Mellanox Technologies to acquire EZchip for $811M
Eyal Waldman
Mellanox makes InfiniBand and Ethernet interconnection platforms and products for the data centre while EZchip sells network and multi-core processors that are used in carrier edge routers and enterprise platforms.
EZchip’s customers include Huawei, ZTE, Ericsson, Oracle, Avaya and Cisco Systems.
“Mellanox needs to diversify its business; it is still heavily dependent on the high-performance computing market and InfiniBand,” says Bob Wheeler, principal analyst, networking at market research firm The Linley Group. “EZchip helps move Mellanox into markets and customers that it would not have access to with its existing products.”
CEO Eyal Waldman says Mellanox will continue to focus on the data centre and not the WAN, and that it plans to use EZchip’s products to add intelligence to its designs. Mellanox's Ethernet expertise may also find its way into EZchip’s ICs.
But analysts do expect Mellanox to benefit from telecom. “The big change has to do with Network Function Virtualisation (NFV) and the fact that service provider’s data centres are starting to look more and more like cloud data centres,” says Wheeler. “There is an opportunity for Mellanox to start selling to the large carriers and that is a whole new market for the company.”
Acquiring EZchip
Both companies will ensure continuity and use the same product lines to grow into each other’s markets, said Waldman on a conference call to announce the deal: “Later on will come more combined solutions and products.” First product collaborations are expected in 2016 with more integrated products appearing from 2017.
“Mellanox sees a need to add intelligence to its core products and it does not really have the expertise or the intellectual property,” says Wheeler. One future product of interest is the smart or intelligence network interface controller (NIC). “By working together they could product quite a compelling product,” says Wheeler.
In 2014 EZchip acquired Tilera for $50 million. The value of the deal could have risen to $130 million but was dependent on targets that Tilera did not meet, says Wheeler. Tilera's products include multi-core processors, NICs and white box security appliances. EZchip has also announced the Tile-Mx product family using Tilera’s technology, the most powerful family device will feature 100, 64-bit ARM cores.
The primary application of Tilera’s products is security applications: deep-packet inspection and layer 7 processing. Instead of replacing the general-purpose processor in a security appliance, an alternative approach is to use an intelligent NIC card with a Tilera processor connected via the PCI Express bus to an Intel Xeon-based server. “The card can do a lot of the packet processing offloaded from the Xeon,” says Wheeler.
Another area where EZchip’s NPS processor can be used is in more dedicated appliances or in an intelligent top-of-rack switch. The NPS would perform security as well as terminating overlay protocols used for network virtualisation in the data centre. “You can terminate all those [overlay] protocols in a top-of-rack switch and offload that processing from the server,” says Wheeler.
The key benefit of InfiniBand is its very low latency but the flip side is that the protocol is limited with regard routing to larger fabrics. Adding intelligence could benefit Mellanox’s core Infiniband fabric products, notes Wheeler.
EZchip’s founder and CEO Eli Fruchter said he expects the merger to open doors for EZchip among more hyper-scale data centre players: “With the merger we believe we can be a lot more successful in data centres than by continuing by ourselves.”
Mellanox has made several acquisitions in recent years. It acquired data centre switch fabric player Voltaire in 2011, and in 2013 it added silicon photonics start-up Kotura and chip company IPTronics in quick succession. Now with EZchip's acquisition it will add packet processing and multi-core processor IP to its in-house technology portfolio.
The EZchip acquisition is expected to close in the first quarter of 2016.
Further information:
Mellanox’s Waldman: We've discussed merging for years, click here
Ciena's stackable platform for data centre interconnect
Ciena is the latest system vendor to unveil its optical transport platform for the burgeoning data centre interconnect market. Data centre operators require scalable platforms that can carry significant amounts of traffic to link sites over metro and long-haul distances, and are power efficient.
The Waveserver stackable interconnect system delivers 800 Gig traffic throughput in a 1 rack unit (1RU) form factor. The throughput comprises 400 Gigabit of client-side interfaces and 400 Gigabit coherent dense WDM transport.
For the Waveserver’s client-side interfaces, a mix of 10, 40 and 100 Gigabit interfaces can be used, with the platform supporting the latest 100 Gig QSFP28 optical module form factor. One prominent theme at the recent OFC 2015 show was the number of interface types now supported in a QSFP28.
On the line side, Ciena uses two of its latest WaveLogic 3 Extreme coherent DSP-ASICs. Each DSP-ASIC supports polarisation multiplexing, 16 quadrature amplitude modulation (PM–16-QAM), equating to 200 Gigabit transmission capacity.
The Extreme was chosen rather than Ciena’s more power-efficient WaveLogic 3 Nano DSP-ASIC to maximise capacity over a fibre. “The amount of fibre the internet content providers have tends to be limited so getting high capacity is key,” says Michael Adams, vice president of product and technical marketing at Ciena. The Nano DSP-ASIC does not support 16-QAM.
A rack can accommodate up to 44 Waveserver stackable units to deliver 88 wavelengths, each 50GHz wide, or 17.6 Terabit-per-second (Tbps) of capacity. And up to 96 wavelengths, or 19.2Tbps, is supported on a fibre pair.
"We are going down the path of opening the platform to automation"
“We could add flexible grid and probably get closer to 24 or 25 Tbps,” says Adams. Flexible grid refers to moving off the C-band's set ITU grid by using digital signal processing at the transmitter. By shaping the signal before it is sent, each carrier can be squeezed from a 50GHz channel into a 37.5GHz wide one, boosting overall capacity carried over the fibre.
Adams says that it is not straightforward to compare the power consumption of different vendors’ data centre interconnect platforms but Ciena believes its platform is competitive. He estimates that the Waveserver consumes between 1W and 1.5W per Gigabit line side.
Ciena has stated that between five and 10 percent of its revenues come from web-scale customers, and accounts for a third of its total 100 Gig line-side port shipments.
Web-scale companies include Internet content providers, providers of data centre co-location and interconnect, and enterprises. Web-scale companies also drive the traditional telecom optical networking market as they also use large amounts of the telcos' network capacity to link their sites.
The global data centre interconnect market grew 16 percent in 2014 to reach $US 2.5 billion, according to market research firm, Ovum. Almost half of the spending was by the communications service providers whereas the Internet content providers spending grew 64 percent last year.
Open software
Ciena also announced an open application development environment, dubbed emulation cloud, that allows applications to be developed without needing Waveserver hardware.
One obvious application is the moving server virtual machines between data centres. But more novel applications can be developed by the data centre operators and third-party developers. Ciena cites what it calls an augmented reality application that allows a mobile phone to be pointed at a Waveserver to inform the of user the status of the machine: which ports are active and what type of bandwidth each port is consuming. “It can also show power and specific optical parameters of each line port,” says Adams. “Right there, you have all the data you need to know.”
The Waveserver platform also comes with software that allows data centre managers to engineer, plan, provision and operate links via a browser. More sophisticated users can benefit from Ciena’s OPn architecture and a set of open application programming interfaces (APIs).
“We are going down the path of opening the platform to automation,” says Adams. “We can foresee for the most sophisticated users, plugging into APIs and going to some very specific optical parameters and playing with them.”
Waveserver Status
Ciena is demonstrating its Waveserver platform to over 100 customers, as part of an annual event at the company’s Ottawa site.
“We are well engaged with a variety of Internet content providers,” says Adams. “We will be in trials with many of those folks this summer.” General availability is expected at the end of the third quarter.
In May, Ciena announced it had entered a definitive agreement to acquire Cyan. Cyan announced its own N-Series data centre interconnect platform earlier this year. Ciena says it is premature to comment on the future of the N-Series platform.