Feeds

Vblocks bleed out EMC money

VCE = virtual cash erosion

Next gen security for virtualised datacentres

VCE – the Cisco-EMC-VMware Vblock company – appears to be experiencing virtual cash erosion, with EMC reporting $132m of accumulated losses.

Vblocks are converged IT stacks composed of EMC storage, Cisco UCS servers and networking, and VMware server virtualisation software. The VCE concern was set up by Cisco, EMC and VMware to build the Vblocks, and EMC owns 58 per cent of VCE, giving it the controlling interest.

Thanks to Aaron Rakers of Stifel Nicolaus, we know that EMC's 10-Q SEC filing says total EMC-contributed funding to VCE is $173.5m, plus $7.8m in stock-based compensation for VCE executives such as CEO Michael Capellas.

EMC losses in VCE for the June quarter of this year were $46.6m, with $41.9m in the preceding March quarter.

Viewing VCE as a startup it has not been very successful thus far. If it doesn't make a profit by the end of this year then perhaps EMC, Cisco and VMware might reconsider things. Perhaps they should change from stock-based compensation to stick-based incentivisation? ®

Next gen security for virtualised datacentres

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.