VMware is hosting its VMworld Customer Conference in Las Vegas this week, and to get things moving, the company announced it would take over Boston-based CloudHealth Technologies. They did not announce the terms of the deal, but Reuters reports the price is $ 500 million.
CloudHealth Offers VMware a Critical Multi-Cloud Management Platform That Works Through AWS, Microsoft Azure, and Google Cloud Platform Customers can manage cloud costs, usage, security, and performance from a single interface.
Although AWS leads the cloud market by a wide margin, it is a huge and growing market, and most companies do not put their eggs in a single supplier basket. Instead, they are looking for best-of-breed options for various cloud services.
This multi-cloud approach is beneficial to customers in that they are not tied to a single vendor but cause headaches as a result. CloudHealth allows multi-cloud users to manage their environment with a single tool
Raghu Raghuram, VMware Product and Cloud Services Chief Operating Officer, says CloudHealth solves the multi-cloud dilemma. "With the addition of CloudHealth Technologies we deliver a consistent and actionable view of cost and resource management, security and performance across multiple cloud applications," Raghuram said in a statement.
CloudHealth began to support Google Cloud platform only last month. CTO Joe Kinsella told TechCrunch why they had decided to add GCP support to their platform: "I think many of the initiatives that have been driven since Diane Greene's entry into Google [at the end of 2015] are bearing fruit, and the result is a significant increase in interest. "
They also received a comprehensive solution to manage the three largest cloud providers. The last piece most likely made her an even more attractive target for a company like VMware, which was obviously looking for a buy solution that would help customers in a hybrid and multi-cloud environment.
The company had a future planned expansion to manage not only the public cloud, but also private clouds and data centers from one location, a strategy that fits well with what VMware has been trying to do in recent years Helping Manage a Hybrid Environment Machines
With CloudHealth, VMware will not only get the multi-cloud management solution, but also 3000 customers like Yelp, Dow Jones, Zendesk and Pinterest.
CloudHealth was founded in 2012 and has raised over $ 87 million. His final round was a $ 46 million Series D in June 2017, led by Kleiner Perkins. Other leading investors from previous rounds included Sapphire Ventures, Scale Venture Partners and .406 Ventures.