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
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Interviews
In the Cloud With Telecom Italia

3|5|15   |   7:10   |   (0) comments


Light Reading CEO Steve Saunders sits down with Telecom Italia's Simone Battiferri at Mobile World Congress to discuss virtualization, agility and the economic advantages of the cloud.
LRTV Huawei Video Resource Center
New Ways of Working

3|5|15   |   4:24   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Hong Kong Telecom's Michael Yue explains how the transformation in its business has changed its customer relationships.
LRTV Huawei Video Resource Center
Bridging the Digital Gap

3|5|15   |   4:03   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Boingo's Dr. Derek Peterson explains how ICT can help telcos bring the physical and virtual worlds closer together.
LRTV Huawei Video Resource Center
Making the Internet of Things Affordable

3|5|15   |   2:42   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Telefonica's Dr. Mike Short explains how the Internet of Things demands a new low-cost approach to connectivity from telcos.
LRTV Huawei Video Resource Center
Evolution, Not Revolution

3|5|15   |   2:00   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Heavy Reading's Patrick Donegan explains why telcos can't be too hasty in their efforts to transform themselves.
LRTV Custom TV
Management & Orchestration Enablement Strategies Required for NFV Commercial Success

3|5|15   |   6:22   |   (0) comments


NFV commercial success rests on successful service orchestration strategies which can span heterogeneous physical, virtual, legacy and next-gen networks. Network data and security integrity are additional key aspects. Nakina provides a suite of orchestratable network integrity applications built on an open, scalable MANO enablement platform.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
LRTV Interviews
DT's Virtualization Vision for Europe

3|4|15   |   10:23   |   (0) comments


Light Reading CEO Steve Saunders talks virtualization, cloudification and standards with Deutsche Telekom's Axel Clauberg at Mobile World Congress.
LRTV Custom TV
ZTE's Wireline at MWC 2015

3|4|15   |   6:35   |   (0) comments


Light Reading speaks with Jane Chen, ZTE's Senior VP of Wireline Business, about innovations in her product line at Mobile World Congress.
LRTV Custom TV
ZTE at MWC 2015

3|4|15   |   4:24   |   (0) comments


Dr. Dick Chen of ZTE USA gives Light Reading an overview of what's new at ZTE's pavilion at Mobile World Congress 2015.
LRTV Interviews
Ericsson CEO Talks Telco Data Center Tech

3|4|15   |   05:45   |   (1) comment


At Mobile World Congress, Ericsson CEO Hans Vestberg discusses telco data center technology, business models, small cells and more.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
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
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.