& cplSiteName &

Cavium Joins The SDN Chip Set With Xpliant Acquisition

Dan Jones
7/31/2014
50%
50%

Chipmaker Cavium is buying its way into the SDN components market with the $75 million acquisition of high-density Ethernet switching silicon startup Xpliant Inc., a "stealth mode" company in which it has already invested.

Cavium says the acquisition will help it cater to "the need for increased capacity in both networking infrastructure and data centers driven by the steep growth of mobile applications and social networking," and give it a product line that meets the needs of next-generation switching equipment manufacturers.

According to Cavium, current switch solutions are too limited and inflexible for the future software-defined networking needs of data center and network operators, a clear dig at Ethernet switch silicon market leader Broadcom Corp. (Nasdaq: BRCM).

San Jose, Calif.-based Xpliant, though, has designed products "to specifically address the challenges of throughput and flexibility driven by the needs of next generation networking infrastructure and software defined networking," according to Cavium. Its chips "will enable increased intelligence and flexibility... while delivering market leading bandwidth, throughput and scalability along with unprecedented flexibility and programmability," all characteristics required to "enable virtualized data center and software defined networking."

Cavium, best known for its LTE and small cells chips, says it should be able to use the Xpliant silcion alongside its own ThunderX, OCTEON and LiquidIO platforms. (See Integrated Components Accelerate LTE and MWC 2014: Single-Mode 4G Small Cells Ahoy?)


Want to know more about the emerging SDN market? Check out our dedicated SDN content channel here on Light Reading.


Cavium says the total acquisition cost will be $90 million, but it has reached this figure by including the $15 million it has previously invested in Xpliant through June 2014. The remaining $75 million will be comprised of approximately $40 million in cash and $35 million in stock.

In total, Xpliant is believed to have raised about $18 million.

Cavium unveiled its acquisition plan as it announced second quarter revenues of $90.7 million, up 22% from a year earlier, and earnings after one-time costs (non-GAAP) of $19.9 million, or 35 cents per share, slightly better than financial analysts had expected.

Cavium's stock gained 3.4% during Thursday trading, and added a further 1.2% in after-hours trading to reach $47.80

— Dan Jones, Mobile Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
8/8/2014 | 10:50:07 AM
Re: SDN and NFV are the most overhyped networking technologies
SDN and NFV are overhyped only if you think network operators do not need to move to a virtualized structure to remain competitive.
mrcynic
50%
50%
mrcynic,
User Rank: Moderator
8/8/2014 | 1:17:14 AM
SDN and NFV are the most overhyped networking technologies
Between the largecap networking companies, the midlevel and startups, NFV and SDN are easily the most overinvested and overhyped technology. Jury is still out
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
Are Cord-Cutting's Days Numbered?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 8/14/2017
Orchestration Startup UBiqube Pivots Away From NFV
Carol Wilson, Editor-at-large, 8/15/2017
Verizon Video Woes Pile On
Mari Silbey, Senior Editor, Cable/Video, 8/14/2017
Eurobites: KPN Buys Into Healthcare Sector
Paul Rainford, Assistant Editor, Europe, 8/16/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
We Know a Tough Day When We See One Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.