Nvidia Corporation, an American technology company, has recently announced its intention to acquire a computer software company, Cumulus Networks. The acquisition of Cumulus will enable the company to deliver a hardware solution in its own data center switch form.
Cumulus, an open-source-centric company, specializes in assisting enterprises by optimizing the networking stack of their data center. The company also offers network operations managing tools as well as Linux distribution that enable network switches.
These two companies did not disclose the value of the acquisition deal. However, it is perceived to be a considerable amount, given that the software company had raised a sum of $134 million, since it was founded in the year 2010. The Mountain View-based developer of the network operating system also had previously formed a partnership with Mellanox, which was acquired for $6.9 billion by Nvidia. This acquisition deal was closed a few days back.
Amit Katz, Mellanox’s VP Ethernet Switch business, has stated that Cumulus is the OpenStack ecosystem’s early player. The acquisition of Cumulus will help Nvidia optimize and innovate across the whole networking stack, from systems and chips to software. This software includes analytics such as Cumulus NetQ, which offers a robust performance as well as value to the customers. This open and extensive networking platform will enable enterprises & cloud-based data centers to have full control over the operations.
Both Mellanox and Cumulus will virtually deliver all the required tools for assisting cloud providers and enterprises while building out the high-performance AI and computing workloads in the data centers. In addition to the graphics cards, Nvidia has an extensive data center group, which offered nearly $1 billion revenue share in the last quarter, a 43% hike from the previous year. However, the revenue share of the company from gaming was only just below $1.5 billion.