Click here to close now.


SDN Journal Authors: Stefan Dietrich, Elizabeth White, Peter Silva, Pat Romanski, Don MacVittie

News Feed Item

Cavium to Acquire Switching and SDN Specialist Xpliant to Accelerate Deployment of Software Defined Networks

Developer of Intelligent, High Performance, High Density Switch Silicon

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.

Cavium, Inc. Logo.

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:

Forward-Looking Statements

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.

Logo -

SOURCE Cavium, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
The revocation of Safe Harbor has radically affected data sovereignty strategy in the cloud. In his session at 17th Cloud Expo, Jeff Miller, Product Management at Cavirin Systems, discussed how to assess these changes across your own cloud strategy, and how you can mitigate risks previously covered under the agreement.
Countless business models have spawned from the IaaS industry – resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his general session at 17th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, an IBM Company, broke down what we have to work with, discussed the benefits and pitfalls and how we can best use them ...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...