At the VMworld 2018 conference in Las Legas, VMware, Inc., announced its intention to acquire the cloud management and cloud cost optimization firm CloudHealth Technologies.
An agreement has now been signed between the two companies following months of detailed negotiations. Subject to customary closing conditions and pending regulatory approvals, the deal is expected to be closed by the end of fiscal Q3, 2019.
VMware has been a driving force in virtualization software and cloud infrastructure and technology for almost two decades. The firm’s software powers some of the most complex digital infrastructure in the world and the company is one of the most important in the field of Information Technology.
CloudHealth Technologies was the brainchild of CTO and company founder Joe Kinsella. The company was formed in 2012 to address a specific need – To help companies avoid cloud chaos and achieve greater visibility and control of their cloud deployments while reducing spiraling cloud costs.
The company’s platform, developed and fine-tuned over the past six years, is now used by more than 3,000 companies around the globe and delivers a cloud management platform for AWS, Microsoft Azure, and Google Cloud. Through the platform, companies can effectively manage multi-cloud environments through a single pane of glass and monitor usage and performance and can improve efficiency and reduce cloud costs.
The platform is the go-to cloud management and optimization platform for managed service providers looking to deliver solutions in the public cloud to their customers. Many businesses now rely on the CloudHealth platform for providing visibility into their cloud usage, allowing them to save many thousands of dollars a year. Those companies include Dow Jones, Zendesk, Yelp, Skyscanner, and SHI.
“Multi-cloud usage while beneficial to business creates a unique set of operational problems.” said Raghu Raghuram, chief operating officer, products and cloud services, VMware. “With the addition of CloudHealth Technologies we are delivering a consistent and actionable view into cost and resource management, security and performance for applications across multiple clouds.”
“As organizations scale their cloud environments and expand the use cases, they struggle with how to leverage a multi-cloud model to drive business transformation,” said Tom Axbey, president and chief executive officer, CloudHealth Technologies. “We are thrilled to combine with VMware to address this challenge by delivering a suite of multi-cloud management services that accelerate digital transformation.”
Existing CloudHealth Technologies’ customers have been ‘deeply considered’ at all stages of the negotiations to ensure that the acquisition would not adversely affect them. “As part of VMware, we will be able to serve you better and offer you a richer set of choices to support your business transformation in the cloud,” said Joe Kinsella.
When the deal is finally closed, VMware cloud automation services, VMware Secure State and Wavefront by VMware will deliver automation and compliance, security and governance, insights and analytics and will complement the capabilities of CloudHealth Technologies and will be of great benefit to both firms.