Says deal will fuel VMware's plan to extend the public cloud experience to the data center.

June 13, 2019

2 Min Read

PALO ALTO, Calif. -- VMware today announced its intent to acquire Avi Networks, a leader in multi-cloud application delivery services. Deployed today at hundreds of global enterprises—including Fortune 500 companies representing the world’s largest financial services, media, and technology companies—Avi Networks will further enable VMware to bring the public cloud experience to the entire data center—automated, highly scalable, and intrinsically more secure with the ability to deploy applications with a single click, upon close of the acquisition. Leveraging a common architectural foundation, VMware and Avi Networks will be able to deliver the industry’s only complete software-defined networking stack from L2-7 built for the modern multi-cloud era after the deal closes.

Applications are the heartbeat of the modern enterprise. Enterprises need to deliver and update applications faster and more consistently across multi-cloud environments. To be successful, IT needs to automate all networking and security services across private and public clouds to enable self-service for developers and gain the agility the business needs. Beyond just automated provisioning, IT needs comprehensive visibility into the end-user experience and end to end application performance.

Unfortunately, legacy hardware-defined ADCs, including those refactored to run as software on VMs, lack the required capabilities to scale, secure, monitor and perform in a highly distributed cloud environment. Appliance-based load balancers can slow down application rollouts, cause overprovisioning, and increase costs. Legacy ADCs lack analytics and insights, which makes troubleshooting application problems slow and complex.

Upon close with Avi Networks, VMware will offer both built-in load balancing capabilities as part of VMware NSX Data Center, and an advanced, standalone ADC. The Avi platform enables organizations to overcome the complexity and rigidness of legacy systems and ADC appliances with modern, software-defined application services.

The transaction is expected to close in VMware's fiscal Q2 FY2020, subject to customary closing conditions, including regulatory approvals. This acquisition is not expected to have a material impact on fiscal 2020 operating results.

VMware

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