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03 December 2012, 13:04

Report: EMC planning new cloud spinoff

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EMC is looking at splitting its subsidiary VMWare and creating a new EMC company to handle all of the non-virtualisation-related products, according to reports from GigaOM and TechCrunch. The new company would be a direct subsidiary of EMC and would have a portfolio comprising the Platform-as-a-Service CloudFoundry, EMC's Big Data company Greenplum and previous VMWare open source acquisitions such as SpringSource and GemStone.

TechCrunch sources say that EMC's current Chief Strategist, Paul Maritz, former VMWare CEO until July 2012, is expected to take over the newly formed company, which would be staffed by around a thousand former VMWare personnel. Rumours that EMC has been planning a new spinoff have been circulating since Maritz left the CEO position; the rationale is that it would allow VMware to focus on the virtualisation business and allow the new company to be more able to compete with other cloud service providers such as Amazon, Google and Microsoft. EMC has not commented on the rumours.


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