EMC chief says VMware spinoff is possible

EMC Corp. chief executive Joseph Tucci (right) said that his company may spin off its VMware Inc. business software unit, though it won't happen in 2008.

EMC, the Hopkinton-based data storage giant, said in May that it did not plan to spin off the business, disappointing investors who had been anticipating a spinoff. EMC owns an 85-percent stake in VMware.

When asked in an interview today whether a spinoff of California-based VMware might be in the works, Tucci said it was possible.

"We're committed to optimizing the value of this asset over the long term," he said.

"What does that mean? That means we're going to optimize this asset. That doesn't mean you spin it or you won't spin it. It just means we are going to optimize this asset and make sure that the shareholders get value over the long term."

When asked how often the board reviews such matters, he said, "You are constantly reviewing it. You are constantly looking at everything that happens out there. For the board this is a big strategic asset."

For previous coverage of EMC and VMware, please click here.

EMC released earnings earlier today. VMware released earnings yesterday.
(Reuters)