Velocloud is an SD-WAN company that has focussed on software-only solution. SD-WAN products tend to split into different types – router replacements like Viptela/Cisco where the SD-WAN functions are device centred. Velocloud has built a network of POPs around the world and traffic is routed to those POPs. The POPs then backhaul the traffic over the Internet

* As a software-centred product, it fits into NSX software-only networking.

* I think that microsegmentation has been a big deal for  VMware NSX. The current fashion for improving IT security in the network is somewhat laughable as a big picture but the reality is that insecure apps are what enterprises run right now.

* I can imagine that Dell will be quick to setup a partnership to provide hardware for customers than want it.

* As the leading WAN company and rocking several billion dollars in the Enterprise router market, Cisco can’t be pleased nor can it be surprised.

* Also important, VMware has struggled to enter the telco/carrier market. NFV is NSX core competency but carriers are looking t open source solutions to stay in control of their futures and budgets.

* Velocloud  has been successful in forming partnerships with more than 50 SPs.

* The relatively limited success of Cisco ACI with less than half of the SDN DC market,  shows that VMware can build a business in the face of competition from a tough competitor. Its likely it can do that again.