Intel Buys NetEffect

Intel is spending $8 million to acquire networking specialist NetEffect, although the company will retain all its staff.

Times might be tough, but Intel is still splashing out, spending $8 million to acquire Texas-based networking specialist NetEffect. Intel will get all the assets and intellectual property, but NetEffect will keep operating out of its current Austin HQ and keep all its staff.

So what’s in it for Intel? They get products that lets servers link with 1 Gigabit and 10 Gigabit Ethernet connections as well as the iWARP Ethernet system, and Infiniband alternative.

Tom Swinford, general manager, Intel LAN Access Division, said:

"NetEffect’s role as a data communications solution provider and the company’s technology will enhance Intel’s current Ethernet efforts. The combination of Intel and NetEffect technology will allow Intel to address our customers’ most important 10 Gigabit Ethernet needs, including server virtualization, convergence of network and storage traffic, and server compute clusters."