EMC & VMware Plan To Form New Cloud Services Business - Quick Facts

(RTTNews) - EMC Corp. (EMC) and VMware (VMW) announced plans to form the Federation's new cloud services business by combining their respective cloud capabilities, along with existing Virtustream cloud offerings, under the Virtustream brand.

Virtustream will be jointly owned by VMware and EMC and led by Rodney Rogers, CEO of Virtustream. Virtustream's financial results will be consolidated into VMware's financial statements beginning in first quarter, 2016.

The companies expect Virtustream to generate multiple hundreds of millions of dollars in recurring revenue in 2016, focused on enterprise-centric cloud services, with an outlook to grow to a multi-billion business over the next several years.