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EMC, VMware Spin Out Virtustream Cloud Computing Unit

The new business unit will sell VMware vCloud Air and some EMC cloud storage services, as well as Virtustream's IaaS.


EMC and VMware have announced that Virtustream, a cloud computing company that EMC bought earlier this year, will become a separate business unit which will be owned half by EMC and half by VMware (which is itself partially owned by EMC). According to the companies, "The new business will incorporate and align the cloud capabilities of EMC Information Infrastructure, VCE, Virtustream and VMware to provide the complete spectrum of on- and off- premises offerings including: VMware vCloud Air, VCE Cloud Managed Services, Virtustream’s Infrastructure-as-a-Service, and EMC’s Storage Managed Services and Object Storage Services offerings."

VMware CEO Pat Gelsinger said he expects Virtustream to become "one of the top five cloud providers worldwide."

The business relationships among the companies are also complicated by the fact that Dell recently announced plans to acquire EMC, including its stake in VMware.

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