VMware acquires cloud WAN provider VeloCloud

VMWare buys VeloCloud in a bid to drive into SD-WAN cloud technology

Virtualisation software specialist VMware has acquired VeloCloud in a bid to expand its range of software-defined wide-area networking (SD-WAN) products and services.

By purchasing the company, VMware will compete more closely with the likes of communications hardware giant Cisco. It will take full control of VeloCloud's 1,000 enterprise and telecoms customers, including Sprint, Telstra, and Deutsche Telekom Mitel.

VeloCloud provides enterprises and service providers with cloud-based SD-WAN services that enable them to quickly create and deploy flexible, secure WAN connectivity.

The company's cloud-operated SD-WAN is popular among enterprises that need a way to support application growth, network agility, and simplified branch and end-to-end implementations.

It can also help companies deliver high-performance cloud services, private data centres and SaaS-based applications in enterprise. For service providers, they're able to deliver elastic transport, high performance for cloud applications and software-defined edge.

For VMware the acquisition is a rational extension to its core virtualisation technology, which risks being marginalised in the enterprise by the shift to cloud.

The acquisition will complement the company's existing software line-up, and provide the platform for a shift towards offering companies end-to-end automation, branch transformation, application continuity and improved data-centre security.

VMware claimed that the acquisition will help it to drive further into cloud technology.

The deal is expected to close during the current quarter, but the financial details of the deal were not disclosed.

While VMware is publicly listed on the New York Stock Exchange, Dell EMC maintains de facto control over the company.

Tom Burns, senior vice president of Dell EMC's networking division, therefore spoke out in favour of the deal.

"We recently announced a partnership with VeloCloud that includes joint product validation, coordination with product roadmaps, simplified ordering, and coordinated sales and marketing to improve solutions for our mutual customers," he said.

Burns continued: "We look forward to continuing this SD-WAN partnership with VMware upon closing to offer mutual customers best-in-class intelligent edge appliances."

Sanjay Uppal, CEO of VeloCloud Networks, said: "Enterprises are transforming how they architect and utilise their infrastructure, with a shift towards a cloud-delivered, software-defined model.

"This enables organisations to have a globally consistent infrastructure regardless of where it is deployed - from the data centre and the cloud to the edge.

"We look forward to helping VMware, the leader in software-defined infrastructure, in the next evolution of the company's networking and NFV strategies."