HOPKINTON, Mass., May 26, 2015 /PRNewswire/ --
News Summary:
- EMC to acquire Virtustream (all references to EMC refer to the
EMC Federation of businesses)
- Fast-rising Virtustream to form EMC's new managed cloud
services business
- Represents transformational element of EMC's strategy to help
customers move all of their applications to cloud-based IT
environments
- Virtustream is trusted by enterprises worldwide to migrate,
manage and run their mission-critical enterprise applications in
the cloud, including SAP
- Virtustream portfolio to be delivered directly to customers and
through EMC's global partner ecosystem
- Virtustream to operate as a separate EMC Federation business,
reporting to Joe Tucci
Full Story:
EMC Corporation (NYSE: EMC) today announced it has entered into
a definitive agreement to acquire privately-held Virtustream. When
the transaction closes, Virtustream will form EMC's new managed
cloud services business. The acquisition represents a
transformational element of EMC's strategy to help customers move
all applications to cloud-based IT environments. With the addition
of Virtustream, EMC completes the industry's most comprehensive
hybrid cloud portfolio to support all applications, all workloads
and all cloud models.
Virtustream CEO Rodney Rogers
will report to Joe Tucci, EMC
Chairman and CEO.
"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. "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."
One of the world's fastest-rising cloud software and services
companies, Virtustream is trusted by enterprises worldwide to
migrate, run and manage mission-critical applications in the cloud,
including SAP. Virtustream customers include marquis enterprises
such as The Coca-Cola Company, Domino Sugar, Heinz, Hess
Corporation, Kawasaki, Lexmark,
Scotts Miracle-Gro and a global footprint of service provider
partners who use Virtustream software to power their cloud
offerings.
Virtustream's cloud software and Infrastructure-as-a-Service
portfolio will be delivered directly to customers and through
partners. EMC Federation service provider partners will receive
access to Virtustream's xStream cloud management software platform
and be enabled to adopt and deliver their own branded services
based upon it.
Presently EMC provides the Federation Enterprise Hybrid Cloud
Solution — an on-premise private cloud offering that provides
on-ramps to public cloud services such as VMware vCloud Air.
Virtustream brings to the EMC portfolio a managed cloud software
and services capability — whether on or off premise — which EMC
also intends to incorporate into the Federation Enterprise Hybrid
Cloud Solution. With the addition of Virtustream, EMC will enable
customers to move their entire application portfolio into a cloud
environment.
Founded in 2009 by Rodney Rogers
and president & CTO Kevin Reid,
Virtustream delivers application lifecycle automation and
orchestration with a particular focus on I/O-intensive
mission-critical enterprise applications such as SAP S/4HANA and
others. Virtustream's xStream platform is tightly integrated
with VMware vSphere and architected to deliver service level
agreements (SLAs) for not only infrastructure availability, but for
application performance and transaction latency as well.
"Virtustream has established itself as an industry leader and
innovator for running mission-critical enterprise applications in
the cloud," explained Rodney Rogers,
Virtustream Chairman and CEO. "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."
Recognition by Leading Analyst Firms
Virtustream's rapid rise to premier cloud provider status is
evidenced by Forrester* ranking Virtustream as one of only two
"Leaders" in the hosted private cloud solutions market. Gartner has
recognized Virtustream in the Gartner Magic Quadrant for Cloud
Infrastructure as a Service — one of the few independent companies
to reach this status worldwide in public cloud IaaS.
In addition, Virtustream integrates a comprehensive
defense-in-depth security model and governance solution. This
market-leading attribute is validated by Virtustream's highest
ranking in the area of security and compliance in Gartner's
"Critical Capabilities for Public Cloud Infrastructure as a
Service" report. Virtustream delivers its capabilities both as
software for on-premise or service provider deployment and as the
foundation of the company's IaaS solution.
Transaction Terms
The all-cash transaction is expected to close in the third
quarter of 2015, subject to customary closing conditions, is valued
at approximately $1.2 billion, and
has been approved by the boards of directors of both EMC and
Virtustream and the requisite Virtustream stockholders. The
transaction is expected to have no material impact to EMC financial
results in 2015 and is expected to be additive to revenues and
accretive to EPS in 2016.
