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EMC Spins Out IPO-Bound Pivotal

EMC will own 69% of Pivotal; VMware the other 31%

EMC, as widely expected, is spinning out Pivotal, its cloud-ified Big Data-analytics initiative, as a free-standing company apparently under former VMware CEO and now EMC's chief strategy officer Paul Maritz, who's been hatching the fledging since before Christmas when the idea was first announced.

VMware is contributing Cloud Foundry, SpringSource, Gemstone and Cetas. EMC is putting in Greenplum and Pivotal Labs. The move involves a reported 1,250 employees from VMware and EMC and current revenues of about $300 million.

EMC will own 69% of Pivotal; VMware the other 31%.

EMC CEO Joe Tucci provided a few sparse details about the effort at a meeting with institutional investors Wednesday and indicated that Pivotal would follow the route EMC used with VMware and go public with EMC retaining the lion's share of the stock.

He's expecting it to attract strategic investors. For the short-term EMC is going to bankroll the start-up.

When all this really comes together is still unclear. More news is expected.

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Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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