|By PR Newswire||
|July 30, 2014 04:02 PM EDT||
SAN JOSE, Calif., July 30, 2014 /PRNewswire/ -- Cavium, Inc., (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, cloud, service provider wired and wireless networking, today announced a definitive agreement to acquire Xpliant, Inc., a privately held company headquartered in San Jose, California. Xpliant is a provider of high performance, high density switch silicon targeting a broad range of switching applications for the data center, cloud, service provider and enterprise markets.
The total acquisition cost is projected to be approximately $90 million, which includes payments to stockholders, note holders and other liabilities and costs. Cavium was an investor in Xpliant having provided $15 million of funding to Xpliant through June 2014, which is included in that total cost estimate. The remaining $75 million will be comprised of approximately $40 million in cash and $35 million in stock.
Xpliant technology and products address the need for increased capacity in both networking infrastructure and data centers driven by the steep growth of mobile applications and social networking. Global mobile data traffic will increase nearly 11-fold between 2013 and 2018 growing at a CAGR of 61%, while cloud data center IP traffic will more than double between 2014 and 2017 growing at a CAGR of 30% according to Cisco's Visual Networking Index and Global Cloud Index.
This expected growth will require increased intelligence and bandwidth within the network switching solution offerings to deliver enormous amounts of data in an efficient manner while controlling power consumption and costs. Furthermore, software-defined networking (SDN) continues to emerge as the architectural implementation of choice for building these networks.
Ethernet Switches are used to connect components within a system as well to connect various systems such as servers, server racks and networking appliances in the data center, enterprises and service provider networks. Switches are also used to connect servers, wireless access points, desktops and various network appliances throughout an enterprise. The Total Addressable Market for Ethernet switch silicon is currently valued in excess of $1B per year. The continued rise of SDN is expected to accelerate a refresh cycle further accelerating the deployment of new switch platforms.
Current switch solutions are built on a legacy fixed function architecture that will not be able to address the new market trends and requirements in data center, service provider and enterprise segments. Current networking silicon is hardwired to only offer a limited set of fixed function capabilities. Any new features that need to be added require a new revision to the silicon which can significantly delay deployments. Furthermore, these fixed function capabilities do not currently enable the software flexibility required to deploy true software defined networking resulting in extremely inefficient networks. Another disadvantage of the current legacy fixed function architecture is that system vendors cannot differentiate and optimize their product features and capabilities for a range of target market applications.
Xpliant is a semiconductor provider that has assembled a world class team of switching industry veterans who have previously delivered several generations of industry leading switching solutions to market at a range of leading switching system and silicon vendors. Xpliant has developed a family of switching silicon solutions with world class10G/40G/100G port speeds and port densities supporting throughput ranging from multi-hundred gigabit to multi-terabit. In addition, the products have been designed from the ground up to specifically address the challenges of throughput and flexibility driven by the needs of next generation networking infrastructure and software defined networking. Xpliant's innovations in switching architecture will enable increased intelligence and flexibility beyond what is available today in commodity Ethernet switch silicon while delivering market leading bandwidth, throughput and scalability along with unprecedented flexibility/programmability. All of these characteristics are required to efficiently enable virtualized data center and software defined networking without compromise. Xpliant's flexible and programmable architectural solutions are designed to enable OEM customers to bring to market customized and highly differentiated products optimized for their target markets.
Cavium has a rich history of identifying emerging market trends and delivering disruptive industry leading products to the wired and wireless infrastructure market. The addition of Xpliant's family of switching solutions, which are critical building components for next generation infrastructure, will be highly synergistic with Cavium's existing infrastructure product offerings such as ThunderX, OCTEON and LiquidIO families. This family of switching solutions will enable Cavium to significantly increase its share of BOM in the data center, service provider and enterprise markets. Additionally, these products will allow Cavium to offer complete end to end solutions for compute, networking and storage, optimized for best performance, cost and power for next generation virtualized software defined infrastructure.
As the world migrates from traditional IT client server model to what IDC refers to as the 3rd platform which is driven by social and mobile technologies, Cavium is empowering this market transition with a full range of processors, adaptors and with the acquisition of Xpliant, Ethernet switches that will redefine the heart of the network infrastructure.
