 We're here with Terry Breen, who is the EMC Senior Vice President of a Strategic Alliances. Terry, welcome. Thank you. Terry's former Accenture. So they keep hiring more and more smart guys at EMC. So good to have you on theCUBE. This is a place where we share knowledge. So one of the things we heard Howard Elias talk about in the analyst briefing that I was at, always talks about not competing with service provider partners. First of all, why is that important to EMC? Well, I think we try and stick to our core. And our core is we're a technology company. Our intent is really to power up the service providers and not compete with them. We also would like, to the extent we can help them generate some demand to be a channel for them, help them bring business. So we want to make it very clean, such that we're not in their business, but we can very much power up their business. So how does that work? Will you guys actually transfer IP to service provider partners, for example? Yeah, the intent is we sit down with our service providers, we understand their business, we sit down and discuss it, how they're trying to launch it. The first thing we do is we look at how do we help the market tech, the overall technology solutions, so we bring in our experts on that. But then we also look at how they're trying to go to market. And is there a way that we as a company that has pretty good footprint in the marketplace, can we help them drive some demand into their business? And to the extent we can, we'd be happy to do it to those that are really standardizing on our technology. What do you consider a service provider? There's like a multifaceted, multi-headed monster. I mean, talk about that a little bit. Well, it's a great question. We talk about it a lot as a company because at first, we originally thought service provider was a type of company. And in reality, it's not. It's really a type of business. And they're all the way from, there are pure play companies that have launched just to be cloud hosters, Savas, TerraMark, RackSpace are good examples of that. Then there are outsourcers like CSE and T-Systems that are great examples. Then there are SIs like Capgemini and Accenture. There are vertical players like GE Healthcare. There are banks. So all of them have a portion of their business that is what we'd call a service provider, which is really delivering some business out on the cloud. Terry, I have a question for you. The big discussion in the marketplace is the notion of partnerships. EMC has VCE, a big partnership, joint venture. You're seeing open source, things like Hadoop that are very community-driven and is creating a huge amount of innovation. Michael Cappellus told us at the analyst meeting that he hasn't seen this kind of disruption since Blade Computing and Client Server before that. And Joe Tucci, even today, talking about waves of disruption. You've had a stellar career at Accenture for some of those disruptions. Can you talk about what's going on in the marketplace around partnerships? And there's some fear out there of vendors going alone and owning the stack and that's always kind of been an interesting dynamic with service delivery. Can you talk about that, what's happening in the market? Well, I think there are two approaches out there. There are a number of companies, a couple of them to name, like IBM and Oracle and HP, that are trying to really deliver their entire stack all the way from applications to services to infrastructure. And then there are companies like Cisco and EMC and SAP and others that are really, I would call best of breed at their layer of technology or services. And I think what we are trying to do is really to put together those best of breed into a delivery mechanism that the customer can see seamlessly and it's not overly complicated. And that last part is very important. To compete against a vertical stack like an IBM, then we have to show up, not only with best of breed of technology, but we have to show up and know how to act together, how to price together, how to deliver together. And I think we're in an environment right now where the services type companies out there, the SIs, the ISV, the software companies, the infrastructure companies like us and Cisco are working very, very hard to put together campaigns and solutions where we can bring it to market and look like essentially one virtual company coming together. You know, people talk about that 70, 30 mix, 70% of the IT investment goes to running the business and 30% goes to innovation. Yeah. And it's always the vision that we're going to change that. I've been in this business for a while. Do you think it's possible that cloud actually is the lever to change that or are we just going to be sort of hamsters on a wheel? It's a great question because I've been in this business for 27, 28 years, over 28 years. And I think that ratio hasn't changed much in 28 years. I think a lot of us would like to think that the leverage that we're going to see from the cloud is going to allow us to spend less time on not only maintenance, but also on migration. A lot of that maintenance costs is really migration to the new and to the extent it can help us bring down the migration costs. I think we can bring that percentage down, but it's a great question. I think we're all pursuing it. Time will tell. On the product side, you know, in the marketplace, are you seeing any particular use cases where the delivery formula in this new model with EMC working effectively well? I mean, obviously, partnerships and enablement, you know, is about competition. You guys have been publicly saying you're not going to compete with your partners. That's pretty been clear message. What's been working? What's the kind of shiny light in the market? Well, what we're really trying to do is you think about alliances in general. Historically, alliances were primarily to help