VMware acquires Network Virtualization Vendor Nicira

VMware has acquired Nicira – a software-defined networking (SDN) and network virtualization company. This acquisition allows VMware to offer advanced network capabilities on top of commodity hardware. “The value we bring to customers lies in our open approach and the richness of capabilities in network virtualization,” said Martin Casado, co-founder and chief technology officer, Nicira. “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.”

VMware bet big with Nicira paying out $1.05 billion in cash plus approximately $210 million of assumed unvested equity awards.

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