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.
