VMware scoops up Nicira for its new layer of software that sits on top of networking hardware made by Cisco, HP, Juniper allowing for more efficient Cloud Computing resources.
The cash-and-stock purchase of Nicira Networks, a five-year-old software company that only recently started to ship a finished product, closely echoes Facebook’s recent $1bn acquisition of photo app Instagram, a consumer company that had also yet to prove itself as a business.
- Instagram sold for $1bn on $57.5ml invested
- Nicira sold fro $1.3bn on $40ml invested
