EMC Corporation announced on May 26th 2015 plans to acquire Virtustream, a cloud based software and service provider.
Image: company website
The deal will be an all cash deal worth $1.2 bn. Virtustream’s portfolio will be merged with EMC’s own cloud offering, Federation Enterprise Hybrid Cloud, thus developing a fresh cloud services business that has the capability to support all workloads, all cloud models and all applications.
Virtustream, based in Maryland, was founded in 2009 by Kevin and Rogers Reid, the chief technology officer and president respectively. It is focused on lifecycle automation and orchestration with specialization in enterprise applications that are mission critical. Its customers include The Coca Cola Company, Kawasaki, Heinz, Lexmark and Domino Sugar. EMC is aiding its corporate customers in getting the benefits of cloud computing by moving their applications to cloud. It uses the products owned by the company or software developed by VMware, in which EMC owns a controlling stake. EMC, as a part of its hybrid cloud technology, already has acquired 3 cloud companies before, namely Maginatics, Spanning and Cloud scaling in late 2014. Maginatics provides data mobility across services, Cloud scaling provides Open-stach software for the deployment of hybrid cloud and Spanning provides tools for data and app backup. The acquisition of Virtustream will help in consolidating everything.
EMC’s major concerns is that many corporates are transferring their services over cloud that can lead to a drop in the demand for storage devices and other equipment. Virtutream has its own data centers for hosting such chores.