EMC, VMware to Spin Out Virtustream as Hybrid Cloud Business
Rodney Rogers, who co-founded the company and came to EMC in the acquisition in May, will remain Virtustream's CEO. "Our vision of combining our IP and collective cloud platform and services capabilities for mission-critical applications, backed by the strength and reach of EMC and VMware will deliver an enterprise-focused hybrid cloud solution that is unrivaled in the market," Rogers said in a statement. EMC and VMware officials expect to complete the transaction in early 2016, according to Gelsinger, and Virtustream's financial results will be folded into VMware's beginning in the first quarter. The Virtustream decision was not the only cloud-based move made by VMware. The virtualization company also is creating a Cloud Provider Software business that will develop cloud software and other offerings to cloud providers. The unit will included resources VMware's vCloud Air Application Services business, vCloud Director and vCloud Air Network groups, and Virtustream's software business, such as Advisor Planning and Migration tool, xStream cloud management platform and Viewtrust governance, risk and compliance solution.
"We want to be the key ingredient powering the global network of our cloud provider partners," Ajay Patel, the VMware senior vice president who will run the new cloud unit, said in a post on the company blog. "Enterprise IT has a near-impossible strategic task: It must ensure that the company has the tools and capabilities it needs that can adapt and change to the every changing business requirements. VMware's job is to help our partners and customers address the unexpected. It is those types of challenges that drive the new Virtustream and VMware's new Cloud Provider Software Business Unit."