Kal Kan - Making a fool of your self again !!!
Re: "It just shows how incompetent Intel's management is"
Intel just made $50,000,000 on this deal !!! Intel owns warrants to buy 5% of ServerWorks. At the value of the BroadCom buyout, that 5% is 5% of $1.07 BILLION (that's Billion with a B.
"Intel also has warrants to acquire up to a 5 percent interest in ServerWorks. Pulling said Intel hasn't exercised the warrants, which will remain in effect after the Broadcom acquisition. Privately-held ServerWorks has never disclosed the price of the warrants. "
Paul
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Broadcom-ServerWorks merger will spawn high-speed I/O chipset in 2002
By Jack Robertson, EBN
Jan 8, 2001 (8:04 PM)
URL: ebnews.com
The acquisition of ServerWorks by Broadcom Corp. will quickly lead to a new generation high speed chipset obsoleting even the forthcoming PCI-X I/O bus and replacing some silicon germanium and gallium arsenide network switching chips, officials of the two firms told EBN Monday. Yossi Cohen, Broadcom's director of marketing, said even the 8-Gbs speed of PCI-X will become a choke point for enterprise and network servers in 2002 when four different high speed I/O systems hit the market - 10-Gbs Ethernet, 10-Gbs fiber channel, OC192 Sonet also at 10-Gbs, and 10-Gbs Infiniband. "We must replace the separate PCI-X bus with a direct I/O connection through the chipset to support all the new 10-Gbs systems," he said.
ServerWorks will use its new prospective parent's technology and resources to complete development of a new chipset with direct 10-Gbs I/O, said David Pulling, vice-president of marketing for ServerWorks. The new chipset is expected to be available in 2002 at the same time the next generation high speed I/O systems come on the market, he added.
Broadcom announced today that it would buy ServerWorks in a stock swap valued at $957 million at Monday's share price. The Santa Clara, Calif.-based chipset firm would operate as a wholly-owned subsidiary, with Raju Vegesna, president, becoming ServerWorks vice president and general manager of the operation.
Cohen said technology acquired by Broadcom in two earlier acquisitions would be embedded by ServerWorks in its new 10-Gbs chipset for lower cost and higher performance.
The Media Access Controller (MAC) technology coming from the acquisition of Allayer Communications Corp., Santa Clara, Calif., would be integrated into the new chipset, along with the serial/deserializer technology from the acquisition of Newport Communications, Irvine, Calif.
Cohen said this function is now implemented by other suppliers in silicon germanium or in gallium arsenide chips, but will be integrated at much lower cost and higher performance in the ServerWorks CMOS chipset.
Pulling said the new ServerWorks chipset will support far higher I/O speeds than 10-Gbs. "Any of the four new high speed I/O products in a duplex configuration means the chipset must support 20-Gbs. For a dual channel server, the chipset must support 40-Gbs I/O.
Both officials said the new generation chipset is needed in every server that is part of the vast global Internet infrastructure. "You can end up with choke point in any part of the Internet if a server can't support at least 10-Gbs I/O," summed up Pulling.
"This includes database and application servers, firewall servers, network servers, web servers, load balance servers, VPN servers, caching servers, and enteprise servers. Each connection through the Internet has to keep pace with the 10-Gbs I/O."
Broadcom's Cohen said the acquisition will only serve to strengthen both company's strong alliances with Intel Corp. ServerWorks already is a major chipset supplier for Intel servers, and Broadcom is working closely with Intel on home networking devices and network switches. Intel also has warrants to acquire up to a 5 percent interest in ServerWorks. Pulling said Intel hasn't exercised the warrants, which will remain in effect after the Broadcom acquisition. Privately-held ServerWorks has never disclosed the price of the warrants. |
