Cisco sees optical interconnects using silicon photonics as a way to make routers and switches handle more data at lower costs
Cisco Systems Inc. (Nasdaq: CSCO) said Friday it will pay about US$271 million in cash and retention-based incentives for Allentown, Penn.-based Lightwire Inc. , which makes optical interconnects for high-speed networking applications. (See Cisco Shells Out $271M for Lightwire .)
The technology allows for routers and switches to connect at higher densities using silicon photonics technology, which lowers the overall cost of the devices.
For a more thorough explanation of what Lightwire does and how its technology works, see Craig Matsumoto's story: Lightwire Debuts Its Silicon Photonics.
Why this matters
In a prepared statement, Ned Hooper, Cisco's chief strategy officer, said Lightwire fits in with Cisco's other optical ambitions: "The Lightwire acquisition builds on Cisco's existing optical networking expertise and complements Cisco's 2010 acquisition of CoreOptics, a designer of coherent digital signal-processing solutions and application-specific integrated circuits for high-speed optical networking applications."
For more
Intel Detects More Silicon Photonics
Cisco Renews Optical Focus With CoreOptics
The CoreOptics Story
— Phil Harvey, Editor-in-Chief, Light Reading
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