& cplSiteName &

Allot Snaps Up Ortiva Wireless

Michelle Donegan
News Analysis
Michelle Donegan
5/1/2012
50%
50%

Allot Communications Ltd. (Nasdaq: ALLT) announced on Tuesday an agreement to acquire mobile video optimization specialist Ortiva Wireless Inc. for an undisclosed sum. (See Allot to Buy Ortiva Wireless.)

The news is not unexpected as the Broadband Traffic Management blog reported two weeks ago ago that Allot was close to a deal for the Intel Capital -backed Ortiva.

Deep packet inspection (DPI) specialist Allot said the addition of Ortiva's video optimization capabilities will help its service provider customers manage video traffic on their mobile networks. (Video traffic accounts for 42 percent of mobile data traffic according to the vendor's most recent Global MobileTrends Report.) Allot will integrate Ortiva's technology into its Service Gateway platform and offer the Ortiva product separately as well.

The transaction is expected to close during the second quarter of 2012. Allot said that Ortiva will contribute between US$3 million and $5 million in revenues in the second half of 2012, with a gross margin that is similar to Allot's current level.

Separately, Allot also reported first-quarter results on Tuesday. On a GAAP basis, the Israel-based company posted a first-quarter net profit of $3.2 million, or $0.10 cents per basic and diluted share, on revenue of $24.2 million. (See Allot Records $3.2M Profit in Q1.)

Why this matters
Allot has made its move into video optimization at a time when DPI, or policy enforcement, specialists are looking to expand into other areas of Service Provider Information Technology (SPIT) as they face increasing competition from larger equipment suppliers that are moving in on the policy server market, such as Alcatel-Lucent (NYSE: ALU), Ericsson AB (Nasdaq: ERIC), Nokia Networks and Huawei Technologies Co. Ltd. (See Policy Specialists Squeezed by Vendor Giants, Policy & DPI: $1B Spree, But No Picnic for Vendors and Component Vendors Hit Policy Target.)

According to Heavy Reading Chief Analyst Graham Finnie, Allot's deal makes good sense.

"Ortiva isn't the best known optimization company, but it gives Allot some IPR [intellectual property rights] in an area that's rapidly coming together with DPI," he said. "Allot will want to be able to provide a complete solution, especially in the area of policy enforcement where optimization is beginning to become part of the solution."

Finnie added that Allot's deal could signal more M&A moves among policy vendors.

"Most other DPI vendors, including the big vendors, have tended to work so far through partnerships, but it wouldn’t be too surprising to see further consolidation -- for instance, Procera might be tempted to move in this direction too, since it is looking for acquisitions," he said. (See Procera Builds M&A War Chest.)

"It’s also worth noting that some others are moving in the other direction -- for example, [video optimization specialist] Bytemobile now has DPI capabilities," he added.

For more



— Michelle Donegan, European Editor, Light Reading Mobile

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Michelle Donegan
50%
50%
Michelle Donegan,
User Rank: Light Beer
12/5/2012 | 5:34:35 PM
re: Allot Snaps Up Ortiva Wireless


With the addition of Ortiva, I think Allot is aiming to do all of that -- manage the video traffic while also enabling operators to charge for video services in new ways. 

azironen
50%
50%
azironen,
User Rank: Light Beer
12/5/2012 | 5:34:32 PM
re: Allot Snaps Up Ortiva Wireless


In their Q1 analysts call today , Allot provided some guidance on what it paid for Ortiva - See  here. 

Michelle Donegan
50%
50%
Michelle Donegan,
User Rank: Light Beer
12/5/2012 | 5:34:31 PM
re: Allot Snaps Up Ortiva Wireless


Thanks for the link! I didn't tune in to the earnings call today and was wondering about how much they paid.

redbull187
50%
50%
redbull187,
User Rank: Light Beer
12/5/2012 | 5:34:11 PM
re: Allot Snaps Up Ortiva Wireless


FireSale

From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
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
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
Are Cord-Cutting's Days Numbered?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 8/14/2017
Analyst Nolle: Fundamental Errors Plague NFV
Carol Wilson, Editor-at-large, 8/11/2017
Snapchat Misses Estimates, Eyes Reality Shows
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 8/11/2017
Verizon Video Woes Pile On
Mari Silbey, Senior Editor, Cable/Video, 8/14/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
We Know a Tough Day When We See One 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.