VMware to acquire startup CloudHealth in push to grow cloud offerings

SAN FRANCISCO: VMware Inc will acquire CloudHealth Technologies as part of the information technology company’s continued push into cloud-based software services, the company announced. The Palo Alto, California, company will pay approximately $500 million for the Boston-based startup, sources familiar with the matter said. VMware will purchase CloudHealth for the company’s cloud management platform, VMware Chief Executive Pat Gelsinger said. That platform makes it possible for enterprises to control and analyse the costs, compliance and performance of their computing environments across their own data centres and public clouds like Amazon Web Services and Microsoft Corp’s Azure.
“Anybody who is deploying apps operating in a cloud is utilising multiple public clouds. How do I manage that complexity? CloudHealth is exactly aligned with that,” Gelsinger said. He declined to comment on the price of the deal.
The company announced its acquisition in Las Vegas at VMworld, the company’s annual industry conference, where it also announced a series of new cloud services, including an expansion of the VMware Cloud on AWS partnership with Amazon.com Inc.
VMware has been adding subscription-based software services over the past year as more corporations begin to shift their computing and data storage systems off of their own servers and into public clouds.
Key to this strategy has been the VMware Cloud on AWS partnership that makes it simple for enterprises to transition onto the cloud. With the addition of CloudHealth, VMware is making it easier for its customers to manage services on other cloud providers, such as Azure and Alphabet Inc’s Google Cloud Platform.
“We’re going to refresh the vision that we have for the cloud,” Gelsinger said.
Among infrastructure decision makers at enterprises, 91 per cent said they use two or more vendor’s public cloud environments, with 19 per cent of respondents saying they use between six and nine, according to an April report by Forrester Research.
Within the global cloud systems management software, VMware holds 21 per cent of the market, followed by Microsoft Corp with 14 per cent. — Reuters