VMware Charts Networking's Software-Defined Future For Enterprises and Service Providers with Intent to Acquire VeloCloud Networks

PALO ALTO, CA--(Marketwired - November 02, 2017) - VMware, Inc. (NYSE: VMW), a global leader in virtualization and cloud infrastructure, today announced that it has signed a definitive agreement to acquire VeloCloud™ Networks, Inc., provider of industry-leading 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 industry-leading 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. This acquisition will also further enable VMware to lead the industry transition to a software-defined future, and help customers bring their businesses into the digital era with networking that is ubiquitous, open, programmable and secure by default.

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 transaction.

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₍₁₎." 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 WAN."