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 Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With YuLiao

10|30|14   |   6:27   |   (0) comments


Yu Liao, chairman of the Chinese Association for Renewable Energy in Germany, discusses the role that ICT solutions play in helping to grow renewable energy resources in Germany.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview

10|30|14   |   2:54   |   (0) comments


Sifang has been working with Huawei on several projects. JingTao Wu, Assistant President of Beijing Sifang Automation Co. Ltd., believes that the cooperation with Huawei can facilitate Sifang's process of internationalization.
LRTV Huawei Video Resource Center
A Better Connected Smart Grid: Powering Laos

10|30|14   |   5:38   |   (0) comments


Representatives of Electricite Du Laos (EDL), a state-owned corporation, discuss the importance of ICT solutions in serving their country's energy needs.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Junwei Lu

10|30|14   |   4:50   |   (0) comments


Professor Junwei Lu of Griffith University Australia describes his work with micro grid technology and the future of the power industry.
LRTV Documentaries
The Next-Gen Network Disconnect

10|29|14   |   01:23   |   (2) comments


There's a lot of talk about making networks more simple with SDN, NFV and next-gen broadband technology – but what about the complexity of introducing such capabilities?
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed