The 10 Biggest Cloud Stories Of 2012

5. Software-Defined Networking Ushers In Flexible Cloud Creation

VMware's $1.2-billion purchase of software-defined networking (SDN) leader Nicira rocked the tech world both with its breathtaking price and with the realization that SDN would lead to much more programmable and flexible networks.

Nicira will help VMware further develop its network virtualization and its private cloud services. But before its purchase by VMware, Nicira was a member of the OpenStack cloud standards organization and developed SDN innovations that will become key components for building flexible cloud stacks such as enabling businesses to move from private to public clouds on the fly.