Ronny Lam


VMware Acquires Nicira for $1.26 Billion

PALO ALTO, CA–(Marketwire -07/23/12)- VMware, Inc. (VMW), the global leader in virtualization and cloud infrastructure, today announced it has signed a definitive agreement to acquire Nicira, Inc., a pioneer in software- defined networking (SDN) and a leader in network virtualization for open source initiatives.

I guess the SDN (Software Defined Networking) space is really flying of. VMware has already been in that space with their vSphere and VXLAN, but now with the ownership of Nicira’s Open vSwitch technology they might become the strong leader in this space. Let’s hope they will also keep contributing to Cloudstack and Openstack.

This acquisition means that we have to take SDN seriously and that there is real money involved. Agreed, Open vSwitch is an abstraction layer on top of physical networks so that the network doesn’t need to be virtualized. But this might be the driver for future SDN development, also and especially on the physical network layer.

I congratulate Nicira with their good job of building a product that is really gaining momentum in the market, so much momentum that they get acquired. And I have to congratulate VMware with this succes. I can only wait to see these products get integrated.