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EMC and VMware to launch big data and cloud spin off

04 Dec 2012
Big data

EMC and VMware are planning to combine their respective big data operations under a new brand.

The two firms said that they would be joining forces to create Pivotal Initiative, a new operation which will be headed up by EMC chief strategy officer Paul Maritz.

Under the plan, EMC will hand over some 800 employees who are part of its Greenplum and Pivotal Labs branches, while VMware will contribute 600 workers through the vFabric, Cloud Foundry and Cetas platforms.

The two firms said that the deal, which is expected to be finalised by the second quarter of 2013, would seek to advance both companies' positions in the big data and cloud computing markets.

The two firms believe that by tying up their big data, cloud and virtualisation offerings into a single brand, the new company will be a stronger player in the cloud space than each had been on their own.

"There is a significant opportunity for both VMware and EMC to provide thought and technology leadership, not only at the infrastructure level, but across the rapidly growing and fast-moving application development and big data markets," the companies said in announcing the deal.

"Aligning these resources is the best way for the combined companies to leverage this transformational period, and drive more quickly towards the rising opportunities."

EMC has made cloud and big data a focal point in its recent strategy. Earlier this year the company spent much of its EMC World conference talking up new initiatives and offerings deared toward the data analysis space.

Charles King, principal analyst with Pund-IT, said that given the relative strengths of EMC and VMware, such an initiative makes sense for both parties involved.

"We have been seeing a lot of consolidation in the IT industry over the last few years and it is important for vendors to recognise that trying to keep everything under a single umbrella does not serve anybody well," King told V3.

"EMC can allow the folks that are involved in these product groups to focus on what they do best."

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Shaun Nichols

Shaun Nichols is the US correspondent for He has been with the company since 2006, originally joining as a news intern at the site's San Francisco offices.

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