techcrunch.com Open in urlscan Pro
2001:4998:124:1704::5000  Public Scan

Submitted URL: http://techcrunch.com/2012/07/23/vmware-buys-nicira-for-1-26-billion-and-gives-more-clues-about-cloud-strategy/
Effective URL: https://techcrunch.com/2012/07/23/vmware-buys-nicira-for-1-26-billion-and-gives-more-clues-about-cloud-strategy/
Submission: On March 23 via api from CA — Scanned from CA

Form analysis 1 forms found in the DOM

<form action="" class="form newsletter-form" id="">
  <div class="form-field form-field--checkbox form-field--default form-field--required">
    <div class="form-field__checkbox-wrapper " id="wrapper-Readership"><input class="form-field__input form-field__input--checkbox " id="checkbox-Readership" name="newsletters" type="checkbox" value="Readership"><label class="checkbox-field-label"
        for="checkbox-Readership">Daily</label></div>
    <div class="form-field__checkbox-wrapper " id="wrapper-Readership-wkend"><input class="form-field__input form-field__input--checkbox " id="checkbox-Readership-wkend" name="newsletters" type="checkbox" value="Readership-wkend"><label
        class="checkbox-field-label" for="checkbox-Readership-wkend">Week in Review</label></div>
    <div class="form-field__checkbox-wrapper " id="wrapper-Readership-startups"><input class="form-field__input form-field__input--checkbox " id="checkbox-Readership-startups" name="newsletters" type="checkbox" value="Readership-startups"><label
        class="checkbox-field-label" for="checkbox-Readership-startups">Startups Weekly</label></div>
    <div class="form-field__checkbox-wrapper " id="wrapper-Readership-event-updates"><input class="form-field__input form-field__input--checkbox " id="checkbox-Readership-event-updates" name="newsletters" type="checkbox"
        value="Readership-event-updates"><label class="checkbox-field-label" for="checkbox-Readership-event-updates">Event Updates</label></div>
    <div class="form-field__checkbox-wrapper " id="wrapper-Readership-sponsorship"><input class="form-field__input form-field__input--checkbox " id="checkbox-Readership-sponsorship" name="newsletters" type="checkbox"
        value="Readership-sponsorship"><label class="checkbox-field-label" for="checkbox-Readership-sponsorship">Advertising Updates</label></div>
    <div class="form-field__checkbox-wrapper wrapper-ec" id="wrapper-Extra Crunch Announcements"><input class="form-field__input form-field__input--checkbox checkbox-ec" id="checkbox-Extra Crunch Announcements" name="newsletters" type="checkbox"
        value="Extra Crunch Announcements"><label class="checkbox-field-label" for="checkbox-Extra Crunch Announcements">TechCrunch+ Announcements</label></div>
    <div class="form-field__checkbox-wrapper wrapper-ec" id="wrapper-Extra Crunch Events"><input class="form-field__input form-field__input--checkbox checkbox-ec" id="checkbox-Extra Crunch Events" name="newsletters" type="checkbox"
        value="Extra Crunch Events"><label class="checkbox-field-label" for="checkbox-Extra Crunch Events">TechCrunch+ Events</label></div>
    <div class="form-field__checkbox-wrapper wrapper-ec" id="wrapper-Extra Crunch Daily Newsletter"><input class="form-field__input form-field__input--checkbox checkbox-ec" id="checkbox-Extra Crunch Daily Newsletter" name="newsletters"
        type="checkbox" value="Extra Crunch Daily Newsletter"><label class="checkbox-field-label" for="checkbox-Extra Crunch Daily Newsletter">TechCrunch+ Roundup</label></div>
  </div>
  <fieldset class="form-field form-field--email form-field--default form-field--required"><input class="form-field__input form-field__input--email" name="email" type="email" required="" value=""><label class="form-field__label">Email</label>
  </fieldset><button class="button button--black button--primary" disabled="">Subscribe</button>
</form>

Text Content

TechCrunch
Login
Join TechCrunch+
Searchsearch
 * TechCrunch+
 * Startups
 * SVB Crash
 * Venture
 * Security
 * AI
 * Crypto
 * Apps
 * Events
 * More


Close Screen
twitter(opens in a new window)facebook(opens in a new window)linkedin(opens in a
new window)reddit(opens in a new window)mail(opens in a new window)Copy Share
Link
Link CopiedLink Copied
Enterprise


VMWARE BUYS NICIRA FOR $1.26 BILLION AND GIVES MORE CLUES ABOUT CLOUD STRATEGY

/ Invalid DateTime•
comment Comment

VMware has acquired Nicira, a startup known for its software defined networking
technology in a deal pegged at $1.26 billion. It’s an acquisition that has all
sorts of ramifications for the ever disruptive enterprise sector of the market.

