Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

VMware to Spin Out

EMC plans to offer VMware shares in an IPO early this summer. (See EMC Offers 10% of VMware.)

EMC will float 10 percent of VMware in the form of new VMware shares. There will be no tax implications and the move should not affect EMC earnings, execs said.

CEO Joe Tucci was adamant on a conference call today that there will be no further spinoffs of other EMC properties. EMC will also hold onto the remaining 90 percent of VMware. "We have no intention of spinning out or otherwise divesting this ownership interest," said Tucci. "Long term, we plan on holding onto this precious asset."

Tellingly, Tucci was cagey when asked about the potential for EMC spinoffs at yesterday's RSA conference in San Francisco. During a press conference after the keynote speech by RSA president Art Coviello, Tucci wouldn't answer the question directly, and he warned the audience to take care to listen to his wording very closely. (See Tucci Aims for 'One EMC'.)

EMC's move makes sense. Nine years after VMware's founding, and three years after its acquisition for $635 million by EMC, the virtualization trailblazer has shown dramatic growth, more than doubling its revenues in the last three years.

  • 1