Once the acquisition is complete, VeloCloud will enable VMware to develop its network virtualization platform, VMware NSX®, and expand its networking portfolio to address end-to-end automation, application continuity, branch transformation, and security from the data center to the edge.
 
The transition is expected to be completed by VMware's fourth fiscal quarter of 2018. This transition does not change the previously provided fiscal 2018 guidance.
 
According to Gartner, “while WAN technologies and architectures tend to evolve at a very slow pace, perhaps a new generation every 10-15 years, the disruptions to business models caused by transformation are driving SD-WAN adoption at an unprecedented rate in the broadband network.” More than 1,000 customers worldwide are deploying SD-WAN technology using the VeloCloud cloud, including enterprises, telcos, and managed service providers serving enterprises. Service providers include AT&T, Deutsche Telekom, Macquarie Telecom, MetTel, Mitel, Sprint, TelePacific, Telstra, Vonage, and Windstream. Enterprises include Bay Club, Brooks Brothers, Devcon, NCR, Redmond, Saber Healthcare Group, and Triton Management Services.
 
“In the digital age, a new networking approach is needed to address the hyper-distributed nature of requests and data, which is why we’re moving from a data center model to an edge data center model,” said Pat Gelsinger, CEO of VMware. “A core part of VMware’s networking strategy is the belief that the right approach is to deliver persuasive connectivity with embedded security that connects users to applications from wherever they are. With VeloCloud’s industry-leading SD-WAN technology, we will be able to extend VMware’s NSX approach to automated, secure, and infrastructure-agnostic networking to the WAN.”
 
“Companies are transforming their architecture and how they use their infrastructure toward a software-defined model in the cloud. This allows them to have a globally consistent infrastructure regardless of where it's deployed, from the data center and cloud to the edge,” says Sanjay Uppal, CEO of VeloCloud Networks. “We look forward to helping VMware, a leader in software-defined infrastructure, with the next evolution of the company's network and NFV strategies.”

SD-WAN technology is ideal for businesses seeking to transition from static, complex, and internal networks to a cost-effective, dynamic, and scalable cloud architecture befitting the digital age. The VeloCloud solution provides flexible network connectivity options, enabling increased MPLS bandwidth and improved total cost of ownership for branch office connectivity.

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