The cloud infrastructure and virtualization giant, VMware, announced its intent to acquire VeloCloud Networks, the cloud-delivered SD-WAN technology provider for enterprises and service providers, to dominate the networking world.
SD-WAN is a networking technology applied to WANs, often used to connect branch offices to corporate networks. It’s used by a number of telecom service providers, including AT&T, and VeloCloud is a prominent player in this market. VeloCloud powered SD-WAN provides flexible hybrid WAN with accelerated deployment and connectivity of a branch office to any kind of data center, whether it is an enterprise, cloud, or SaaS.
“In the digital era, a new networking approach is required to solve the hyper distribution of applications and data, as we move from a model of data centers to one of centers of data at the edge,” said Pat Gelsinger, chief executive officer, VMware. “At the heart of VMware’s networking strategy is the belief in delivering pervasive connectivity with embedded security that connects users to applications wherever they may be. 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.”
By acquiring it, VMware will deliver high-performance, secure, reliable branch access to cloud services, SaaS applications and private data-centers, that will lead the enterprises to a digital era.
VMware will use VeloCloud to enhance its networking virtualization platform VMware NSX, and expand networking portfolio to address the application continuity, branch transformation, complete automation and security from data center to cloud to edge. The VMware NSX delivers security and network services that lies in the heart of the application. With VeloCloud, VMware plans to bring the same assets to wide area network (WAN) so that enterprises get the visibility, security and automation with performance.
“Enterprises are transforming how they architect and utilize their infrastructure, with a shift towards a cloud-delivered, software-defined model. This enables organizations to have a globally consistent infrastructure regardless of where it is deployed — from the data center and the cloud to the edge,” said Sanjay Uppal, CEO of VeloCloud Networks. “We look forward to helping VMware, the leader in software-defined infrastructure, in the next evolution of the company’s networking and NFV strategies.”
The acquisition will also help the service providers deliver elastic transport, better performance for cloud apps and software-defined intelligent edge that will grow their service innovation and revenue.
With SD-WAN slowly gaining grounds in virtual equipment deployment on customer premises, VMware acquisition will help in simplifying virtual network functions (VNF) deployments for different applications like security by combining VMware vCloud NFV platform with cloud based SD-WAN platform.
No financial details were revealed yet. The transaction might close in Q4 2018 of VMware.