EMC Corporation and VMware have recently announced plans to create a new cloud service business through combination of their individual cloud capabilities, along with existing Virtustream cloud offerings. Virtustream will be jointly owned by VMware and EMC and led by Rodney Rogers, CEO of Virtustream.  A definitive agreement is expected to be reached soon, with Virtustream’s financial results being consolidated into VMware’s financial statements in 2016.

Joe Tucci, EMC Corporation Chairman and CEO, has stated, “”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.”

The new business is set to incorporate the capabilities of both VMware and EMC along with Information Infrastructure, VCE, Virtustream in order 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.

VMware will establish a Cloud Provider Software business unit led by Ajay Patel, VMware senior vice president. The software with focus on delivering solutions and software to cloud providers that with hopefully allow them to harness the capabilities 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.

Rodney Rogers, Chief Executive Officer, Virtustream, has also commented, “I am honored 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 5 service providers globally and are thrilled about what this means to all of our customers, partners, and the Federation moving forward.”

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