William J. 'Bill' Teuber Jr.
Vice chairman, EMC Corp., Hopkinton
EMC Corp., one of the country's 10 most valuable technology hardware companies, is a global leader in big data, cloud computing and security. The company ranks 139th on the list of Fortune 500 companies, and reported annual revenues of $21.7 billion in 2012. EMC employs approximately 60,000 people worldwide, including more than 9,000 employees in Massachusetts. On Feb. 28, Mr. Teuber addressed a Worcester Economic Club dinner at his alma mater, the College of the Holy Cross, where he is a trustee.
How does EMC stay ahead of all the rapid change in the marketplace?
“First and foremost, we spend about 12 percent of our revenues on research and development. In 2012, that was about $2.5 billion. We've got 13,000 engineers around the world all working on evolutionary and revolutionary technology. This heavy investment in R&D is the lifeblood of any technology company, and if you look at comparable technology companies I don't think most of them spend anywhere near 12 percent of their revenues on R&D. At the same time, we recognize that we can't innovate every great new idea in the technology area, so we continue to acquire companies. Since 2000, we've acquired some 80 companies; we've invested about $16 billion in doing that. We recognize that there are interesting technologies in the marketplace that we're going to continually acquire. We have organic development of technology, and the acquisition of technology. We're very, very good at bringing any of the companies we have acquired into EMC and making them flourish within EMC. We've got example after example, starting with VMware, of companies that have become part of the EMC ecosystem and have really been an important part of our growth over the last decade.”
How did your own college experience at Holy Cross pave the way to a career at one of the world's info-tech giants?
“Well, it's interesting: I was an English major here. While I knew I was good analytically, I became an English major to develop the other skills. Leaving here and being able to write was one of the most critical skills in my post-graduate experience. After getting my MBA, I went into public accounting for many years, and even as CFO of EMC, the ability to write has been instrumental in my career. Holy Cross taught me that. I'm very proud of this place and very proud of the effect it had on me. I'm a loyal alumnus because I want to give back and I want the kids coming into school today to have the same if not better opportunities than I had when I got here in 1969. Originally from Waterbury, Conn., I'd been to Massachusetts once in my life before my parents dropped me off at the front door of Alumni Hall. I had never seen Holy Cross before I got here. I wanted to be educated by the Jesuits. Not only did it live up, a couple years later one of the Jesuits suggested that I go and teach catechism in one of the local churches, and I met a young lady who's been my wife for almost 40 years.”
What do you see as Central Massachusetts' advantages — and disadvantages — in luring high-tech and biotech business to the region?
“We've got a great workforce, many of whom live in Central Massachusetts, and we're very proud of that. … We don't see as many centers of innovation in Central Mass. as you see in some other parts of Massachusetts. But there's a tremendously well-educated workforce. People come to EMC from all over Central Mass., and we're proud to have them show up.”
How would you describe the unique role you see EMC playing in this global economy?
“First and foremost, we're focused on three of the hottest areas within IT. If you take away the applications side of IT — because we're not an app company — we're focused on cloud computing; we're focused on cyber-security, that's a white-hot issue in every boardroom; and we're focused on big data. When you walk in the door of any company anywhere in the world and you say, 'Hey listen, we have some of the leading experts in cloud computing, in virtualization, in data storage' — these are all the attributes you bring to the table.
“EMC continues to evolve, continues to go to where the market is. We've gone from a data storage company — which it was when I joined it in 1995 — to one of the leading strategic thinkers of infrastructure technology in the world. I fully expect we'll continue to do that, and continue to be in the areas of highest growth and highest importance for IT as we move forward.”
Compiled by correspondent Mark Sullivan