Cisco, EMC, VMware Launch Cloud Computing Push

Cisco Systems (CSCO), EMC (EMC) and VMware (VMW) are teaming up to sell hardware and software for cloud computing, the companies announced today. The three firms are creating something called the Virtual Computing Environment coalition, “to accelerate customers’ ability to increase business agility through greater IT infrastructure flexibility, and lower IT, energy and real-estate costs through pervasive data center virtualization and a transition to private cloud infrastructures.”

Or in other words, they are teaming up to jump on the cloud computing bandwagon, in hopes of selling more products and services to IT managers.

As Reuters notes, what Cisco and EMC did not announce was a merger.

Whether the deal, unveiled in a long, nearly impenetrably jargony press release, actually improves the competitive position of Cisco and EMC against Hewlett-Packard and IBM, which is probably the real goal here, remains to be seen. Stock prices are showing little response to the deal.

In today’s trading:

• Cisco is down 26 cents, or 1.1%, to $22.74.


• EMC is down 10 cents, or 0.1%, to $16.33.


• VMware is up 29 cents, or 0.8%, to $38.74.