Wikipedia

Mellanox Technologies

Mellanox Technologies Ltd.(Hebrew:מלאנוקס טכנולוגיות בע "מ) was anIsraeli-American multinational supplier of computer networking products based onInfiniBandandEthernettechnology. Mellanox offered adapters, switches, software, cables and silicon for markets includinghigh-performance computing,data centers,cloud computing,computer data storageand financial services.[3]

Mellanox Technologies Ltd.
Company typeSubsidiary
Nasdaq:MLNX
IndustryCommunication equipment
Founded1999;26 years ago(1999)inYokneam Illit,Israel
FoundersEyal Waldman,Shai Cohen, Roni Ashuri, Michael Kagan, Evelyn Landman, Shimon Rottenberg, Eitan Zahavi, Udi Katz, Alon Webman
Defunct2020(2020)
FateAcquired byNvidia
HeadquartersSunnyvale,California,U.S.[1]
ProductsEthernetandInfiniBandswitches
host bus adapters
RevenueIncreaseUS$1,330.6 Million(FY19)[2]
IncreaseUS$207.9 Million(FY19)
IncreaseUS$205.1 Million(FY19)
Number of employees
2,800 (March 2020)
ParentNvidia
Websitemellanox

On March 11, 2019,Nvidiaannounced its intent to acquire the company for $6.9 billion.[4][5]The deal closed on April 27, 2020, with approval from theEU,U.S. and Chinese antitrust authorities.[6]

The company was integrated into Nvidia's networking division in 2020 and Nvidia stopped using the brand name "Mellanox" for its new networking products.

History

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1999–2009

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Mellanox was founded in May 1999 by formerIsraeliexecutives of Intel Corporation and Galileo Technology (which was acquired byMarvell Technology Groupin October 2000 for $2.8 billion)[7]Eyal Waldman,Shai Cohen, Roni Ashuri, Michael Kagan, Evelyn Landman, Eitan Zahavi, Shimon Rottenberg, Udi Katz and Alon Webman. Eyal Waldman founded Mellanox in the Israel city ofYokneam Illit.[8]Financial offices were inSanta Clara, Californiain the USA.[9]In February, 2002, a round ofventure capitalinvestment was announced of about $56 million.[10] Later extended to about $64 million, investors includedIntel,IBM,Sequoia CapitalandU.S. Venture Partners,[9][11]

Mellanox had itsinitial public offeringin February, 2007, onNASDAQthat raised $102 million, and valued the company at over half a billion dollars.[12] Its shares were listed under the symbol MLNX.[13] Created in 2009, Mellanox's investment fund was publicly announced in 2014.[14] Initially founded as anintegrated circuit(chip) manufacturer, it evolved into a producer of complete network systems by 2009.[15]

2010–2016

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In 2010,Oracle Corporationbecame a major investor in the company, holding around 10% of its stock.[11]Oracle uses InfiniBand technology in itsExadataand Exalogic appliances.[16]Stock shares were also listed on theTel Aviv Stock Exchange,until 2013 when the company de-listed itself, but remained on NASDAQ.

In February 2011, Mellanox acquired Voltaire Ltd., a provider of data center switches for about $218 million.[17][18] In November 2012, Mellanox was named one of the fastest growing companies by a marketing firm.[19]

In 2013 Mellanox acquiredassetsof XLoom Communications Ltd., including opto-electric chip-scale packaging, and some of XLoom's technology personnel.[20] In July 2013, Mellanox acquired privately held Kotura, Inc., a developer ofsilicon photonicsoptical interconnect technology for high-speed networking.[21]In July 2013, Mellanox acquired privately heldIPtronicsA/S, a designer of optical interconnect components for digital communications.[22]

In July 2014, Mellanox acquired privately held Integrity Project, for its software connectivity, low-level development, real-time applications and security technology.[23]In February 2016, Mellanox acquired publicly heldEZchip Semiconductor,a provider ofnetwork processorsand multi-core processors from EZchip's earlier acquisition ofTilera.[24]

In 2016, Mellanox Technologies began to employ programmers in theGaza Strip,in addition to its team ofIsraeli Arabprogrammers and programmers in Ramallah and Nablus.[25]In 2016, Mellanox had revenues of $857 million.[8]In December 2017, Mellanox announced it would start a new startup accelerator.[14]Over 2017, shares in the company rose by 55 percent. That year, the company also made its largest acquisition withEZchip.[8]

