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EMC spins out VMware cloud services and makes them part of Virtustream

Image Credit: Chad Scott/Flickr

Enterprise software player VMware, which is partially owned by EMC — which, in turn, just got bought by Dell for $67 billion — today announced that it’s making some big changes to its cloud services.

VMware’s vCloud Air public cloud portfolio is becoming part of public cloud and cloud software provider Virtustream, which VMware acquired earlier this year.

Virtustream, for its part, will become part of a new Cloud Services Business that will be owned by EMC and VMware — each side will own half. The Virtustream business will report its finances in VMware’s quarterly earnings statements.

It’s a feat of financial engineering at its best.

One wrinkle in all of this: Dell was at one point trying to build a public cloud, but abandoned those plans. Now, by bringing together Virtustream and vCloud Air, Dell will have a stronger cloud to push, and will perhaps one day be a competitive force that could challenge the likes of Amazon Web Services, Google Cloud Platform, Microsoft Azure and IBM SoftLayer. Maybe.

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