Recently, VMware and EMC Corporation announced they will be co-owners of Virtustream. EMC purchased the company for $1.2 billion early this year. They are bringing VMware on to provide a range of cloud services. This will allow EMC and VMware to compete with larger cloud provides, such as Microsoft, Amazon and Google.
The timing of the announcement is interesting because just last week, Dell announced they will acquire EMC for $67 billion. This will be the largest technology deal ever and will include the EMC shares of VMware.
Many believe the partnership may be due to falling shares at VMware. Even though the news of EMC being purchased by Dell caused the shared to drop 5%, Michael Dell stated if the plan goes through, VMware would still be run as an independent entity.