Why VMWare Acquired Wavefront

VMware boosts its cloud management portfolio with Wavefront buyout

In the previous article, we discussed market expectations for VMware’s (VMW) soon-to-be-announced fiscal 1Q17 results. On April 12, 2017, VMware announced its acquisition of Wavefront, a cloud analytics company, for an undisclosed sum. Let’s see why VMW made this move.

Wavefront is a metric monitoring service provider for cloud applications. It offers an avenue to detect and analyze companies’ behaviors in the cloud, evaluating the data flow and detecting errors.

Why VMWare Acquired Wavefront

Sharing his thoughts on this acquisition, Ajay Singh, senior vice president and general manager of VMware’s Cloud Management business unit, said, “Wavefront delivers a radically new scope and scale of metrics monitoring and analytics to help developers improve the performance, availability and customer experience of their digital services.”

Wavefront’s profile

According to CrunchBase, to date, Wavefront has raised $65.5 million from five investors, including a recent $52 million funding in 2016. Its investors include Sequoia Capital, Tenaya Capital, and Sutter Hill Ventures. Its customers include Box, Clover, and Yammer.

Wavefront will be integrated into VMware’s software services offerings, including its cross-cloud architecture. Later in the series, we’ll see how this acquisition could enhance not only VMWare’s cross-cloud architecture but also its position in the hybrid cloud.

Wavefront is likely to continue as a separate brand under VMware once the deal is completed. Pete Cittadini, Wavefront’s CEO, said in a blog post that Wavefront’s customers would “continue to get the same Wavefront service they depend on.”