EMC and VMware spin out big data/cloud division

By Brandon Butler, Network World |  Cloud Computing, EMC, paas

"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. Aligning these resources is the best way for the combined companies to leverage this transformational period, and drive more quickly towards the rising opportunities," Anderson wrote in the blog post. "The Pivotal Initiative signals an entirely new level of focused investment and organization to maximize the impact that these assets can have for customers and EMC's path forward."

Maritz left VMware this summer to become chief strategy officer at EMC and was replaced with former EMC COO Pat Gelsinger, who now heads VMware. Since Maritz's move over to parent company EMC there has been speculation about his next move and today EMC and VMware confirmed that he will lead this new effort. Pivotal Initiative will be formally launched in the second quarter of 2013 with about 1,400 employees -- about 600 from VMware and 800 from EMC.

Spinning out the Cloud Foundry and vFabric product lines from VMware will allow the company to "fully focus" on its software-defined data center strategy, Anderson says. vSphere, vCloud Director and vCenter will be the cornerstones of VMware's products now it appears. "VMware will continue to drive application-aware innovations into its core platform, ensuring best-in-class performance of any application when deployed onto the VMware vCloud Suite," Anderson wrote.

EMC and VMware said the companies will provide additional details about Pivotal Initiative in the first quarter of next year.

Stuart Miniman, an analyst at the Wikibon Project who covers the cloud market, says the move is clearly an effort by EMC and VMware to invest in what could be two of the most important areas in technology moving forward: big data and cloud. "The combination of these two areas could be really powerful," he says. EMC, with its storage background and VMware with is virtualization tools, he says, are in a prime position to exploit that. IBM, HP and even Amazon Web Services, he expects, will be other players in this market.


Originally published on Network World |  Click here to read the original story.
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