that its multiyear makeover may have peaked, but are still up more than 200% since Joly took over as CEO in 2012. Further gains aren’t out of the question: Best Buy is the last man standing in consumer-electronics retailing. It has even joined with Amazon.com to sell Alexa-enabled Fire TVs in stores. Best Buy has done all of this while practicing sustainability: It helps customers recycle old appliances and electronics, to recover rare earths, gold, copper, and plastic. Its Geek Squad helps extend the lives of old devices and appliances. Geek Squad members now drive to clients in a Prius, cutting the firm’s emissions footprint. The retailer scored 100 on the Human Rights Campaign Foundation’s corporate equality index. It’s on the climate A list of the CDP, formerly known as the Carbon Disclosure Project, and made it onto the Dow Jones Sustainability Index for the eighth year in a row.
Illustration by Lynne Carty
Source: Calvert Research and Management, a unit of Eaton Vance
“Sustainability is embedded in everything we do,” Joly says. He grew up in Nancy, France; his parents took him skiing in the Alps, where the glaciers were already receding. In business school, he became friendly with two Jesuit monks. The future CEO began to meditate, and wrote articles about the purpose of work. In the early ’90s, when Joly was a young McKinsey consultant, a client told him, “If you believe the only thing for a company to do is generate shareholder value, you’re going to be in trouble. You need to 1) have a great team, 2) have happy customers, and 3) generate returns. But it’s the first priority that generates the second, which generates the third. Making money is the outcome.”
Today, Joly says, “sustainability is integral to each element of our strategy. It starts with the purpose of the company—not to make money, but to contribute to the common good, and, specifically, to enrich lives through technology by addressing key human needs—and not burning the place to make a profit.”
No. 2 is networking giant Cisco Systems (CSCO), down from No. 1 last year. Cisco shares jumped 17% in 2018, as the company beat expectations every quarter. Its weighted average score is just under Best Buy’s: Calvert praised the San Jose, Calif., company for “best-in-class data security and privacy controls, including recognizing data privacy and security as a human right, external certification on privacy controls, and incorporating privacy by design principles into product development.” By 2022, Cisco plans to reduce greenhouse-gas emissions by 60% from 2007 levels. Renewable energy now accounts for 80% of its electricity consumption, and it has widespread waste-reduction programs.
CEO Chuck Robbins tells Barron’s that “I’ve been really focused on more of the social issues” recently. In March, Cisco made a commitment to spend $50 million to fight homelessness in Silicon Valley, part of a wider initiative with the Kaiser Permanente health-care system. To ensure a workforce that will need Cisco products, it created Cisco Network Academies, which boasts 9.2 million graduates and has 1.9 million students enrolled today. The tech giant has committed to educating another 10 million students globally over the next five years. Says Robbins: “If you can connect someone and educate someone, you provide them opportunity to participate in this global economy.”
No. 3–ranked Agilent Technologies (A) vaulted up from 17; shares of the laboratory instrument and software maker gained 2% in 2018. Agilent, a former unit of Hewlett-Packard , has a dense, detailed corporate social-responsibility report that includes information such as the organization’s direct and indirect greenhouse-gas emissions, by weight.
Illustration by Lynne Carty
Source: Calvert Research and Management, a unit of Eaton Vance
CEO Mike McMullen joined Hewlett-Packard in 1984 as a freshly minted Wharton M.B.A. “I said I want to be with a company that makes a difference in the world,” he recalls. Customers of Santa Clara, Calif.–based Agilent include labs that test for environmental and water safety: 85% have their own sustainability goals. Many are fans of new Agilent products like Intuvo, a gas chromatography system that uses 50% less electricity. Agilent has increased energy efficiency by 40% and cut its carbon footprint by 25%. The firm doubled its maternity leave last year, to 13 weeks. Next month, a third of its independent directors will be female. The firm also gives employees a paid week off for volunteer work. Says McMullen: “This is a performance-driven culture. Having an energized, aligned workforce is how you get great results.”
