Data centers, Enterprise

Goodbye VCE, Hello EMC Converged Platforms Division

Chad Sakac
Chad Sakac

VCE is undergoing a leadership change, a name change and perhaps even some layoffs. The changes arrive as current parent EMC and pending future parent Dell try to accelerate their momentum in the converged infrastructure market.

VCE -- originally backed by VMware, Cisco Systems and EMC -- will now be known as the EMC Converged Platforms Division. Chad Sakac has been named president of the division. He previously ran EMC Global Systems Engineering.

Rebranding VCE to EMC Converged Platforms Division is a wise decision. As competition between Cisco and the EMC-VMware camp intensified, Cisco reduced its stake in the venture in 2014. Fast forward to the present, and Sakac inherits a business that exits 2015 with an annual revenue run rate above $2 billion, according to EMC.

Layoffs, Re-organizations and Integrations

Still, VCE apparently had staff cuts in recent days, according to one report. The alleged cuts involved 250 employees or about 12 percent of the VCE workforce, according to The Register. A VCE spokesperson declined to comment in that report.

EMC CEO Joe Tucci and Dell CEO Michael Dell both have their hands full with company changes ahead of Dell's proposed $67 billion buyout of EMC and Dell. That deal is expected to close between May and October 2016.

Indeed, EMC recently confirmed 2016 layoffs -- apparently unrelated to the alleged VCE cuts -- that will cost the company about $250 million. The company has also considered multiple ownership structures for its Virtustream enterprise cloud business.

Meanwhile, Dell is working to sell Perot Systems for roughly $4 billion -- down from a $5 billion asking price in late 2015. The bidding apparently involves France's Atos and perhaps even India's TCS. At the same time, Dell apparently is looking to sell off one or more of its software businesses -- potentially including Quest Software, AppAssure and SonicWall.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.