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How VMware’s Acquisition of VeloCloud Could Impact Cisco

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VeloCloud enabled VMware’s entry into SD-WAN space

VMware (VMW) has announced that it has closed the acquisition of VeloCloud Networks. The acquisition deal was first announced in late November 2017. VeloCloud Networks is an SD-WAN (software-defined wide-area network) specialist whose acquisition gave VMware an entry into the SD-WAN space. Financial details of the deal were not disclosed.

Citing IHS Markit, Channel Partners reported that VMware’s recent buyout of VeloCloud Networks has established it as one of the top two companies in the SD-WAN space. The other one is Cisco Systems (CSCO).

Sanjay Uppal, VeloCloud’s CEO (chief executive officer), shared his thoughts on how the VeloCloud acquisition will complement VMware on its strategy to move forward with its networking and NFV (network functions virtualization) goals. Uppal said, “Enterprises are transforming how they architect and utilize their infrastructure, with a shift towards a cloud-delivered, software-defined model. This enables organizations to have a globally consistent infrastructure regardless of where it is deployed – from the data center and the cloud to the edge.”

VeloCloud’s profile

Formed in 2012, VeloCloud received a buyout offer from VMware on November 2, 2017. Prior to its acquisition, the company had raised $84 million in funding in various rounds. In early March 2017, it raised $35 million in a Series D funding in which Cisco was one of the investors.

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