Nicira emerged out of stealth in February after five years in development. It
has been widely considered as a successor to traditional networking technology
in its capability to create a software defined environment that can essentially
be programmed to change through adjustments in the software. This allows for
elasticity and the ability to move data easily. It integrates well with
horizontal storage environments by scaling out data over horizontal
envioronments. Nicira’s software in effect turns a network into an IP backplane.
Hierarchies in  physical networks creates bottlenecks. Nicira creates a flat
network. Devices connect directly to the switch, allowing for the data to
distribute effectively across its infrastructure.

Nicira had $50 million in funding and a blue chip list of clients that include
Rackspace, EBay and Fidelity. Its venture backers include Andreessen Horowitz
and Lightspeed Ventures, which has won big by investing in transformative data
center technologies. VMware Co-Founder Diane Greene is also an investor.



In an interview with me today, Ben Horowitz said that VMware has bought an
option on the future of the networking market. He said he asked himself some
times during Nicira board meetings about selling the company, considering the
fact that it is so young. He said they made the decision considering that being
part of VMware gives them a great chance to being the biggest networking
technology in the world. He said the market is expected to be $37 billion to $40
billion in size over next few years.

Cloud computing has disrupted VMware as much as any legacy technology company.
Nicira helps alleviate the pressure VMware faces in forming a comprehensive
strategy to compete with Amazon Web Services and OpenStack, which is fast
emerging as a viable alternative for building out cloud environments. It also
puts VMware face to face with competiors such as Cisco, which it has deep
relationships with.

But there is a certain irony here. Nicira is a significant part of OpenStack.
The network interface for OpenStack uses the Nicira API. It means that VMware is
now by proxy part of the OpenStack community as part of a longer term play for
the networking market.

OpenStack is a federated way to pool various workloads from different cloud
environments. Krishnan Subramanian of Rishidot Research said Cloudstack,
Eucalyptus and OpenStack will serve as the foundation for federated ecosystems.
Nicira fits right into that play with its software defined networking.



In the future, clouds will be defined by big data and services
environments, Subramanian said. VMware recognizes that shift as a long term
strategy.

“You will need to program the network to fit your needs,” he said.

VMware CTO Steve Herrod said the company believes the future is in software
defined networking.  There will also be a need for orchestration. That’s where
its acquisition of DynamicOps comes into play.  Cloud Foundry, its homegrown
platform as a service, will play into that future as well. It provides what
Herrod calls the “application language of the heterogeneous environment.”

More TechCrunch


BELOVED HACKING VETERAN KELLY ‘ALORIA’ LUM PASSES AWAY AT 41


GOOGLE IS LOSING CONTROL


PORNHUB OWNER MINDGEEK SOLD TO PRIVATE EQUITY FIRM


WHEN THE TECH IPO MARKET REOPENS, KEEP AN EYE ON HR UNICORNS


close


PLEASE LOGIN TO COMMENT

Login / Create Account



TECHCRUNCH EARLY STAGE

April 20, 2023 Boston, MA
Register Now




SIGN UP FOR NEWSLETTERS

See all newsletters(opens in a new window)

Daily
Week in Review
Startups Weekly
Event Updates
Advertising Updates
TechCrunch+ Announcements
TechCrunch+ Events
TechCrunch+ Roundup
EmailSubscribe
twitter(opens in a new window)facebook(opens in a new window)linkedin(opens in a
new window)reddit(opens in a new window)mail(opens in a new window)Copy Share
Link
checkmarkCopy


TAGS

 * nicira
 * vmware


Enterprise


VMWARE BUYS NICIRA FOR $1.26 BILLION AND GIVES MORE CLUES ABOUT CLOUD STRATEGY

Invalid DateTime•
VMware has acquired

Startups


RWAZI TO SCALE ITS MARKET INTELLIGENCE PLATFORM BACKED BY $4 MILLION SEED
FUNDING

Annie Njanja
Invalid DateTime•
In emerging markets like Africa, offline retail dominates most product sales,
driven by informal trade, and cash-based transactions. This makes the sourcing
of data on the true market value or size...

