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.
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?)
More on vEPC:
- Affirmed & Elephant Talk Build a Virtual EPC
- Nokia & Partners Unveil Virtual Mobile Network
- Telekom Austria Builds Multi-Vendor NFV 4G Core