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  • 21 October 2015 10:36

EMC and VMware Reveal New Cloud Services Business

VMware and EMC to Jointly Own Fast-Growing Virtustream Cloud Services Business; Together to Offer the Industry’s Most Comprehensive Hybrid Cloud Portfolio

Hi there,

Overnight EMC and VMware announced plans to form a new cloud services business by combining their cloud capabilities with Virtustream's cloud offerings under the Virtustream brand, creating the industry’s most comprehensive hybrid cloud portfolio.

Matthew Zwolenski, EMC Chief Technology Officer, ANZ says:

“With the rapid adoption of public and private cloud in the Australian market, we have realigned our strategy to include a new cloud services business. Virtustream will play a significant role in enabling Australian organisations to continue to grow their hybrid cloud portfolios."

For further information please contact the Spectrum team on emc@spectrumcomms.com.au or 02 9469 5700.

Kind Regards,

The Spectrum Team

EMC and VMware Reveal New Cloud Services Business

VMware and EMC to Jointly Own Fast-Growing Virtustream Cloud Services Business; Together to Offer the Industry’s Most Comprehensive Hybrid Cloud Portfolio

Story Highlights:

EMC and VMware plan to form new cloud services business creating the industry’s most comprehensive hybrid cloud portfolio

Will incorporate and align cloud capabilities of EMC Information Infrastructure, Virtustream and VMware to provide the complete spectrum of on- and off-premises cloud offerings

The new cloud services business will be jointly owned 50:50 by VMware and EMC and will operate under the Virtustream brand led by CEO Rodney Rogers

Virtustream’s financial results to be consolidated into VMware 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

VMware will establish a Cloud Provider Software business unit incorporating existing VMware cloud management offerings and Virtustream's software assets -- including the xStream cloud management platform and others EMC will host a live webcast for investors tomorrow at 8:30 a.m. to discuss third-quarter financial results. The webcast can be accessed from the EMC Investor Relations website (http://www.emc.com/ir).

Full Story:

HOPKINTON, Mass. and PALO ALTO, Calif. – October 20, 2015 – EMC Corporation (NYSE:EMC) and VMware (NYSE:VMW) today announced plans to form the Federation’s new cloud services business by combining 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 Rodney Rogers, CEO of Virtustream. 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-as-a-Service 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 Joe Tucci, EMC Corporation Chairman and CEO.

The 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.

Virtustream will integrate these assets to provide customers with a unified Infrastructure-as-a-Service 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.

Market Opportunity

Nearly one-third of all IT infrastructure spending is going to cloud-related technologies, according to a recent 451 Group report1. In addition, the focus of Cloud Services buyers is seen to be shifting up to the application stack. The demand for a simple infrastructure on demand utility is giving way to higher levels of interest in solutions that include integration and management. Enterprise adoption overall is still on the rise with a shift in focus to private & hybrid architectures. The Global ERP market is estimated to reach US$41.2B by 20202 with Cloud-based ERP now growing faster than on-premises ERP3.

Executive Quotes

Rodney Rogers, Chief Executive Officer, Virtustream "I am honoured and excited to have the opportunity to lead the new Virtustream,” said Rodney Rogers, CEO for Virtustream. “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. We expect Virtustream will become one of the top five service providers globally and are thrilled about what this means to all of our customers, partners, and the Federation moving forward.”

Pat Gelsinger, Chief Executive Officer, VMware “The new Virtustream business will feature the industry’s broadest portfolio of hybrid cloud offerings, enabling customers to move all their applications to cloud-based IT environments and seamlessly manage their on-premises and off-premises environments. We see tremendous growth opportunities for VMware and EMC with the new Virtustream business, building on the strong momentum of vCloud Air.”

David Goulden, Chief Executive Officer, EMC Information Infrastructure “This is an exciting time for the EMC Federation of businesses, and today’s news is central to our strategy to help customers move all of their applications to the cloud. The new Virtustream business will enable customers to implement a hybrid cloud-based IT environment that incorporates the best of both public and private cloud quickly, and from one source. The Federation Enterprise Hybrid Cloud solution, along with the addition of Virtustream and vCloud Air cloud offerings, will not only offer customers choice and flexibility, but also will help them react quickly to optimise growth and transform their businesses.”

Additional Resources

Read VMware’s blog post by Ajay Patel Connect with EMC on Twitter (@EMCCorp and @EMC_News), LinkedIn, Facebook and SocialSphere Connect with VMware on Twitter, Facebook, LinkedIn and Google+

About EMC

EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing . Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyse their most valuable asset — information — in a more agile, trusted and cost-efficient way. Additional information about EMC can be found at www.EMC.com.

About VMware

VMware is a leader in cloud infrastructure and business mobility. Built on VMware's industry-leading virtualisation technology, our solutions deliver a brave new model of IT that is fluid, instant and more secure. Customers can innovate faster by rapidly developing, automatically delivering and more safely consuming any application. With 2014 revenues of $6 billion, VMware has more than 500,000 customers and 75,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

About Virtustream

Virtustream, an EMC Federation company, is trusted by enterprises and public sector organisations around the world to run and manage their mission-critical applications in the cloud. The company’s infrastructure-as-a-service solutions are built to address the complete spectrum of enterprise workloads, support hybrid cloud architectures with seamless integration into on-premises private clouds, and offer a full-stack management capability of infrastructure and application managed services that span on- and off-premises infrastructure. Virtustream is headquartered in Bethesda, Maryland with innovation and development centers in Palo Alto; Atlanta; Waldorf, Germany; Sofia, Bulgaria and Bangalore, India. The company has sales and delivery offices in Hopkinton, Dallas, Cork, London, Frankfurt, Tokyo and Sydney with data centre locations around the world.

All trademarks are either registered trademarks or trademarks of EMC Corporation in the United States and/or other countries, and all other trademarks used are the property of their respective owners.

VMware is a registered trademark or trademark of VMware, Inc. in the United States and other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective organisations.

1 “Cloud Computing Market Overview” – 451 Group, May 2015

2 “Market Share Analysis, ERP Software, Worldwide, 2014” – Gartner, May 2015

3 “Global ERP Software Market 2013-2020” – Allied Market Research, Mar. 2015

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