Part 1of3: The Magic of EMC

Years ago, I headed a team at IBM to spin out the software organization as a separate company. Extensive analysis had shown that if we didn’t do that, Microsoft would pass us in a few short years, and we’d go from being the largest and most powerful software company in the world to one that was fighting for relevance. The project was killed by the EVP of sales who’d concluded IBM couldn’t survive without software. Microsoft blew by IBM and the rest is history.

But what if we’d been able to have our cake and eat it too? What if we had thought through a process to both put IBM software at arm’s length yet still retain the benefit of this unit for IBM? Well, that is exactly what has done with and . Both are large soft-ware efforts containing the majority of ’s software assets. Plus, under ’s model, they are perceived as independent, yet EMC can still call on them to perform like a division. And VMware not only has a NPS (Net Promoter Score which defines customer loy-alty) second only to Apple, they are the only software company that scared and continues to scare Microsoft.

Let’s talk about some of these efforts.

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NOTE: This column was originally published in the .

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