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Aeroflex Buys Into SDN Testing

Ray Le Maistre
2/17/2014
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Aeroflex, best known for its mobile infrastructure test tools, has propelled itself into the software-defined networking (SDN) and network functions virtualization (NFV) test and measurement world with the acquisition of Dublin-based Shenick Network Systems Ltd. for $28.5 million. (See Aeroflex Buys Shenick.)

The two companies have been working together for about two years, with Aeroflex Inc. (Nasdaq: ARXX) having integrated Shenick software test tools into its TM500 LTE testing product. What really has Aeroflex excited, though, is the potential of Shenick's TeraVM product, which is a cloud-based software platform that can test both physical and virtual network elements and which can be housed on industry-standard hardware and be used with all major hypervisors, such as VMware ESXI, Hyper-V, and KVM.

It's the capabilities of that cloud-based platform, one that Aeroflex believes expands its addressable market by more than $1 billion, which gained Shenick partner status at the multivendor CloudNFV industry group. (See NFV Group Kickstarts Proof-of-Concept Work.)

On Aeroflex's recent fiscal second-quarter earnings conference call, CEO and president Len Borow said that he expects "TeraVM to grow very, very rapidly over the next several years," generating sales to carriers, cloud-based enterprises and "getting us into new markets like security, verification, which is a hot topic these days. So we're looking for some very, very hot growth," especially in Asia/Pacific, where Aeroflex is experiencing increasing demand for its LTE test tools, according to Borow.

Shenick generated revenues of $9.4 million in 2013, of which $2.7 million was to Aeroflex, whch reported revenues of $151.1 million and operating income of $9.5 million in the three months to December 31 2013.

For more on this topic, see:

— Ray Le Maistre, Editor-in-Chief, Light Reading

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DOShea
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DOShea,
User Rank: Blogger
2/24/2014 | 10:02:00 PM
A survivor
Surprised no one snapped up Shenick earlier--they were sometimes speculated to be an acquisition target back in the early days of IPTV--like 2007.
Vishnu Goel
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Vishnu Goel,
User Rank: Light Sabre
2/18/2014 | 12:29:03 AM
T&M vendor linking with SDN market is a breakthru!
This development of Aeroflex relationship with SDN test vendor is interesting.This is interestingly leveraging the fast growing opportunity rider,and improving the portfolio from the revenue and profitability angle.Getting into high growth Asia Pacific at this point of time will help the T&M vendor ,particularly when the leader of the industry is continuously getting out of Comms business.Vishnu Goel T&M +919810101238
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