EMC has confirmed that it will take full control of VCE, the converged infrastructure joint-venture it had set up with Cisco and VMWare.
Cisco will still own about a tenth of the business, down from 35% but could well face some serious competition from a unit it set up.
Praveen Akkiraju. VCE's CEO, noted in a blog post, that the $2-billion company is looking to "expand beyond platforms to deliver hybrid cloud solutions".
Cisco has already started to compete with VCE via its Unified Computing System servers.
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However, its CEO, John Chambers, confirmed that the company would continue its "commitment in VCE as a crucial route to market for Cisco's next-generation technologies for the data center and cloud."
The current scenario is reminiscent of the LenovoEMC joint venture, one that eventually saw an EMC-owned entity (Iomega) being controlled by Lenovo.
Both shares of EMC and Cisco jumped earlier today in pre-market transactions by about the same amount (around 1%), a sign perhaps that investors on both sides believed it was a good time to call off the JV.
from www.techradar.com
