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Nvidia Plans to Acquire Software Company Cumulus Networks

Nvidia says the purchase bolsters its networking software capabilities, enabling 'the new era of the accelerated, software-defined data center.'
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Semiconductor giant Nvidia  (NVDA)  announced Monday that it plans to acquire Cumulus Networks, an open-source centric company that specializes in helping enterprises optimize their data center networking stack, for an undisclosed sum.

Privately-held Cumulus is based in Mountain View, Calif.

The acquisition “bolsters our networking software capabilities. The combination enables the new era of the accelerated, software-defined data center,” Nvidia said in a statement.

“With Cumulus, Nvidia can innovate and optimize across the entire networking stack from chips and systems to software including analytics like Cumulus NetQ, delivering great performance and value to customers. This open networking platform is extensible and allows enterprise and cloud-scale data centers full control over their operations.”

Cumulus supports more than 100 hardware platforms with Cumulus Linux, its operating system for network switches.

“Our ultrafast Nvidia Mellanox Spectrum switches already ship with Cumulus Linux and SONiC, the open source offering forged in Microsoft’s Azure cloud and managed by the Open Compute Project,” Nvidia said.

“The ability to innovate across the entire technology stack will help us deliver performance at scale for the accelerated, software-defined data center.”

TheStreet.com’s Michael Wiggins De Oliveira wrote on March 23 that "as Nvidia increases its exposure to value-added products and software services, its GAAP gross margins continue to expand over time. Specifically, over the past four years, its GAAP gross margin has gone from 58.8% to 62.0%.”

Nvidia recently traded at $287.98, up 1.84%. The stock has jumped 20% in the last three months.

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