The move reflects a trend toward integrating optical and electronic components in ready-made modules that contain all the parts that used to be available only on board-level interface cards.
Equipment makers crave smaller, prepackaged components that streamline the process of designing and manufacturing optical gear, both for telecom and datacom use. The trend's attracted established players such as Agere Systems (NYSE: AGR), as well as startups such as Network Elements Inc. and Optium Corp..
For its part, IBM says it wanted to sell the business as part of an ongoing effort to jettison nonstrategic elements of the microelectronics unit, which analysts say is "bleeding" money. Apparently, IBM has been shopping the unit for months, particularly to companies with big cash reserves, such as JDSU.
IBM wants to focus its development dollars more closely, particularly in the area of network processors, where spokespeople say Big Blue sees a more compelling opportunity than in traditional ASICs.
Analysts say the overall impact of the deal won't be huge for the market in general. "We see little change in the competitive landscape because of this move," writes Kevin Slocum of Wit Soundview in a research note today. He says IBM was losing ground to Agilent Technologies Inc. (NYSE: A) and Finisar Corp. (Nasdaq: FNSR) in the area of SAN and LAN chips and that "JDS will need to build its channel and stabilize the situation."
By combining resources and expertise, the AI-Enabled ICT Workforce Consortium will offer a blueprint for how industries can adapt to an AI-dominated future.
IT leaders should heed the guidance of cybersecurity insurance providers who think businesses should prioritize security education, incident preparedness, regular internal audits, and ongoing vulnerability scanning and patching.
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