HP Inc. (HPQ) itself is No. 4, up from No. 5. Silicon Valley’s original garage startup, founded 80 years ago, has benefited from robust sales of personal computers and printers, thanks to increased demand from corporate buyers and popular demand for gaming devices. Among other things, Calvert praises HP Inc. for robust corporate governance, a thorough e-waste recycling program (45% to 70% of its ink cartridges are made of recycled plastic), and a commitment to develop skills and improve the well-being of a half-million factory workers by 2025, via initiatives including leadership and career-development programs focused on women. The compensation plan of every member of HP Inc.’s leadership team has sustainability-related objectives.
Last year, HP Inc. received $700 million of additional business—“specifically, all things being equal, because our sustainability programs were stronger” than rivals’, says Stuart Pann, head of the company’s supply chain. “The line that connects this to shareholder value is our customers—they are asking for what we’re doing in this area, and [they] value it.”
Rounding out the top 5 is Dallas-based chip maker Texas Instruments (TXN), up from No. 6. TI has reduced water consumption by 5%—significant because it already recycles 30% of the water it uses in manufacturing. In sixth place, as mentioned, is Voya Financial. No. 7 is Oakland, Calif.–headquartered Clorox (CLX), the ninth-place finisher in 2018. Under CEO Benno Dorer, Clorox has produced strong transparency around the ingredients in its products, has robust product-safety assessments, and already has exceeded its goal of cutting greenhouse-gas emissions 20% by 2020.
Illustration by Lynne Carty
Source: Calvert Research and Management, a unit of Eaton Vance
Vaulting to No. 8 from No. 75 is Chicago industrial-supplies company W.W. Grainger (GWW), which has reduced greenhouse-gas emissions by 20% on its way to 33% by 2020, and is the only industrial supplier to participate in an Environmental Protection Agency initiative to trim emissions from freight transportation. No. 9 is Chicago-based Motorola Solutions (MSI), up from the 13th spot last year. At No. 10 is Milwaukee-based staffing outfit ManpowerGroup (MAN).
Among the companies that fell in the rankings is Microsoft (MSFT), which slipped to No. 43 from a top-10 ranking as it faced discrimination and harassment lawsuits. One case alleges discrimination toward about 8,630 female employees. Microsoft didn’t return requests for comment. Also edged out of the top 10 was Oshkosh (OSK), now No. 17 amid concerns about the trucking company’s pay policies. Oshkosh did not reply to a request for comment.
When Dutch insurer ING flirted with bankruptcy after the financial crisis, it began shedding assets, including Voya. Preparing for the initial public offering allowed Voya CEO Martin and his colleagues to rethink the company. Martin was committed to diversity and gender parity on the theory that it improves decision-making and profitability. “We could no longer dial the Netherlands and ask them to send another billion dollars,” he says. “We tried to think through the outcomes and characteristics if we started a new company.”
Illustration by Lynne Carty
Source: Calvert Research and Management, a unit of Eaton Vance
Worried about being branded politically correct, he and fellow executives talked about the initiatives less candidly in the early days. As the program gained traction, they grew more confident. Today, 40% of the independent directors are women. Voya has received a number of plaudits for sustainability. Management reports regularly to the board on the issue, and creates an annual report card that it shares with the board and with customers. The company is moving fast, completing several of 23 corporate social-responsibility goals it has set for 2020. “In 2½ years, we went from no women and diversity to coequal,” he observes. “It has reflected itself in our ability to recruit and retain talent.”
Today, Martin is routinely asked by executives and directors from other firms how Voya did it. Sometimes, they tell him that their fellow leaders are opposed. “That’s a bunch of excuses,” Martin tells them. “You’re going to be in the crosshairs of these things. Lead. It’s a great outcome.”
Correction: Best Buy CEO Hubert Joly says the purpose of the company is not to make money. An earlier version of this story misquoted him.
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I’ll just say it: Consumer branding gets all the glory. Most winners of the Cannes Lions and other marketing and advertising awards are brands that sell to consumers.
While business to business (B2B) branding has a reputation for being boring, more companies are taking creative cues from business to consumer branding (B2C). The fact is, we can no longer afford for our marketing to be boring. The buttoned-up, “just the facts” corporate tone associated with B2B isn’t effective anymore. As a result, marketers get to have a little more fun, and here’s why we need to.
