VMware to buy VeloCloud Networks to enhance SD-WAN business

VMware and SD-WANVirtualization and cloud infrastructure company VMware is set to acquire VeloCloud Networks, a provider of software-defined wide-area network (SD-WAN) technology for enterprises and service providers.

VeloCloud will enable VMware to expand its networking portfolio to address automation, application continuity, branch transformation and security from data center to cloud to edge.

This acquisition will enable VMware to lead the industry transition to a software-defined future, and help customers bring their businesses into the digital era with networking. VMware’s existing network virtualization platform is called VMware NSX.

Matt Eastwood, senior vice president of IDC’s enterprise, datacenter, cloud infrastructure and developer research, said: “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.”

More than 1,000 customers, both directly by enterprises and by telcos and managed services providers serving enterprise customers, have deployed VeloCloud SD-WAN technology.

AT&T, Deutsche Telekom, Macquarie Telecom, MetTel, Mitel, Sprint, TelePacific, Telstra, Vonage and Windstream are the service provider customers of VeloCloud.

Enterprise customers of VeloCloud include Bay Club, Brooks Brothers, Devcon, NCR, Redmond, Saber Healthcare Group, and Triton Management Services.

VMware CEO Pat Gelsinger said the addition of VeloCloud’s SD-WAN technology will enable to extend the VMware NSX approach of automated, secure, and infrastructure-independent networking to the WAN.

Sanjay Uppal, CEO of VeloCloud Networks, said: “We look forward to helping VMware, the leader in software-defined infrastructure, in the next evolution of the company’s networking and NFV strategies.”

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.

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.

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