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March 2, 2015
Brocade said Monday it plans to acquire Connectem, a privately held provider of LTE virtual Evolved Packet Core (vEPC) technology, to broaden Brocade's software-based mobile networking portfolio.
The acquisition will help Brocade Communications Systems Inc. (Nasdaq: BRCD) enable carriers to keep up with growing demands of traditional mobile data, along with new machine-to-machine and Internet of Things connectivity. To meet those demands, mobile carriers are using virtualization to create flexible, scalable and easily deployed packet cores. Connectem provides vEPC solutions designed to work with cloud computing, network virtualization and software networking for higher scale and efficiency on industry-standard x86-based servers, the two companies said in a statement Monday.
Get the latest news, analysis and opinion on mobile network packet core technology on Light Reading's packet core channel.
Brocade has been on a shopping spree as of late, snapping up Vyatta, Vistapointe and the SteelApp virtual ADC product line from Riverbed Technology Inc. (Nasdaq: RVBD). (See Brocade Scoops Up Riverbed's SteelApp ADC, Brocade Buys NFV Management Smarts and Brocade Buys Vyatta for Software Routing Smarts.)
Upon completion of the all-cash acquisition, expected by the end of April, Connectem will be included in Brocade's Emerging Business Group reporting to Ken Cheng. Terms of the acquisition aren't being disclosed. Brocade says it expects its fiscal 2015 financial performance to be consistent with the non-GAAP operating margin target of 25% provided during its fiscal first quarter earnings call February 19. (See IP Storage Attracts Attention as Brocade Boosts Its Margins.)
Virtualizing the mobile core is a priority for carriers. In a Heavy Reading survey last year, some 23% of respondents said they expect to start virtualizing the EPC by 2016. As reasons, they cited the desire to get the benefits of cloud apps, improve time to market for new services and improved scalability and cost efficiency. (See Virtual Mobile Core – Why? And When?)
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Read more about:Omdia
Executive Editor, Light Reading
San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.
He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.
Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.
Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').
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