VMware today announced plans to acquire VeloCloud, one of the leading companies in the fast-growing software-defined Wide Area Network (SD-WAN) market.

SD-WAN represents a new way to manage network connectivity to branch and remote offices using software-defined networking principles. Software-based SD-WAN offerings from companies like VeloCloud can aggregate multiple types of connections, including broadband, MPLS and cellular, to create more reliable connections that are often less expensive than a pure MPLS use. Research firm IDC predicts SD-WAN will be a more than $1 billion market this year, and grow at 69% to more than $8 billion by 2021.

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VMware jumps into SD-WAN with VeloCloud purchase