VMware announced that it plans to acquire SD-WAN startup VeloCloud Networks in its effort to provide a single virtual network linking core applications in a private cloud, devices on the edge, and the public cloud.
Founded in 2012, VeloCloud announced in October that it has reached a milestone of 50 paying service providers which includes big names such as AT&T, Sprint. Telstra and Macquarie Telecom. VeloCloud, a 100-percent channel driven company, has raised a total of $84 million before this transaction.
Shekar Ayyar, EVP, Strategy and Corporate Development & GM Telco NFV Group, VMware, wrote in a blog that "With VeloCloud, we will build on the success of the industry’s leading network virtualization platform – VMware NSX. What NSX does for data center networking, VeloCloud does to the wide-area network and edge environments – all in software."
He added that, "Customers choose VMware NSX because it delivers network and security services closest to the application. Upon closing, VMware and VeloCloud will bring the same properties to the WAN with a comprehensive SD-WAN solution that provides full visibility, metrics, control and automation of all endpoints, resulting in better performance and availability for enterprise and cloud applications."