EMC and VMware Reveal New Cloud Services Business

21 Oct 2015 | Author: | No comments yet »

After Dell-EMC: 3 Appealing IT Merger Ideas.

VMware and EMC to Jointly Own Fast-Growing Virtustream Cloud Services Business; Together to Offer the Industry’s Most Comprehensive Hybrid Cloud Portfolio Will incorporate and align cloud capabilities of EMC Information Infrastructure, Virtustream and VMware to provide the complete spectrum of on- and off-premises cloud offerings Virtustream is expected to generate multiple hundreds of millions of dollars in recurring revenue in 2016, focused on enterprise-centric cloud services, with an outlook to grow to a multi-billion business over the next several years VMware will establish a Cloud Provider Software business unit incorporating existing VMware cloud management offerings and Virtustream’s software assets — including the xStream cloud management platform and others VMware will host a conference call today at 2:00 p.m.Virtualization software pioneers VMware (VMW) this afternoon reported Q3 revenue in line with analysts’ expectations, and profit per share that beat by a couple pennies, and said it would form a new cloud computing business with its majority owner, storage giant EMC (EMC), which is being acquired by Dell.As expected, EMC is putting Virtustream, the cloud company it bought during the summer for $1.2 billion, at the front-and-center of its planned cloud business.

As digital and real worlds are always more connected, there is increasing overlap between industries like software, hardware and electrical engineering.AUSTIN, TEX. – Dell channel chief Cheryl Cook opened Dell World 2015 by informing approximately 1,000 channel partners on new enhancements to the PartnerDirect program highlighted by a Scale Ready Payment solution intended to help solution providers with the As-A-Service consumption model. The new entity will incorporate VMware’s vCloud Air public cloud option along with Virtustream’s enterprise-focused cloud offerings, according to a statement that was released just in advance of VMware’s earnings call on Tuesday. The company had $1.02 in earnings per share (EPS) on $1.67 billion in revenue compared to consensus estimates from Thomson Reuters that call for $1.00 in EPS on $1.66 billion in revenue.

Dell Financial Services will now have a provision and pay module to help partners grow technology solutions over time with the presentation of a critical plan to Dell. In recent years, IT leaders like Microsoft (NASDAQ:MSFT), IBM Corp (NYSE:IBM), Hewlett-Packard (NYSE:HPQ) or SAP AG (NYSE:SAP) heavily invested into Business Intelligence, Virtualization and Cloud Software by taking over dozens of companies. For this quarter, license revenues totaled $681 million, an increase of 7% from the previous third quarter, and up 11% year over year in constant currency. It’s worth noting that last week, Dell and EMC made the announcement that Dell is intending to acquire EMC, while maintaining VMware as an independent publicly-traded company. The strategy behind these new moves from Dell’s channel team is to have solution providers produce multiple line of business expansion to include data centre equipment and storage specifically. “We can taste the market opportunity.

EMC Corporation (NYSE: EMC) and VMware (NYSE: VMW) today announced plans to form the Federation’s new cloud services business by combining their respective cloud capabilities, along with existing Virtustream cloud offerings, under the Virtustream brand. Many technology groups are currently positioning themselves to leverage driving trends like the Internet of Things, Software-defined Anything, Artificial Intelligence, and Analytics. Earlier this quarter the company hosted VMworld 2015, where over 32,000 customers, partners and influencers arrived in San Francisco and Barcelona to announce a wave of new products, services and partner updates designed to help customers with their businesses and encourage them to embrace a new model for IT. General Motors was the first company to issue a tracking stock, pegging it to the performance of Electronic Data Systems, acquired from Ross Perot in 1984. VMware’s mission and strategy remain unchanged as we continue to deliver extraordinary value to our customers through the power of disruptive innovation.

Consistent with our third-quarter earnings pre-announcement, I’m pleased with our overall Q3 results, with total revenue exceeding the high end of our guidance range. Virtustream will offer a compatible public cloud experience for customers who deploy the Federation Enterprise Hybrid Cloud solution within their business. “Through Virtustream, we are addressing the changes in buying patterns and IT cloud operation models that we are seeing in the market. However, compared against other leading storage systems providers, such as EMC, IBM, Hitachi Data Systems and Hewlett-Packard, the business is rather small outside of Japan. It’s unclear, too, whether an issuer’s board owes their owners any duties of loyalty, leaving holders vulnerable to potential conflicts with other shareholders.

Dell’s tracking-stock idea lacks detail as yet, but there’s one big difference: the planned VMware trackers relate directly to actual traded shares. The business will integrate and extend existing on-premises EMC Federation private cloud deployments into the public cloud, maintaining a common experience for developers, managers, architects and end users.

Its portfolio of solutions for Product Lifecycle Management, Manufacturing Execution Systems and Industrial Automation is first class on a global basis. Siemens is also a major promoter of Industrial Internet standards and solutions and might want to further increase the visibility of its industrial software business. In 2010, Hexagon acquired Intergraph which addresses markets that match those of Siemens’s: Other activities of Hexagon like the Metrology, Mining or Agriculture businesses also neatly complement Siemens’s portfolio. The demand for a simple infrastructure on demand utility is giving way to higher levels of interest in solutions that include integration and management. Its Information & Telecommunication Systems Company offers a wide range of solutions and services, including IT platforms such as storage solutions, servers, middleware, and telecommunications equipment.

The segment addresses IT strategies like Intelligent Operations, Big Data, Cloud, and Security and is renowned for its hardware, while it lacks some visibility in its $2.5b software business. The new Virtustream business will enable customers to implement a hybrid cloud-based IT environment that incorporates the best of both public and private cloud quickly, and from one source. Data warehousing pioneer Teradata (NYSE:TDC) is on top of the matrix and could be an interesting buy for several IT giants, but I believe that Cloudera might be a better target for Hitachi. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset — information — in a more agile, trusted and cost-efficient way.

Virtustream, an EMC Federation company, is trusted by enterprises and public sector organizations around the world to run and manage their mission-critical applications in the cloud. Virtustream is headquartered in Bethesda, Maryland with innovation and development centers in Palo Alto; Atlanta; Waldorf, Germany; Sofia, Bulgaria and Bangalore, India. All trademarks are either registered trademarks or trademarks of EMC Corporation in the United States and/or other countries, and all other trademarks used are the property of their respective owners. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) failure of the parties to finalize and enter into definitive agreements, (ii) failure of the parties to consummate the transaction even if such agreements are entered into; (iii) the failure to satisfy required accounting requirements for consolidating the cloud services business’s results into VMware’s financial statements or the timing of any such consolidation; (iv) adverse changes in general economic or market conditions; (v) delays or reductions in information technology spending; (vi) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (vii) competitive factors, including but not limited to pricing pressures and new product introductions; (viii) component and product quality and availability; (ix) fluctuations in VMware, Inc.’s operating results and risks associated with trading of VMware stock; (x) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (xi) risks associated with managing the growth of our business, including risks associated with acquisitions and investments and the challenges and costs of integration, restructuring and achieving anticipated synergies; (xii) the ability to attract and retain highly qualified employees; (xiii) insufficient, excess or obsolete inventory; (xiv) fluctuating currency exchange rates; (xv) threats and other disruptions to our secure data centers or networks; (xvi) our ability to protect our proprietary technology; (xvi) war or acts of terrorism; and (xviii) other one-time events and other important factors disclosed previously and from time to time in EMC’s and VMware’s filings with the U.S.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/emc-and-vmware-reveal-new-cloud-services-business-300163301.html

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