{"id":19293,"date":"2015-12-15T15:44:18","date_gmt":"2015-12-15T15:44:18","guid":{"rendered":"http:\/\/www.cloudcomputing-news.net\/news\/2015\/dec\/15\/vmware-opts-out-joint-venture-parent-emc\/"},"modified":"2015-12-15T15:44:18","modified_gmt":"2015-12-15T15:44:18","slug":"vmware-opts-out-of-joint-venture-with-parent-emc","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/vmware-opts-out-of-joint-venture-with-parent-emc\/","title":{"rendered":"VMware opts out of joint venture with parent EMC"},"content":{"rendered":"

(Image Credit: iStockPhoto\/Melpomenem<\/a>)<\/em><\/p>\n

In October 2015, Dell announced a $67-billion bid to acquire EMC, an entity which owns approximately 80% of VMware. A little later, EMC and VMware announced plans to create a joint venture named ‘Virtustream’ which aimed to integrate the cloud services of both entities. However, the market was not receptive to such a move, and the shares of VMware declined by close to 20% after the plan was announced.<\/p>\n

VMware’s chief executive Pat Gelsinger had touted the benefits of a comprehensive offering for customers, however, analysts raised concerns related to profit margins on account of increased spending on servers and data centres. Nonetheless, EMC’s chief executive, Joe Tucci, said: “Putting these together will actually save money and actually put more profit on the VMware bottom line.”<\/p>\n

Despite these reassurances, VMware has decided to opt-out of this plan for a joint venture in a move that has been lauded by the market. Opponents argued the development was aimed at creating a “dumping ground” for money-losing assets. VMware’s stock price declined when Dell announced its acquisition of EMC, and the stock declined further with the joint venture announcement.<\/p>\n

EMC is the largest manufacturer of data storage hardware and the company has entered software and other fields through a series of acquisitions. Executives of the company have defended its corporate strategy by citing market changes and other challenges – such as the rise of cloud services – which some companies use to handle computing workloads and enable them to avoid the cost of buying their own hardware and software.<\/p>\n

Virtustream was originally an independent company that operated its own data centres to offer cloud services as well as selling related software. EMC had announced a $1.2 billion deal in May 2015 to acquire the company, which has now become a part of the EMC conglomerate.<\/p>\n

Do you think VMware made the right decision? Share your thoughts in the comments.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

(Image Credit: iStockPhoto\/Melpomenem)
\nIn October 2015, Dell announced a $67-billion bid to acquire EMC, an entity which owns approximately 80% of VMware. A little later, EMC and VMware announced plans to create a joint venture named ‘Virtustream…<\/p>\n","protected":false},"author":181,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-19293","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/19293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/181"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=19293"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/19293\/revisions"}],"predecessor-version":[{"id":19294,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/19293\/revisions\/19294"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=19293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=19293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=19293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}