Microsoft Corp could now be going to be set to make one of the earliest tech deal in the New year according to the report which has been revealed, that it is interested in buying up the Israel Networking company Mellanox Technologies Ltd.
The report revealed that Microsoft had hired the services of the Goldman Sachs Group Inc. to negotiate on its behalf.
Mellanox is the maker and developer of InfiniBand and Ethernet interconnects and some other networking gear for storage and servers, and it is a good business in the market since going into the public one year ago. Mellanox is not successful but is also a major seller of the networking equipment to the Microsoft. Microsoft is interested in buying the firm to give custom parts for its data center infrastructure. This would give an edge on some of the rivals like the Google and Amazon Web Services.
Still, analysts were initially skeptical over the report which has been revealed. Patrick Moorhead, president, and principal analyst at Moor Insights & Strategy told in a report that the deal was as of now “possible,” but there is a chance that it would not be likely to happen. However, he conceded that “if Azure has some of the networking needs that cannot be fulfilled on the open market, Mellanox surely has the capability to architect that.”
“Mellanox’s IP could as of now help both Azure, and it’s little sister the Azure Stack. Effectively some of the more infrastructure-as-a-service vendors are also s hardware, networks and storage vendor now.”
But if Microsoft is interested in buying Mellanox, it could have a fight on its hands because it may not be the only bidder in the pool of dealers. Xilinx Inc., which makes field-programmable gate array chips that are used to accelerate computing workloads, has also looked at a possible bid. It has reportedly been working with some of the largest banking industry, British bank Barclays Plc to make a $5 billion offer for the company, according to the report which has been revealed.
Some other possible suitors, mentioned by London-based Data Centre Dynamics, include Intel Corp and Broadcom Inc.
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