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VMware announces intent to buy Avi Networks, startup that raised $115M

VMware has been trying to reinvent itself from a company that helps you build and manage virtual machines in your data center to one that helps you manage your virtual machines wherever they live, whether that’s on prem or the public cloud. Today, the company announced it was buying Avi Networks, a six-year-old startup that helps companies balance application delivery in the cloud or on prem in an acquisition that sounds like a pretty good match. The companies did not reveal the purchase price.

Avi claims to be the modern alternative to load balancing appliances designed for another age when applications didn’t change much and lived on prem in the company data center. As companies move more workloads to public clouds like AWS, Azure and Google Cloud Platform, Avi is providing a more modern load-balancing tool, that not only balances software resource requirements based on location or need, but also tracks the data behind these requirements.

Diagram: Avi Networks

VMware has been trying to find ways to help companies manage their infrastructure, whether it is in the cloud or on prem, in a consistent way, and Avi is another step in helping them do that on the monitoring and load-balancing side of things, at least.

Tom Gillis, senior vice president and general manager for the networking and security business unit at VMware sees, this acquisition as fitting nicely into that vision. “This acquisition will further advance our Virtual Cloud Network vision, where a software-defined distributed network architecture spans all infrastructure and ties all pieces together with the automation and programmability found in the public cloud. Combining Avi Networks with VMware NSX will further enable organizations to respond to new opportunities and threats, create new business models, and deliver services to all applications and data, wherever they are located,” Gillis explained in a statement.

In a blog post,  Avi’s co-founders expressed a similar sentiment, seeing a company where it would fit well moving forward. “The decision to join forces with VMware represents a perfect alignment of vision, products, technology, go-to-market, and culture. We will continue to deliver on our mission to help our customers modernize application services by accelerating multi-cloud deployments with automation and self-service,” they wrote. Whether that’s the case, time will tell.

Among Avi’s customers, which will now become part of VMware, are Deutsche Bank, Telegraph Media Group, Hulu and Cisco. The company was founded in 2012 and raised $115 million, according to Crunchbase data. Investors included Greylock, Lightspeed Venture Partners and Menlo Ventures, among others.

Google to acquire analytics startup Looker for $2.6 billion

Google made a big splash this morning when it announced it’s going to acquire Looker, a hot analytics startup that’s raised more than $280 million. It’s paying $2.6 billion for the privilege and adding the company to Google Cloud.

Thomas Kurian, the man who was handed the reins to Google Cloud at the end of last year, sees the two companies bringing together a complete data analytics solution for customers. “The combination provides an end-to-end analytics platform to connect, collect, analyze and visualize data across Google Cloud, Azure, AWS, on-premises databases and ISV applications,” Kurian explained at a media event this morning.

Google Cloud has been mired in third place in the cloud infrastructure market, and grabbing Looker gives it an analytics company with a solid track record. The last time I spoke to Looker, it was announcing a hefty $103 million in funding on a $1.6 billion valuation. Today’s price is a nice even billion over that.

As I wrote at the time, Looker’s CEO Frank Bien wasn’t all that interested in bragging about valuations; he wanted to talk about what he considered more important numbers:

He reported that the company has 1,600 customers now and just crossed the $100 million revenue run rate, a significant milestone for any enterprise SaaS company. What’s more, Bien reports revenue is still growing 70 percent year over year, so there’s plenty of room to keep this going.

Today, in a media briefing on the deal, he said that from the start, his company was really trying to disrupt the business intelligence and analytics market. “What we wanted to do was disrupt this pretty staid ecosystem of data visualization tools and data prep tools that companies were being forced to build solutions. We thought it was time to rationalize a new platform for data, a single place where we could really reconstitute a single view of information and make it available in the enterprise for business purposes,” he said.

Diagram: Google & Looker

Slide: Google & Looker

Bien saw today’s deal as a chance to gain the scale of the Google cloud platform, and as successful as the company has been, it’s never going to have the reach of Google Cloud. “What we’re really leveraging here, and I think the synergy with Google Cloud, is that this data infrastructure revolution and what really emerged out of the Big Data trend was very fast, scalable — and now in the cloud — easy to deploy data infrastructure,” he said.

Kurian also emphasized that the company will intend to support multiple databases and multiple deployment strategies, whether multi-cloud, hybrid or on premises.

Perhaps, it’s not a coincidence that Google went after Looker as the two companies had a strong existing partnership and 350 common customers, according to Google. “We have many common customers we’ve worked with. One of the great things about this acquisition is that the two companies have known each other for a long time, we share very common culture,” Kurian said.

This is a huge deal for Google Cloud, easily topping the $625 million it paid for Apigee in 2016. It marks the first major deal in the Kurian era as Google tries to beef up its market share. While the two companies share common customers, the addition of Looker should bring a net gain that could help them upsell to other parts of the Looker customer base.

Per usual, this deal is going to be subject to regulatory approval, but it is expected to close later this year if all goes well.

FireEye snags security effectiveness testing startup Verodin for $250M

When FireEye reported its earnings last month, the outlook was a little light, so the security vendor decided to be proactive and make a big purchase. Today, the company announced it has acquired Verodin for $250 million. The deal closed today.