Apps


YOUTUBE SHUTTING DOWN INDIAN SOCIAL COMMERCE APP SIMSIM

Manish Singh
Invalid DateTime•
YouTube is shutting down its live social commerce app Simsim less than two years
after acquiring the Indian startup, but insists that it’s committed to building
“a seamless shopping exp...

Commerce


VUE STOREFRONT SNAPS UP $20M TO GROW ITS OPEN-SOURCE BASED
‘FRONTEND-AS-A-SERVICE’ E-COMMERCE TOOLKIT AND PLATFORM

Ingrid Lunden
Invalid DateTime•
The current slowdown in e-commerce growth, and in some pockets straight declines
in spend, might not seem like the most opportune time to build an e-commerce
tooling startup — let alone inves...

Enterprise


INTEGRITYNEXT RAISES $109M FOR A PLATFORM TO AUDIT SUPPLY CHAINS FOR ESG
COMPLIANCE

Ingrid Lunden
Invalid DateTime•
The funding landscape remains very tough for technology startups, but there are
still some pockets, and specific companies, driving a lot of interest right now
among investors because they look lik...

Government & Policy


INDIA GOVERNMENT-BACKED OPEN E-COMMERCE NETWORK EXPANDS TO MOBILITY

Manish Singh
Invalid DateTime•
Open Network for Digital Commerce, the Indian government-backed initiative that
is attempting to “democratize” e-commerce, has set its eyes on another industry
it would like to disrupt. ONDC, a non...

Apps


EX-FLIPKART EXEC’S FLASH APP WANTS TO BE AN INBOX FOR YOUR E-COMMERCE NEEDS

Ivan Mehta
Invalid DateTime•
Email inboxes are tricky tools because over time they become hard to manage and
users have to spend a lot of time searching for what they are trying to find.
And if you have been using one email ad...

Apps


CANVA UNVEILS A SERIES OF NEW FEATURES, INCLUDING SEVERAL AI-POWERED TOOLS

Aisha Malik
Invalid DateTime•
Canva is introducing a series of new features, including a suite of AI-powered
tools, and a new Brand Hub. The company unveiled the new features and tools
during its Canva Create virtual event toda...

Climate


LUN IS IN A MAD RUSH TO HELP HEAT-PUMP INSTALLERS DECARBONIZE HOMES

Natasha Lomas
Invalid DateTime•
Lun, a climate tech startup out of Denmark, is on a mission to help homes
decarbonize fast — starting with heating systems and swapping out boilers for
electric heat pumps. What are heat pump...

Apps


WHATSAPP INTRODUCES A NEW WINDOWS CLIENT WITH BETTER CALLING FEATURES

Ivan Mehta
Invalid DateTime•
WhatsApp announced a new Windows client today with performance improvements and
better calling features. The new version also supports multi-device sync so you
can use WhatsApp even if your phone i...

Fintech


ROOFSTOCK, VALUED AT $1.9B LAST YEAR, CUTS 27% OF STAFF IN SECOND ROUND OF
LAYOFFS

Mary Ann Azevedo
Invalid DateTime•
Proptech company Roofstock has laid off about 27% of its staff today, according
to an email sent to employees viewed by TechCrunch. The cuts come just five
months after the startup laid off 20% of ...

Biotech & Health


TEMASEK’S SHEARES HEALTHCARE BACKS ASIA-FOCUSED MENTAL HEALTH STARTUP
THOUGHTFULL

Catherine Shu
Invalid DateTime•
Southeast Asia’s mental health startups are getting more investor attention.
Last week, Intellect announced a strategic investment from IHH Healthcare,
Asia’s largest private healthcare group. Now ...

