VMware buys Carbon Black and Pivotal to enhance cloud services


A publicly traded software provides cloud computing and virtualization software and services, VMware has recently acquired Carbon Black, a cybersecurity company that develops security software for the Cloud, and Pivotal for $2.1 billion and $2.7 billion, respectively. Out to enhance cloud services with their newly acquired cybersecurity software companies, VMware is set to become the number one cloud computing software in the market. 

VMware CEO Pat Gelsinger declared the big buys on August 23, 2019, in an announcement addressed at a press meet. Though the two companies, Carbon Black and Pivotal focus on technology that could be categorized as more modern as compared to VMware, Gelsinger believes that the features of that both companies provide individually in terms of secure modern applications and infrastructures are necessary for the overall growth of VMware’s software platform as a whole. Previously also acquiring Bitnami earlier in the year, VMware is ready to enter the cloud computing battlefield prepared and armed with the best allies it could possibly come to have. 

Carbon Black 

Founded in 2002 by founders Todd Brennan, John Hanratty, Allen Hillery, Carbon Black went public in early 2018. A fairly new company that had entered into the cloud field, it was already valued at $1.25 billion in its initial stages of development. Slowly, as stock trade value went up, the company’s IPO valuation went up to $2.1 billion as well. Now, as it is bought by VMware, VMware has agreed to pay $26 per share in cash for the company, closing the deal by the end of the first month of this coming year. 

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Pivotal was initially incubated at VMware and EMC Corporation. With its promising new architecture that provides a new developer platform as a part of VMware is assured to make it easier for developers to write, test and deploy their applications. It is definitely smart and not to mention an advantageous move made by VMware if you ask us.


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