EMC and VMware unveiled plans to create a new, enterprise cloud services provider to be called Virtustream. The launch is supported by Michael S. Dell, MSD Partners & Silver Lake, who recently disclosed plans to acquire EMC and VMware.
EMC currently operates a division called Virtustream that provides cloud management software and IaaS. This announcement builds on this initiative by adding in resources from EMC and VMware.
The new Virtustream will offer a range of managed services for on-premises infrastructure and its enterprise-class Infrastructure-as-a-Service platform, enabling customers to move all their applications, including mission-critical applications, to cloud-based IT environments. Virtustream will incorporate the cloud capabilities of EMC Information Infrastructure, VCE, Virtustream and VMware to provide the complete spectrum of on- and off- premises offerings including: VMware vCloud Air, VCE Cloud Managed Services, Virtustream’s Infrastructure-as-a-Service, and EMC’s Storage Managed Services and Object Storage Services offerings.
Virtustream’s financial results will be consolidated into VMware’s financial statements beginning in Q1 2016. It is expected to generate multiple hundreds of millions of dollars in recurring revenue in 2016, focused on enterprise-centric cloud services, with an outlook to grow to a multi-billion business over the next several years. The company will be led by Rodney Rogers.
VMware will establish a Cloud Provider Software business unit led by Ajay Patel, VMware senior vice president, focused on delivering cloud software and solutions to cloud providers including VMware’s vCloud Air Network, to help them rapidly harness the opportunity of the hybrid cloud. This new unit will incorporate assets and people from the VMware vCloud Air Application Services business, vCloud Director and vCloud Air Network teams, as well as Virtustream’s Software Business including Advisor Planning and Migration tool, xStream cloud management platform and Viewtrust governance, risk and compliance solution.
“Through Virtustream, we are addressing the changes in buying patterns and IT cloud operation models that we are seeing in the market. Our customers consistently tell us that they are focused on their IT transformations and journeys to the hybrid cloud. The EMC Federation is now positioned as a complete provider of hybrid cloud offerings,” said Joe Tucci, EMC Corporation Chairman and CEO.
EMC to Acquire Virtustream for $1.2 Billion – Hybrid Cloud Mgt.
EMC Corporation agreed to Virtustream, a start-up headquartered in Washington, D.C. with offices in San Francisco, Atlanta, London and Dubai, for approximately $1.2 billion in cash.
Virtustream offers a consumption-based hybrid cloud software and IaaS platform capable of providing commercial application latency performance guarantees for running mission-critical enterprise class applications on modern multi-tenant cloud architectures.Virtustream’s xStream software features consumption-based billing and embedded µVM (micro-VM) technology for assuring application-level SLAs. The company owns data centers in the U.S. and Europe with service provider partner data centers in Latin America, the Middle East and Asia.
EMC said the acquisition represents a transformational element of its strategy to help customers move all applications to cloud-based IT environments. Virtustream will form EMC’s new managed cloud services business.
“This acquisition is great news for our customers, VMware and the EMC Federation of businesses. With the addition of Virtustream, we will be able to offer customers a comprehensive set of hybrid cloud offerings, including private, managed and public cloud solutions. As we deliver VMware vCloud Air to our customer base to help them continue their journey to the cloud, Virtustream complements and expands our value proposition,” stated Pat Gelsinger, Chief Executive Officer, VMware.
SAP, which has a long-term partnership with Virtustream, stated that it looks forward to continuing the alliance with EMC.