2018–acquisition

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The activist investorStarboard Value LPpurchased a 10.7% stake in the company in November 2017.[26] In January 2018, Starboard criticized the company's research and development spending and argued for short-term profits instead.[27][28]The day after, on January 9, 2018, Mellanox announced it would immediately discontinue its 1550 nm silicon photonics development activities, with president and CEO Eyal Waldman saying the review of the silicon photonics business had started in May 2017.[29]Mellanox also said it would fire 100 people, all in the US. At the time, the company employed 2,900 people, mostly in Israel.[30]

In a "board battle,"[31]Starboard sent a letter to shareholders asking them to entirely replace the board of directors.[32]At the time, Mellanox had a $3.3 billion market value.[26]Starboard said it would nominate nine candidates for election to the company's board, including Starboard headJeffrey Smith.[33] In May, 2018, stockholders approved the company's governance proposals related to the possibility of the contested board elections.[34] By June, 2018, three board members agreed to step down and be replaced by two Starboard candidates and one agreed upon by both sides.[35]

In 2019, Mellanox was acquired for $6.9 billion byNvidia Corporationmaking it one of the largestmergers and acquisitionsin 2019.[36] Other companies willing to acquire Mellanox wereIntel,XilinxandMicrosoft.[37] Founder and long-term CEO Eyal Waldman left the company in November, 2020. He made an estimated $240 million on the acquisition.[38]

Products and market

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Mellanox at SC18

Mellanox was afabless semiconductor company,which then sold products based on those semiconductorintegrated circuits.[39] Starting from at least 2011, its chips were produced byTaiwan Semiconductor Manufacturing Corp(TSMC).[40] Mellanox Technologies provided Ethernet and InfiniBandnetwork adapters,switchesand cables for servers and storage used in cloud and enterprisedata centersbased on internally developed integrated circuits.[18][41] Mellanox had two major customers,Hewlett-PackardandDell EMC,which each contributed more than 10% of revenues in 2017, 2018, and 2019.[3]

Mellanox specialized inswitched fabricsfor enterprise data centers andhigh performance computing,when high data rates and low latency are required such as in acomputer cluster.[15] One typical application was a largedatabase management system.[42] Mellanox network adapter and switches supportedremote direct memory access(RDMA) andRDMA over Converged Ethernet.

Product names included:

  • The ConnectX product family of multi-protocolASICsand adapters supports virtual protocol interconnect (VPI), enabling support for both Ethernet and InfiniBand traffic at speeds up to 200 Gbit/s. The ConnectX-6, and ConnectX-6 Dx adapters have enhanced capabilities such as high speed (up to 200 Gb per second), OVS acceleration, Multi-Host support, and inline crypto acceleration.[43][44][45]
  • The ConnectX architecture has been described as "novel", with excellent performance that is "very well suited for modernmulti-coreplatforms ".[46]The Quantum family of InfiniBand switches supports up to 40 ports running at HDR 200 Gbit/s. The Quantum switches offer un-matched latency and packet forwarding performance and support advanced HPC offloads including SHARP (collective operation acceleration) and SHIELD (self-healing) technologies.
  • The Spectrum product family of Ethernet switches.
  • The LinkX product family of cables and transceivers. These products are available for both Ethernet and InfiniBand protocols and various form factors.[47]

High-performance computing

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By 2011, Mellanox's InfiniBand products forcomputer clustershad been deployed in many of theTOP500lists ofhigh-performance computers.[48]

Storage

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Although originally associated with InfiniBand products, Mellanox was later able to use its technology forstorage area networks(SANs), to replace legacyFibre Channelfor example with the much more commonEthernetfamily of standards, since 2011.[49][40]

Operations

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In addition to its headquarters in the US, Mellanox had offices in Israel, Denmark, China, Russia, Singapore, Taiwan, Japan and the United Kingdom.[50]

Support of the Palestinian Tech Economy

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Mellanox outsourced some of its engineering to theWest Bank.Rather than setting up offshore engineering centers in the Far East or Eastern Europe, Mellanox hired Palestinian engineers fromRamallahthrough a Palestinian outsourcing firm.[51]In 2018, Waldman told a Tel Aviv conference hosted byGlobesmagazine that over 100 Palestinians are working on Mellanox projects.[52]

Waldman had previously talked about Mellanox's plans to build a research and development center in Ramallah, even though it is more expensive than outsourcing to Eastern Europe.[53]