The business world has changed.
Two decades ago, a B2B brand might have done well to play it safe. But as workplace cultures evolve and millennials constitute the majority of the workforce, B2B branding and marketing strategies must evolve too. Messages that once seemed professional now feel outdated.
The last thing you want is to be out of touch with your target audiences: people researching B2B products for their companies. Even by 2014, nearly half of the customers trying to find you were millennials. This generation has grown up online, freely sharing details of their lives, and shaping work environments that welcome casual dress, pets and telecommuting. This is the context in which your messages are heard -- or not.
Marketing is evolving.
B2C and B2B customers today want to try before they buy, giving rise to experiential marketing, such as GE’s award-winning B2B Healthymagination campaign, educating industry professionals about its global healthcare initiative. Letting audiences see, hear, smell, taste and touch what you offer is no longer a nice-to-have -- customers expect it.
If customers can’t experience your brand and product in person, they want engaging mobile sites/apps, games, simulations, social campaigns and in-depth reviews. Today, you can experiment with makeup and try on eyeglasses without leaving home. Additionally, customer reviews have always been important for making purchasing decisions, so it makes sense that reviews and testimonials are also essential for B2B. Five years ago, this was special. Now, it’s table stakes.
Just because your revenue comes from businesses and not individuals doesn’t mean you can afford to be overshadowed by B2C brands. Depending on which source you believe, it's reported that most people are exposed to somewhere between 4,000 and 10,000 brand messages a day. And, while your products aren't competing with B2C brands, consumers' attention and recall are finite.
Messages and marketing claims aren’t enough. The majority of B2B researchers you want to make an impression on -- millennials -- are run by the same people who spend hours each week watching online videos. To even be noticed, let alone stand out, B2B marketing must be sophisticated and multichannel.
You likely have multiple, nuanced audiences.
One-size-fits-all marketing fits no one. Your audience isn’t a monolith, so your brand shouldn’t be either. Take time to understand the facets of your customers’ needs and tastes. At AppLovin, we’ve created a brand that mobile game developers can identify with. Many of our customers are indie developers or one-person shops. If we sounded too corporate, we wouldn’t resonate with them.
Simultaneously, we have enterprise clients that expect markers of experience and professionalism. So, while we like to have fun with our branding and marketing, we’re not flip or crass. Even B2B customers need to see some aspect of themselves and their concerns in your brand, so pay close attention to what those are.
Creative risks tailored to your audiences can pay off.
When your brand strategy fits your target audiences, you have room to experiment with out-of-the-box campaigns. For example, MailChimp ran a year-long ad campaign for nine fake products whose names rhyme with MailChimp, inspired by a girl’s mispronunciation of MailChimp during the Serial podcast (“Mail Kimp,” anyone?). The products, which included “FailChips” and “SnailPrimp,” seemed random, but they were created to appeal to MailChimp’s small-to-midsize business subcultures. The campaign -- in addition to being MailChimp’s most successful to date -- actually won a Cyber Grand Prix trophy at Cannes.
HP’s “The Wolf” campaign, starring Christian Slater, made printer security interesting by personifying the threat network devices face. With a script that poked fun at both the potentially boring topic and stereotypical office culture, the video related an invisible problem in concrete terms. Perhaps riskiest was the video’s length -- more than six minutes -- but it worked and resonated with audiences who watched it all the way through.
Your contacts need to sell you internally.
You need B2B researchers to find, engage with and trust your brand, but they’re usually not the purchasing decision makers. They may believe in your products, but if they can’t get their teams on board, you’re out of luck. The more appealing, informative and flexible your marketing, the more easily those researchers can market you.
As Reid Tatoris, VP of product outreach and marketing at Distil Networks, said in an article: "One of our biggest B2B challenges is the number of decision makers who need to weigh in on the purchase decision. You really need to be able to tell your story several different ways to several different buyers in the prospect company."
Your customers are people.
