VMware acquires VeloCloud to realize its digital transformation strategy
This is the second post in a row that I’m writing about an acquisition. My last post was about the acquisition of Broadsoft by Cisco, this time it is about the announced acquisition of VeloCloud (an SD-WAN startup) by VMware. Congrats to Sanjay Uppal and the VeloCloud team.
In this post, I’ll review the reasoning behind VMware’s decision to acquire an SD-WAN company and why specifically VeloCloud is a good choice for VMware.
Why acquire an SD-WAN company
VMware is well known for virtualizing HW but their broader view and strategy is to enable enterprise digital transformation. In practice, this means cloud infrastructure and enterprise agility connecting public and private clouds.
In a blog post published early October, VMware CEO Pat Gelsinger talks about the 4 pillars of VMware’s cloud strategy:
- Make private cloud easy
- Form deep partnerships with major cloud providers
- Expand the network of VMware Cloud Providers
- Offer a portfolio of cloud services
VMware has a virtual network solution called NSX with a focus within the data center (SDN). To realize VMware’s cloud strategy and their desire to enable enterprise digital transformation, VMware is lacking the networking component that enables agile and SW defined enterprise to cloud networking and application delivery.
That’s where SD-WAN comes in. Owning such a solution that is well integrated into VMware’s solution offering will give it an edge in the cloud infrastructure space.
Why VeloCloud
VMware had many options to choose from as there are some 30-40 different vendors that claim to have some sort of an SD-WAN offering. SD-WAN vendors follow one of the 3 strategies for an SD-WAN offering and I have discussed the complexity of selecting the solution best fit for one needs in my presentation at the SD-WAN summit in Paris back in September.
VeloCloud has a few pros for being a good choice to integrate into VMware’s offering:
- Fully virtualized – Edge and cloud GWs all have a virtualized option, mandatory for VMware
- Cloud presence – VeloCloud has deployed their cloud GWs in major cloud POPs for improving connectivity with cloud applications and providers
- Pre-integrated – VeloCloud is already part of VMware’s vCloud NFV and VMware is part of VeloCloud’s Security Partner Program
- Focus & no legacy – VeloCloud was founded as an SD-WAN company and focuses just on that. This means that different from some SD-WAN vendors who migrated to SD-WAN from other technologies and carry a legacy product portfolio with customers attached to it, VeloCloud is focused solely on SD-WAN with a focused customer base
- Service Provider Go-To-Market – VeloCloud has many wins in the service provider space and is selling through the service provider channel. This is a good sales channel that can be further leveraged by VMware
Closing thoughts
Having an SD-WAN solution integrated into VMware’s solution portfolio that takes VMware’s network virtualization from within the cloud to connecting enterprises with public and private clouds is important for VMware’s digital transformation and cloud strategy.
VeloCloud seems like a perfect solution for filling this gap. A field proven solution with 100% focus on SD-WAN.
Learn about the differences between MPLS, DIA and SD-WAN
Why your decision for premise vs. managed deployment of WebRTC service is not just about cost
Never miss a post. Subscribe for TheNewDialtone
Leave a Reply