HOPKINTON, Mass. and SAN
JOSE, Calif. and RICHARDSON, Texas, Oct. 22,
2014 /PRNewswire/ -- EMC, Cisco and VCE today announced the
next phase of evolution for VCE. Expected to be finalized
this quarter, VCE will become an EMC business. Cisco and VMware
will continue as strategic partners and investors, with Cisco
having an approximately 10% equity interest in VCE. VCE's charter
will focus on simplifying the deployment of hybrid clouds,
including a full range of converged infrastructure offerings,
applying its unique innovations and expertise to a broad range of
hybrid cloud solutions. Under this next phase, VCE will continue to
advance new solutions based on its industry-leading Vblock®
Systems, which feature best-of-breed technologies exclusively from
Cisco, EMC and VMware.
VCE embarks upon this new structure with full support from its
original founders Cisco, EMC and VMware. As part of the EMC family,
VCE will remain intact under the leadership of CEO Praveen Akkiraju and his senior team with its
own mission, operating charter and organizational structure.
Underscoring their commitment to VCE customer success are existing
and renewed multi-year engineering, resell and support agreements
among Cisco, EMC and VCE. As part of EMC, VCE will be an
integration point for technologies from across the company.
As one of the industry's most successful joint ventures, the
speed and scale of VCE's success in pioneering and validating
converged infrastructure has been unprecedented, with VCE as the
clear leader. EMC, Cisco and VCE jointly determined that this
new structure would serve as the optimal model for VCE's next phase
of expansion, innovation, and long-term growth.
VCE surpassed a $2 billion
annualized demand run-rate1 for Vblock and
Vblock-related products and services exiting Q3 2014, its sixth
consecutive quarter of greater than 50% year-over-year demand
growth. According to IDC2, total worldwide spending on
converged infrastructure is growing at 32.8% annually and will
reach approximately $14.37 billion in
2017 (up from $5.4 billion in 2013).
VCE is the clear leader in integrated infrastructure systems
according to Gartner3 and IDC4. Earlier in
2014, VCE was positioned as a leader in the Gartner, Inc. Magic
Quadrant for Integrated Systems5, based on an evaluation
of VCE's completeness of vision and ability to execute.
VCE Vblock Systems are engineered, manufactured, managed,
supported, and sustained as a single solution, providing an
exceptional customer experience. More than 1,000 enterprises
and service providers have deployed over 2,000 Vblock Systems
worldwide, realizing significant benefits in speeding application
deployments, simplifying operations, increasing availability, and
reducing costs. A recent study conducted by IDC revealed
that, on average, VCE customers were able to deploy new services
five times faster, reduce downtime by 96%, and lower their annual
datacenter costs by 50% with Vblock Systems.
VCE's reorganization and recapitalization, which will result in
the acquisition of a controlling interest by EMC, are expected to
be completed in the fourth quarter of 2014, subject to customary
regulatory approvals, and are expected to have no material impact
to EMC GAAP and non-GAAP EPS for the full 2014 fiscal year. Once
finalized, EMC will begin reporting VCE financials as part of its
consolidated financial statements.
Executive Quotes:
Joe Tucci, Chairman and CEO of
EMC
"VCE was created to be a disruptive force by radically
transforming and simplifying IT data center architectures,
accelerating a shift to cloud computing. It has been a huge
success and has changed the conversation with CIOs. VCE's size,
scale and market reach now requires a more traditional business
structure. Our commitment to increased investment will enable VCE
to significantly expand the scale and scope of its solutions,
helping customers take better advantage of hybrid cloud and
next-generation IT opportunities." Tucci continued, "We would like
to welcome Praveen, VCE President Frank
Hauck and the VCE team to EMC and congratulate them on the
tremendous success of VCE."
John Chambers, Chairman and
CEO of Cisco
"VCE represents another example of Cisco's strategy of
aggressively investing to drive key market transitions. VCE was
created to positively disrupt data center architectures utilizing
Cisco's UCS and Nexus platforms, and we have been thrilled with the
execution, results and customer demand the VCE team has
delivered. I look forward to the next chapter of VCE's
evolution and Cisco's continued commitment in VCE as a crucial
route to market for Cisco's next-generation technologies for the
data center and cloud."
Praveen Akkiraju, CEO of
VCE
"VCE has proven to be a game-changer for customers, dramatically
accelerating the deployment of next-generation data center and
cloud environments. As the company that pioneered converged
infrastructure, I could not be more proud of what the VCE team has
accomplished through our customer-centric DNA and deep solution
expertise. I am energized by this next phase as we apply the
unique VCE Experience to enable customers' journey to the
cloud."
