EMC Splashes $1.2 Billion On Virtustream For Hybrid Cloud Rush
EMC and Virtustream in all-cash deal for five-year-old private cloud frontrunner
EMC is buying cloud software provider Virtustream for $1.2 billion (£780 million) in an all cash deal, showing how valuable VMware’s parent company thinks hybrid cloud truly is.
Virtustream will form EMC’s new managed cloud services business, aiming to move customers’ enterprise appliactions into the cloud. Virtustream’s products, now officially swept into EMC’s ’Federation Enterprise Hybrid Cloud Solution’ will be put together with VMware’s vCloud Air.
Fast growth
Commenting on the news, EMC’s CEO Joe Tucci said that Virtustream is an ”exceptional” company, and the firm’s fast growth was a factor in its acquisition.
“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,” said Tucci.
Virtustream was founded in 2009, and in 2013, SAP helped lead a $40 million funding round. It was just last week when analyst firm Gartner gave its dues to Virtustream for “winning large-scale enterprise deals” in its latest IaaS report. EMC will now be benefitting from that expertise.
For a firm that is sometimes seen as a slow-mover in the cloud scene, this latest deal solidifies EMC’s intent to provide hybrid cloud platforms. Virtustream also brings with it high profile customers such as Coca-Cola and Kawasaki.
Virtustream CEO Rodney Rogers was naturally full of praise for EMC. Rogers said: “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.”
The all-cash transaction is expected to close in the third quarter of 2015, subject to customary closing conditions.
