VMware buys CloudHealth Technologies

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During the VMworld annual conference, which is currently taking place in Las Vegas, VMware announced its acquisition of Boston-based software company CloudHealth Technologies.

The acquisition means VMware’s stronger push into cloud-based software services, the company proclaimed. According to Reuters, the deal is worth roughly $500 million.

The technology VMware was after is CloudHealth’s cloud management platform, VMware CEO Pat Gelsinger confirmed. It allows companies to control and analyse costs, compliance and performance of their computing environments, both in their own data centres and public clouds like Azure or AWS.

“Anybody who is deploying apps operating in a cloud is utilizing multiple public clouds. How do I manage that complexity? CloudHealth is exactly aligned with that,” Gelsinger said.

Another reason why such an acquisition is important for VMware is the fact that it has been adding subscription-based software services for quite some time now. With its AWS partnership, the transition to the cloud has been made easier. Now, with the help of CloudHealth, the management of the platform should be made easier, as well.

“We’re going to refresh the vision that we have for the cloud,” Gelsinger said.

In the cloud systems management software, on a global scale, VMware holds more than a fifth of the market – 21 per cent. The market itself is worth more than $5 bn this year, and will reach $10 bn by 2021.

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