VMWare, a subsidiary of Dell Technologies that provides cloud computing and platform virtualization software and services, has acquired VeloCloud, a startup that focuses on cloud-based wide area networks (WAN) which can span a broad area across data centers or regions. VMware is looking to expand its portfolio of networking products with this acquisition as it appears to be taking direct aim at Cisco. VeloCloud’s primary use cases is delivering virtualized services, VMware’s bread and butter, to branch offices, which may be spread out geographically, and to mobile users accessing those services from outside those offices.
Tom Burns, Senior VP at Dell EMC, commented that “We recently announced a partnership with VeloCloud that includes joint product validation, coordination with product roadmaps, simplified ordering, and coordinated sales and marketing to improve solutions for our mutual customers”. While VMware is traded separately and operates independently to a degree, Dell EMC owns a majority stake in the company. With VeloCloud’s acquisition, VMWare also acquires 1000 customers, which include global telecommunications and large enterprise companies. Telecommunication customers include AT&T, Deutsche Telekom Mitel, Sprint, TelePacific, Telstra and Vonage, among others. Enterprise customers include companies like Bay Club, Brooks Brothers, Devcon and NCR, among others.