VMware Buys VeloCloud Networks
November 02, 2017
has signed a definitive agreement to acquire VeloCloud Networks, provider of
cloud-delivered software-defined wide-area network (SD-WAN) technology for
enterprises and service providers. Once the acquisition closes, VeloCloud will
enable VMware to build on the success of its network virtualization platform
-VMware NSX-and expand its networking portfolio to address end-to-end
automation, application continuity, branch transformation and security from data
center to cloud to edge.
The transaction is expected to close in VMware's fiscal Q4 2018. There is no
change to VMware's previously provided fiscal 2018 guidance due to this
Other terms were not
According to Gartner, "While WAN architectures and technologies tend to evolve
at a very slow pace -- perhaps a new generation every 10 to 15 years -- the
disruptions caused by the transformation to digital business models are driving
adoption of SD-WAN at a pace that is unheard of in wide-area networking."
VeloCloud cloud-delivered SD-WAN technology is deployed globally at-scale by
more than 1,000 customers, both directly by enterprises and by Telcos and
managed services providers serving enterprise customers. Service provider
customers include AT&T, Deutsche Telekom, Macquarie Telecom, MetTel, Mitel,
Sprint, TelePacific, Telstra, Vonage and Windstream. Enterprise customers
include Bay Club, Brooks Brothers, Devcon, NCR, Redmond, Saber Healthcare Group,
and Triton Management Services."
"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
"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."
VeloCloud's cloud-delivered SD-WAN combines the economics and flexibility of the
hybrid wide-area network (WAN) with the deployment speed and low maintenance of
cloud-based services. It dramatically simplifies the WAN by delivering
virtualized services from the cloud to branch offices and mobile users
everywhere. VeloCloud leverages intelligent x86 edge appliances to aggregate
multiple broadband links at the branch office, and using cloud-based
orchestration, connects the branch office to any of type of data center:
enterprise, cloud, or software-as-a-service.
With VeloCloud, VMware will enable enterprises to support application growth,
network agility, and simplified branch implementations while delivering
high-performance, secure, reliable branch access to cloud services, private data
centers and SaaS-based applications. SD-WAN technology is ideal for businesses
looking to make the transition from static, complex, on-premises networking to
the cost-effective, dynamic, and scalable cloud-delivered architecture of the
digital era. The VeloCloud solution provides flexibility in network connectivity
options that can augment MPLS and improves overall total cost of ownership for
VeloCloud will enable VMware to help service providers increase revenue and
service innovation by delivering elastic transport, performance for cloud
applications and a software-defined intelligent edge that can orchestrate
multiple services to meet customer needs. With SD-WAN becoming the primary
function in virtual customer-premise equipment deployments, VMware expects to be
able to simplify the deployment of virtual network functions (VNF) for
applications such as security by combining the proven VMware vCloud® NFV
platform with a cloud-delivered SD-WAN platform.
"Dell EMC and VMware are committed to digitally transforming branches, the
wide-area network and the cloud edge," said Tom Burns, senior vice president,
Networking, Enterprise Infrastructure and Service Provider Solutions, Dell EMC.
"We recently announced a partnership with VeloCloud that includes joint product
validation, coordination with product roadmaps, simplified ordering, and
coordinated sales and marketing to improve solutions for our mutual customers.
We look forward to continuing this SD-WAN partnership with VMware upon closing
to offer mutual customers best-in-class intelligent edge appliances."
software-based approach is delivering the networking and security platform that
enables customers to connect, secure and operate an end-to-end architecture to
deliver services to the application wherever it may land. Customers choose
VMware NSX because it delivers network and security services closest to the
application. With VeloCloud, VMware will bring the same properties to the WAN,
resulting in visibility, security, automation with performance and availability
for enterprise and cloud applications.
"Digital transformation has brought about a growing dependency on the network as
mobility, cloud, and social business erase many of the barriers pertaining to
time and place in the enterprise. Advances in IoT are also driving dependency on
the network," said Matt Eastwood, Senior Vice President of IDC's enterprise,
datacenter, cloud infrastructure and developer research. "The network is
becoming more agile, enabled by a new generation of software-based platforms
from companies such as VMware and VeloCloud. We see a positive synergy between
the two companies, and the opportunity for VMware to build upon the
software-based networking strategy the company has been executing on."