Velocloud

Velocloud. It was a prominent American technology company specializing in software-defined networking (SDN) and was a pioneer in the development of SD-WAN (software-defined wide area network) solutions. Founded in 2012, the company's cloud-delivered architecture was designed to simplify branch office networking, improve application performance over broadband internet, and reduce reliance on traditional multiprotocol label switching (MPLS) circuits. Velocloud's technology gained significant traction among enterprises and service providers before its acquisition by the virtualization giant VMware in 2019.

Overview

Velocloud was established to address the growing complexity and cost of enterprise wide area networks, which were struggling with the rise of cloud computing and software as a service (SaaS) applications like Salesforce and Microsoft Office 365. The company's core innovation was a cloud-native, software-defined approach that decoupled network control from hardware, allowing for centralized management and policy orchestration. This model enabled dynamic path selection across multiple internet service provider connections, including MPLS, broadband, and LTE, to optimize performance for critical applications. Key partnerships with major carriers such as AT&T, Verizon Communications, and Vodafone helped propel its technology into global markets, serving industries from retail and healthcare to financial services.

Technology

The Velocloud platform was built on a patented orchestration engine and a globally distributed network of gateways, often referred to as the Cloud Gateways. These gateways, deployed in points of presence within data centers like those operated by Equinix, performed real-time monitoring of network conditions, including latency, packet loss, and jitter. Using this data, the system employed forward error correction and dynamic path conditioning techniques to ensure reliable delivery of sensitive traffic, such as voice over IP (VoIP) and virtual desktop infrastructure (VDI) sessions. The architecture supported zero-touch provisioning, allowing for rapid deployment of branch office appliances, and integrated with major public cloud platforms including Amazon Web Services, Microsoft Azure, and the Google Cloud Platform.

Products and Services

Velocloud's primary offerings centered on its SD-WAN appliances and the cloud-based orchestrator. The physical and virtual appliances, known as Velocloud Edge devices, were installed at customer sites to securely connect branches to the optimized network overlay. The Velocloud Orchestrator provided a single pane of glass for network administrators to define policies, monitor performance, and generate analytics across the entire deployment. The company also offered a managed service program, enabling telecom partners like CenturyLink and Singtel to deliver SD-WAN as a fully outsourced solution. Furthermore, Velocloud developed specific capabilities for securing direct cloud access, integrating with next-generation firewall vendors and supporting frameworks for secure access service edge (SASE).

History

The company was co-founded in 2012 by networking industry veterans Sanjay Uppal and Michael Wood, with early funding from investors like New Enterprise Associates and Venrock. Velocloud emerged from stealth mode in 2013 and quickly established itself as a leader in the nascent SD-WAN market, competing with firms like Viptela and Silver Peak Systems. Significant growth was fueled by multiple rounds of venture capital financing, including investments from Cisco Systems and The Thermo Companies. By 2017, it was recognized in reports by industry analysts such as Gartner and IDC, and its technology was deployed by thousands of enterprises globally. The period saw expansion of its international operations and deepening integrations with major cloud service providers.

Acquisition by VMware

In a move that significantly consolidated the SD-WAN industry, VMware announced its intent to acquire Velocloud in November 2017 for approximately $449 million in cash and assumed equity awards. The acquisition closed in early 2018, with Velocloud becoming a key component of VMware's Virtual Cloud Network vision under its Networking and Security Business Unit. Post-acquisition, the technology was rebranded as VMware SD-WAN by Velocloud and deeply integrated with VMware's portfolio, including vSphere and the NSX platform. Sanjay Uppal continued to lead the business unit, driving product development and strategy within the larger VMware ecosystem.

Market and Competition

Velocloud operated in the highly competitive wide area network infrastructure market, which was undergoing a radical transformation driven by SD-WAN adoption. Its primary competitors included other pure-play SD-WAN vendors like Viptela (acquired by Cisco Systems), Silver Peak Systems (later acquired by Hewlett Packard Enterprise), and Aryaka Networks. It also faced challenges from established networking giants such as Cisco Systems with its Meraki and Viptela offerings, Juniper Networks, and Fortinet, which bundled SD-WAN capabilities with security features. The market dynamics were further shaped by the convergence of networking and security, leading towards the secure access service edge (SASE) framework championed by analysts at Gartner. Category:Computer networking companies of the United States Category:Companies based in Palo Alto, California Category:VMware subsidiaries