Re: Market entry vs portfolio expansion
Thanks for the reply. VMware picking up Cumulus is an interesting idea, but it also sort of goes against the story they've worked very hard to promote about NSX working over any hardware--VMware says that with network virtualization, there's no need to rip and replace the underlay. If VMware owns Cumulus and wants to see Cumulus in the enterprise, it also has to convince the enterprise to buy white-box hardware (even if VMware doesn't sell the hardware itself). I think that's going to be a harder sale than NSX by itself as an overlay for your existing network.
That said, if the white box model starts to get some traction in the enterprise, I suppose I could see a scenario where VMware buys Cumulus and says to customers, "We're here when you're ready to introduce white boxes as you refresh your network hardware."
But even if that's the play, and Cisco wants to get into a bidding war to quash it, I don't see a billion-dollar runup on Cumulus.