Silicom Acquires IP aimed to Expand Into Virtualization, Cloud and SDN markets

24 September, 2013

Through this acquisition, Silicom has secured exclusive access to a unique technology of Virtualization Off-Load Engine for servers

Net Perform’s technology is able to off-load CPU tasks onto a separate intelligent add-on card

SILICOMThe server/appliances networking solutions provider, Silicom Ltd., has acquired all the IP related to Virtualization Off-Load Engine developed during the last two years by Net Perform Technology Ltd. from Hong Kong, China. Through the acquisition, the Company has secured exclusive access to this technology.

The Virtualization Off-Load Engine resolves a major performance bottleneck in today’s virtualization-based data centers: the reduced server I/O performance deriving from the need of CPUs in virtualized environments to handle both networking and switching transactions between each VM individually and between each VM and the physical world. Net Perform’s technology is able to off-load these CPU tasks onto a separate intelligent add-on card, thereby freeing up server cycles and improving the server’s Networking and Storage I/O.

A basic version of the Virtualization Off-Load Engine has already been implemented in one of Silicom’s Intelligent Adapters. Silicom now plans to incorporate the Virtualization Off-Load Engine into a variety of other implementation solutions, all of which would become Silicom Intelligent products.

“As the IT world continues to evolve towards SDN and Cloud-based data centers, we expect that a majority of data center servers will run in virtualized environments,” said Shaike Orbach, Silicom’s President and CEO.  “Since the off-load engine cannot function without an intelligent card, this trend will increase the sales of our intelligent cards – both those that we currently offer and those that are in development. These cards are a perfect fit for the off-load engine concept, and we plan to productize it into a portfolio of applicable products.”

Silicom’s revenues for the first half of 2013 increased by 50% to $30.7 million from $20.5 million in the first half of 2012.


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