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July 24, 2012 02:20 am GMT

VMware Buys Nicira For $1.26 Billion And Gives More Clues About Cloud Strategy

niciraVMware has acquired Nicira, a startup known for its software defined networking technology in a deal pegged at $1.26 billion. It's an acquisition that has all sorts of ramifications for the ever disruptive enterprise sector of the market.Nicira emerged out of stealth in February after five years in development. It has been widely considered as a successor to traditional networking technology in its capability to create a software defined environment that can essentially be programmed to change through adjustments in the software. This allows for elasticity and the ability to move data easily. It integrates well with horizontal storage environments by scaling out data over horizontal envioronments.Niciras software in effect turns a network into an IP backplane. Hierarchies in physical networks creates bottlenecks. Nicira creates a flat network. Devices connect directly to the switch, allowing for the data to distribute effectively across its infrastructure.

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