& cplSiteName &

VMware to Acquire SD-WAN Startup VeloCloud

Craig Matsumoto
11/2/2017
50%
50%

UPDATE: VMware has announced the deal to acquire VeloCloud, confirming yesterday's report. Terms were not disclosed, and the deal is expected to close before year's end. Scott Ferguson has the latest on Enterprise Cloud News.


VMware has reportedly agreed to acquire SD-WAN startup VeloCloud, a sign that VMware intends to continue burrowing into the networking world.

The news was reported this afternoon by The Information, which rightly points out that such a move would exacerbate the tension between VMware Inc. (NYSE: VMW) and Cisco Systems Inc. (Nasdaq: CSCO).

Terms of the deal are unknown, assuming the deal exists. The companies didn't immediately return requests for comment.

SD-WAN is a market rife with startups, but surprisingly few have ended up being acquisition candidates. When Cisco acquired Viptela for $610 million in May, it seemed like it could set off an avalanche of SD-WAN deals. Not so. (See Cisco Snaps Up Viptela.)

VeloCloud Networks Inc. seems a likely acquisition target because of the traction it's gotten with big-name carriers -- AT&T, Telstra and Windstream, to name a few. Overall, the company claims 50 service providers and 1,000 enterprises as customers.

VMware entered the networking market through the SDN door, acquiring startup Nicira in 2012. That deal was the basis for NSX, VMware's network virtualization product that rivals (but can also be used in conjunction with) Cisco's ACI. (See VMware to Buy SDN Startup for More Than $1B.)

VMware also acquired the assets of SDN startup PLUMgrid late last year. (See VMware Buys SDN Startup PLUMGrid's Assets .)

VeloCloud has raised $84 million in four rounds -- including a Series C that counted Cisco as an investor. (See Cisco Joins $27M Round for SD-WAN Startup VeloCloud.)

Related posts:

— Craig Matsumoto, Editor-in-Chief, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
I'm Back for the Future of Communications
Phil Harvey, US News Editor, 4/20/2018
BDAC Blowback – Ex-Chair Arrested
Mari Silbey, Senior Editor, Cable/Video, 4/17/2018
Verizon: Lack of Interoperability, Consistency Slows Automation
Carol Wilson, Editor-at-large, 4/18/2018
AT&T Exec Dishes That He's Not So Hot on Rival-Partner Comcast
Mari Silbey, Senior Editor, Cable/Video, 4/19/2018
Facebook Hearings Were the TIP of the Data Iceberg
Dan Jones, Mobile Editor, 4/20/2018
Animals with Phones
I Heard There Was a Dresscode... Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed