Report: EMC to take bigger role in VCE as Cisco reduces stake

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EMC and Cisco Systems have had an increasingly strained relationship, and now Bloomberg is reporting that Cisco will cut its stake in VCE, a five-year-old joint venture it launched with EMC and VMware to build converged hardware systems called vBlocks. VMware, with its network virtualization efforts, competes more and more with Cisco, which sparked tension in the VCE partnership. EMC owns about 80 percent of VMware. EMC will host a conference call “regarding a new business development” Wednesday at 9:30 AM ET.