& cplSiteName &

Emulex Buys Into Network Monitoring

Craig Matsumoto
12/5/2012
50%
50%

Storage networking vendor Emulex Corp. (NYSE: ELX) is making a play at networking in general, announcing Wednesday afternoon that it's acquiring Endace Ltd. (London: EDA)

Endace makes gear for network performance management, a sector that's heating up as 10Gbit/s and faster speeds become ubiquitous and as virtualization makes it more difficult to know exactly what the network is doing.

"One of the keys to having a successful networking story is that you need to know your network," says Zeus Kerravala, principal analyst with ZK Research . "Legacy tools just aren't meant for this era of virtualization."

The deal, for 500 pence per share, or roughly $130 million, is expected to close by the end of March. Endace recently moved a lot of its operation to Sunnyvale, Calif., but it's still a New Zealand company at heart -- and in legal terms. The deal is subject to terms of the New Zealand Takeovers Code, which is probably quite normal but sure sounds ominous.

Why this matters
Emulex is a storage vendor that has aims on becoming more of a networking vendor, Kerravala says. And buying into monitoring and management is a surprisingly savvy first step, he thinks.

"And the trend has been for networking vendors to try to provide more visibility into the network," he says, pointing to the fact that Cisco Systems Inc. (Nasdaq: CSCO) keeps buying Service Provider Information Technology (SPIT) companies. "I don't think this has anything to do with their legacy market, the storage market. I think it's, to use a hockey analogy, skating to where the puck will be."

Kerravala isn't impressed with the acquisition price at first glance. "When you consider the multiples management vendors are going for, that's not very expensive," he says.

For more



— Craig Matsumoto, Managing Editor, 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 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
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
Muni Policies Stymie Edge Computing
Carol Wilson, Editor-at-large, 10/17/2017
'Brutal' Automation & the Looming Workforce Cull
Iain Morris, News Editor, 10/18/2017
Is US Lurching Back to Monopoly Status?
Carol Wilson, Editor-at-large, 10/16/2017
Pai's FCC Raises Alarms at Competitive Carriers
Carol Wilson, Editor-at-large, 10/16/2017
Worried About Bandwidth for 4K? Here Comes 8K!
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 10/17/2017
Animals with Phones
Selfie Game Strong Click Here
Latest Comment
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