Feeds

QLogic grabs Broadcom Ethernet assets

Chuck in IP licensing and we'll call it $147m... cash

Protecting against web application threats using SSL

QLogic has signed a deal with Broadcom to buy some Ethernet assets and license its Fibre Channel IP.

The converged network controller maker is spending $147m in cash to buy:

  • some 10/40/100Gbit Ethernet controller-related assets and
  • non-exclusive licences to certain intellectual property relating primarily to Broadcom’s programmable NetXtreme II Ethernet controller family.

Broadcom will become an ASIC supplier to QLogic in support of the NetXtreme II product line. It is expected also that “QLogic will license certain Broadcom patents under a non-exclusive patent license agreement that will cover QLogic’s Fibre Channel products in exchange for a license fee of $62m.“

Stifel Nicolaus MD Aaron Rakers says the implication of the FC IP licensing deal is that it settles any uncertainty over patent spats between Broadcom and QLogic. Broadcom recently launched a suit against QLogic rival Emulex. He mentions in his report that 170 employees will transfer to QLogic.

QLogic has a new CEO, Prasad Rampalli, who assumed that position and the QLogic presidency on 3 February, taking over from interim CEO Jean Hu who steps back to her CFO position. Rampalli left EMC, where he was SVP of the cross-business engineering function, in December last year, to join QLogic.

Rampalli said: “We are pleased to enter into this partnership with Broadcom. QLogic gains world-class technology, an immediate presence serving enterprise customer Ethernet controller needs and an important long-term partnership to deliver end-to-end solutions. Going forward, this acquisition will form the foundation of our Ethernet controller business and accelerates our time-to-market with leading-edge technology.”

Broadcom NetExtreme II adapter

Broadcom NetXtreme BCM5725 controller.

QLogic thinks it could immediately gain about $45m in fiscal 2015 revenue.

As well as its Fibre Channel HBAs, iSCSI adapters and Converged Network Adapters (for FCOE), QLogic has a 3200 series of Ethernet Adapters (NICs) for TCP/IP offload.

Broadcom says its NetXtreme II 1 Gigabit and 10 Gigabit Ethernet controllers deliver high performance dual-port, single-chip C-NIC at 1Gbps or 10-Gbps rates, without requiring external packet memory. … [and] include on-chip TCP processing and iSCSI Host Bus Adapter (HBA) capabilities.”

QLogic is clearly focussing more on Ethernet for future growth. Rakers said: “We believe access to Broadcom controllers could allow QLogic to become more competitive in the cloud market, vs its historical enterprise focus.”

In a briefing call to analysts, reported by Rakers, Rampalli said that, in addition to planting a stake as a No 2 player in the Ethernet market, this is a platform for the company to offer more services – focused on the company’s positioning for network convergence and the view that services such as dedupe, replication, encryption, acceleration/caching, and other capabilities can be tightly integrated into these offerings.

He added that this move should be considered a strategic decision to redirect the company’s R&D efforts; these new solutions should complement the company’s storage solutions in both FC and FCoE.

QLogic recently bought Brocade’s Ethernet and Fibre Channel network adapter business for an undisclosed amount. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.