VMware Boosts Cloud Portfolio with Mozy Takeover

The cloud storage unit of EMC has changed hands, after the storage giant revealed that Mozy is now a VMware division.

Starting immediately, employees at the Utah-based Mozy will be seeing a new employer name on their paychecks: namely that of its cousin, VMware (also owned by EMC).

Better Corporate Fit

The main reason for this business-side change is that Mozy, with its cloud-based services, and Palo Alto, California-based VMware, which is moving more of its own emphasis into cloud-building software, are a better product-making match for each other on a daily basis than Mozy and business owner EMC, spokesmen for both companies told eWEEK.

EMC is the world’s largest independent storage hardware and software maker. The company is run as a very tight ship by CEO Joe Tucci and his lieutenants.

Mozy and VMware, more laid-back West Coast-oriented companies, are much closer in corporate culture than with EMC, an established East Coast corporation that is rapidly becoming a full-service data center systems provider.

Difficult Relationship

VMware and EMC have had a difficult relationship since the former was acquired by EMC in January 2004 for $625 million (£385 million).

The business-approach problems came to a head in July 2008, when EMC relieved CEO Diane Greene of her duties and replaced her with current CEO Paul Maritz.

Shortly thereafter, Greene’s husband, VMware’s chief scientist, Mendel Rosenblum, left the company. Both Greene and Rosenblum had been among the founders of the company, which is now by far the world’s largest virtualisation software maker – and a reliable cash cow for EMC.

Mozy Chief Marketing Officer and Vice President of Product Management Russ Stockdale noted that this behind-the-scenes change would not affect Mozy customers in any way. All service-level agreements remain the same, he said.

EMC still owns both companies, so that has not changed.

Stockdale said that more and more Mozy and VMware employees have been working together in project groups and that it made more sense for the two companies to create a closer relationship going forward.