VCE Vblock Demand Hits Billion Dollar Run Rate Three Years After Launch

Wed Feb 20, 2013 6:24pm EST

* Reuters is not responsible for the content in this press release.

  SAN JOSE, CA and HOPKINTON, MA, Feb 20 (Marketwire) --

Cisco (NASDAQ: CSCO) and EMC (NYSE: EMC) today announced that demand for
their VCE(TM) joint venture's products and services has surpassed the $1
billion dollar annual run rate milestone* -- heralding VCE as one of the
fastest-growing companies in IT industry history -- and that VCE has
shipped its 1,000th Vblock(TM) converged infrastructure system in
slightly over three years since the company's inception. These milestones
come as VCE prepares for the largest product launch in its history, which
will be broadcast live tomorrow at 8:00 a.m. PST / 11:00 a.m. EST. 

    VCE Milestone Achievements:

--  $1 Billion Annual Run Rate - In its most recent quarter, demand for
    VCE products and services surpassed a $1 billion annual run rate,
    solidifying VCE's place as one of the fastest-growing companies in IT
    industry history.
--  1,000th Vblock System Sold - After two years of product availability,
    VCE recently shipped the 1,000th Vblock system.
--  #1 Market Share - Gartner has named VCE the leader in the integrated
    infrastructure segment with a commanding 57.4 percent market share,
    underscoring the transformative impact VCE is having on their
    customers' ability to accelerate cloud computing adoption.


Formed in November 2009 by Cisco and EMC, with investments from
VMware and Intel, VCE pioneered a new segment of the market with the
innovative VCE Vblock pre-integrated converged infrastructure -- the
industry's first completely integrated IT offering with end-to-end vendor

    VCE is the only company to engineer, manufacture, deliver and fully
support its converged infrastructure offering with end-to-end
multi-vendor visibility, enabling the leading time-to-market and one of
the lowest total cost-of-ownership (TCO) for converged cloud
infrastructure. The Vblock converged infrastructure is designed to
standardize processes and product life cycle management to significantly
improve application availability and help enable VCE's seamless support

    Executive Quotes:

    John Chambers, Chairman and CEO, Cisco

    "VCE is the outstanding result of the long-standing and successful
partnership between EMC and Cisco. VCE continues to lead the converged
infrastructure market and is one of the fastest growing companies in the
history of IT. By allowing companies to focus on business innovation
instead of technology integration, VCE represents the future of IT.
Together with EMC, we intend to lead this industry for years to come."

    Joe Tucci, Chairman and CEO, EMC

    "Three years ago, Cisco and EMC announced that we would change the course
of IT, and we did. VCE is ushering in a new era of IT transformation.
Dynamic, agile IT drives dynamic, agile business and VCE has enabled
companies of all sizes to realize game-changing benefits with converged
infrastructure. This is just the beginning of what we will achieve in our
joint venture with Cisco through our shared vision, continued
investments, and the strength of and commitment to our partnership."

    Praveen Akkiraju, CEO, VCE

    "In any major industry transition, technology innovation powers business
productivity advances. The transformational improvements VCE brings to
our customers by simplifying IT deployments and operations has earned
their trust and loyalty, and in turn, fueled VCE's rapid growth. Our deep
experience accelerating customer data center modernization efforts
positions us well to drive the next wave of innovation in converged
infrastructure and converged data center operations."

    Customer and Partner Quotes:

    Stephen Rayda, Chief Technology Officer, Purdue Pharma, LP

    "The cloud is built differently today -- more dynamic, with virtualized
resources that enable us to conduct business in a more agile manner.
Today, our infrastructure can be operated from anywhere, but that wasn't
the case in the past and underscores the fundamental changes taking place
in the data center evolution. VCE gets this shift and makes implementing
core infrastructure more simple and pre-packaged."

    Bryan Martin, Chairman and CEO, 8x8

    "Vblock Systems represent the platinum standard for tier-one business
applications and provide businesses with the confidence to entrust
mission-critical applications to the cloud."

