VMware said its planned acquisition of Dell EMC's Service Assurance Suite shows the tight synergy between the two companies as Dell Technologies seeks to become public again through a share swap with its "DVMT" VMware tracking stock.
The Palo Alto, Calif.-based virtualization leader has unveiled plans to buy the technology and team within Dell EMC's Service Assurance Suite, which includes software spanning network health, performance monitoring and root cause analysis. Terms of the deal were not disclosed.
"At its core, Dell EMC Service Assurance Suite is an economic game-changer; by self-identifying problems and automating service assurance, communications service providers can address issues before they happen and avoid costly headaches down the road," said Shekar Ayyar, executive vice president, strategy and corporate development ,and general manager of VMware's Telco NFV Group, in a blog post.
VMware said the acquisition "reinforces the 'better together' synergy between VMware and Dell EMC."
After the deal closes, Dell EMC customers will continue to have access to the Dell EMC Service Assurance Suite's solutions pursuant to a commercial reseller agreement in place between VMware and Dell EMC. In addition, the Dell EMC service suite is already complemented by VMware technologies such as vCloud NFV, NSX SD-WAN by VeloCloud, and vRealize Network Insight.
Dell Technologies owns 82 percent of the publicly held VMware. The two companies have been doubling down on creating technology synergies in 2018, such as the Dell EMC Ready Stack program, which simplifies how partners bundle, sell and build converged stacks based on Dell EMC and VMware data center technologies.
In a recent filing with the U.S. Securities and Exchange Commission, Dell Technologies said it expects total sales, which includes VMware, will reach upward of $103.3 billion by fiscal year 2022.
VMware said the combination of Dell EMC's service assurance technology with its Telco NFV portfolio gives communications service providers the ability to maintain operational reliability in their core network, cloud and IT domains across physical and virtual infrastructure.
"As carriers are readying for 5G, they are increasingly virtualizing edge and core networks with network functions virtualization," said Ayyar in a statement. "The Dell EMC Service Assurance Suite's established software and services capabilities, combined with VMware's trademark innovation, will empower [communications service providers] to modernize and accelerate the transformation of their networks through NFV upon closing."