See also

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References

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  1. ^"Mellanox office locations".Mellanox Technologies.
  2. ^"mellanox delivers record fourth quarter and annual 2019 financial results"(PDF).Mellanox Technologies. 2020.
  3. ^ab"Form 10-K/A: Annual Report for the Year 2019".US Securities and Exchange Commission. April 23, 2020.RetrievedSeptember 27,2021.
  4. ^"NVIDIA buys high-performance chip-maker Mellanox for $6.9 billion".Engadget.Retrieved2021-06-08.
  5. ^Newsroom, NVIDIA."NVIDIA to Acquire Mellanox for $6.9 Billion".NVIDIA Newsroom Newsroom.Retrieved2021-06-08.{{cite web}}:|last=has generic name (help)
  6. ^"Nvidia gets China's go-ahead for $6.9 billion Mellanox deal".Reuters.2020-04-16.Retrieved2021-06-08.
  7. ^"Marvell to acquire LAN-chip supplier Galileo for $2.7 billion in stock".EE Times.2000-10-17.Retrieved2011-06-12.
  8. ^abcSolomon, Shoshanna (December 26, 2017)."When a startup gets big, the environment gets rougher, says Mellanox CEO".The Times of Israel.RetrievedJanuary 20,2018.
  9. ^ab"Form D: Notice of Sale of Securities"(PDF).US Securities and Exchange Commission. March 20, 2002.RetrievedSeptember 27,2021.
  10. ^Kovar, Joseph F. (February 11, 2002)."VC Money Continues To Drain Into InfiniBand: Mellanox Secures $56M".CRN Magazine.RetrievedSeptember 27,2021.
  11. ^abTsipori, Tali (September 25, 2011)."Oracle acquires $11m more Mellanox shares".Globes.Retrieved2011-10-29.
  12. ^Walko, John (February 8, 2007)."Mellanox raises $102 million with IPO on Nasdaq".EE Times.Archived fromthe originalon March 16, 2012.RetrievedSeptember 27,2021.
  13. ^"Amendment Number 2 to Form S-1: Registration Statement".US Securities and Exchange Commission. December 7, 2006.RetrievedSeptember 27,2021.
  14. ^abHabib-Valdhorn, Shiri."Mellanox to launch startup accelerator".Globes.RetrievedJanuary 20,2018.
  15. ^abAckerman, Gwen (January 5, 2011)."Mellanox CEO Sees Sales Rising 10-Fold With Voltaire".Bloomberg.Retrieved2011-10-29.
  16. ^Bagh, Carl (October 29, 2010)."Oracle buys 10 pct stake in Mellanox, will Dell, HP, IBM follow suit?".International Business Times.Archived fromthe originalon November 12, 2010.Retrieved2011-10-29.
  17. ^"Mellanox Technologies, Ltd. Completes Acquisition of Voltaire, Ltd".Press release.February 7, 2011.RetrievedApril 23,2017.
  18. ^abTimothy Prickett Morgan (November 29, 2010)."Mellanox gobbles up Voltaire for $218m".The Register.RetrievedApril 23,2017.
  19. ^"Mellanox Technologies Ranked Number 364 Fastest Growing Company in North America on Deloitte's 2012 Technology Fast 500".Mellanox.RetrievedNovember 14,2012.
  20. ^"Strategic Acquisitions".Mellanox web site.RetrievedSeptember 27,2021.
  21. ^"Mellanox Technologies, Ltd. Completes Acquisition of Kotura, Inc".NASDAQ.RetrievedAug 15,2013.
  22. ^"Mellanox Technologies, Ltd. Completes Acquisition of IPtronics A/S".NASDAQ.RetrievedJul 1,2013.
  23. ^"Mellanox Technologies Ltd. Announces Definitive Agreement to Acquire Integrity Project".NASDAQ.RetrievedJune 24,2014.
  24. ^Cohen, Tova (2015-09-30)."Israel's Mellanox to buy EZchip for $811 million".Reuters.Retrieved2021-06-08.
  25. ^Mellanox Hires Programmers in the Gaza Strip
  26. ^abBenoit, David (January 17, 2018)."Starboard Value to Launch Proxy Fight for Entire Board at Mellanox".The Wall Street Journal.New York City, New York.RetrievedJanuary 18,2018.
  27. ^Solomon, Shoshanna (January 8, 2018)."Activist investor Starboard calls for 'substantial change' at Israel's Mellanox".The Times of Israel.RetrievedJanuary 20,2018.
