EMC and HP go shopping for acquisitions
EMC snaps up cloud provider Virtustream as HP takes on NFV player ConteXtream
Yesterday saw big M&A developments in the tech world, with US goliaths EMC and HP both snapping up firms.
EMC gobbled up cloud provider Virtustream, which delivers cloud software and infrastructure-as-a-service, in a deal worth about $1.2bn (£782m).
Meanwhile, HP announced it has acquired network functions virtualisation (NFV) company ConteXtream – which specialises in providing software-defined networking (SDN) fabric for NFV – for an undisclosed amount.
Commenting on the latter deal, Saar Gillai, HP's senior vice president and general manager of NFV, said: "ConteXtream offers solutions that allow service providers to create a more flexible and programmable network through an SDN/NFV model.
"This acquisition will further strengthen HP's leadership in the fast-growing NFV market, which some analysts expect to grow to $11bn by 2018."
Following the move, ConteXtream will integrate into HP's Communications Solutions Business.
EMC's move for Virtustream is set to boost the Federation's hybrid cloud infrastructure offering.
Joe Tucci, EMC chairman and chief executive, said of the announcement:
"Virtustream is an exceptional company, and this is a critical and transformative acquisition for EMC in one of the industry's fastest-growing and most important sectors.
"With Virtustream in place, EMC will be uniquely positioned as a single source for our customers' entire hybrid cloud infrastructure and services needs."
In a statement, Pat Gelsinger, chief executive of VMware, said the acquisition will benefit his company, which is part of the EMC Federation of businesses.
"With the addition of Virtustream, we will be able to offer customers a comprehensive set of hybrid cloud offerings, including private, managed and public cloud solutions," he said.
"As we deliver VMware vCloud Air to our customer base to help them continue their journey to the cloud, Virtustream complements and expands our value proposition."