Why VMware Purchased Carbon Black

Software company VMware said it’s acquiring Carbon Black at an enterprise value of $2.1 billion and Pivotal at an enterprise value of $2.7 billion. The deals are expected to close by the end of January 2020.

Carbon Black is a leader in endpoint security and VMware’s customers are getting hacked – even with cybersecurity tools in place. This deal allows VMware to have a serious cybersecurity division and to focus on keeping customers safe.

Major software companies like VMWare are seeing that their solutions are susceptible to hacks from adjacent areas. A user clicks on something they see in an email on their PC and subsequently spreads ransomware throughout the virtualized servers.

Companies will increasingly need to find ways to plug holes in ever-more-complex systems which may start with IoT sensors at the bottom of the tree and then spread all the way up to hybrid cloud.

The Carbon Black deal allows VMware to have greater exposure to cybersecurity growth while embedding this technology into the company’s various solutions.

Speaking of hybrid cloud, VMWare also purchased Pivotal – a partner of VMware who spun out of the company in the past.

The combined deal is worth a whopping $4,8B and shows VMware is becoming a software behemoth growing far beyond its roots of virtualization.

Learn about the latest in everything you need! UCaaS, the Channel, IT, IOT, Edge, Cybersecurity, AI, SD-WAN, and the Future of Work at the world’s only SD-WAN Expo and MSP Expo, part of the ITEXPO #TechSuperShow, Feb 12-14, 2020 Fort Lauderdale, FL.

 

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