VMware Snaps Up Nicira in Virtualization Acquisition
July 26, 2012
VMware this week showed just how serious it is about the Software-Defined Networking (SDN) market, spending $1.2 billion to acquire Nicira. Nicira is the leading vendor behind the Open vSwitch technology, which provides an SDN virtual switch.
The company is also the leading vendor sponsor behind the OpenStack Quantum networking project. OpenStack is a multi-stakeholder open source cloud effort backed by AT&T, IBM, HP, Dell, NASA and Rackspace, among numerous others. Quantum ushers in a new type of cloud-based networking model where the network can be fully virtualized.
"The value we bring to customers lies in our open approach and the richness of capabilities in network virtualization," said Martin Casado, co-founder and chief technology officer, Nicira. "The combination of Nicira and VMware brings together two pioneering teams, and gives customers the industry-leading SDN solution for any cloud environment, on any hypervisor in the enterprise and with Service Providers."
VMware will pay $1.05 billion in cash for Nicira, while also absorbing $210 million in assumed unvested equity awards.
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