VMware and Splunk splash out on start-ups
The two vendors have acquired Intrinsic and SignalFX respectively
Vendors VMware and Splunk have shelled out for a pair of tech start-ups.
Virtualisation specialist VMware confirmed to CNBC that it has acquired cybersecurity start-up Intrinsic as part of its focus on the public cloud. Terms of the deal were not disclosed.
San Francisco-based Intrinsic, previously known as GitStar, was founded in 2015 and its platform allows software developers to securely tap serverless computing.
"This acquisition brings us unique expertise and technology as we look to expand our VMware AppDefense platform into the public cloud," a VMware spokesperson told CNBC.
Serverless computing involves automatically triggering a system to operate when certain things happen, and Intrinsic's platform allows users to set policies on how these systems will work when certain conditions are met.
Its technology works with serverless offerings from Microsoft and Google as well as AWS, with which VMware has partnered since 2016.
Last week the virtualisation vendor said that it was in talks to buy Pivotal Software from its parent company Dell Technologies.
Meanwhile, big data vendor Splunk has inked a deal to acquire SignalFX for $1.05bn (£859.4m), 60 per cent of which will be paid in cash and the remainder in Splunk common stock. The deal is expected to close in H2 of its fiscal 2020.
SignalFX was founded in 2013, and develops software to monitor cloud infrastructure, applications and microservices. Before its acquisition, it had raised $178.5m in funding rounds, according to Crunchbase.
"Data fuels the modern business, and the acquisition of SignalFx squarely puts Splunk in position as a leader in monitoring and observability at massive scale," said Doug Merritt, Splunk CEO.
"SignalFx will support our continued commitment to giving customers one platform that can monitor the entire enterprise application life cycle.
We are also incredibly impressed by the SignalFx team and leadership, whose expertise and professionalism are a strong addition to the Splunk family."
This marks the vendor's biggest-ever acquisition, dwarfing the $350m it paid last year for cybersecurity firm Phantom.
SignalFX's addition to Splunk will provide IT developers with a data platform that enables them to monitor and observe data in real time, regardless of infrastructure or data volume, thus cutting costs and boosting revenue, the vendor stated.
Karthik Rau, founder and CEO of SignalFx, said: "By joining Splunk, we will create a powerful monitoring platform - one ready to support CIOs whether they have fully embraced cloud or have existing applications in the datacentre.
"As the world continues to move towards complex, cloud-first architectures, Splunk and SignalFx is the new approach needed to monitor and observe cloud-native infrastructure and applications in real time, whether via logs, metrics or tracing.
"The SignalFx team is thrilled to join Splunk to help CIOs capitalise on the modern application portfolio."