VMware Inc, which is majority owned by Dell, is buying Avi Networks. Financial terms weren’t announced. Avi provides multi-cloud application delivery services. Mike Krigbaum and Jae Yoo of Morrison & Foerster provided legal advice to VMware.
VMware Announces Intent to Acquire Avi Networks
Avi Networks will Advance VMware’s Strategy for Bringing the Public Cloud Experience to the Entire Data Center
Acquisition will Extend VMware’s Networking and Security Portfolio with a
Modern, Software-Defined Application Delivery Controller
PALO ALTO, Calif., June 13, 2019 (GLOBE NEWSWIRE) — 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.
• 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
VMware 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.
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.