You aren’t selling to a building or to an LLC. You’re selling to a human being who works there. Forgetting this means missing opportunities to make personal, relevant connections that characterize the most effective marketing. You might be surprised to learn that, according to Google, “On average, B2B customers are significantly more emotionally connected to their vendors and service providers than consumers.” B2B brands that make emotional connections with customers have double the impact of marketing conveying functional value. Further, 86% of B2B buyers see “no real difference between suppliers,” meaning your brand needs to stand out.
B2B marketing has traditionally relied on facts and information, but they rarely make a lasting impression. To pave the way for a successful future, you need more than data; you need stories. Take inspiration from B2C marketing, but beyond that, as an individual who probably loves to hear and tell stories, notice what captures your attention. They are what last.
Hewlett-Packard said on Thursday that it would sell a new line of networking switches that are manufactured by a Taiwanese company and depend on Linux-based, open-source software from another company.
HP, once at the center of high-tech manufacturing, will not make the new networking equipment but will act as a reseller, providing both online ordering and worldwide support for the product.
It is the most consequential announcement from HP since its chief executive, Meg Whitman, announced last October that the company would split into two separate enterprises. One will be focused on business, and the other on consumer-type products.
The networking move, firmly in the area of business technology, shows the type of changes HP and other older tech giants must make to survive in a transforming marketplace.
In its last fiscal year, HP took in $2.6 billion from its proprietary networking business, which started in earnest in 2009. In the long term, cheap, open-source networking equipment could threaten HP’s existing business, particularly if the open-source products make expected gains in power and capability.
HP is not the only networking equipment maker threatened by the changing marketplace.
Cisco Systems is still by far the biggest maker of networking gear, with $47 billion in annual revenue, and it depends heavily on proprietary products.
Networking gear has been considered an important part of HP’s future, however.
“We see a shift,” said Mark Carroll, the chief technology officer of HP’s networking business. “The traditional market, the one-vendor market, is transitioning to many suppliers.” By offering an open-source product consisting largely of mass-market chips, the thinking runs, HP will be in a position to dislodge Cisco.
Mr. Carroll called HP’s embrace of open source “an evolution” of his company’s strategy. “You look at which markets are growing and go there,” he said.
Sold complex and proprietary combinations of servers, data storage, networking and software for decades, customers are now demanding systems that can be arranged in different ways, with open-source software they can tinker with in-house. The new methods promise advantages in speed, cost and innovation.
In addition, new entrants are affecting the business. Companies now rely on Amazon’s computing-rental business for many needs. Facebook last week announced an open-source switch intended to undermine prices and speed innovation in the industry.
Mr. Carroll said HP “absolutely” sees Facebook’s switch “playing in the same space” as HP’s open-source networking.
The actual manufacturer of the HP boxes, Accton Technology, has been making gear for HP for 20 years. The open-source software will be supplied by Cumulus Networks, which last year announced it would supply Dell with software for inexpensive networking boxes. The Cumulus relationship with HP is not exclusive, and HP could add more suppliers in the future.
HP “wants the software and service margins and to get rid of being in the hardware business,” said JR Rivers, chief executive and one of the founders of Cumulus. “You’ll see other networking providers get on board with this.”
The initial target customers for the product, available in March, are telecommunications and financial companies. Both use a lot of cloud computing, mobility, social media and big-data resources in their data centers.
“Every large tech company is going through this: We built a great business in the old world. Now how can we use that money to be relevant in the new one?” said Jeremy Burton, president for products and marketing of EMC, the world’s largest maker of data storage equipment.
Last April, HP announced a joint venture with Foxconn, another Taiwanese contract manufacturer, to produce low-cost computer servers for cloud computing. IBM, unhappy with the profit margins in low-end servers, sold its business to Lenovo of China. Dell has become a privately held company in order to refashion itself for a business technology world full of cloud computing and open-source software.
EMC has purchased a number of software, networking and computing businesses, Mr. Burton noted, and is in the process of giving away more software that used to bring in proprietary revenue, hoping to sell companies other products based on the free stuff.
“It’s a big journey for all of us, without a doubt,” Mr. Burton said. “Some will make it.”
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