EMC Bets on Cloud Services, Buys Virtustream

May 27th, 2015 by · 1 Comment

The managed cloud services marketplace got a big jolt yesterday as the storage technology giant EMC announced the purchase of Virtustream.  It's an all-cash deal for $1.2B that will bring Virtustream's team and as-a-service offerings under the EMC umbrella.

That a managed cloud services provider founded in 2009 is able to sell for such a princely sum is surely making the private equity folks that have been backing similar efforts around the industry quite happy this week.  Just where EMC will go now with Virtustream to power its cloud ambitions and who it will face when it gets there is something of an open question.  Everyone is moving to the cloud, but seeing through it is another matter.

But for now, this is another in a steady drumbeat of acquisitions of young, rising cloud vendors by established telecom and technology companies that want to stay on top of an ever-changing landscape.  Bringing in outside talent is a necessary part of that evolution, but managing to integrate it without killing it is the next step.  But EMC has done pretty well on that front with VMware, which it acquired in 2004 just as the underlying technologies that became the cloud were starting to take shape.

EMC will be carefully integrating Virtustream's platform and capabilities into its Federation Enterprise Hybrid Cloud Solution, while trying to keep growing what was definitely working for Virtustream in the marketplace.

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Categories: Cloud Computing · Mergers and Acquisitions

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  • mhammett says:

    Oh, I didn’t know EMC owned VMWare.

    Everytime I see this article’s headline, I think it says Windstream instead of Virtustream.

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