VMware is rumoured to be considering spinning off the Cloud Foundry platform as a service into a separate company.
GigaOM reported the spin-out was "at an advanced stage", according to sources, and could be announced later this month or in August.
The new company could also take on the product portfolio of the EMC-owned Greenplum, which makes big data analytics software, as well as Project Rubicon, a rumoured infrastructure-as-a-service play by VMware and EMC.
A local spokeswoman for VMware declined to comment on the report.
The potential move is seen as building a competitor to cloud operators Microsoft, Amazon and Google.
CEO steps down
VMware has also declined to comment on reports that Paul Maritz has stepped down as chief executive officer, stating that the company "does not comment on rumours or speculation".
The move was reported by iTnews' sister publication CRN US today.
CRN reported that Maritz would be replaced by Pat Gelsinger, president and COO of EMC's Information Infrastructure Products division.
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