September 29, 2020 | software | No Comments
Shares of VMware , the cloud-computing major controlled by Dell Technologies , said Tuesday it would buy SaltStack, the Lehi, Utah, maker of infrastructure automation software.
Terms weren’t disclosed.
VMware recently traded at $144.72, up 1.2%. The stock has eased 4% year to date.
“So, why is SaltStack important to VMware’s customers?” Alex Wang, VMware’s vice president of corporate development, asked rhetorically in a statement.
“Because time is money and speed is the new currency for digital transformation, VMware works hard to give customers a fast and simple path to cloud for their VMware-based workloads.”
VMware’s customers “can automate infrastructure across clouds with VMware vRealize, and the next logical step was to enable more seamless onboarding and better cross-cloud orchestration with configuration management,” Wang said.
“This is what we are getting with SaltStack. [The company] will allow us to deliver full-stack automation from infrastructure to applications with the ability to do software configuration inside VMs and containers.”
SaltStack has a great open-source community, and VMware will continue to grow it, Wang said.
“While our strategy has been one of supporting best-in-class choice of supporting configuration management, we believe many customers will want something simple and integrated.”
In July Dell said it was “exploring” a spinoff of VMware. Dell owns an 81% stake in the company.
“Although this exploration is in an early stage, Dell Technologies believes a spinoff could benefit both Dell Technologies and VMware … by simplifying capital structures and creating additional long-term enterprise value,” the company wrote. “Any potential spinoff would not occur prior to September 2021.”
This article was originally published by TheStreet.