EMC Acquires Virtustream for $1.2 Million
EMC recently announced the expansion of its portfolio of cloud computing tools by purchasing Virtustream, a privately held software provider. EMC, a storage systems provider, plans to use Virtustream’s software and technology to better enable customers to transition to cloud-based services instead of running in-house data centers.
The newly acquired software from Virtustream, which is called xStream, will be used to manage complex applications in the cloud, such as SAP. This software makes it possible for companies to set up private infrastructure and multi-tenant cloud deployments.
Rodney Rogers and Kevin Reid founded Virtustream in 2009, and the company offers application lifecycle orchestration and automation. The xStream platform is architected to offer service level agreements for application performance, infrastructure availability, and translation latency. Just a few of the Virtustream customers that have used this technology successfully include large enterprises, such as Heinz, Lexmark, The Coca-Cola Company, Hess, Kawasaki, and Domino Sugar.
Currently, EMC offers the Federation Enterprise Hybrid Cloud Solution, and Virtustream will bring managed cloud software, as well as services, to the EMC portfolio. EMC intends to integrate these services into their Federation Enterprise Hybrid Cloud Solution, and adding Virtustream will make it possible for EMC to help customizer move entire application portfolios into the cloud.
EMC already is involved in the cloud computing and virtualization market, since the company is the majority owner of VMware, a virtualization software provider. Virtustream’s xStream will be used to improve the reliability and performance of the virtualization technology offered by VMware.
According to Joe Tucci, EMC’s CEO, the acquisition of Virtustream positions EMC to be a single source for the cloud infrastructure and services needs of customers. Virtustream has already positioned itself as an innovator and leader in the industry. The combination of the two companies provides a combination of products, services, and capabilities that will be better able to deal with the complete range of their customers’ cloud computing requirements.
Both Virtustream’s and EMC’s board of directors have approved the $1.2 million deal. The transaction, which will be done in all cash and it will probably close sometime during the third quarter of this year.