VMware to Acquire Wavefront to Accelerate Delivery of its Cross-Cloud Management Services

PALO ALTO, CA--(Marketwired - April 12, 2017) - VMware, Inc. (NYSE: VMW), a global leader in cloud infrastructure and business mobility, today announced its intention to acquire Wavefront, the leading metrics monitoring service for cloud and modern application environments. Terms were not disclosed. The transaction is expected to close in calendar Q2 2017. VMware does not expect this transaction to have a material impact on its FY18 operating results.

Digital enterprises face challenges of a new order of magnitude when monitoring modern applications -- consisting of hundreds of microservices in containers with lifespans of seconds -- spread across private and public clouds. To identify and fix operational issues in these dynamic cross-cloud environments, developers need new instrumentation for their applications, and teams practicing DevOps require sophisticated real-time analytics on their high-scale distributed systems to adapt to problems before they impact the business.

Wavefront provides metrics monitoring to optimize clouds and modern applications by delivering operational insights using millions of data points per second in real-time. Operators and developers can interrogate real-time data streams to discover new ways to address problems, identify bottlenecks, and test algorithms and hypotheses. A cloud-hosted service, Wavefront ingests, stores, visualizes, and alerts on streaming metric data from clouds and modern applications enabling superior operational performance. Scaling to support the largest data center needs, the service can measure, correlate, and analyze across servers, devices, applications, end-user behavior, multiple public cloud and data center attributes, SaaS, PaaS and IaaS environments, and business metrics.

"VMware set the standard for monitoring virtual environments with VMware vRealize® Operations™, and we will set the standard for cross-cloud and modern application monitoring with Wavefront," said Ajay Singh, senior vice president and general manager, Cloud Management Business Unit, VMware. "It delivers a radically new scope and scale of metrics monitoring and analytics to help developers improve the performance, availability and customer experience of their digital services. When combined with the vRealize product portfolio, digital enterprises will gain a complete view from network through infrastructure to applications."

"I'm excited about Wavefront joining VMware upon the close of the deal," said Pete Cittadini, president and CEO of Wavefront. "Today, Wavefront delivers the ultimate streaming metrics monitoring to digital enterprises changing the way they deliver and instrument their clouds and modern applications. I look forward to delivering Wavefront's innovations to more customers, more extensively, as part of the vRealize portfolio of industry-leading multi-cloud management products."

For seven-plus years, VMware has invested in solutions featuring advanced metrics and analytics to help customers simplify and automate how they manage, monitor and troubleshoot services in dynamic virtual and cloud environments. Wavefront's metrics monitoring for modern applications will complement VMware's industry-leading vRealize Operations platform for monitoring, troubleshooting and capacity planning across virtual environments. Upon close of the deal, customers will have a holistic representation of their network, infrastructure and application environments when using Wavefront with vRealize Network Insight, vRealize Operations and vRealize Log Insight™. Completion of the acquisition will further enable VMware to reach new digital enterprise customers and end-users including application delivery and development teams seeking to glean greater insight into their modern applications and associated containers and microservices.

Wavefront to Speed Time to Market for New SaaS Management Solutions

Upon close of the acquisition, Wavefront will be a part of the growing portfolio of VMware Software as a Service (SaaS) offerings. Additionally, VMware will leverage Wavefront's technology to accelerate the development of VMware Cross-Cloud Services™ to help manage and monitor modern application and their associated infrastructure across clouds. Introduced as a technology preview at VMworld® 2016 U.S., Cross-Cloud Services are new SaaS offerings under development to enable visibility into cloud usage and costs, enhance consistent networking and security policies, and automate the deployment, management, and migration of applications and data across VMware vSphere® and non-vSphere private and public clouds.

Additional Resources

• Read more about today's news from VMware's Ajay Singh
• Read more about today's news from Wavefront's Pete Cittadini
• Read more about VMware's M&A Strategy from Shekar Ayyar
• Learn more about VMware Cloud Management
• Learn more about VMware Cross-Cloud Architecture
• Get started with a free hands-on demo and trial
• Connect with VMware on Twitter and Facebook

About Wavefront

Wavefront is the ultimate metrics monitoring service for cloud and modern application environments. Its observability and analytics tools enable DevOps functions at SaaS companies where power, scale, performance, and reliability are essential to their business. The company helps software leaders to ensure superior customer experience with the combination of the most powerful query language in monitoring running against a unified, full detail, big data metric store in real-time with no limits. Visit Wavefront Blog and follow us on Twitter, @WavefrontHQ.

About VMware

VMware, a global leader in cloud infrastructure and business mobility, helps customers accelerate their digital transformation. VMware enables enterprises to master a software-defined approach to business and IT with VMware Cross-Cloud Architecture™ and solutions for the data center, mobility, and security. With 2016 revenue of $7.09 billion, VMware is headquartered in Palo Alto, CA and has over 500,000 customers and 75,000 partners worldwide.

VMware, vRealize, vRealize Operations, Log Insight, Cross-Cloud Services, VMworld, vSphere, and Cross-Cloud Architecture are registered trademarks or trademarks of VMware, Inc. in the United States and other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective companies.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding VMware's intention to acquire Wavefront; the expected benefits of the acquisition; the anticipated closing of the acquisition in calendar Q2 2017; the expected complimentary nature of combined product offerings after close; and VMware's expectation that the acquisition will not have a material impact on its fiscal year 2018 operating results. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) the ability of the parties to satisfy closing conditions to the acquisition on a timely basis or at all; (ii) market conditions, regulatory requirements and other corporate considerations that could affect the timing and closing conditions to the acquisition; (iii) the ability to successfully integrate acquired companies and assets into VMware; (iv) VMware's customers' ability to accept emerging technology and to transition to new products and computing strategies; (v) competitive factors, including but not limited to entry of new competitors into the industries in which VMware competes, and new product and marketing initiatives by VMware's competitors; (vi) VMware's ability to enter into and maintain strategically effective partnerships; (vii) rapid technological changes in the virtualization software and cloud, end user and mobile computing industries; (viii) changes to product and service development timelines; (ix) VMware's ability to protect its proprietary technology; (x) VMware's ability to attract and retain highly qualified employees; (xi) adverse changes in general economic or market conditions; (xii) changes in VMware's financial condition; (xiii) fluctuating currency exchange rates; and (xiv) VMware's relationship with Dell Technologies and Dell's ability to control matters requiring stockholder approval. These forward-looking statements are made as of the date of this press release, are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including VMware's most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.