VMware is buying a 5% piece of its top infrastructure service provider Terremark Worldwide Inc. for $20 million, paying $5 apiece for four million newly minted shares.

Terremark is pushing VMware's vCloud widgetry into the enterprise and federal markets as part of its so-called Enterprise Cloud, which combines VMware's virtualization with its own proprietary DigitalOps service management platform. The company specializes in managed hosting and collocation.

The announcement was made when Terremark reported its results for its fiscal fourth quarter ended in March. Revenues were up 21% to $68.9 million but fell short of Wall Street's more optimistic $74.2 million bogey. It earned a better-than-expected six cents a share or $3.5 million, up 63%. Last year it lost $8.9 million or 15 cents a share.

It said revenues this quarter were likely to decline sequentially to somewhere between $63 million and $66 million, below the average forecast of $70 million and projected full-year revenues at $290 million-$300 million, also below consensus of $302 million.