VMware has made a billion-dollar bet on what it believes will be the future of computer networking.
VMware, known for software that allows computers to run multiple operating systems simultaneously, has agreed to buy Nicira, a start-up company, for $1.05 billion in cash and $210 million in equity rewards. Nicira is part of the nascent, so-called software defined networking industry, which basically decouples software, or intelligence, from networking hardware — the routers and switchers. That software can then be run entirely on computers, allowing enterprises to reduce cost and achieve greater degree of flexibility in managing their networking needs.
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