Intel acquires Smart Edge for $27m
October 23, 2019
Intel is to acquire the Smart Edge intelligent-edge platform business from Pivot Technology for $27m. Smart Edge is a cloud-native, scalable and secure platform for multi-access edge computing.
With Smart Edge, enterprises and communications service providers can enable cloud-like services closer to the user on the customer-premise or network edge. The expansion of computing in the network and at the edge is an important growth opportunity for Intel – an estimated $65bn silicon addressable market by 2023. Edge computing is an opportunity that is accelerating with the rollout of 5G networks.
"This transaction enhances our ability to address the 5G network transformation with a leading position in edge computing,” said Dan Rodriguez, Intel vice president. “We plan to take full advantage of our combined technologies and teams to accelerate the development of the edge computing market while creating a compelling solution for customers."
The Smart Edge platform is built to run on Intel technologies, such as Xeon scalable processors today and, going forward, Intel Optane memory, FPGAs and other accelerators. Smart Edge's software is also complementary with Intel's OpenNess open network edge services software project.
For enterprises and service providers, Smart Edge enables opportunities and revenue streams while reducing the total cost of ownership for intelligent edge offerings. For example, retailers could deploy personalised and location-aware in-store experiences or factories could combine 5G, data analytics and artificial intelligence near the edge to drive greater operational efficiencies.
Approximately 25 Smart Edge employees, including Smart Edge CEO Bob Pike, will join Intel's NCLG network and custom logic group when the transaction closes, which is expected in the coming weeks.
Also, as a part of this acquisition, Intel and Pivot will sign a three-year preferred channel partner agreement, which identifies Pivot as an authorised Smart Edge reseller and Intel's non-exclusive preferred systems integrator for Smart Edge-based edge services.
"Intel is the right company and brand to advance and scale Smart Edge's software," said Kevin Shank, CEO of Pivot. "Our partnership with Intel will leverage Pivot's core strengths as a technology integrator and service provider with Intel's advanced technology to drive the adoption of the Smart Edge platform. We look forward to collaborating with Intel to develop and take to market many new edge computing use cases.
"It's been exciting to develop and launch this cutting-edge platform and to witness the enthusiastic response from customers and partners. Pivot remains focused on the vast opportunities at the edge and, with our Intel partnership, we maintain our goal of becoming the number one edge services provider in North America."