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VMware buys certain Plumgrid IP, takes on ‘number of employees’

In a deal that closed late last week, VMware looks to have strengthened its OpenStack software position with purchase of Plumgrid assets.

VMware bolstered its position in the OpenStack software market with the purchase of some assets from Plumgrid. Details on the deal are scarce, but VMware did acknowledge it closed on a deal to acquire certain IP assets from Plumgrid as well as taking on “a number of employees.”

VMware is a subsidiary of Dell Technologies and best known as a provider of cloud and virtualization software and services targeting x86 architecture. A recent report from IHS Markit touted VMware as one of the top vendors in terms of market share in the software-defined networking market serving data centers and enterprise local area networks.

Plumgrid is focused on running SDN on OpenStack deployments, having recently announced a deal with Quanta Cloud Technology to provide an OpenStack solution using SDN and network functions virtualization, which followed on the release of its CloudSecure platform targeting micro-segmentation with private virtual domains, policy-based virtual tap, third-party firewall service insertion, security policy view and integrated support with Intel’s Open Security Controller.

Plumgrid looked to put a positive spin on the deal, with founder and CTO Pere Monclus noting in a blog post: “Today we’re announcing that we will be starting a new journey as we continue revolutionizing and transforming the networking industry to build and expand on software-defined infrastructure for private and public clouds. Our technology and IP have been acquired and many of our employees have joined a new team.”

The company earlier this year unveiled its Open Networking Suite 5.0 platform with support for OpenStack Kilo and Liberty releases targeting enterprises and service providers.

Larry Lang, CEO of Plumgrid, joined RCR Wireless News’ NFV/SDN Reality Check video show to discuss the company’s work with NFV, SDN and OpenStack.

The deal comes on the heels of Xura acquiring Mitel’s mobile business and Ranzure Networks in a move to better position itself as a provider of “5G” platforms.

Once completed, Xura said the deal will combine its voicemail, messaging and security solutions with Mitel’s voice-over-LTE and voice-over-Wi-Fi platforms, video services, messaging, network access and core solutions, and Ranzure’s 5G cloud radio access network technology. The bolstered company said it plans to focus on a software-based joint architecture designed to support quicker development of operator services, and support a “carrier-as-a-service vision” targeting the transition to 5G networks and the “internet of things.”

“Our new company will offer a fully virtualized, software-based solution set across every layer of the mobile network infrastructure stack, including radio access, packet core and 5G applications,” said Xura’s newly installed CEO Pardeep Kohli, in a statement. “We will be the only pure play solution provider with no vested interest in maintaining and promoting proprietary solutions. We look forward to partnering with our customers to achieve operational efficiencies as they prepare to handle the exponential traffic growth that the industry’s IoT and 5G applications will bring.”

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