Intel is shopping for Barefoot Networks, a challenger to Cisco that had raised over $150 million from giants like Google and Alibaba (INTC, CSCO, AVGO)
- Intel is shopping for Barefoot Networks, a Silicon Valley startup with over $150 million in funding. Phrases of the deal weren’t disclosed.
- Barefoot Networks sells networking gear, with its foremost differentiator being that builders can write code for its that runs instantly on the processor — a technical, however necessary, distinction that permits for extra customization than you usually discover on Cisco or Broadcom gear.
- The deal comes as Intel faces new challenges, as its information middle revenues just lately faltered for the primary time in a very long time.
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Intel is buying Barefoot Networks, a Silicon Valley startup that had raised over $150 million from giants like Google, Dell Applied sciences Capital, Alibaba, and Goldman Sachs.
Phrases of the deal weren’t disclosed, however Intel says that Dr. Craig Barratt, the CEO, and his group will likely be becoming a member of the chip large after the deal closes, which it expects will occur within the third quarter of 2019.
“Upon shut, the addition of Barefoot Networks will assist our give attention to end-to-end cloud networking and infrastructure management, and can enable Intel to proceed to ship on new workloads, experiences and capabilities for our information middle clients,” Intel information middle boss Navin Shenoy stated in a weblog entry asserting the deal.
Barefoot Networks is a knowledge middle networking startup that is taking up the likes of Cisco and Broadcom with an unconventional method to the market — an method that focuses on Tofino, its proprietary line of processors that energy its lineup of merchandise.
Particularly, Barefoot boasts that Tofino permits builders to program proper on the processor itself, the bottom technical degree attainable, which implies that clients can do issues with its merchandise that have been by no means initially meant.
As an illustration, Barefoot says, a Tofino-powered change can be utilized to research and diagnose community visitors because it travels via the info middle, with the developer free to use fine-tuned controls over precisely what they’re searching for, and add to the mannequin as they go.
A pleasant expertise seize, too
This method stands in distinction to the way it normally works: Cisco, Broadcom, and the like normally supply software program that lets customers set up new purposes and put their networking gear to make use of in new and novel methods — however with out giving programmers entry to the processor itself, which limits what may be finished with it.
This philosophy appears to have caught on, nevertheless, with Cisco and smaller opponents like Arista Networks each reportedly deciding to make use of Barefoot’s Tofino chips to energy a few of their latest merchandise.
Additionally of notice is that Barefoot Networks carries one thing of a pedigree: Nick McKeown, co-founder of Barefoot Networks, was additionally a founding father of Nicira, a networking startup that VMware bought for $1.26 billion in 2012.
As for Intel, the acquisition of Barefoot Networks makes a specific amount of sense, on condition that each firms are centered on chips, particularly for the info middle. Nevertheless, the deal additionally comes as Intel faces a tough patch, with revenues in its information middle section just lately sliding for the primary time in a very long time.
Whereas Intel already sells networking merchandise, that is clearly a wager that having Barefoot’s expertise on its aspect will open some doorways, and maybe lead it to a stronger market place.
SEE ALSO: Intel’s new CEO was once CFO, and analysts fear he might not have the technical chops to guide the corporate via the stormy waters forward: ‘Intel wants a powerful technical chief’
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