HP (NYSE: HPQ) announced the acquisition of ConteXtream, a leading American-Israeli provider of carrier-grade Network Function Virtualization (NFV) solutions.
After the transaction closes, ConteXtream will become part of HP’s Communications Solutions Business. ConteXtream’s current CEO, Chairman, and co-founder Nachman Shelef will continue to lead the ConteXtream business within HP and will report to Saar Gillai, SVP and General Manager of HP’s Communications Solutions Business, and former Israel Defense Forces big data, systems software and communications expert.
“As the transition to software-defined-networking continues, service providers need robust, high-performance NFV solutions that deliver network-level performance, scalability, flexibility and programmability,” said ConteXtream’s Shelef.
Co-founded in 2006 by Nachman Shelef (Technion B.Sc. Summa cum Laude) and Sharon Barkai (Hebrew University B.S., and Columbia M.Sc.), with offices in Mountain View, Calif. and Petach Tikva, Israel, ConteXtream had previously raised $23.8 million in three rounds from Benhamou Global Ventures, Gemini Israel Funds, Norwest Venture Partners and Sofinnova Ventures, as well as Comcast Ventures and Verizon Ventures.
The acquisition will further strengthen HP’s leadership in the fast-growing NFV market, which some analysts expect to grow to $11B by 2018. ConteXtream’s SDN controller platform complements HP OpenNFV solutions and aligns with NFV’s evolution as an open source-driven architecture.
“I’m excited to announce that HP has signed a definitive agreement to acquire ConteXtream, a provider of OpenDaylight-based, carrier-grade SDN fabrics for NFV, and a current HP OpenNFV partner,” said HP’s Saar Gillai.
NFV is part of an overall industry shift towards network and application virtualization. The shift to NFV is expected to transform carriers’ networking environments, allowing them to deliver new services to their customers more quickly while significantly reducing both operating and capital expenditures.
“One of the critical elements for delivering network agility for NFV is a carrier-grade software-defined networking (SDN) architecture. HP’s OpenNFV program supports multiple SDN controller technologies, and for those CSPs looking for an open approach, HP has embraced the OpenDaylight project. To fast-track its development, HP is significantly increasing its commitment to OpenDaylight SDN,” added Gillai.
HP’s objective is to help CSPs thrive in this disruptive environment by accelerating their journey to NFV. The HP OpenNFV Program is an open approach that allows HP and external partners, such as network equipment providers (NEPs) and independent software vendors (ISVs), to take advantage of the open and standards-based NFV reference architecture, HP OpenNFV Labs, and the HP OpenNFV partner ecosystem of applications and services.
“ConteXtream’s scalable and open standards based technology delivers innovative capabilities like advanced service function chaining, and is deployed at a number of major carrier networks across the globe. ConteXtream technology connects subscribers to services, enabling carriers to leverage standard server hardware to virtualize functions and services, replacing monolithic proprietary systems. With this acquisition, HP will increase its involvement in and contribute key ConteXtream capabilities to the OpenDaylight community and accelerate delivery of an open and standards based, carrier-grade SDN controller,” he further stated.
ConteXtream is a privately held software-defined-networking (SDN) company that enables carriers to deliver network capacity and functions in the same way cloud providers deliver applications effectively utilizing standard compute and storage. ConteXtream’s SDN offering, based on standards is carrier-grade and enables Network Function Virtualization (NFV) for various solutions deployed on carrier networks. Deployed by Tier-1 operators globally, ConteXtream’s Carrier-SDN fabric dynamically and elastically connects subscribers to services and enables carriers to leverage standard, low-cost server hardware and hypervisors to virtualize functions and services, while replacing costly purpose-built proprietary systems.