VMware Expands Virtualized Portfolio, Adds Nicira

(Ping! Zine Web Tech Magazine) – Top virtualization provider VMware announced a big acquisition accounting for $1.05 billion on Monday, agreeing to buy Nicira, a company specializing in solutions including cloud and OpenStack.

The move drastically expands VMware’s product portfolio, adding Nicira’s Network Virtualization Platform  (abbreviated “NVP”). With the product, users are allowed to administer virtual networks without requiring hardware changes.

In addition to the announced financial terms, the acquisition also includes “assumed unvested equity awards” accounting for $210 million.

“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,” commented Nicira CTO and co-founder Martin Casado in a press release.

In the area of web hosting, NVP is critical for a number of companies. Just some of the hosts to rely on the platform include DreamHost and Rackspace.

The big acquisition arrives on the heels of another big VMware announcement. Just last week, the company detailed a leadership shuffle that brings in EMC Information CEO Pat Gelsinger to assume the top spot at the virtualization provider. Meanwhile, current VMware CEO Paul Martiz is set to take on a technology strategist role at EMC (VMware operates as an EMC subsidiary).

The company also recently detailed its second quarter earning results, showing that it had earned $1.12 billion during the time period. That’s a 22% increase from the same time last year. VMware is currently preparing to host its annual VMworld conference in San Francisco, California late next month.

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