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Silicom Solutions To Expand Into Virtualization, Cloud And SDN Environment

Stocks in this article: SILC

Silicom Ltd. (NASDAQ: SILC, TASE: SILC), an industry-leading provider of high-performance server/appliances networking solutions, today announced that it has acquired all the IP related to the unique Virtualization Off-Load Engine developed during the last two years by Net Perform Technology Ltd. (“Net Perform”), a privately held company registered in Hong Kong, China. Through the acquisition, the Company has secured exclusive access to this important technology, thereby achieving a significant competitive advantage.

The unique Virtualization Off-Load Engine resolves a major performance bottleneck in today’s virtualization-based data centers: the reduced server I/O performance deriving from the need of CPUs in virtualized environments to handle both networking and switching transactions between each VM individually and between each VM and the physical world. The Virtualization Off-Load Engine is able to off-load these CPU tasks onto a separate intelligent add-on card, thereby freeing up server cycles and improving the server’s Networking and Storage I/O.

A basic version of the Virtualization Off-Load Engine has already been implemented in one of Silicom’s Intelligent Adapters, demonstrating that it delivers a significant performance improvement. Having acquired the IP, Silicom now plans to incorporate the Virtualization Off-Load Engine into a variety of other implementation solutions, all of which would become Silicom Intelligent products targeting the various virtualization-based operating systems, technologies and market segments. The Net Perform team which developed the solution will be fully dedicated to working with Silicom. The team will work on further development of the Engine and its implementation as well as in other areas related to improvement of server performance.

The impact of the cost of the IP acquisition on Silicom’s expenses in 2013 and beyond is immaterial.

“We are extremely excited to have completed this strategic acquisition – a transaction which gives us exclusive access to Net Perform’s unique Virtualization Off-Load solution,” said Mr. Orbach, Silicom’s President and CEO. “As the IT world continues to evolve towards SDN and Cloud-based data centers, we expect that a majority of data center servers will run in virtualized environments - and each of these servers will represent a market for our Virtualization Off-Load solutions. Since the off-load engine cannot function without an intelligent card, this trend will increase the sales of our intelligent cards – both those that we currently offer and those that are in development. These cards are a perfect fit for the off-load engine concept, and we plan to productize it into a portfolio of applicable products.”

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