Arbor Networks has signed a definitive agreement to acquire Ellacoya Networks, a provider of carrier-class broadband service optimisation applications.
Terms of the transaction were not disclosed.
Arbor Networks protects more than 70% of the world’s service provider networks from security threats such as DDoS attacks, botnets and worms as well as network issues such as traffic and routing instability.
Ellacoya is a provider of deep packet inspection (DPI) applications deployed at the broadband edge and peering links in some of the world’s largest Tier 1 service provider networks, providing visibility into traffic along with the ability to prioritise traffic on a per-subscriber and per-application basis.
Arbor believes that the acquisition positions the company to take advantage of a significant market opportunity as service providers place increased importance on traffic and service management in order to efficiently and securely deliver new, revenue-generating IP services.
The company estimates that the combination of the traditional Infrastructure Security and Service Control and DPI markets creates a $750 million market opportunity in 2008, which should grow to $1.5 billion by the end of this decade.
The combined product family will enable service providers to detect and mitigate the full range of network-based attacks and extend protection from the service provider core down to the broadband edge. Additionally, allowing a service provider to employ both flow-based and DPI-based technologies will enable measurement and protection of the entire service delivery infrastructure, without the cost of deploying inline devices throughout the entire network.
“With the addition of the Ellacoya technology and customer base, Arbor Networks will be in a unique position to deliver both broad and deep visibility to protect and manage networks worldwide. We believe that customers will realise enormous value from this strategic and best-in-class combination,” says Jack Boyle, CEO, Arbor Networks.
“Arbor’s flow-based security and network-wide analysis, combined with Ellacoya’s DPI capabilities, will provide customers with the intelligence they need to deliver personalised next-generation services that are the key to customer satisfaction and future revenue,” adds Gerald Wesel, chairman and CEO, Ellacoya Networks.