Light Reading

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
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: Light Beer
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
Flash Poll
From The Founder
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Custom TV
The Benefits of HyperScale Clouds for NFV

3|27|15   |   01:50   |   (0) comments


Hyperscale cloud has been developed by the Internet giants to support the creation and delivery of software-based services at blistering speeds, and at the lowest possible cost. The original ETSI NFV vision was to adopt hyperscale cloud architecture and practices. This vision has become somewhat obscured along the way, due to misunderstandings about the hyperscale ...
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (9) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
LRTV Huawei Video Resource Center
Getting Connected With eLTE

3|23|15   |   06:04   |   (0) comments


Trunked radio communications have entered the 4G LTE world, and with Huawei's eLTE solution, can now deliver a full range of data and video services as well as push-to-talk voice, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Funkwerk’s on Track With Huawei

3|19|15   |   3:23   |   (0) comments


GSM-R technology specialist Funkwerk and Huawei have forged a partnership that is benefiting both parties, notes Funkwerk's Gottfried Winter.
LRTV Documentaries
How EANTC Tested Cisco's Virtualization Solutions

3|18|15   |   5:49   |   (0) comments


Carsten Rossenhövel, managing director of independent test lab EANTC, tells Light Reading founder and CEO Steve Saunders about the innovative approach his team had to take when validating Cisco's service provider virtualization and cloud solutions.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
All Upcoming Live Events
Infographics
Hot Topics
AT&T Woos SMBs With Small-Scale WiFi
Sarah Thomas, Editorial Operations Director, 3/26/2015
The Rise of Industry 4.0
Ray Le Maistre, Editor-in-chief, 3/24/2015
Google Hires Wall Street's Most Influential Woman as CFO
Dan Jones, Mobile Editor, 3/24/2015
Average US Broadband Speeds No Great Shakes
Mari Silbey, Independent Technology Editor, 3/25/2015
Net Neutrality Suits: Only The Beginning?
Alan Breznick, Cable/Video Practice Leader, 3/24/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.
Cats with Phones
Interspecies Phone Love Click Here
"No, you hang up."
"No, YOU hang up."
Latest Comment