Avi Networks has acquired StacksWare to extend Avi's application load balancing and services software into the cloud.

StacksWare will allow Avi to provide software application control as a multi-tenant service from the cloud for medium-sized enterprises, Avi CEO Amit Pandey tells Enterprise Cloud News. The company's application controller now runs either on-premises, or in the cloud for individual tenants. Avi provides load balancing, predictive autoscaling, application insights, security and automation for applications running either on-premises or in the cloud. Avi announced the deal Tuesday; financial terms were not disclosed.

The acquisition "will help us move down-market to midsized enterprises who are happy sharing a SaaS platform with other customers," Pandey says. "It becomes a lower-cost approach for midmarket customers."

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StacksWare, based in San Francisco, provides a cloud application to help enterprises manage software assets, optimizing licensing costs, Pandey says.

StacksWare is funded by Greylock Partners and Lightspeed Venture Partners, the same VCs that backed Avi. StacksWare was founded by six Stanford University graduates, and now totals around 20 employees, who will add to Avi's existing headcount of 150-200, Pandey says. "They are basically going to be leading the architecture of our multi-tenant product," he says. "It's mostly an engineering team."

StacksWare raised "a few million dollars," and Avi, based in Santa Clara, Calif., has raised more than $50 million, Pandey says.

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— Mitch Wagner Editor, Enterprise Cloud News