VMware and VeloCloud: A Hedge Against Hyperconvergence?

VMware announced on Thursday that they are buying VeloCloud. This was a big move in the market that immediately set off a huge discussion about the implications. I had originally thought AT&T would buy VeloCloud based on their relationship in the past, but the acquistion of Vyatta from Brocade over the summer should have been a hint that wasn’t going to happen. Instead, VMware swooped in and picked up the company for an undisclosed amount.
The conversations have been going wild so far. Everyone wants to know how this is going to affect the relationship with Cisco, especially given that Cisco put money into VeloCloud in both 2016 and 2017. Given the acquisition of Viptela by Cisco earlier this year it’s easy to see that these two companies might find themselves competing for marketshare in the SD-WAN space. However, I think that this is actually a different play from VMware. One that’s striking back at hyperconverged vendors.
Adding The Value
If you look at the marketing coming out of hyperconvergence vendors right now, you’ll see there’s a lot of discussion around platform. Fast storage, small footprints, and the ability to deploy anywhere. Hyperconverged solutions are also starting to focus on Continue reading
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