Mellanox Steps on Investment Pedel in India, Mulls Manufacturing Base in the Country

November 4, 2018

Marc Sultzbaugh, Senior Vice President, Worldwide Sales & Marketing


Mellanox Technologies, which makes hardware that helps power supercomputers and Ethernet products used in data centers, is mulling more investment in India as part of its strategy to expand its operations in the country.

According to Marc Sultzbaugh, Senior Vice President, Worldwide Sales & Marketing of the maker of chips and other hardware for data centre servers that power cloud computing, his company will soon make an announcement of a manufacturing base in India.

As the leading provider of high-performance Ethernet adapters at 25, 50, and 100 Gb/s, Mellanox currently has almost 75 % market share, he said.

“Mellanox’s 25GbE adapters have become a key element in helping to drive the data center transformation needed to achieve the improved performance and efficiency of these demanding applications,” Sultzbaugh pointed out.

Mellanox has a market capitalization slightly under $4 billion as of current market close. The company has two corporate headquarters — one in Sunnyvale, California and one in Yokneam, Israel.

“The adoption of high-performance Ethernet technology has spread to enterprise data centers globally, including the next wave of cloud, telco/service providers, financial services and more. Mellanox is benefiting from this transition,” Sultzbaugh said.

This market leadership is driven by the unique hardware accelerators and broad software support of the Mellanox ConnectX family of Ethernet adapters, he added.

“The adoption of 25GbE adapters is accelerating and Mellanox has currently established itself as the market share leader in this segment, now we want to top the booming Indian market,” Sultzbaugh informed.

Mellanox specializes in chips and other hardware for data center servers that power cloud computing. The company has evolved from a supplier of InfiniBand switch and adapter ASICs into a company that doesn’t just sell high performance InfiniBand products over the past two decades. The gear and software that adheres to the Ethernet standard that is far more ubiquitous in the datacenters of the world.

Mellanox has shipped more than 2.1 million Ethernet adapters during the first nine months of 2018. This milestone is significant, as it signals that high-performance Ethernet technology (25G and faster) has moved beyond the Super 7 cloud and web titans, said a company release.

Charlie Foo, VP and GM, Asia Pacific/Japan

“The adoption of high-performance Ethernet technology has spread to enterprise data centers in Asia, including the next wave of cloud, telco/service providers, financial services and more,” noted Charlie Foo, VP and GM, Asia Pacific/Japan.

“Mellanox is benefiting from this transition and gaining market share as the leading provider of high-performance Ethernet adapters at 25, 50, and 100 Gb/s with higher revenue share of the merchant market,” Foo added.

According to various market research reports, growing demand for higher network speeds for fast processing of data bodes well for Mellanox’s interconnect solutions. The company recently announced the availability of 200G Ethernet LinkX copper, optical cables and transceiver.

Market analysts said that robust adoption of Mellnaox’s Gigabit EDR solutions in machine learning, artificial intelligence (AI), high-performance computing (HPC), database and storage is expected to be a tailwind.

Moreover, the company is winning contracts globally. Mellanox 100 Gigabit Ethernet Spectrum-based switches, ConnectX adapters, cables and modules were selected for Singapore’s National Supercomputing Centre (NSCC) during the last quarter.

“It is this growing mix of products as well as its ability to sell a complete network stack, from the server ports all the way to the spine and director switch, that is going to make Mellanox a $1 billion company this year,” Sultzbaugh said.

Mellanox offers a full end-to-end high-performance Ethernet networking product line of ConnectX adapters, BlueField SmartNICs and storage controllers, Spectrum switches, and LinkX cables and transceivers that deliver world leading price-performance. These solutions range from 10 to 100 Gb/s and are adopted by customers globally to improve their data center workload efficiency and create actionable analytics to monetize their business data.

Mellanox is uniquely positioned to benefit from secular data growth, as it supplies high-performance interconnect solutions with a total addressable market of over $10 billion, as well as high-speed ethernet solutions for data centers, which is a smaller market. (With inputs from Netevents)

By Our Staff Correspondent

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