AT&T has agreed to buy the Vyatta network operating system and associated assets of Brocade Communications Systems. This platform includes the vRouter product line. AT&T also intends to hire certain Brocade employees associated with that business. The deal is expected to close in early summer, subject to closing conditions and prior to the closing of the previously announced proposed acquisition of Brocade by Broadcom Limited. Financial terms were not disclosed.
The Vyatta platform will help AT&T continue to drive its network transformation. The company expects to virtualize and software-control 75% of its network by 2020. The company’s plan is to hit 55% by the end of 2017.
“Our network transformation effort lets us add new features quicker than ever before at a much lower cost,” said Andre Fuetsch, chief technology officer and president of AT&T Labs. “Being able to design and build the tools we need to enable that transformation is a win for us and for our customers.”
After the deal closes, AT&T will own the Vyatta network operating system, including its virtual network functions (VNFs) and distributed services platform, software under development as part of its unreleased roadmap, existing software licenses, and related patents and patent applications. The Brocade employees expected to join AT&T are mostly located in Silicon Valley and the United Kingdom.