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Cisco Buys Topspin for $250 Million.
2005-04-14, HostMan.biz Cisco Systems (cisco.com) announced on Thursday that it had entered into a definitive agreement to acquire Topspin Communications (topspin.com), a developer of server fabric switches, for $250 million in cash and options. Topspin and its 135 employees, split between California and India, will join Cisco's data center, switching and wireless technology group, led by senior vice president Luca Cafiero. Server fabric switches are designed to connect servers together into a grid, and then provide network and storage connectivity to that server grid. Topspin's products are targeted at data centers deploying grid and utility computing, clustered enterprise applications or server virtualization. Cisco says the acquisition enables it to deliver specialized networking technology and services to customers, helping them to build their data centers in a flexible, grid-like fashion. Topspin’s product line adds InfiniBand-based server switching to Cisco's data center switching solution portfolio. Several major server vendors have announced support for InfiniBand technology, including Dell, HP, IBM, NEC and Sun. "The widespread adoption of server architectures such as blades, grid computing, and clustered applications is driving an emerging market opportunity within the data center," says Cafiero. "As our customers build out these new computing environments, it is important that we deliver server networking technologies to fit their needs. By adding Topspin's server fabric switches and virtualization software, alongside our industry leading portfolio of Ethernet and SAN switches we are able to offer our customers compelling end-to-end data center switching capabilities." Cisco expects the transaction, subject to customary closing and regulatory conditions, to close in the fourth quarter. |
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