"Xpliant has developed a disruptive family of switching silicon solutions for next generation software defined networks," said Syed Ali, President and CEO, Cavium. "This product line significantly expands our addressable TAM and will be an exciting addition to our portfolio of solutions for the data center, service provider and enterprise markets. The Xpliant line of products is highly synergistic with Cavium's existing infrastructure products and will enable Cavium to deliver highly optimized end to end solutions to our customers. We are extremely pleased with the strong customer engagements and traction which are an excellent validation of Xpliant's technology and products".
About Cavium, Inc.
Cavium is a leading provider of highly integrated semiconductor products that enable intelligent processing in enterprise, data center, cloud and wired & wireless service provider applications. Cavium offers a broad portfolio of integrated, software compatible processors ranging in performance from 100 Mbps to over 100 Gbps that enable secure, intelligent functionality in enterprise, data-center, broadband/consumer and access & service provider equipment. Cavium's processors are supported by ecosystem partners that provide operating systems, tool support, reference designs and other services. Cavium's principal offices are in San Jose, California with design team locations in California, Massachusetts, India and China. For more information, please visit: http://www.cavium.com.
This press release contains forward-looking statements regarding future events that involve risks and uncertainties. Words such as "will", "projected" and "expect" and similar expression are intended to identify forward- looking statements. These forward-looking statements are based upon Cavium's current expectations. Forward-looking statements involve risks and uncertainties, as well as assumptions that if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include but are not limited to, the consummation of the acquisition; an increase in the expenses and assumed liabilities for the acquisition; development and performance of Xpliant's products; technological advances; pricing pressures; general economic conditions; development of new Cavium products and technologies; whether Cavium is successful in marketing its products; the success of integrating Xpliant products with Cavium's products and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about these and other risks that may impact Cavium's business are set forth in the "Risk Factors" section of Cavium's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 2, 2014. Cavium expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein.
SOURCE Cavium, Inc.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In their General Session at 15th Cloud Expo, Phil Jackson, Development Community Advocate at SoftLayer, and Harold Hannon, Sr. Software Architect at SoftLayer, to discuss how to take advantage of a multitude of compute option...
Sep. 25, 2014 03:30 PM EDT Reads: 1,826
Come learn about what you need to consider when moving your data to the cloud. In her session at 15th Cloud Expo, Skyla Loomis, a Program Director of Cloudant Development at Cloudant, will discuss the security, performance, and operational implications of keeping your data on premise, moving it to the cloud, or taking a hybrid approach. She will use real customer examples to illustrate the tradeoffs, key decision points, and how to be successful with a cloud or hybrid cloud solution.
Sep. 22, 2014 10:00 PM EDT Reads: 2,367
In today's application economy, enterprise organizations realize that it's their applications that are the heart and soul of their business. If their application users have a bad experience, their revenue and reputation are at stake. In his session at 15th Cloud Expo, Anand Akela, Senior Director of Product Marketing for Application Performance Management at CA Technologies, will discuss how a user-centric Application Performance Management solution can help inspire your users with every appli...
Sep. 22, 2014 03:30 PM EDT Reads: 2,011
With the explosion of the cloud, more businesses are transitioning to a recurring revenue model to generate reliable sales, grow profits, and open new markets. This opportunity requires businesses to get to market quickly with the pricing and packaging options customers want. In addition, you will want to take advantage of the ensuing tidal wave of data to more effectively upsell, cross-sell and manage your customers. All of this is possible, but only with the right approach. At 15th Cloud Exp...
Sep. 12, 2014 11:45 PM EDT Reads: 1,514
Planning scalable environments isn't terribly difficult, but it does require a change of perspective. In his session at 15th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, will broaden your views to think on an Internet scale by dissecting a video publishing application built with The SoftLayer Platform, Message Queuing, Object Storage, and Drupal. By examining a scalable modular application build that can handle unpredictable traffic, attendees will able to grow your de...
Sep. 12, 2014 11:30 PM EDT Reads: 1,816
The cloud provides an easy onramp to building and deploying Big Data solutions. Transitioning from initial deployment to large-scale, highly performant operations may not be as easy. In his session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, will discuss the benefits, weaknesses, and performance characteristics of public and bare metal cloud deployments that can help you make the right decisions.
