& cplSiteName &

Mellanox Capitalizes on 25G Transition

Brian Santo

Mellanox Technologies Ltd. (Nasdaq: MLNX) turned in its fifth consecutive quarter in which it increased revenue, and during the company's call with analysts, CEO Eyal Waldman explained how new products are likely to help the company extend that run for the next quarter or two.

Those products include Spectrum Ethernet switches, designed to take advantage of the transition to speeds of 25G and faster. Waldman said Mellanox is in more than ten trials with customers representing hyperscale data center, private cloud, public cloud, storage and other applications. Trial partners are roughly split between those trying out 25G switches and 100G switches; some are testing a mix.

In network interface cards (NIC), he said the company still dominates in the 40G market, but the transition to faster speeds is in progress, with some customers migrating from 10G to 25G, and others moving from 40G to 50G. He said Mellanox owned 100% of the 25G market in Q1, and probably will have about that in Q2 once all the market data is collected. "So we'll have a lead of at least two quarters," he said, adding that he has yet to hear of any competitors in production.

The company continues to excel with InfiniBand, which is typically used in high-performance computing applications, including supercomputing. Waldman said that most of the fastest supercomputers in the world rely on Mellanox product, including the one that is currently the fastest in the world (the Sunway TaihuLight).

Want to know more about communications ICs? Check out our comms chips channel
here on Light Reading.

Waldman said Intel Corp. (Nasdaq: INTC) has dropped the pricing on its competing Omnipath products to gain market share. "Good enough is good enough for some customers," he noted, allowing that with the aggressive pricing, Intel might get to 10% market share, but he was confident Intel won't become a significant competitor. Asked about Mellanox's response to the threat, Waldman said the company will not cut its margins (now 70%) on its InfiniBand portfolio.

Earlier this quarter, Mellanox announced an interconnect product line, ConnectX-5, that can offload some compute functions from the processors in the systems being connected. Waldman said that he expects revenue from that to grow to be significant. (See Mellanox Accelerates Ethernet/Infiniband Adapter.)

One of the first fruits of the acquisition of EZChip is a series of programmable processors, which Waldman said would initially find use in storage applications and controllers, and will later be used as smart NIC. After that Mellanox expects the products to be adopted in data communications platforms (where they would compete with Intel). (See Mellanox Eases Into Network Processor Market.)

Mellanox reported Q2 revenue of $214.8 million, up 9.1% from the $196.8 million in sales from the preceding first quarter. That helped the company swing from a Q1 loss of $7.2 million to a profit of $4.7 million in the quarter just closed.

— Brian Santo, Senior Editor, Components, T&M, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 30, 2017, The Westin Times Square
March 20-22, 2018, Denver Marriott Tech Center
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
Nokia Bell Labs & Verizon Stretch Fixed 5G to the Home
Dan Jones, Mobile Editor, 11/13/2017
Juniper's New Contrail VP Hails From Google
Craig Matsumoto, Editor-in-Chief, Light Reading, 11/15/2017
Eurobites: Telefónica Reckons Plastic Is Fantastic for FTTH
Paul Rainford, Assistant Editor, Europe, 11/15/2017
Animals with Phones
Why Cats Don't Run Tech Support 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.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives