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EMC expands cloud push with $1.2 billion buy of Virtustream

29/05/2015 by Sharon Shahzad


Cloud consolidation continues as storage kingpin EMC buys enterprise cloud player Virtustream.

Joe Tucci is at it again. The longtime EMC chief executive and chairman has made another purchase, buying Virtustream, an enterprise-oriented cloud computing company, for $1.2 billion in cash.

This move follows EMC’s late 2014 acquisition of Cloudscaling and its OpenStack-based private cloud expertise.

Virtustream is focused on big corporate customers—SAP is among its investors—and fields data centers in the U.S., the U.K. and the Netherlands. It particularly suits financial customers and others who require payment card industry (PCI) compliance, as well as federal government customers, according to Gartner’s IT latest cloud computing report.

Domino Sugar, Coca-Cola, Heinz, and Lexmark are some of Virtustream’s corporate customers.

Virtustream CEO and Co-founder Rodney Rogers will report directly to Tucci.

This move strengthens EMC’s hybrid story, said MSV Janakiram, a cloud computing consultant and founder of Janakiram & Associates. “With Cloudscaling, EMC got an entry into the OpenStack private cloud market and with Virtustream, EMC will instantly gain access to the global footprint of data centers set up by Virtustream.”

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