Avago and Intel announced today an agreement for Intel to purchase LSI’s Axxia Networking Business and related assets from Avago. The Axxia Networking Business is a leader in SoC solutions for network infrastructure. This acquisition puts us in a better position to provide a complete product portfolio for our customers and to continue to enable service providers to create networks that are more intelligent, efficient and cost-effective and to deploy new services faster.
Networking is the backbone of the Internet of Things. It provides the ever-expanding connectivity our world has come to rely on, and serves as the foundation for the newest and most exciting growth areas of technology today including smart cities, cars and homes, and wearable computing. But operators face challenges maintaining and evolving this infrastructure due to increasing costs for the build-out and operation of networks to support the ever expanding number of users, devices and applications.
This is where Intel can help. In the same way that Intel helped to transform the data center into a business enabler, Intel can help transform networking by providing new technologies and a portfolio of solutions that allow for new innovative services and efficient scaling of a more flexible, cost effective network infrastructure.
To enable this vision, we believe that running the four critical network workloads (application, control, data and signal processing) on a single architecture provides benefits by reducing development complexity and risk. The Communications and Storage Infrastructure Group, part of Intel’s Data Center Group, has been working for a number of years to build Intel-based platforms that handle these workloads simultaneously on networking elements, including wireless base stations. Intel’s goal is to offer a common architecture approach that scales up and down at many different price, power and performance points. With this acquisition, Intel gains a compelling product line and talented team to continue to deliver on this long term vision.
The continued momentum towards adopting server, cloud and virtualization technologies enables network operators to take advantage of the latest technology innovations and tap into a broad ecosystem of developers. This can drive greater utilization of network resources, and faster availability of new applications and services. Intel is working with the world’s leading equipment manufacturers to bring critical technologies to market for operator networks, including uses of virtualization in the radio access network which encompass wireless base stations.
The opportunity here is significant and wireless access is a critical component of the mobile network, which is part of a growing network market segment estimated to represent a $16 billion silicon market segment.
The acquisition of the Axxia Networking Business will further help Intel realize our vision of transforming wireless access into an intelligent, flexible network based on standard building blocks to fuel innovation and increase network efficiencies.