EMC and VMware will float a 50-50 joint venture to focus on hybrid cloud business under the Virtustream brand.
The business will see the combination of cloud services business of EMC, VMware and Virtustream. Rodney Rogers, CEO of Virtustream, will head the new business. Virtustream will be a leader in hybrid cloud, one of the largest markets for IT infrastructure spending.
The new Virtustream will be taking on Salesforce and SAP in the cloud business.
The US-based tech company will provide managed services for on-premises infrastructure and its Infrastructure-as-a-Service platform, enabling customers to move all their applications, including mission-critical applications, to cloud-based IT environments.
“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,” said Joe Tucci, chairman and CEO of EMC Corporation.
Cloud capabilities of EMC Information Infrastructure, VCE, Virtustream, VMware, VMware vCloud Air, VCE Cloud Managed Services, Virtustream’s Infrastructure-as-a-Service, and EMC’s Storage Managed Services and Object Storage Services offerings will be part of the new business entity.
VMware will set up 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.
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.
Nearly one-third of all IT infrastructure spending is going to cloud-related technologies, according to a 451 Group report. The global ERP market is estimated to reach $41.2 billion by 2020 with Cloud-based ERP now growing faster than on-premises ERP.
