Cisco Buys Topspin for $250 Million

Cisco Systems (Nasdaq: CSCO) announced today it will procure Topspin Communications, a inventor of programmable server switch, in support of US$250 million rainy-day coinage and likelihood.

The feat give Cisco, which presently have individual Ethernet offerings, an way in into the InfiniBand pick up transition architecture open market.

Topspin's switches be nearly tentative in data contention, storage and computer exchange cards. The data center network market shoot 10 percent from 2003 to 2004, according to IDC. "Cisco be importantly profound in the order of woman a switch vendor to the data center," Lucinda Borovick, program clock, data center network, IDC, tell TechNewsWorld.

"As regulars gawk to re-architect their data centers, they're decision new network technology. This gives Cisco another option for those customers." She said that given the significance of solidify its class aligned with those data center customers, the matter is a putting in place one for Cisco.

Borovick also said that Cisco is looking to leverage Topspin's Vframe virtualization technology. VFrame is a control software suite for its switches that works any on top of its personal or along with the management software of other broker.

"I suspect that the value to Cisco is really more about the virtualization technology. I suspect that Cisco will pass the virtualization technology and cuff it out [into other areas]," she said.

The acquisition also gives at lowest a transitory fillip to InfiniBand, which has be acquirement dais, particularly in joint venture looking to label a organized storage strategy, Borovick said.

"It instantly gives acceptance to InfiniBand, although you ought sensation how serious has Cisco been about any technology excluding Ethernet? What's the long-term prognosis?" InfiniBand is attention-grabbing because of its pour down latency and giant analysis faculty at a price that's make self-conscious than gigabit Ethernet. The refusal to append another architecture into a data center is the biggest stoppage to its adoption.

Topspin CEO Krish Ramakrishnan has found himself in a job for Cisco nearer. In 1995, he sold Internet Junction, which he co-founded, to Cisco and become vice president and basic commissioner of Cisco's Content Business Unit. The deal, looked-for to be finalize with July 30 impending regulatory jump, convey 135 personnel to Cisco's Data Center, Switching and Wireless Technology Group.

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