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November 3, 2017

VMware flies beyond the clouds with networking acquisition

VMware ups its cloud game as it acquires VeloCloud to extend its networking.

By April Slattery

VMware has extended its portfolio by acquiring the cloud based start-up VeloCloud to further advance its NSX networking platform to compete in the market.

VeloCloud focuses on cloud based WAN networks that span across a broad space of data centres or regions, and has the potential to bring almost 1,000 customers to VMware.

The latest acquisition for the firm delivers an SD-WAN solution across public, private or hybrid network options to connections to cloud applications and branch office or data centre appliances.

VeloCloud’s SD-WAN brings together the economics and flexibility of the hybrid WAN network but has the addition of higher delivery speed and low maintenance that cloud-based services offer.

Enterprise customers of VMware will be

VMware flies beyond the clouds with networking acquisition

VMware hopes to extend networking platform

offered SD-WAN in the future to successfully have network agility and application growth, whilst still delivering high performance with secure and reliable access to cloud services and private data centres.

Pat Gelsinger, VMware CEO, said: “With the addition of VeloCloud’s industry-leading SD-WAN technology, we will be able to extend the VMware NSX approach of automated, secure, and infrastructure-independent networking to the WAN.”

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Additionally, in a blog post VMware’s VP of telco NFV Gabriele Di Piazza said that the aim of the acquisition is till build deeper partnerships with services providers.

Acquiring VeloCloud will help VMware develop their partnerships with service providers further, because the acquisition will enable VMware to help providers increase both revenue and service innovation.

This will be achieved by delivering flexible, high performance networks with an intelligent edge creating multiple services to meet the needs of customers.

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Furthermore, the acquisition will allow VMware to expand its network visualisation platform from the data centre to network edge.

It is arguable that VMware is extending its portfolio further by acquiring VeloCloud to keep ahead of competition in the market, such as Cisco, that has also heavily invested in cloud-based services on top of the core networking business.

Finalised numbers and agreements of the acquisition are expected to close at the end of VMware’s fiscal 4Q in 2018.

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