EMC announced this week that it will acquire Virtustream, a firm specialising in deploying SAP software in the cloud, for $1.2bn.
The all-cash deal will see Virtustream, a specialist in SAP software automation and cloud on-boarding, form EMC’s managed cloud services business and operate alongside other EMC businesses in the Federation including VMware and Pivotal, which offer their own cloud services.
Up until now EMC only sold on-premise cloud storage systems largely tuned for supporting VMware customers, offering them a hybrid cloud capability, and the company said the acquisition will enable it to bolster its capabilities in both private and public cloud.
“Virtustream is an exceptional company and this is a critical and transformative acquisition for EMC in one of the industry’s fastest-growing and most important sectors,” said Joe Tucci, EMC chairman and chief executive officer.
“With Virtustream in place, EMC will be uniquely positioned as a single source for our customers’ entire hybrid cloud infrastructure and services needs. We could not be more delighted that Virtustream will be joining the EMC Federation family. It’s a game changer,” Tucci said.
EMC also said it plans to offer Virtustream’s xStream cloud management software, which is already integrated with VMware vSphere, to its partners.
“Virtustream has established itself as an industry leader and innovator for running mission-critical enterprise applications in the cloud,” said Rodney Rogers, Virtustream chairman and chief executive officer.
“We’re proud to be joining the EMC Federation where our combined capabilities, products and services will allow us to accelerate our vision of delivering the platform of record for enterprise systems, and address the complete breadth of cloud computing needs,” Rogers said.
Virtustream’s unique sales point is its cloud workload management and automation software, which will almost certainly see deeper integration with similar offerings across the federation (particularly VMware’s).
The acquisition is a pretty significant step for the storage specialist which more recently, with the exception of Virtustream, has seemed more interested in acquiring its way deeper into infrastructure than software; the move is part of its broader goal, announced last year, of becoming more cloud-centric.