EMC, VMware Form Jointly Owned Cloud Services Business Built on Virtustream

EMC and VMware have announced their plans to form a new cloud services business by combining their respective cloud capabilities, along with existing Virtustream cloud offerings, under the Virtustream brand. The new business, owned 50:50 by VMware and EMC, will incorporate and align the cloud capabilities of EMC, VCE, Virtustream and VMware to provide the complete spectrum of on- and off- premises offerings.

EMC and VMware have planned to form this new cloud services business, creating one of the industry’s most comprehensive hybrid cloud portfolios. The new cloud services business will operate under the Virtustream brand led by CEO Rodney Rogers. Virtustream, a cloud services provider focused on the managed private and hybrid cloud, was added to the EMC Federation of companies earlier this year.

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“The EMC Federation is now positioned as a complete provider of hybrid cloud offerings,” said Joe Tucci, EMC Corporation Chairman and CEO.

The new cloud services business, Virtustream, is expected to generate multiple hundreds of millions of dollars in recurring revenue in 2016. The business unit is focused on enterprise-centric cloud services, with an outlook to grow to a multi-billion business over the next several years.

“Through Virtustream, we are addressing the changes in buying patterns and IT cloud operation models that we are seeing in the market,” said Joe Tucci, EMC Corporation Chairman and CEO. “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.”

cloud-management-virtustreamThe new business will incorporate and align 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.

Unified IaaS Offering

Virtustream will integrate these assets to provide customers with a unified Infrastructure-as-a-Service (IaaS) offering, designed to support the complete spectrum of business workloads, with a service portfolio that spans a full range of services and deployment options. The business will integrate and extend existing on-premises EMC Federation private cloud deployments into the public cloud, maintaining a common experience for developers, managers, architects and end users. Virtustream’s cloud services will be delivered directly to customers and through partners.

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.

Furlow consulting