VMware scoops up CloudHealth to enhance its multicloud platform

VMware is growing its multicloud platform with a deal to buy CloudHealth. (VMware)

VMware announced Monday that it has struck a deal to buy CloudHealth Technologies as part of its plan to provide more multicloud based services.

Founded in 2012, CloudHealth has more than 3,000 global customers for its cloud operations platform. CloudHealth Technologies delivers its cloud operations platform across Amazon Web Services, Microsoft Azure and Google Cloud.

CloudHealth's service includes tools for enterprises and service providers that were designed to help them analyze and manage cloud cost, usage, security and performance centrally for native public clouds.  

VMware has been making a concerted effort to provide more multi-cloud applications and services to enterprises, managed service providers and service provider customers.

“Multi-cloud usage while beneficial to business creates a unique set of operational problems.” said Raghu Raghuram, chief operating officer of products and cloud services at VMware, in a prepared statement. “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.”

Once the deal closes in the VMware's fiscal third quarter of 2019, CloudHealth will become part of VMware's cloud management platform by incorporating it into VMware's Wavefront cloud application management and VMware's Secure State cloud configuration, security and compliance tool

“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, CloudHealth Technologies said in the press release. “We are thrilled to combine with VMware to address this challenge by delivering a suite of multi-cloud management services that accelerate digital transformation.”

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While the financial terms of the deal weren't announced by VMware, Reuters reported that it will pay approximately $500 million CloudHealth.

CloudHealth is based on Boston and has raised $86 million to date in venture capital funding. CloudHealth's investors include Sigma Prime Ventures, Scale Venture Partners and Sapphire Ventures. CloudHealth's customers include Yelp, Dow Jones, Zendesk, Skyscanner and SHI. 

VMware Chief Executive Office Pat Gelsinger announced the CloudHealth deal this morning during his opening keynote address at VMworld in Las Vegas.

In June, VMware announce the release of its VMware vCloud NFV-OpenStack Edition 3.0 for 5G and multicloud networks.