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VMware CEO: CloudHealth Acquisition Puts Public Cloud Platform Ahead

‘We will take CloudHealth and we're going to make it a fundamental platform and branded offering from VMware,’ says VMware CEO Pat Gelsinger

VMware CEO Pat Gelsinger said a new cloud platform based off its CloudHealth Technologies acquisition unveiled today at VMworld 2018 will soon become available for VMware channel partners to sell.

"We will take CloudHealth and we're going to make it a fundamental platform and branded offering from VMware," said Gelsinger during his keynote Monday at VMworld 2018 in Las Vegas. “We will be enabling [CloudHealth's platform] through our enterprise channels as well as through our MSPs and VMware Cloud Provider Program partners as well. … Simply put, we will make CloudHealth the cloud operations platform of choice for the industry."

Terms of the deal were not disclosed, but Reuters -- citing sources familiar with the matter -- reported that VMware will pay approximately $500 million for the Boston-based company.

With over 3,000 global customers, CloudHealth delivers a cloud operations platform across AWS, Microsoft Azure and Google Cloud. The platform enables customers to help analyze and manage cloud cost, usage, security, and performance centrally for native public clouds, according to VMware.

[Related: VMware CEO Pat Gelsinger's Keynote: 5 Boldest Statements At VMworld]

VMware's CEO said the virtualization leader will add several VMware components into the platform, such as Wavefront analytics, to create a suite of services that channel partners will be able to sell.

CloudHealth enterprise capabilities alongside specific functionality like simplified customer management, streamlined billing, massive scale, policy and tenancy has made it the default platform for MSPs to deliver solutions in the public cloud.

VMware Cloud Services will have the ability to add delivery of consistent operations across clouds to its portfolio, according to VMware. Once the CloudHealth Technologies deal is closed, VMware cloud automation services, VMware Secure State and Wavefront by VMware will deliver automation and compliance, security and governance, insights and analytics to complement CloudHealth Technologies’ capabilities, VMware said.

The deal is expected to close in VMware's third fiscal quarter 2019.

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