    About Cisco
 Cisco (NASDAQ: CSCO) is the worldwide leader in IT that
helps companies seize the opportunities of tomorrow by proving that
amazing things can happen when you connect the previously unconnected.
For ongoing news, please go to

    About EMC
 EMC Corporation is a global leader in enabling businesses and
service providers to transform their operations and deliver IT as a
service. Fundamental to this transformation is cloud computing. Through
innovative products and services, EMC accelerates the journey to cloud
computing, helping IT departments to store, manage, protect and analyze
their most valuable asset -- information -- in a more agile, trusted and
cost-efficient way. Additional information about EMC can be found at

    About VCE 
 VCE, formed by Cisco and EMC with investments from VMware and
Intel, accelerates the adoption of converged infrastructure and
cloud-based computing models that dramatically reduce the cost of IT
while improving time to market for our customers. VCE, through the Vblock
System, delivers the industry's first completely integrated IT offering
with end-to-end vendor accountability. VCE's pre-packaged solutions are
available through an extensive partner network, and cover horizontal
applications, vertical industry offerings, and application development
environments, allowing customers to focus on business innovation instead
of integrating, validating and managing IT infrastructure. Learn more
about Vblock Systems.

    * Demand run rate is an annualized calculation of orders received in the
applicable period by VCE, VMware, EMC and Cisco for the sale of VCE
Vblock products and related services.

    Cisco and the Cisco logo are trademarks or registered trademarks of Cisco
and/or its affiliates in the U.S. and other countries. A listing of
Cisco's trademarks can be found at
Third-party trademarks mentioned are the property of their respective
owners. The use of the word partner does not imply a partnership
relationship between Cisco and any other company.

    EMC is a registered trademark of EMC Corporation in the United States
and/or other countries. All other trademarks used are the property of
their respective owners.

    VCE and Vblock are registered trademarks or trademarks of VCE Company LLC
or its affiliates in the United States and/or other countries. 

    Forward-Looking Statements 


    This release contains "forward-looking statements" as defined under the
Federal Securities Laws. Actual results could differ materially from
those projected in the forward-looking statements as a result of certain
risk factors, including but not limited to: (i) adverse changes in
general economic or market conditions; (ii) delays or reductions in
information technology spending; (iii) the relative and varying rates of
product price and component cost declines and the volume and mixture of
product and services revenues; (iv) competitive factors, including but
not limited to pricing pressures and new product introductions; (v)
component and product quality and availability; (vi) fluctuations in
VMware, Inc.'s operating results and risks associated with trading of
VMware stock; (vii) the transition to new products, the uncertainty of
customer acceptance of new product offerings and rapid technological and
market change; (viii) risks associated with managing the growth of our
business, including risks associated with acquisitions and investments
and the challenges and costs of integration, restructuring and achieving
anticipated synergies; (ix) the ability to attract and retain highly
qualified employees; (x) insufficient, excess or obsolete inventory; (xi)
fluctuating currency exchange rates; (xii) threats and other disruptions
to our secure data centers or networks; (xiii) our ability to protect our
proprietary technology; (xiv) war or acts of terrorism; and (xv) other
one-time events and other important factors disclosed previously and from
time to time in EMC's filings with the U.S. Securities and Exchange
Commission. EMC disclaims any obligation to update any such
forward-looking statements after the date of this release. 


    This release may be deemed to contain forward-looking statements, which
are subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements include, among others,
statements regarding the VCE partnership, VCE's impact for its customers,
Cisco and EMC continuing to lead the industry for years to come, and VCE
driving the next wave of innovation in converged infrastructure and
converged data center operations. Readers are cautioned that these
forward-looking statements are only predictions and may differ materially
from actual future events or results due to a variety of factors,
including, among other things, the ability of the companies to partner
successfully, the ability to achieve expected benefits of the
partnership, business and economic conditions and growth trends in the
networking industry, customer markets and various geographic regions,
increased competition, global economic conditions and uncertainties in
the geopolitical environment and other risk factors set forth in Cisco's
most recent reports on Form 10-K and 10-Q filed on September 12, 2012 and
February 19, 2013, respectively. Any forward-looking statements in this
release are based on limited information currently available to Cisco,
which is subject to change, and Cisco will not necessarily update the

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