Ethernet vendors Turin Networks and Force10 Networks said Jan. 5 they are
merging their operations in what is widely viewed as a defensive maneuver in
tough economic times.
Turin President and CEO Henry Wasik will
become the president and CEO of the combined
entity, while current Force10 Networks President and CEO
James Hanley will assume the role of president, field operations, with
responsibility for sales, marketing, services and business development.
Pending the completion of legal and regulatory filings, the merger should be
finalized by March. The new combined entity company will be headquartered
in San Jose, Calif.,
with sales offices worldwide and research centers in Chennai,
India, and Shanghai,
China. Terms of the
transaction were not disclosed.
Turin, based in Petaluma,
Calif., which focuses on the carrier
Ethernet, wireless backhaul and converged access equipment markets, claims its
solutions have been deployed by more than 600 customers worldwide, including
the top five wireless network operators in the United
States, as well as 11 of the top 17
broadband Internet providers. According to the Dell'Oro Group, Force10 Networks
has the industry's second highest revenue share for total 10 Gigabit Ethernet
networks.
"Strategically, the merged company will be the only private networking
company that is a leading player in three of the fastest growing segments of
the networking market," Wasik said in a statement. "High capacity
system architecture and reliable modular software are essential for the next-generation
data center, and we see similar requirements to facilitate the transition from
legacy networks to a more cost-effective, packet-optimized infrastructure for
wireless backhaul and metro Ethernet service delivery."
Industry analyst firm IDC projects 2
million 10 Gigabit Ethernet ports will be deployed in data centers worldwide
next year, while data center Ethernet switching revenue will grow at 8 percent
annually to reach $6.4 billion in 2012. Industry analyst firm Ovum RHK expects
the market for pseudowire and Ethernet backhaul transport equipment to grow by
more than a factor of 10 by 2012, reaching more than $5 billion in 2012.
"This merger creates both operational efficiencies and market focus in
two high-growth, high-performance networking segments," Hanley said.
"The new company will also be positioned over time to deliver innovative
new product solutions through the integration of Turin Networks’ wireless
backhaul, metro service edge and converged access products and Force10
Networks’ access switches."
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