EMC, data storage products maker, will discuss on Wednesday its new business development to buy most of Cisco Systems Inc.'s stake in their joint venture VCE. The decision to sell its stake was made after a $716 million investment in VCE backfired, costing Cisco to lose over $60 million.

The relationship between EMC and Cisco remained shaky as their subsidiary companies threatened competition. According to the International Business Times, Cisco earlier said it would buy Whiptail, a storage startup that competes with EMC.

Since the failed merger agreement between EMC and Hewlett-Packard, EMC has been looking for other opportunities.

After EMC buys out most of Cisco's stake, it will merge with VCE with the exception of Cisco holding a minority stake in VCE -- just 10 percent.

FBR Capital Markets analyst Daniel Ives wrote in a comment, "We view the Cisco/VCE news as a 'yawner' given that EMC right now is facing a plethora of growth and strategic challenges and the last thing on investors' minds is the future of VCE."

The company is a combination of VMware, Cisco and EMC. According to The Register, analysts say that VCE is the leader in converged systems supply. Now that EMC will combine four companies, EMC II, Pivotal, RSA and VCE, the conglomerate is predicted to become stronger.

Cisco chairman and CEO John Chambers said, "We have been thrilled with the execution, results and customer demand the VCE team has delivered. I look forward to the next chapter of VCE's evolution and Cisco's continued commitment in VCE as a crucial route to market for Cisco's next-generation technologies for the data centre and cloud."

VCE backers said, "Cisco, EMC and VCE jointly determined that this new structure would serve as the optimal model for VCE's next phase of expansion, innovation, and long-term growth."

There have been no reports on how much the buyout will cost.