Acumera, a vendor in the edge computing and managed network security sectors, has acquired Scale Computing, a provider of hyperconverged infrastructure and edge virtualization solutions. The newly formed company is set to compete in the AI at the edge sector, and will also target companies needing virtualization services that are no longer served by VMware.
The newly formed business will be named Scale Computing. The terms of the deal, which was backed by private equity investor Oaktree Capital Management, were not announced.
At a strategic level, the merged company is positioned to target the opening in the virtualization market created by VMware’s departure from the SMB market. After Broadcom completed its acquisition of top virtualization vendor VMware in 2023, it decided to focus on serving only VMware’s largest customers, leaving many customers complaining about price increases and eager for a VMware alternative.
Scale, launched in 2007 and based in Indianapolis, has carved out a following in hyperconverged infrastructure, and has expertise in using virtualization to combine IT resources, with deep focus on edge computing. Jeff Ready, the CEO of the previous Scale and now President and CMO of the new Scale, has long targeted VMware customers as a growth area for the company. Scale has run marketing campaigns with themes touting it as a VMware replacement, and has a page on its website dedicated to assisting “VMware rip & replace” services.
Given the new company’s mix of networking, security and edge—with each area supported by virtualization—it is set up to compete for the SMB companies that VMware’s abandonment of this sector has left behind. And arguably even some large enterprise customers.
“The newly combined company’s technology offerings are a significant step forward in our vision to empower organizations of all sizes with intelligent, AI-ready edge infrastructure that reduces complexity while enhancing performance and resilience,” said Bill Morrow, CEO of Acumera, who will now be CEO of Scale Computing. Morrow claimed that Scale would now “redefine what’s possible at the edge.”
The size of the new company means it’s clearly one of VMware’s smaller competitors—yet that’s changing. Acumera, founded in 2002 and based in Texas, employs approximately 250 staffers. It’s privately held so revenues aren’t disclosed but are estimated in the $35-$50 million range. Acumera has raised a total of $63.5 million, according to Pitchbook.
On a growth path, Acumera snapped up Netsurion’s Secure Edge Networking business as well as edge computing vendor Reliant in 2022. In 2024, Oaktree Capital Management took a majority ownership position, with a goal of providing financial backing to broaden the company’s product line and grow market share.
The growth has the potential to elevate the previous version of Scale to higher viability, both in terms of size and product depth. Given the previous company’s modest size, there may have been some skepticism about whether the HCI and virtualization vendor had the capacity to fully serve VMware customers. The new Scale will now double in terms of staff headcount, and there’s potential for synergy between the product lines of Acumera and Scale.
Acumera adds expertise in managed services to the previous Scale’s edge and HCI focus. It has a long track record of providing 24/7 support to distributed enterprises, including containerization and orchestration, which are particularly important for large enterprise clients.
Likely the most robust growth potential for the newly merged outfit is supporting edge computing for AI use cases. Grandview Research forecasts that the AI at the edge market will grow from $20.8 billion in 2024 to $66.5 billion in 2030.
