Acquisition of Virtustream by EMC Federation Continues to Create Ripples Among Analysts

By CIOReview | Tuesday, December 15, 2015

FREMONT, CA: An acquisition that sparked debate among analysts and left investors surprised – EMC Federation’s move to combine two distinct cloud platform providers Virtustream and VMware. The revamped hybrid cloud business, labeled under the Virtustream brand name would now combine its cloud technology along with VMware’s vCloud Air. The product range of Virtustream include patented enterprise class cloud management software, cloud based Infrastructure as a Service (Iaas) and security solutions.

Some analysts view this acquisition as an attempt to consolidate the cloud services under EMC to offer a more competitive feature set for its users, one that would be beneficial in the long run. While Virtustream hails from an application oriented SAP landscape, VMware served as a hybrid networking infrastructure which pose as a data center extension with elasticity. “Their convergence would tend to provide an all round cloud experience to customers”, says Ajay Patel, VMware Senior Vice President, who would now lead the venture.

The move provides a better edge to the sales team by equipping them with technically impressive cloud options. Existing customers, though content with VMware have welcomed the move with open mind eyeing better returns. The challenge ahead would be to bring into effect this financially sought and successfully theorized strategy. Although largely supported from a technology standpoint, the move has raised doubts among investors regarding the stability in stock values of VMware.