July 24th, 2012
If it wasn’t clear before July 23rd that the Software-Defined Networking (SDN) controller market resides within a cloud stack, then it’s clear now, thanks to VMware’s $1.26 billion acquisition of Nicira Networks. VMware is building a cloud stack that’s first to recognize the importance of virtualized networking and places a very high value on it. The multiple to Nicira’s revenue is, let’s say, very high. Microsoft, IBM, Citrix, Red Hat and the open stack community have just taken notice and are in the process of evaluating Big Switch Networks, Arista Networks, Embrane, Pluribus, Plexxi, et al. In this Lippis Report Research Note, we explore this exciting turning point in the open networking marketplace.