Broadcom buys fabric for building massive data centers

Switched fabric is a technology that normally does not draw much attention. It is part of fiber channel topologies that are used for used at the edge of large networks. Until recently, few data centers needed switched fabric. Its purpose is to maintain millions of simultaneous connections in a single switch. And a data center can have hundreds of switches.

But with the growth in data centers built for cloud computing architectures, switched fabric is suddenly a hot commodity. That is why Broadcom is spending $180 million on Dune, an Israeli company that is said to have more than a third of the world market in switched fabric.

Dune’s SAND Switched Fabric line is capable of handling switching capacity up 100 Tbps. That’s 100,000 Gigabits/second. And it’s just one switch.

Broadcom’s Martin Lund told InfoWorld: “Dune’s massively scalable interconnect fabric… is particularly well suited to meet the emerging requirements for cloud computing networks at a large scale.”

Dune was founded in 2000. Some of the firm’s backers will do very well when this deal closes. According to Haaretz.com, venture capital firm Evergreen provided $8 million in Dune’s last round of financing just eight months ago. Its return will be three times that.

Other venture capital fund investors include Jerusalem Venture Partners, Pitango, Aurum-SBC Ventures, Alta Berkley Ventures, Marvel, Cipio Partners, and USVP.

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