VMware picks up Nicira to expand beyond the server

Virtualisation player VMware has acquired Nicira as part of wider plans to expand into the data center and cloud networking markets

Just days after announcing a change at the top of the organisation VMware has acquired open source network virtualisation platyer Nicira for $1.26bn.

The dust has barely settled on the announcement that Paul Maritz was moving on from VMware CEO to take a strategy role in EMC but his fingerprints were still all over the latest acquisition.

"VMware has led the server virtualisation revolution, and we have the opportunity to do the same in data centre and cloud networking," he said.

"The acquisition of Nicira adds to our portfolio of networking assets," he added that it would be able to take the lead in software defined networking.

Software defined networks are starting to emerge as a buzzword, particularly on the other side of the Atlantic, and a host of household names in the US, including eBay and AT&T are already Nicira customers.

Steve Mullaney, CEO of Nicira, said that it helped change how networks worked with the demands of the cloud for more flexibility and independence from physical infrastructure.

The announcement about the acquisition came at the same time as VMware revealed its second quarter results, which showed an increase of revenues to $1.12bn a climb of 22% compared to the period last year. Net income dropped slightly year-on-year to $192m compared to $220m.

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