  28. ^Venugopal, Aishwarya (January 8, 2018)."Starboard says chipmaker Mellanox's 2018 targets insufficient".Reuters.RetrievedJanuary 20,2018.
  29. ^"Mellanox to cease 1550nm silicon photonics development".optics.org.January 10, 2018.RetrievedJanuary 20,2018.
  30. ^Solomon, Shoshanna (January 10, 2018)."Mellanox to cut 100 US jobs as chip line development halted".The Times of Israel.RetrievedJanuary 20,2018.
  31. ^Schacknow, Peter (January 18, 2018)."Stocks making the biggest moves premarket: MS, WMT, WWW, LQ, AAPL, AA & more".CNBC.RetrievedJanuary 20,2018.
  32. ^Ray, Tiernan (January 18, 2018)."Mellanox, Under Siege From Starboard, Surges 6% on Q4 Beat, Outlook".Barron's.RetrievedJanuary 20,2018.
  33. ^Starboard to nominate nine candidates to Mellanox board,Reuters,January 17, 2018,retrievedJanuary 20,2018
  34. ^Dror Reich (May 27, 2018)."Mellanox Wins First Round in Struggle with Activist Shareholder Starboard".Calcalist Tech.RetrievedSeptember 27,2021.
  35. ^Dror Reich (June 21, 2018)."Mellanox CEO Downplays Drama of Starboard's Attempt to Take Over Board".Calcalist Tech.RetrievedSeptember 27,2021.
  36. ^GmbH, finanzen net."Nvidia is buying Mellanox Technologies in a $6.9 billion deal (NVDA) | Markets Insider".markets.businessinsider.Retrieved2019-10-05.
  37. ^"Daily Crunch: NVIDIA is buying Mellanox for $6.9B".TechCrunch.11 March 2019.Retrieved2019-03-12.
  38. ^Omri Zerachovitz and Ofir Dor (November 4, 2020)."Waldman quits Mellanox: I don't want to be number two".Globes.RetrievedSeptember 27,2021.
  39. ^"Web-chip fabless Mellanox poised to raise $50m at company value of $250m".TheMarker.October 30, 2001. Archived fromthe originalon February 4, 2013.Retrieved2011-10-29.
  40. ^abPrickett Morgan, Timothy (April 26, 2011)."Mellanox uncloaks SwitchX network switch-hitter".The Register.RetrievedSeptember 27,2021.
  41. ^Amodio, Michelle (October 6, 2011)."On the Road with Mellanox Technologies".TMCnet.RetrievedSeptember 27,2021.
  42. ^"Oracle Makes Strategic Investment In Mellanox Technologies, Ltd".Press release.Oracle.October 27, 2010. Archived fromthe originalon November 6, 2010.RetrievedSeptember 27,2021.
  43. ^"ConnectX-6 Product Family".Mellanox.
  44. ^"ConnectX-6 VPI".community.mellanox.Retrieved2016-06-22.
  45. ^"ConnectX-6 Dx".mellanox.Retrieved2020-01-07.
  46. ^Sur, Sayantan; Koop, Matthew J.; Lei; Panda, Dhabaleswar K. (2007). "Performance Analysis and Evaluation of Mellanox ConnectX InfiniBand Architecture with Multi-Core Platforms".Hoti.15th Annual IEEE Symposium on High-Performance Interconnects (HOTI 2007):125–134.CiteSeerX10.1.1.81.4890.
  47. ^"NVIDIA Networking Linkx Cables and Transceivers at PNY".PNY.Retrieved2024-01-31.
  48. ^"Mellanox 200G HDR InfiniBand Accelerates 31% of New InfiniBand Systems on November's TOP500".Bloomberg.June 27, 2011.
  49. ^Prickett Morgan, Timothy (September 26, 2017)."The Ascendancy Of Ethernet Storage Fabrics".The Next Platform.RetrievedSeptember 27,2021.
  50. ^"Mellanox Contact Us".mellanox.Retrieved2019-04-01.
  51. ^Heruti-Sover, Tali (November 7, 2010)."High-tech company aims to be first Israeli firm to hire Palestinian engineers".Haaretz.Retrieved2011-10-29.
  52. ^Levy, Aviv (21 June 2018)."Mellanox CEO: We employ over 100 Palestinians".Globes.Retrieved25 July2018.
  53. ^Mitnick, Joshua (April 22, 2011)."Tech diplomacy: Israeli CEO hires Palestinian programmers".The Christian Science Monitor.Retrieved2011-10-29.
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  • Official website
    • Historical business data for Mellanox Technologies, Ltd.:
    • SEC filings
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