ATCA/Standard Servers

ATCA Marriage Built on Hot Stuff

The planned acquisition of fellow AdvancedTCA (ATCA) platform provider Continuous Computing Corp. could take Radisys Corp. (Nasdaq: RSYS) into some of the fastest-growing mobile network technologies in the industry. (See M&A Move Puts ATCA in the Spotlight.)

In the $120 million deal, RadiSys would gain Continuous Computing's expertise in Long Term Evolution (LTE), deep packet inspection (DPI) and femtocells, which are all the rage for mobile operators.

In addition to those hot technologies, RadiSys would also get Continuous Computing's Trillium protocol stack software portfolio and its professional services.

In an interview with Light Reading Mobile about the acquisition, RadiSys VP of Business Development Grant Henderson was veritably smitten: "We love the femto and LTE capabilities, love the Trillium portfolio and the professional services that go along with that. ... All aspects of the technology are appealing to RadiSys."

If not a match made in heaven, the two vendors are certainly a good fit, at least. Continuous Computing's toys would be coupled with RadiSys's expertise in core networks, security gateways and media servers.

The companies say their products and OEM customer bases are complementary, which means there are not likely to be big changes to the portfolios after the deal's close, which is expected at the end of June.

Henderson noted that there is an opportunity for the companies to develop a common platform for 100Gbit/s products. Each company offers a 10Gbit/s and 40Gbit/s ATCA platform, but 100Gbit/s marks "an opportunity to find some consolidation in portfolios," according to Henderson.

Network transition
Part of the reason why this deal makes sense, according to Continuous Computing CTO Mike Coward, is that operators increasingly need new ways to cope with challenging traffic patterns on their networks -- through technologies such as video optimization, Internet offload or traffic shaping.

For example, Coward explained that Continuous Computing's wireless customers are trying to add more DPI intelligence into the network, while its DPI customers are having to add more wireless capabilities into their platforms.

Also, in the network transition from macrocells to small cells, Continuous Computing femto products fit well with the core network strengths of RadiSys, which will give access to the femto gateway needed in small cell deployments, according to Coward.

"This acquisition helps us help them [our customers] through the network transformation," said Coward.

— Michelle Donegan, European Editor, Light Reading Mobile

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