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VMware to Acquire CloudHealth to Bolster Cloud Operations Platform

VMware

VMware to acquire CloudHealth Technologies as part of the company’s continued push into cloud-based software services, as per the company announcement.

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.

VMware will pay approximately $500 million for CloudHealth, according to the sources.

“VMware will purchase CloudHealth for the company’s cloud management platform”, said VMware Chief Executive, Pat Gelsinger. “That platform makes it possible for enterprises to control and analyze the costs, compliance, and performance of their computing environments across their own data centers and public clouds like Amazon Web Services and Microsoft Azure.”

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.

VMware expects the acquisition to close this quarter, the company said. Its immediate plans for CloudHealth include the integration of two of VMware’s existing cloud services, analytics tool Wavefront and security tool CloudCoreo.

“More services will become integrated over time, and CloudHealth, which has hundreds of employees, will continue to operate in Boston”, Gelsinger said.

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