For more information, go to VCE.com/next
Additional Information
- Read blog from Howard Elias and
Gary Moore
- Read blog post by Praveen
Akkiraju
- Frequently Asked Questions
- Download the Gartner Magic Quadrant for Integrated Systems
VCE On Social Media
- Vblog, VCE Corporate Blog
- Twitter
- LinkedIn
- Facebook
- Google+
- YouTube
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide leader in IT that helps
companies seize the opportunities of tomorrow by proving that
amazing things can happen when you connect the previously
unconnected. For ongoing news, please go
to http://thenetwork.cisco.com
About EMC
EMC Corporation (NYSE: EMC) is a global leader in enabling
businesses and service providers to transform their operations and
deliver IT as a service. Fundamental to this transformation is
cloud computing. Through innovative products and services, EMC
accelerates the journey to cloud computing, helping IT departments
to store, manage, protect and analyze their most valuable asset —
information — in a more agile, trusted and cost-efficient way.
Additional information about EMC can be found at www.EMC.com.
About VCE
VCE, formed by Cisco and EMC with investments from
VMware and Intel, accelerates the adoption of converged
infrastructure and cloud-based computing models that dramatically
reduce the cost of IT while improving time to market for our
customers. VCE, through the Vblock systems, delivers the industry's
only true converged infrastructure systems, leveraging Cisco
compute and network technology, EMC storage and data protection,
and VMware virtualization and virtualization management. VCE
solutions are available through an extensive partner network, and
cover horizontal applications, vertical industry offerings, and
application development environments, allowing customers to focus
on business innovation instead of integrating, validating, and
managing IT infrastructure.
1 Demand run rate is an annualized calculation of
orders received in the applicable period by VCE, VMware, EMC and
Cisco for the sale of VCE Vblock and Vblock-related products and
related services.
2 IDC, Worldwide Integrated Systems 2014-2017
Forecast, March, 2014
3 Gartner Market Share Analysis: Data Center Hardware
Integrated Systems, 2013, July, 31 2014
4 IDC Worldwide Integrated Infrastructure &
Platforms Tracker, September 25,
2014
5 Gartner Magic Quadrant for Integrated Systems,
June 16, 2014
Cisco and the Cisco logo are trademarks or registered trademarks
of Cisco and/or its affiliates in the U.S. and other countries. A
listing of Cisco's trademarks can be found at
www.cisco.com/go/trademarks. The use of the word
partner does not imply a partnership relationship between Cisco and
any other company.
EMC is a registered trademark of EMC Corporation in the United States and/or other countries. The
use of the word "partner" or "partnership" does not imply a legal
partnership between EMC and any other entity.
VCE and Vblock are registered trademarks or trademarks of VCE
Company LLC or its affiliates in the
United States and/or other countries. The use of
the word "partner" or "partnership" does not imply a legal
partnership relationship between VCE and any other
organization.
All other trademarks used are the property of their respective
owners.
Forward-Looking Statements
Cisco
This release may be deemed to contain forward-looking
statements, which are subject to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These statements
include, among others, statements regarding the VCE partnership,
VCE's impact for its customers, VCE's evolution, and evolved
structure and business model, and VCE's ability to continue to grow
over the long term and significantly expand. Readers are
cautioned that these forward-looking statements are only
predictions and may differ materially from actual future events or
results due to a variety of factors, including, among other things,
the ability of the companies to partner successfully, the ability
to achieve expected benefits of the partnership, business and
economic conditions and growth trends in the networking industry,
customer markets and various geographic regions, increased
competition, global economic conditions and uncertainties in the
geopolitical environment and other risk factors set forth in
Cisco's most recent report on Form 10-K filed on September 9, 2014 . Any forward-looking
statements in this release are based on limited information
currently available to Cisco, which is subject to change, and Cisco
will not necessarily update the information.
EMC
This release contains "forward-looking statements" as defined
under the Federal Securities Laws. Actual results could
differ materially from those projected in the forward-looking
statements as a result of certain risk factors, including but not
limited to: (i) adverse changes in general economic or market
conditions; (ii) delays or reductions in information technology
spending; (iii) the relative and varying rates of product price and
component cost declines and the volume and mixture of product and
services revenues; (iv) competitive factors, including but not
limited to pricing pressures and new product introductions; (v)
component and product quality and availability; (vi) fluctuations
in VMware, Inc.'s operating results and risks associated with
trading of VMware stock; (vii) the transition to new products, the
uncertainty of customer acceptance of new product offerings and
rapid technological and market change; (viii) risks associated with
managing the growth of our business, including risks associated
with acquisitions and investments and the challenges and costs of
integration, restructuring and achieving anticipated synergies;
(ix) the ability to attract and retain highly qualified employees;
(x) insufficient, excess or obsolete inventory; (xi) fluctuating
currency exchange rates; (xii) threats and other disruptions to our
secure data centers or networks; (xiii) our ability to protect our
proprietary technology; (xiv) war or acts of terrorism; and (xv)
other one-time events and other important factors disclosed
previously and from time to time in EMC's filings with the U.S.
Securities and Exchange Commission. EMC disclaims any
obligation to update any such forward-looking statements after the
date of this release.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/vce-enters-next-phase-of-growth-and-innovation-as-an-emc-business-659396006.html
SOURCE EMC Corporation