Fintech


SOUTHEAST ASIAN CREDIT FINTECH KREDIVO SCORES $270M SERIES D

Catherine Shu
Invalid DateTime•
The funding landscape in Southeast Asia is still wintery, but one fintech
managed to land a major round. Kredivo Holdings, which offers credit services to
underbanked consumers in Indonesia and Vie...

Gaming


EPIC LAUNCHES UNREAL EDITOR FOR FORTNITE, WILL GIVE 40% OF ALL REVENUE TO
CREATORS

Amanda Silberling
Invalid DateTime•
Epic Games announced a new system for paying creators on Fortnite, the
ultra-popular, free-to-download battle royale game. Announced on Wednesday at
the Game Developers Conference, Epic will now sh...

Crypto


COINBASE STOCK DROPS AFTER SEC WELLS NOTICE, A POSSIBLE PRELUDE TO ‘ENFORCEMENT
ACTION’

Alex Wilhelm
Invalid DateTime•
American crypto giant Coinbase received a Wells notice today from the Securities
and Exchange Commission. In the wake of Coinbase’s filing regarding the Wells
notice, shares of the company ar...

Startups


DAILY CRUNCH: GITHUB CEO SAYS NEW CODE COMPLETION TOOL ‘BRINGS THE FUN BACK TO
PROGRAMMING’

Christine Hall, Haje Jan Kamps
Invalid DateTime•
Hello, friends, and welcome to Daily Crunch, bringing you the most important
startup, tech and venture capital news in a single package.

Enterprise


ADOBE’S THOUGHTS ON THE ETHICS OF AI-GENERATED IMAGES (AND PAYING ITS
CONTRIBUTORS FOR THEM)

Frederic Lardinois
Invalid DateTime•
“We’re at a tipping point where AI is going to break trust in what you see and
hear — and democracies can’t survive when people don’t agree on facts. You have
to have ...

Featured Article


BOSTON DYNAMICS PUTS ITS ROBOTS TO WORK

At first glance, Boston Dynamics is a strange fit for a show like ProMat. For
decades, the firm h...
Brian Heater
Invalid DateTime•
Crypto


SEC SUES TRON FOUNDER AND CELEBRITIES, INCLUDING LINDSAY LOHAN, JAKE PAUL AND
SOULJA BOY, FOR CRYPTO SECURITIES VIOLATIONS

Jacquelyn Melinek
Invalid DateTime•
The U.S. Securities and Exchange Commission sued Justin Sun, the founder of
Tron, on allegations of orchestrating “unregistered offer and sale, manipulative
trading and unlawful touting of crypto a...



TECHCRUNCH LIVE WITH OMA FERTILITY AND ROOT VENTURES


OMA FERTILITY TO SPEAK ON BUILDING A BETTER IVF EXPERIENCE ON TECHCRUNCH LIVE

Matt Burns
Invalid DateTime•
Oma Fertility is on a mission to improve in vitro fertilization. The company
says it accomplishes this by offering clients better technology, respectful
care, and ethical pricing. Founded by Gurjee...

Apps


MICROSOFT LAUNCHES LOOP, ITS NOTION COMPETITOR, IN PUBLIC PREVIEW

Kyle Wiggers
Invalid DateTime•
Microsoft Loop, a Notion-like hub for managing tasks and projects that sync
across Microsoft 365 apps and services, launched in public preview today. Loop
is available to users with a Microsoft Acc...



 * About
   * TechCrunch
   * Staff
   * Contact Us
   * Advertise
   * Crunchboard Jobs
   * Site Map
 * Legal
   * Terms of Service
   * Privacy Policy
   * TechCrunch+ Terms
   * Privacy Dashboard
   * Code of Conduct
   * About Our Ads
 * Trending Tech Topics
   * Silicon Valley Bank news and updates
   * Tech Industry Layoffs
   * ChatGPT
   * CES 2023

FacebookFacebook(opens in a new window)TwitterTwitter(opens in a new
window)YouTubeYouTube(opens in a new window)InstagramInstagram(opens in a new
window)LinkedInLinkedIn(opens in a new window)MastodonMastodon(opens in a new
window)

© 2023 Yahoo.All rights reserved.Powered by WordPress VIP(opens in a new
window).