VCE Enters Next Phase of Growth and Innovation as an EMC Business

Strategic Investors Cisco and VMware Continue Full Support and Alignment

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Overview

On October 22, 2014, EMC, Cisco and VCE announced that VCE will become an EMC business, and that Cisco and VMware will continue as strategic partners and investors, with Cisco retaining an approximately 10% equity interest in VCE. 

As an EMC business, VCE will remain intact with its own mission, operating charter and organizational structure. VCE’s charter will focus on simplifying the deployment of hybrid clouds, including a full range of converged infrastructure offerings for enterprises and service providers. 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.

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. In five years, VCE has been the clear industry leader with customers in:

• 8 of the top 10 worldwide telecom companies

• 7 of the top 10 US hospitals

• 5 of the 10 largest banks worldwide

VCE Vblock Systems are engineered, manufactured, managed, supported, and sustained as a single solution, providing exceptional customer experience.  More than 1,000 enterprises and service providers have deployed 2,000+ Vblock Systems worldwide, realizing significant benefits in speeding application deployments, simplifying operations, increasing availability, and reducing costs.

Questions and Answers

Why is this happening now?

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 hugely successful in this mission. 


Cisco, EMC, 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.  

Was VCE successful?

Yes.  EMC and Cisco agree that VCE has been a tremendous success.  VCE surpassed a $2 billion annualized demand run-rate1  for Vblock systems and Vblock-related products and services exiting Q3 2014, its sixth consecutive quarter of greater than 50% year-over-year demand growth.

Customers and Partners

What does this mean to VCE customers and partners?

VCE, EMC, and Cisco are steadfast in their commitment to the success of our customers and partners in their deployment of VCE solutions, and will maintain the same support and field engagement model for partners and customers. As such, customers and partners will not experience any changes with regard to their pre- and post-sales engagement with VCE.  

VCE remains laser focused on ensuring that we continue to deliver the best customer experience in the industry.

 

Will there be any changes to VCE customer support?

No. Underscoring their commitment to VCE customer success are existing and renewed multi-year engineering, resell and support agreements among Cisco, EMC and VCE. As such, customers and partners will not experience any changes with regard to their pre- and post-sales engagement with VCE.

Will the VCE Partner Program change?

No. The VCE Partner Program remains unchanged. 

Will the VCE go-to-market model change?

No. The VCE go-to-market model and the way VCE works with customers, partners, and investor companies EMC, Cisco, and VMware remains unchanged.

Products and Solutions

How will VCE’s product strategy change?

VCE will continue to develop, sell and support its industry-leading Vblock Systems with best-of-breed technologies exclusively from Cisco, EMC, and VMware.  VCE’s charter will focus on simplifying the deployment of hybrid clouds, including a full range of Converged Infrastructure offerings.  This will enable VCE to apply its unique innovations and expertise to a broad range of hybrid cloud solutions. 

What does this mean for Cisco’s involvement in VCE and its products?

Cisco is committed as a strategic partner and investor and will hold approximately 10% equity interest in VCE. VCE will continue to offer industry-leading Vblock Systems, which feature best-of-breed compute and networking exclusively from Cisco.  VCE is committed to the roadmap of ACI-enabled Vblock and UCS innovations, with the intention to accelerate growth for VCE’s portfolio.

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. 

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