EMC Corporation and VMware have announced plans to form a closer collaboration to introduce new cloud services business. The two companies said in a statement that they would combine their respective cloud capabilities along with existing Virtustream cloud offerings under the Virtustream brand.
Virtustream will be jointly owned by VMware and EMC and led by the Chief Executive Officer of Virtustream, Rodney Rogers. The parties are finalising a definitive agreement for the transaction.
Virtustream’s financial results will be consolidated into VMware’s financial statements beginning in Q1 2016.
Virtustream 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. Virtustream will be a leader in hybrid cloud, one of the largest markets for IT infrastructure spending.
The company will provide a complete spectrum of managed services for on-premises infrastructure and its enterprise- class Infrastructure-asa- Service (IaaS) platform, enabling customers to move all their applications, including mission-critical applications, to cloud-based IT environments.
Virtustream will offer a compatible public cloud experience for customers who deploy the Federation Enterprise Hybrid Cloud solution within their business. “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 EMC Corporation Chairman and CEO, Joe Tucci.”
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