Sep. 11, 2014 10:30 PM EDT Reads: 2,296
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects – scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e....
Sep. 10, 2014 06:30 PM EDT Reads: 3,698
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization’s assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? I...
Sep. 10, 2014 03:00 PM EDT Reads: 2,794
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using...
Sep. 6, 2014 06:45 PM EDT Reads: 5,101
Is your organization struggling to deal with skyrocketing volumes of digital assets? The amount of data is growing exponentially and organizations are having a hard time managing this growth. In his session at 15th Cloud Expo, Amar Kapadia, Senior Director of Open Cloud Strategy at Seagate, will walk through the essential considerations when developing a cloud storage strategy. In this discussion, you will understand the challenges IT is facing, why companies need to move to cloud, and how the...
Sep. 6, 2014 02:00 PM EDT Reads: 1,813
If cloud computing benefits are so clear, why have so few enterprises migrated their mission-critical apps? The answer is often inertia and FUD. No one ever got fired for not moving to the cloud – not yet. In his session at 15th Cloud Expo, Michael Hoch, SVP, Cloud Advisory Service at Virtustream, will discuss the six key steps to justify and execute your MCA cloud migration.
Sep. 6, 2014 11:00 AM EDT Reads: 1,837
The 16th International Cloud Expo announces that its Call for Papers is now open. 16th International Cloud Expo, to be held June 9–11, 2015, at the Javits Center in New York City brings together Cloud Computing, APM, APIs, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speak...
Sep. 5, 2014 02:15 PM EDT Reads: 3,027
Most of today’s hardware manufacturers are building servers with at least one SATA Port, but not every systems engineer utilizes them. This is considered a loss in the game of maximizing potential storage space in a fixed unit. The SATADOM Series was created by Innodisk as a high-performance, small form factor boot drive with low power consumption to be plugged into the unused SATA port on your server board as an alternative to hard drive or USB boot-up. Built for 1U systems, this powerful devic...
Sep. 4, 2014 07:15 PM EDT Reads: 9,064
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual C...
Sep. 4, 2014 01:45 PM EDT Reads: 2,382
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, has been named “Bronze Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Cloudian is a Foster City, Calif.-based software company specializing in cloud storage. Cloudian HyperStore® is an S3-compatible cloud object storage platform that enables service providers and enterprises to bui...
Sep. 3, 2014 07:00 PM EDT Reads: 3,303
SYS-CON Events announced today that TechXtend (formerly Programmer’s Paradise), a leading value-added provider of server and storage virtualization, and r-evolution will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TechXtend (formerly Programmer’s Paradise) is a leading value-added provider of software, systems and solutions for corporations, government organizations, and academic instit...
Sep. 3, 2014 01:00 PM EDT Reads: 2,581
Every healthy ecosystem is diverse. This is especially true in cloud ecosystems, where portability and interoperability are more important than old enterprise models of proprietary ownership. In his session at 15th Cloud Expo, Mark Baker, Server Product Manager at Canonical/Ubuntu, will discuss how single vendors used to take the lead in creating and delivering technology, but in a cloud economy, where users want tools of their preference, when and where they need them, it makes no sense.
Sep. 3, 2014 09:00 AM EDT Reads: 2,660
The consumption economy is here and so are cloud applications and solutions that offer more than subscription and flat fee models and at the same time are available on a pure consumption model, which not only reduces IT spend but also lowers infrastructure costs, and offers ease of use and availability. In their session at 15th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, will discuss this shifting dynamic with ...
Sep. 2, 2014 11:00 PM EDT Reads: 1,522
The emergence of cloud computing and Big Data warrants a greater role for the PMO to successfully manage enterprise transformation driven by these powerful trends. As the adoption of cloud-based services continues to grow, a governance model is needed to orchestrate enterprise cloud implementations and harness the power of Big Data analytics. In his session at 15th Cloud Expo, Mahesh Singh, President of BigData, Inc., to discuss how the Enterprise PMO takes center stage not only in developing th...
Sep. 2, 2014 11:00 PM EDT Reads: 1,980
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, will explore the synergies in these two approaches, with practical tips, techniques, research dat...
Sep. 2, 2014 02:30 PM EDT Reads: 3,824