Light Reading
DPI specialist Allot Communications adds mobile video optimization capabilities to its arsenal with the acquisition of Ortiva

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
SReedy
50%
50%
SReedy,
User Rank: Blogger
12/5/2012 | 5:34:39 PM
re: Allot Snaps Up Ortiva Wireless


Is it just to manage the video traffic on the network? I could see more wireless operators changing up how they bill for video on their LTE networks like MetroPCS has done - delineating it from the other traffic on its network and charging separately. 

SReedy
50%
50%
SReedy,
User Rank: Blogger
12/5/2012 | 5:34:35 PM
re: Allot Snaps Up Ortiva Wireless


That's a good thing from the operator POV. I'm just wary of what that means for pricing.

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

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
LRTV Documentaries
AT&T's New Security Strategy

12|10|14   |   02:36   |   (1) comment


AT&T's Chief Security Officer Ed Amoroso explains how his company is wrapping virtual security layers around micro network domains.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
Vodafone to Ride T-Mobile Back Into US
Dan Jones, Mobile Editor, 12/12/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
Gardner's Departure a Cautionary Tale
Carol Wilson, Editor-at-large, 12/12/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Upcoming Webinars
Webinar Archive