In a calculated reshaping of its portfolio, Broadcom has handed off VeloCloud—once a prized part of VMware’s network virtualization push—to Arista Networks. The acquisition reflects more than just a business deal; it signals a change in how enterprises are rethinking WAN architectures in an era defined by edge computing and AI.
VeloCloud first gained attention in 2017 as a cost-effective solution to traditional MPLS networks. At the time, most enterprise traffic moved from remote offices into centralized data centers. But network traffic has since evolved. With users now connecting from smartphones, smart homes, aircraft, and a range of mobile and cloud endpoints, WANs must adapt. Arista CEO Jayshree Ullal pointed to this shift, adding that AI agents are further transforming traffic flows by scouring distributed environments for data.
For Arista, integrating VeloCloud isn’t about looking backward—it’s about preparing for what’s next. The company sees VeloCloud’s technology as a natural fit for connecting diverse sites, from edge locations to core data centers. Ullal described the platform as tuned for AI and aware of application needs, allowing more intelligent traffic management across hybrid environments.
Sanjay Uppal, who founded VeloCloud and remained at the helm during Broadcom’s ownership, acknowledged that customer demands are changing. With networks becoming more dynamic and distributed, he said VeloCloud needed a partner focused on hardware and systems integration. Arista, already aligned with Broadcom in other areas, checked all the boxes.
Though the deal’s financial details remain under wraps, the strategic alignment is clear. VMware had struggled to integrate VeloCloud’s hardware-heavy model into its increasingly software-centric roadmap. Arista, however, brings the physical networking pedigree that can fully support the platform’s potential.
Broadcom might feel the impact more. The company had bundled VeloCloud into its larger SASE efforts alongside Symantec, aiming to offer a full-stack security and connectivity solution. With this piece gone, Broadcom may need to revisit how it plans to compete in that space.
Ultimately, this move reflects how modern WANs are no longer just about routing traffic. They’re about enabling ecosystems—ones that span cloud, edge, AI, and beyond.
