EMC Corporation has entered into an agreement to acquire cloud business Virtustream, which will form EMC’s new managed cloud services business.
Virtustream currently works with enterprises around the world to migrate, manage and run mission-critical enterprise applications in the cloud. Founded in 2009, the company delivers application lifecycle automation and orchestration with a particular focus on I/O-intensive mission-critical enterprise applications such as SAP S/4HANA and others.
Virtustream is a strategic partner of SAP, and in 2013, SAP led a US$40 million round of investment in the company.
EMC’s acquisition completes its strategy to enable customers to move all of their applications to cloud-based IT environments.
While Virtustream will continue to operate as a separate EMC Federation business, with CEO Rodney Rogers reporting to Joe Tucci, EMC chairman and CEO, its portfolio of services will be delivered directly to customers and through EMC’s global partner ecosystem.
“With Virtustream in place, EMC will be uniquely positioned as a single source for our customers’ entire hybrid cloud infrastructure and services needs. We could not be more delighted that Virtustream will be joining the EMC Federation family. It’s a game changer,” said Tucci.
The all-cash acquisition is valued at approximately US$1.2 billion, and is expected to close in the third quarter of 2015.
SAP CEO Bill McDermott said the company is excited to see Virtustream join EMC.
“SAP will continue to serve as a partner with the new EMC managed cloud services business and we remain ever committed to supporting the hybrid cloud landscapes of shared customers around the world,” McDermott said.
Prefer to receive your SAP news in your social media feeds? Follow us on Twitter or on Facebook and we’ll keep you up to date.
