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Can EMC Merger Help Dell Penetrate the Cloud Computing Market?

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Jul. 22 2016, Updated 1:14 p.m. ET

EMC launched Native Hybrid Cloud platform

In May 2016, EMC Corporation (EMC) announced its Native Hybrid Cloud platform. EMC also launched EMC Virtustream Storage Cloud. While the first will help private clouds deploy “Web-Scale Applications,” the second is a public cloud built on Virtustream’s technology that EMC acquired last year for $1.2 billion.

Virtustream Storage Cloud helps large enterprises to secure, manage, and store critical data in the cloud. According to Virtustream, this solution provides a hyper-scale storage platform with enterprise-class resiliency and performance.

Founded in 2009, Virtustream is an enterprise cloud computing company that focuses on mission-critical applications like SAP business applications or SAP (SAP) HANA for enterprises. Virtustream offerings are available as both on-premise and cloud IaaS (infrastructure-as-a-service) deployments.

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Who are the top players in the cloud segment?

In late June 2016, IBM (IBM) was ranked a market leader in Cloud Application Development and Transformation by TBR (Technology Business Research), an independent technology market research firm. TBR also ranked IBM a market leader in public cloud IaaS adoption.

Synergy Research’s recent report also stated that IBM continued to be a top performer in the hybrid cloud space in 2015.

Synergy Research’s recent estimates show that 1Q16 cloud infrastructure revenues surpassed the $7 billion figure in 1Q16. The cloud is a highly concentrated and competitive space dominated by Amazon (AMZN), Microsoft (MSFT), IBM, and Google (GOOG) (GOOGL). Collectively, they command more than half of the cloud space, as the chart above shows.

In the next part of this series, we’ll discuss how Dell can enter the converged infrastructure market with the help of EMC.

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