Arista Networks has acquired the VeloCloud software-defined wide area network (SD-WAN) business from Broadcom, the companies announced, marking a strategic move as network architectures shift toward AI-optimized, distributed environments.
VeloCloud, originally acquired by VMware in 2017 to expand its network virtualization capabilities, changed hands following Broadcom’s blockbuster takeover of VMware in 2023. Financial terms of the deal were not disclosed.
In a blog post announcing the acquisition, Arista CEO Jayshree Ullal reflected on the SD-WAN surge in 2017, when enterprises turned to virtual WANs as a more affordable alternative to costly MPLS circuits. However, she said traffic flows have since evolved from “many-to-one conversations” to more complex, distributed patterns driven by mobile devices, edge locations, and the public cloud.
“With AI agents increasingly seeking data across dynamic environments, WAN architectures must adapt,” Ullal wrote. She said VeloCloud’s AI-optimized, cloud-native WAN solutions would enhance Arista’s data center and campus networking portfolio by delivering application-aware connectivity for enterprise locations of all types.
Sanjay Uppal, VeloCloud’s founder and a senior vice president at Broadcom, said on LinkedIn that the next wave of enterprise network design is being shaped by a “distributed agentic framework.” He emphasized that aligning with a networking systems leader was essential to meet customer demands for end-to-end infrastructure solutions.
“When Arista… proposed that VeloCloud become a part of their leading networking portfolio, we knew this was the right fit,” Uppal wrote, adding praise for Broadcom’s stewardship of the business.
The acquisition underscores shifting priorities in enterprise networking. While VeloCloud’s hardware-centric SD-WAN approach proved an imperfect match for VMware’s software-defined strategy, Arista’s hardware-focused model may be better suited for integration. Meanwhile, VMware’s strategic pivot to private cloud solutions signals its exit from the SD-WAN sector, leaving Broadcom to reconfigure its Secure Access Service Edge (SASE) plans in the wake of the divestiture.