According to Reuters, computer software company VMware Inc has revealed its plans to acquire CloudHealth Technologies. The company unveiled its plans at its annual industry conference that was held in Las Vegas at VMworld on Monday 27th August 2018.

The transaction is expected to worth around $500 million, according to a reliable source. VMware Chief Executive Pat Gelsinger told Reuters about the acquisition that aims at bringing CloudHealth’s cloud management platform under the realms of VMware. The platform will enable VMware to efficiently manage expenditure, regulations, and performance of its computing ecosystems across respective data centers as well as public clouds such as Microsoft Azure and Amazon Web Services (AWS).

Gelsinger explained the working of the CloudHealth platform in simple terms. He said CloudHealth minimizes the complexity of managing multiple public clouds for the functioning of various apps. However, when asked to comment on the actual cost of the transaction, Gelsinger declined to make any comments.

The company’s plan to buy CloudHealth platform is in line with its ongoing efforts to tap the cloud-based services. Many software companies have turned to public clouds for their computing and data storage systems from their respective servers. The acquisition will make it easier for VMware customers to manage services on other cloud providers. Gelsinger further mentioned that the company desired to provide its customers a new outlook on the cloud services.

Many companies, as well as enterprises, are using more than one public cloud and nearly 91% of the enterprises have affirmed of using two or more public clouds. The number of enterprises that claims using more than six public cloud services stood at 19%, revealed Forrester Research in its April report.

VMware enjoys a 21% hold in the global cloud systems management software market, while Microsoft has a hold of 14%, according to 2016 statical figures provided by the research firm IDC. The global cloud systems management market currently worth about $5.4 billion which is expected to grow to $10.1 billion by 2021.

Paul Delory, Gartner analyst, mentioned that the multi-cloud service is receiving exposure from all nook of the globe. It is, in fact, something every IT enterprise is interested in investing and reaping profits as everyone seems to be in a race to move their data to multiple cloud services.

VMware is expecting to wrap up the acquisition process with CloudHealth Platform by the end of Q318. Following the purchase, VMware intends to move its two existing cloud services as well as analytics tool Wavefront and security tool CloudCoreo to CloudHealth. Over the time, the company intends to shift more of its services to CloudHealth platform.

The officials of the company have not released further details on the postulated purchase. VMware intends to complete the transaction at the soonest to be able to tap into the advantage of rapid adaptation of multiple public cloud services by the global market.

The deal will have no impact on the working of CloudHealth. Following the transaction, CloudHealth will continue to operate in Boston as reported by Gelsinger. VMware also announced its plans to expand its AWS partnership with Amazon for its VMware cloud services.