either party advance a transaction they were trying to close. And although that's important, it's not particularly strategic in creating brand new demand. What we're trying to do is really team with our partners, proactively create solutions and go to market together. A good example would be that in something we're announcing later today with CSC. CSC has an offering called BizCloud. And BizCloud is really a very innovative offering around CSC to help bring an enterprise to the cloud very, very quickly. Make the hurdle very low, utility prices, but make the decision to try something on the cloud a very easy decision. We've partnered with them. We're going to power it up primarily with our technology. We're going to go to market with them. It's being announced here in this conference. So how do you work with customers and partners to help clients understand where they should start? I mean, what applications should they put into the cloud? Well, you know, again, we're a technology company and you talk about the journey to the cloud, that's where we're very dependent upon our partners like a CSC, like an Accenture, like a Capgemini, like a T-Systems. We're really relying a lot on them to do the journey management. They have the expertise to do that. They're very good at that. We're very good at powering up the infrastructure. And so that's where the marriage works quite well, where we rely them on to manage the journey. We'll just power it up. So you mentioned a number of different types of businesses that are service providers. And obviously we hear a lot about Accenture and CSC and the big guys. But if I'm more of a vertical market company, I'm a smaller company, how should I think about working with EMC as a partner? Well, I think if you take certain verticals, you take a look at the medical area where there's some incredible creation of new technology that drives huge amounts of data through imaging and CAT scans and MRIs, et cetera. We're looking at that space quite aggressively. That would be a great space for a vertical equipment company, companies like the GE Healthcare, the Toshivas, the Philips of the world. Can we work with them and we team with them to help our infrastructure wrap around their imaging technology and bring a solution into a primary care? Dave, we just want to just welcome Justin.tv all our syndicated folks out there watching. We're here at EMC World and we have 1200 viewers right now on the live stream. So, Terry, we have an expanded audience now to want to know about the cloud and big data. What is the bottom line? Got all this impact going on in the marketplace. You've seen these big ways of change. PlayStation got hacked. That was big news last week and the week before. Amazon failed. Gaming is evolving. Open source software. Talk about the technology paradigm that's going on now that you're seeing that's going to enable more services and more value. I think what I, again, my view is primary as an industry guy is not as a technologist but what I view the cloud is the cloud is going to simplify the transition to new technology but at the end of the day what's going to drive the adoption is going to be the application layer. Applications generally drive infrastructure, not the reverse. And so what I'd like to see happening in the next couple of quarters is to have our ISV partners really re-architect some of their apps to be able to optimize in the cloud environment to the extent that takes place and we develop new apps for the cloud. I think the cloud, if you will ramp up rate, will accelerate rapidly. We've been talking about the commentating wikibon.org's research group in SiliconANGLE covering the private cloud. Private cloud is interesting because it's nice data center conversation but with the recent Amazon outage where the cloud just crashed, services disappeared or a lot of web 2.0 services. So that's an impact of business. How do you guys look at that? Does that scare people or does that move people to the hybrid cloud? Well when you think about the cloud the cloud is really three layers of it. At least I look at it. I look at it as a private cloud, a hybrid cloud, a public cloud. And I look at most enterprises that we're dealing with quite frankly not only are they going to have a check in all three of those boxes they're probably going to have a check in a more traditional infrastructure environment. So they're going to have really, they're going to have traditional, they're going to have private, they're going to have some hybrid, they're going to have some public. And I think you got to look at the type of applications and businesses that you want to run in each of those versions and you pick the right, if you will, box for each of those applications or businesses to fit that profile. But I think all companies are going to have a, my view will have a check in all four of those boxes. So when I think about EMC's services business and its partners business and I think about the global services industry and it's enormous, I mean I talk about hundreds of billions of dollars in revenue, collectively is your goal to be the biggest, the best or both? The biggest or the best of what? Of the service providers of that, whether it's outsourcing or cloud service providers or consulting. How do you look at that? Keep in mind again, our agenda is not to be a service provider, our agenda is to power them up. So our goal would be to be the primary technology provider to the dominant, the world class service providers. Our intent is not to compete with them at all. We're not a services company. We do have some services expertise that primarily our SPs and out there are making use of to adjunct their skills or to bring in specialized services around our technology. But our intent is not to compete at all, our intent is to completely power them up. Yeah, so observers should look at this as sort of a collection