Intel buys network gear company

Chipmaker announces the acquisition of NetEffect, a company specializing in Ethernet products and technologies for server compute clusters.

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Brooke Crothers writes about mobile computer systems, including laptops, tablets, smartphones: how they define the computing experience and the hardware that makes them tick. He has served as an editor at large at CNET News and a contributing reporter to The New York Times' Bits and Technology sections. His interest in things small began when living in Tokyo in a very small apartment for a very long time.
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Intel said it has acquired NetEffect, a company specializing in Ethernet products and technologies for server compute clusters.

The chipmaker purchased NetEffect's assets for $8 million, which include the company's Ethernet product portfolio, intellectual property, and technology.

NetEffect is a provider of solutions incorporating iWARP, an Ethernet alternative to InfiniBand. NetEffect's product portfolio includes 1-Gigabit and 10-Gigabit Ethernet (GbE) adapters for servers and blade configurations as well as 10GbE Application Specific Integrated Circuits (ASICs).

"NetEffect's role as a data communications solution provider...will enhance Intel's current Ethernet efforts," Tom Swinford, general manager, Intel LAN Access Division, said in a statement.

Swinford said NetEffect's technology will be a boon to Intel's existing business in 10-Gigabit Ethernet, including server virtualization, convergence of network and storage traffic, and server compute clusters.

Designed for multi-core processor-based servers and optimized for virtualization, Intel's current portfolio of 10GbE server adapters includes single and dual port versions for both copper and fiber implementations. The NetEffect acquisition provides complementary High Performance Network Interface Card (NIC) products to Intel's Ethernet portfolio.

NetEffect was founded in 1998 as Banderacom, a company focused on InfiniBand adapters and 16-port IB switch, and was recapitalized in 2004 as NetEffect. Thirty employees, primarily engineers, have joined the Intel team from NetEffect and will continue to be based in Austin, Texas.