German telecommunications equipment giant Siemens is adding US router specialist, Redstone Communications, to its new data networking division, Unisphere Solutions.
According to sources, the move follows a bidding war between Siemens and other vendors for the Massachusetts based company, including Alcatel in Paris and Lucent in Murray Hill, New Jersey.
But Siemens said the aim of the purchase was to help Internet service providers improve the quality of their networks and the addition of Redstone?s products to its growing Unisphere product portfolio would enable it to implement its strategy of offering data, voice, video integration for converged networks more quickly.
One of Redstone's key offerings is the proprietary application specific integrated circuit (Asic) design of its Edge Switch routers, which, it claims, makes them run faster than pure software routers, based only on Risc processors. The products, which start shipping later this month, provide IP Quality of Service capabilities, port density levels, wire speed forwarding performance, and carrier class reliability.
Jim Dolce, Redstone?s president and chief executive, will become a member of Unisphere?s management team and will report directly to Martin Clague, the unit?s president and chief executive. No lay offs are expected as a result of the acquisition.
Dolce said: "Internet traffic is growing by an order of magnitude each year. Redstone is fortunate to support this growth with products that can manage traffic intelligently across the service provider network."
Unisphere generated revenues of $10.2 billion up from $10 billion in the same period last year for the firm?s first fiscal five months, which ended on 28 February 28, and Redstone adds to its stable of small data networking companies.
These already include Castle Networks and its data networking offerings, Argon Networks and its high performance router, and Accelerated Networks, in which Siemens has taken a stake.
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