At VMworld 2018 in Las Vegas, VMware has announced its acquisition of CloudHealth Technologies – a startup with over 3,000 global customers delivering a cloud operations platform across AWS Cloud, Microsoft Azure and Google Cloud. VMware would pay approximately $500 million for the Boston, Massachusetts-based startup.
CloudHealth Technologies’ platform enables customers to help analyze and manage cloud cost, usage, security, and performance centrally for native public clouds. The transaction is expected to close in VMware’s fiscal Q3 2019, subject to customary closing conditions, including regulatory approvals.
“Multi-cloud usage while beneficial to business creates a unique set of operational problems,” said Raghu Raghuram, chief operating officer, products and cloud services, VMware. “With the addition of CloudHealth Technologies, we are delivering a consistent and actionable view into cost and resource management, security and performance for applications across multiple clouds.”
VMware Cloud Services will now have the ability to add delivery of consistent operations across clouds to its cloud management portfolio. 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.
In May 2016, HostingJournalist.com published an article about CloudHealth Technologies’s latest investment round. The company then secured $20 million in Series C funding to build on its continued growth in the cloud service management sector. Leading the round was Sapphire Ventures, a new investor in CloudHealth Technologies.
“We are very impressed with CloudHealth’s leadership, strategy and ability to execute in this rapidly evolving market,” said Jai Das, managing director at Sapphire Ventures in this article. “As the cloud plays an increasingly integral role in enterprise business, companies that can wring the most value out of their cloud resources are going to come out on top. CloudHealth helps its customers do just that, and we look forward to applying our enterprise experience and network to help the company drive growth.”
This financing round in 2016 brought the total venture investment in CloudHealth Technologies to $40 million, counting the Class A and B investments the company raised from 2013 through 2015.
Yelp, Dow Jones, Zendesk
“As organizations scale their cloud environments and expand the use cases, they struggle with how to leverage a multi-cloud model to drive business transformation,” said Tom Axbey, president and chief executive officer (CEO) of CloudHealth Technologies. “We are thrilled to combine with VMware to address this challenge by delivering a suite of multi-cloud management services that accelerate digital transformation.”
CloudHealth Technologies’ enterprise capabilities alongside specific functionality like simplified customer management, streamlined billing, massive scale, policy and tenancy would have made it quite an interesting platform for Managed Service Providers (MSPs) to deliver solutions in the public cloud. Organizations that rely on CloudHealth Technologies capabilities and expertise include customers and managed services providers like Yelp, Dow Jones, Zendesk, Skyscanner, and SHI.