VMware, Inc. (NYSE: VMW), today announced its intent to acquire Avi
Networks, a leader in multi-cloud application delivery services.
Deployed today at hundreds of global enterprises—including Fortune
500 companies representing the world’s largest financial services,
media, and technology companies—Avi Networks will further enable
VMware to bring the public cloud experience to the entire data
center—automated, highly scalable, and intrinsically more secure
with the ability to deploy applications with a single click, upon
close of the acquisition. Leveraging a common architectural
foundation, VMware and Avi Networks will be able to deliver the
industry’s only complete software-defined networking stack from
L2-7 built for the modern multi-cloud era after the deal closes.
“VMware is committed to making the data center operate as simply
and easily as it does in the public cloud, and the addition of Avi
Networks to the growing VMware networking and security portfolio
will bring us one step closer to this goal after the acquisition
closes,” said Tom Gillis, senior vice president and general
manager, networking and security business unit, VMware. “This
acquisition will further advance our Virtual Cloud Network vision,
where a software-defined distributed network architecture spans all
infrastructure and ties all pieces together with the automation and
programmability found in the public cloud. Combining Avi Networks
with VMware NSX will further enable organizations to respond to new
opportunities and threats, create new business models, and deliver
services to all applications and data, wherever they are
located.”
“Unlike existing ADC solutions, Avi Networks’ distributed ADC is
designed for modern data center and public cloud deployments, with
an architecture that mirrors cloud principles,” said Amit Pandey,
chief executive officer, Avi Networks. “Upon close, customers will
be able to benefit from a full set of software-defined L2-7
application networking and security services, on-demand elasticity,
real time insights, simplified troubleshooting, and developer
self-service.”
Applications are the heartbeat of the modern enterprise.
Enterprises need to deliver and update applications faster and more
consistently across multi-cloud environments. To be successful, IT
needs to automate all networking and security services across
private and public clouds to enable self-service for developers and
gain the agility the business needs. Beyond just automated
provisioning, IT needs comprehensive visibility into the end-user
experience and end to end application performance.
Unfortunately, legacy hardware-defined ADCs, including those
refactored to run as software on VMs, lack the required
capabilities to scale, secure, monitor and perform in a highly
distributed cloud environment. Appliance-based load balancers can
slow down application rollouts, cause overprovisioning, and
increase costs. Legacy ADCs lack analytics and insights, which
makes troubleshooting application problems slow and complex.
Upon close with Avi Networks, VMware will offer both built-in
load balancing capabilities as part of VMware NSX Data Center, and
an advanced, standalone ADC. The Avi platform enables organizations
to overcome the complexity and rigidness of legacy systems and ADC
appliances with modern, software-defined application services. Avi
Networks’ key differentiators include:
- Automation driven by closed-loop analytics, template-driven
configuration, and integration with management products;
- Advanced analytics and insights for performance monitoring and
troubleshooting;
- Ability to deploy across on-premises and multiple cloud
environments;
- Elasticity and on-demand scalability; and
- Intrinsic security.
The Avi platform provides a Software Load Balancer, Intelligent
Web Application Firewall (iWAF), Advanced Analytics and Monitoring
and a Universal Service Mesh to help enable a fast, scalable, and
more intrinsically secure application experience. Avi’s central
control plane and distributed data plane deliver application
services as a dynamic, multi-cloud fabric which intelligently
automates decisions and provides unprecedented application
analytics and on-demand elasticity. Avi customers can dispatch
services such as load balancing and web application firewall to any
application using one centralized interface. Avi technology runs
across private and public clouds, and supports applications running
on VMs, containers and bare metal.
The transaction is expected to close in VMware's fiscal Q2
FY2020, subject to customary closing conditions, including
regulatory approvals. This acquisition is not expected to have a
material impact on fiscal 2020 operating results.
Additional Resources
- Read this blog from Shekar Ayyar, executive vice president of
strategy and corporate development, VMware to learn more about the
company’s strategic approach to M&A in networking and
security
- Learn more about the value to customers of VMware and Avi
Networks in this blog from Tom Gillis, SVP and GM, networking and
security business unit, VMware
- Read this blog from Avi Networks Founders
- Read about VMware’s vision for the Virtual Cloud Network
- Learn more about VMware NSX and VMware NSX certification and
training
- Subscribe to VMware's Network Virtualization Blog
- Keep up with VMware NSX on Facebook, Twitter and YouTube
About VMwareVMware software powers the world’s
complex digital infrastructure. The company’s compute, cloud,
mobility, networking and security offerings provide a dynamic and
efficient digital foundation to over 500,000 customers globally,
aided by an ecosystem of 75,000 partners. Headquartered in Palo
Alto, California, this year VMware celebrates twenty years of
breakthrough innovation benefiting business and society. For more
information, please visit https://www.vmware.com/company.html.
VMware, NSX, and NSX Data Center are registered trademarks or
trademarks of VMware, Inc. or its subsidiaries in the United States
and other jurisdictions. This article may contain hyperlinks to
non-VMware websites that are created and maintained by third
parties who are solely responsible for the content on such
websites.
Forward-Looking Statements
This release contains forward-looking statements including,
among other things, statements regarding VMware's intention to
acquire Avi Networks; the expected benefits of the acquisition; the
potential impact of the acquisition on FY20 operating results; and
the expected complementary nature and strategic advantages of
combined offerings and opportunities after close. These
forward-looking statements are subject to the safe harbor
provisions created by the Private Securities Litigation Reform Act
of 1995. Actual results could differ materially from those
projected in the forward-looking statements as a result of certain
risk factors, including but not limited to: (i) the ability of the
parties to satisfy closing conditions to the acquisition on a
timely basis or at all; (ii) market conditions, regulatory
requirements and other corporate considerations that could affect
the timing and closing conditions to the acquisition; (iii) the
ability to successfully integrate acquired companies and assets
into VMware; (iv) VMware's customers' ability to accept emerging
technology and to transition to new products and computing
strategies; (v) competitive factors, including but not limited to
VMware’s ability to compete in new industries, the entry of new
competitors into the industries in which VMware competes, and the
success of new product and marketing initiatives by VMware and
VMware's competitors; (vi) VMware's ability to enter into and
maintain strategically effective partnerships; (vii) rapid
technological changes in the virtualization software and cloud, end
user and mobile computing industries; (viii) changes to product and
service development timelines; (ix) VMware's ability to protect its
proprietary technology; (x) VMware's ability to attract and retain
highly qualified employees; (xi) adverse changes in general
economic or market conditions; (xii) changes in VMware's financial
condition; and (xiii) VMware's relationship with Dell Technologies
and Dell's ability to control matters requiring stockholder
approval. These forward-looking statements are made as of the date
of this blog, are based on current expectations and are subject to
uncertainties and changes in condition, significance, value and
effect as well as other risks detailed in documents filed with the
Securities and Exchange Commission, including VMware's most recent
reports on Form 10-K and Form 10-Q and current reports on Form 8-K
that we may file from time to time, which could cause actual
results to vary from expectations. VMware assumes no obligation to,
and does not currently intend to, update any such forward-looking
statements after the date of this release.
Media Contact:
Roger T. FortierVMware Global CommunicationsPhone:
408-348-1569rfortier@vmware.com
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