Vendors including Cisco, Juniper, and Arista all recently introduced merchant silicon chips into the mix.
Open source and containers found themselves at the center of M&A activity this year.
Earlier this month, Broadcom slashed over 400 jobs from CA Technologies’ offices, just days after it bought the company for $18.9 billion.
Broadcom closed on its $18.9 billion acquisition of CA earlier this week.
Broadcom took over Veracode as part of its $18.9 billion purchase of CA Technologies, which it completed this week. CA bought Veracode in 2017.
The company views WiFi as instrumental in providing the necessary in-building coverage and capacity for 5G deployments.
Network virtualization has primarily focused on software. But now there’s interest in the lower layers of the network: commodity hardware and the silicon that drives the hardware.
The company is a heavyweight in the Ethernet switch space but has room to make up in 5G and IoT.
The chip maker is retooling its server business to focus on edge computing and is pushing hard on new growth areas like IoT and 5G.
CEO Hock Tan said the company will sell hardware to new customers and will see a boost from 5G.
CEO Devesh Garg says the company’s operating system isn’t limited by legacy software or hardware and can take advantage of innovations in the underlying silicon.
EMA Senior Analyst Shamus McGillicuddy says this deal has less to do with Broadcom's technology strategy and everything to do with money.
Following the tumultuous purchase of Brocade (that reportedly led to the layoffs of 1,100 employees) and the blocked purchase of Qualcomm — Broadcom seeks to diversify its portfolio with the purchase of the monitoring software company.
In an SEC filing the company said it saved $178 million during the first two fiscal 2018 quarters “primarily related to employee termination costs.”
The company has developed Ethernet switch chips for data centers. It competes against Broadcom, Barefoot, and Cavium.