How big is software-defined networking? Big enough for VMware to pay US$1.26 billion for an open standard virtual switch

VMware pays big for OpenFlow pioneer
NEW YORK  — Continuing its push to virtualize all aspects of the data center, VMware Inc. is acquiring software-defined networking firm Nicira for US$1.26 billion, the companies announced Monday.

“I believe we have the same opportunity to do for networking what we’ve already done for servers and many other parts of the data center,” Steve Herrod, VMware’s CTO, wrote in a blog post about the deal.

VMware will fold Nicira’s core technology, called Open vSwitch, into its own portfolio of virtual networking software, VMware said.

RELATED CONTENT
OpenFlow demystified

Nicira’s software creates an abstraction layer between servers and networking gear, allowing organizations to decouple the network topology from the equipment, creating virtualized pools of networking capability. Its software supports a wide variety of network interface cards, switches, appliances, networking APIs (application programming interfaces) and fabric types.

VMware will encourage Nicira employees to continue working on open-source networking projects, it said. Some of Nicira’s employees led the development of the OpenFlow software-defined networking protocol and were also involved with the OpenStack Quantum networking software.

VMware will pay $1.05 billion in cash plus $210 million of assumed unvested equity awards to purchase Nicira, which was founded in 2007 and is based in Palo Alto, California.

The deal is expected to close by the end of the year, pending regulatory approvals and other closing conditions.

Related Download
IDC Analyst Connection - Unified Threat Management: Benefits of an Integrated Approach to Network Security Sponsor: Fortinet
IDC Analyst Connection – Unified Threat Management: Benefits of an Integrated Approach to Network Security
This IDC Analyst Connection looks at the the benefits of using a UTM platform integrated with network connectivity and how it will save the enterprise money, reduce the number of vendors' products needed to be purchased, improve the communications between devices, offer the opportunity for organizations to deploy more sophisticated capabilities, and vastly improve security.
Register Now
Share on LinkedIn Share with Google+ Comment on this article