Federation Executive Quotes:
David Goulden, Chief
Executive Officer, EMC Information Infrastructure
"As IT organizations race to keep pace with the demands of the
modern and rapidly changing business, they need to leverage both
private and public clouds. The EMC Federation Enterprise Hybrid
Cloud Solution enables customers to deploy rapidly a hybrid cloud
that incorporates the best of both. Today's news completes the
picture, culminating in what customers want most, a one-stop-shop
experience for their entire hybrid cloud needs."
Pat Gelsinger, Chief
Executive Officer, VMware
"This acquisition is great news for our customers, VMware and
the EMC Federation of businesses. With the addition of
Virtustream, we will be able to offer customers a comprehensive set
of hybrid cloud offerings, including private, managed and public
cloud solutions. As we deliver VMware vCloud Air to our customer
base to help them continue their journey to the cloud, Virtustream
complements and expands our value proposition."
Partner Quotes:
Bill McDermott, Chief
Executive Officer, SAP
"SAP has a long-term partnership with Virtustream to host
mission-critical applications in the cloud. We are excited to see
Virtustream become part of EMC. SAP will continue to serve as a
partner with the new EMC managed cloud services business and we
remain ever committed to supporting the hybrid cloud landscapes of
shared customers around the world."
Don Whittington, VP
& CIO, Florida Crystals Corporation
"Virtustream has been a key strategic partner for us for the
last 5 years and has had a material impact on our complex IT
landscape and how we run our business. The coming together of
Virtustream and EMC is a natural fit that offers great promise
through their combined ability to address the wide spectrum of
cloud computing requirements."
Tom Frana, CEO, ViON
"ViON leverages Virtustream's xStream software platform to
provide secure cloud solutions for federal government
agencies. The combination of Virtustream's capabilities with EMC's
robust security portfolio and comprehensive cloud solutions will
allow us to bring even more compelling services to market."
Gil Torquato, CEO,
UOL Diveo
"Both Virtustream and EMC are valued partners of UOL and are
critical to our success in meeting the rapidly growing demand for
enterprise-class cloud solutions in Brazil. Virtustream becoming part of the EMC
Federation pairs Virtustream's xStream cloud management software
with EMC's rich technology set for the delivery of market-leading,
end-to-end cloud solutions."
Additional Resources
- Register here for a conference call for press, analysts and
investors which will be held at 11:30 a.m.
Eastern Time today. Audio replay will be available by
dialing 203-369-3070 until June 9,
2015.
- Read the EMC Reflections blog from Howard Elias
- Read the Virtustream blog from Rodney
Rogers
- Read VMware blog from Bill
Fathers
- Connect with EMC via Twitter, Facebook, YouTube, and
LinkedIn follow @EMC_News on Twitter
About EMC
EMC Corporation is a global leader in enabling businesses and
service providers to transform their operations and deliver IT as a
service. Fundamental to this transformation is cloud
computing. 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.
Additional information about EMC can be found
at www.EMC.com.
*Source: The Forrester Wave ™: Hosted Private Cloud Solutions,
Q4 2014
EMC2, EMC, and the EMC logo are registered trademarks or
trademarks of EMC Corporation in the
United States and other countries. Virtustream, xStream and
the Virtustream and xStream logos are registered trademarks of
Virtustream, Inc. All other trademarks used herein are the property
of their respective owners.
This release contains "forward-looking statements" as defined
under the Federal Securities Laws. 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) adverse changes in general economic or market
conditions; (ii) delays or reductions in information technology
spending; (iii) the relative and varying rates of product price and
component cost declines and the volume and mixture of product and
services revenues; (iv) competitive factors, including but not
limited to pricing pressures and new product introductions; (v)
component and product quality and availability; (vi) fluctuations
in VMware, Inc.'s operating results and risks associated with
trading of VMware stock; (vii) the transition to new products, the
uncertainty of customer acceptance of new product offerings and
rapid technological and market change; (viii) 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;
(ix) the ability to attract and retain highly qualified employees;
(x) insufficient, excess or obsolete inventory; (xi) fluctuating
currency exchange rates; (xii) threats and other disruptions to our
secure data centers or networks; (xiii) our ability to protect our
proprietary technology; (xiv) war or acts of terrorism; and (xv)
other one-time events and other important factors disclosed
previously and from time to time in EMC's filings with the U.S.
Securities and Exchange Commission. EMC disclaims any
obligation to update any such forward-looking statements after the
date of this release.
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SOURCE EMC Corporation