VMware Announces Intent to Acquire Arkin Net to Help Customers Accelerate Adoption of VMware NSX and Software-Defined Data Centers

PALO ALTO, CA--(Marketwired - June 13, 2016) - VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced the intention to acquire Arkin Net, a leader in software-defined data center security and operations. Financial details of the transaction were not disclosed. The transaction is expected to close in Q2 2016.

Organizations globally are adopting a software-defined data center (SDDC) architecture based on VMware virtualized infrastructure and management to deliver automation, security and continuity for applications. SDDC breaks down the barriers between traditionally disparate domains of compute, networking and storage. This evolution requires an operational model that delivers cross-silo visibility and collaboration. With the acquisition of Arkin, and through the integration of VMware vRealize® Suite, cloud management teams will have access to a new generation of planning, troubleshooting and automation platform that provide visibility and control across the entire data center environment.

VMware NSX™ network virtualization is being widely adopted in large scale production deployments as part of the SDDC where cross-silo visibility and collaboration is critical. Identified by Gartner in "Cool Vendors in Enterprise Networking, 2016₍₁₎," Arkin is purpose-built for NSX environments. The Arkin platform provides insights into the datacenter traffic flows via a pre-assessment tool that enables faster NSX deployments via micro-segmentation planning. Post deployment, Arkin significantly lowers time to resolution, leveraging constructs such as time-machine, plain English search and contextual analytics across virtual and physical layers.

Today, VMware vRealize Operations provides extensive management across both physical and virtual compute and storage environments. With the acquisition of Arkin, VMware vRealize Suite will have the ability to extend across the entire SDDC, including the VMware NSX network virtualization layer.

"Arkin is a great fit for VMware and its customers as we look to accelerate our growth businesses including cloud management and network virtualization," said Ajay Singh, senior vice president and general manager, cloud management business unit, VMware. "With VMware NSX combined with Arkin and vRealize, VMware will deliver the security and operations management plane for the SDDC. Over time, Arkin will solidify vRealize Suite's position as the industry's most comprehensive Cloud Management Platform that delivers application-focused operations, NSX micro-segmentation at scale and cross-domain visibility and context across physical and logical infrastructure."

"Arkin and VMware have been great partners and we're now excited to join the VMware family to take Arkin to the next level," said Shiv Agarwal, co-founder and chief executive officer, Arkin. "Arkin delivers a new operations paradigm that has been built from the ground up for VMware NSX network virtualization and is fully aligned with the core NSX use cases of IT automation, security and application continuity."

VMware and Arkin are already collaborating to meet the needs of mutual customers such as Columbia Sportswear, California Department of Water Resources (CDWR) and Nebraska Medicine.

"Operational visibility, which accounts for both hardware and software, is critical to how organizations succeed in using next-generation data center technologies," said John Spiegel, IS/Global Communications Manager at Columbia Sportswear. "The combination of VMware NSX and Arkin provides us a tactical and strategic lens for managing our virtualized data center."

"Arkin and VMware are strategic partners helping Nebraska Medicine deploy our next-generation NSX based software-defined data center," said Brian Lancaster, Executive Director of Information Management at Nebraska Medicine. "Arkin real-time flow analytics makes it extremely easy to implement micro-segmentation security. The visibility and troubleshooting capabilities that Arkin provides to our networking and operations teams enables us to more quickly and confidently scale our NSX deployment."

Additional Resources

• Read this blog to learn how Arkin simplifies NSX operational planning and visibility for customers
• Read this blog post about evolution of vRealize Suite with the addition of Arkin on the cloud management blog
• Learn more about VMware's approach to M&A in this blog from Shekar Ayyar, corporate senior vice president, Strategy and Corporate Development.
• Learn about Arkin's security and operations platform or try Arkin to experience a software-defined data center.

About Arkin Net

Arkin is enabling software-defined security and networking for next generation data centers and cloud. Several F500/G2000 organizations have deployed the Arkin platform to get deep operational visibility across virtual and physical, implement micro- segmentation based security, and ensure high application availability. Visit www.arkin.net or follow us @arkinnet

About VMware
VMware is a global leader in cloud infrastructure and business mobility. Built on VMware's industry-leading virtualization technology, our solutions deliver a brave new model of IT that is fluid, instant and more secure. Customers can innovate faster by rapidly developing, automatically delivering and more safely consuming any application. With 2015 revenues of $6.6 billion, VMware has more than 500,000 customers and 75,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

VMware, vRealize, and VMware NSX are registered trademarks or trademarks of VMware, Inc. in the United States and other jurisdictions.

1. Gartner Cool Vendors in Enterprise Networking, 2016 - April 13, 2016, Document G00299631. https://www.gartner.com/doc/3282619?ref=clientFriendlyURL

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Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding the consummation of the acquisition of Arkin Net, the anticipated timing for the closing of the transaction, the impact of the transaction on VMware's future product offerings and anticipated benefits of the transaction for customers and partners. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995 and are made as of the date of this press release. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risks, uncertainties, changes in condition, significance, value and effect, including but not limited to (i) the satisfaction of closing conditions for the acquisition; (ii) unexpected costs, liabilities or delays in connection with the transaction; (iii) adverse changes in general economic or market conditions; (iv) the unsuccessful integration of acquired companies and assets into VMware; (v) competitive factors, including but not limited to pricing pressures, industry consolidation and the entry of new competitors into industries in which we compete; (vi) VMware's customers' acceptance of and ability to transition to new products and computing strategies; (vii) rapid technological changes in the industries in which we compete; (viii) VMware's relationship with EMC Corporation and EMC's ability to control matters requiring stockholder approval, and any changes that Dell may implement following the completion of the Dell-EMC merger, as well as other risks detailed in documents filed with the Securities and Exchange Commission, including VMware's most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time. These forward-looking statements are made as of the date of this press release and are based on current expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.