of partners, right? That essentially is going to market with a technology provider, a series of technology providers that is going to compete with the big players in the industry, the IBMs, the Peros, the more vertically HPs now, more vertically integrated suppliers. Is that the right way to look at it? Exactly the right way to look at it. What is the EMC show about Terry? This culture we're living in right now about cloud and big data is depicted by mobile devices. You got iPhones, you got Android, people are gaming, Xbox is becoming a preferred interface for young children. And the big trend of consumerization is driving this. What are the big things that you're seeing here and in your view and your career, the consumerization of IT, how does that affect this? In a great way, let me give you an example. Take a look at analytics and the ability to take analytics and really mining data out on the cloud. And if you think about it, there's several layers. You could have data that's going to be proprietary to a company that could be data that is brought to that company by way of a service provider, then there could be some public data, but then there's also, there's data that can be mined out of the Facebooks of the world that is wonderfully insightful and innovative in real time, particularly on consumer product or any type of companies. So what I find fascinating is the ability to look at that tiering of data that's proprietary, that's semi-public, that's public and it's also in that, I'll call it the Facebooks of the world and mine all that. And we could provide some incredibly insightful information back into our enterprises. I have four kids and I have a teenager and they love Xbox, they love Call of Duty. And it's funny, they watch the news and Osama bin Laden has been killed by commandos and they're all over the news. This new gaming environment, social media with Facebook is changing the user interface. This is going to have a direct impact to how workers work. So we were talking last night about how the preferred interface, the network might be like Xbox, might be like, you know, angry birds. So how's that going to change the delivery of IT? Software, you talked about applications, you have a view on that user interface and that change, the personal computer revolution has passed, we're now at the mobile revolution. That's going to affect a lot of a censure-like business. There's a lot of delivery and a lot of new stuff. There's no doubt it is and I'm not sure it makes any sense for any of us to try and predict that device because I think the whole idea is to be able to adapt to all the devices. You made mention of Xbox being made. I look at my family and my family, it's an iPad environment, all the way from my nine-year-old to my 20-year-old and my wife. They're consumed by the iPad. The iPad is always in someone's lap accessing it. And to some it's the Blackberry or some it's the Xbox. Or the Wii. Or the Wii. So I think the key to it is that it's got to be completely device-independent. Let's not try and predict that. How about the virtualization on the iPad? One of the hottest things I think that's, to me, crystallized, this virtualized desktop environment has been the iPad. The iPad and mobility, it's just getting faster and faster. I saw a 4G Verizon LTE demo. We did a speed test. 23 meg down on Verizon. I was watching ESPN live on a new app. I was gaming. That's pretty intense. So is there anything that you see that's the hottest thing that you advise your partners and your clients to pay attention to? Is it process? Is it the tech? Is there any best practices you can share on how to navigate those waters? Again, I think the thing that we're, probably the best advice I'd give is, again, being an infrastructure provider is helping to figure out how to drive the app level. Because I'm a big believer that the apps drive the infrastructure. And we got to get to the extent that we can get more innovative applications. Particularly cloud-based applications, I think this thing is going to take off. I'd love to sit here and say that the infrastructure is going to drive the adoption, but it's not. It's the apps that drive the adoption. And that's why the partnerships with the SAPs of the world and then the startups of the world are incredibly important. So Terry, what's it like being at EMC? You're coming from a company of Accenture, a long, rich history, high-level consultants. EMC technology company, what's the culture like? Is it a shock to you? Is it changing? They're very different. You know, I did 26 years at Accenture. I enjoyed it a lot. It was a great place to work. I learned a lot. What I enjoy about EMC, EMC is a very action-oriented company. You know, we like to take some risk. We'll put something out there and if it's wrong, we'll fix it. And I've enjoyed the speed in which we make decisions at EMC and take things to market. So it's been a fun year. I've enjoyed it. I've had a lot of fun with Joe Tucci and the rest of his team. And they've walked in me with big arms and having a very good time. So here with Terry Breen, Senior Vice President of Alliances and EMC. We're talking about EMC's strategy, its position in the business. EMC's stated a number of times. Very forcefully, it does not want to compete with its service providers. We heard from Terry talk about what a service provider is. It's really, in his view, a type of business. And there are a lot of different types of businesses out there. You're talking about, we talked about outsourcing. We talked about cloud service providers. We talked about consulting. So it really was a very insightful overview of EMC's view of the world. EMC's, again, strategy is not to compete, it's to complete. And we're seeing collectively that EMC and its partners' strategy is to really compete with the big players as an ecosystem. So Terry, thanks very much for coming on theCUBE.