EMC Corporation and VMware Inc. announced that they would be combining their respective cloud capabilities (including the existing Virtustream cloud offerings) to form a new cloud services business under the Virtustream brand. The new Virtustream cloud services will be jointly owned 50:50 by both VMware and EMC and the current CEO of Virtustream, Rodney Rodgers, will remain in his position. Both parties are finalizing a definitive agreement for the transaction.
EMC Corporation and VMware Inc. announced that they would be combining their respective cloud capabilities (including the existing Virtustream cloud offerings) to form a new cloud services business under the Virtustream brand. The new Virtustream cloud services will be jointly owned 50:50 by both VMware and EMC and the current CEO of Virtustream, Rodney Rodgers, will remain in his position. Both parties are finalizing a definitive agreement for the transaction.
As more and more organizations are looking to use hybrid clouds, vendors are looking at more ways to capitalize this. This new joint business will integrate the cloud capabilities of EMC Information Infrastructure, VCE, Virtustream and VMware to give customers everything they need for on- and off- premises offerings. The services that are being added in include: VMware vCloud Air, VCE Cloud Managed Services, Virtustream's Infrastructure-as-a-Service, and EMC's Storage Managed Services and Object Storage Services offerings. This unified IaaS will extend existing on-premises EMC Federation private cloud deployments into the public cloud, maintaining a common experience for developers, managers, architects and end users.
According to EMC, Virtustream is expected to generate multiple hundreds of millions of dollars in recurring revenue in 2016 and grow to a multi-billion business over the next several years. The combination will make Virtustream the leader in hybrid cloud with the amount of services that are being integrated into it. Virtustream will make it easier for customers to move all their applications, including mission-critical applications, to cloud-based IT environments while offering a public cloud experience for customers who deploy the Federation Enterprise Hybrid Cloud solution within their business.
To help cloud providers better harness the opportunity of the hybrid cloud, VMware is establishing a Cloud Provider Software business unit. 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.
Virtustream's financial results will be consolidated into VMware's financial statements beginning in the first quarter of 2016.
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