The startup had raised over $33 million since it opened its doors 5 years ago, according to Crunchbase data, and would appear to have given investors a decent return. With Verodin, FireEye gets a security validation vendor, that is, a company that can run a review against the existing security setup and find gaps in coverage.

That would seem to be a handy kind of tool to have in your security arsenal, and could possibly explain the price tag. Perhaps, it could also help set FireEye apart from the broader market, or fill in a gap in its own platform.

FireEye CEO Kevin Mandia certainly sees the potential of his latest purchase. “Verodin gives us the ability to automate security effectiveness testing using the sophisticated attacks we spend hundreds of thousands of hours responding to, and provides a systematic, quantifiable, and continuous approach to security program validation,” he said in a statement.

Chris Key, Verodin co-founder and chief executive officer, sees the purchase through the standard acquisition lens. “By joining FireEye, Verodin extends its ability to help customers take a proactive approach to understanding and mitigating the unique risks, inefficiencies and vulnerabilities in their environments,” he said in a statement. In other words, as part of a bigger company, we’ll do more faster.

While FireEye plans to incorporate Verodin into its on-prem and managed services, it will continue to sell the solution as a stand-alone product, as well.

HPE is buying Cray for $1.3 billion

HPE announced it was buying Cray for $1.3 billion, giving it access to the company’s high-performance computing portfolio, and perhaps a foothold into quantum computing in the future.

The purchase price was $35 a share, a $5.19 premium over yesterday’s close of $29.81 a share. Cray was founded in the 1970s and for a time represented the cutting edge of super computing in the United States, but times have changed, and as the market has shifted, a deal like this makes sense.

Ray Wang, founder and principal analyst at Constellation Research, says this is about consolidation at the high end of the market. “This is a smart acquisition for HPE. Cray has been losing money for some time but had a great portfolio of IP and patents that is key for the quantum era,” he told TechCrunch.

While HPE’s president and CEO Antonio Neri didn’t see it in those terms, he did see an opportunity in combining the two organizations. “By combining our world-class teams and technology, we will have the opportunity to drive the next generation of high performance computing and play an important part in advancing the way people live and work,” he said in a statement.

Cray CEO and president Peter Ungaro agreed. “We believe that the combination of Cray and HPE creates an industry leader in the fast-growing High-Performance Computing (HPC) and AI markets and creates a number of opportunities that neither company would likely be able to capture on their own,” he wrote in a blog post announcing the deal.

Patrick Moorhead, principal analyst at Moor Insights & Strategy says HPC is one of the fastest growing markets and HPE has indicated it wants to stake a claim there. “I’m not surprised by the deal. Its degree of success will be determined by the integration of the two companies. HPE brings increased scale and some unique consumption models and Cray brings expertise and unique connectivity IP,” Moorhead explained.

While it’s not clear how this will work over time, this type of consolidation usually involves some job loss on the operations side of the house as the two companies become one. It is also unclear how this will affect Cray’s customers as it moves to become part of HPE, but HPE has plans to create a high-performance computing product family using its new assets in combination with the new Cray products.

HPE was formed when HP split into two companies in 2014. HP Inc. is the printer division, while HPE is the enterprise side.

The deal is subject to the typical regulatory oversight, but if all goes well, it is expected to close in HPE’s fiscal Q1 2020.

Salesforce is buying MapAnything, a startup that raised over $84 million

Salesforce announced today it’s buying another company built on its platform. This time it’s MapAnything, which, as the name implies, helps companies build location-based workflows, something that could come in handy for sales or service calls.

The companies did not reveal the selling price, and Salesforce didn’t have anything to add beyond a brief press release announcing the deal.

“The addition of MapAnything to Salesforce will help the world’s leading brands accurately plan: how many people they need, where to put them, how to make them as productive as possible, how to track what’s being done in real time and what they can learn to improve going forward,” Salesforce wrote in the statement announcing the deal.

It was a logical acquisition on many levels. In addition to being built on the Salesforce platform, the product was sold through the Salesforce AppExchange, and over the years MapAnything has been a Salesforce SI Partner, an ISV Premier Partner, according the company.

“Salesforce’s pending acquisition of MapAnything comes at a critical time for brands. Customer Experience is rapidly overtaking price as the leading reason companies win in the market. Leading companies like MillerCoors, Michelin, Unilever, Synchrony Financial and Mohawk Industries have all seen how location-enabled field sales and service professionals can focus on the right activities against the right customers, improving their productivity, and allowing them to provide value in every interaction,” company co-founder and CEO John Stewart wrote in a blog post announcing the deal.

MapAnything boasts 1,900 customers in total, and that is likely to grow substantially once it officially becomes part of the Salesforce family later this year.

MapAnything was founded in 2009, so it’s been around long enough to raise more than $84 million, according to Crunchbase. Last year, we covered the company’s $33.1 million Series B round, which was led by Columbus Nova.

At the time of the funding CEO John Stewart told me that his company’s products present location data more logically on a map instead of in a table. “Our Core product helps users (most often field-based sales or service workers) visualize their data on a map, interact with it to drive productivity, and then use geolocation services like our mobile app or complex routing to determine the right cadence to meet them,” Stewart told me last year.

It raised an additional $42.5 million last November. Investors included General Motors Ventures and (unsurprisingly) Salesforce Ventures.

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