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Broadcom Raids SATA Startup

The marriage of chipmaker Broadcom Corp. (Nasdaq: BRCM) and RAID controller startup RaidCore Inc. (Nasdaq: BRCM) is expected to produce the obvious offspring -- RAID-on-a-chip.

The idea of providing RAID-on-a-chip (ROC) and RAID-on-a-motherboard (ROM) products prompted Broadcom to spend $16.5 million on the Nashua, N.H.-based company. RaidCores 14 employees will remain in Nashua and become part of the storage section of Broadcom’s Enterprise Computing Group (see Broadcom Acquires RAIDCore).

For the current quarter, which ends March 31, Broadcom will pay approximately $10 million in various costs related to the acquisition. The company hasn’t set a timetable for paying the final $6.5 million.

While Broadcom makes some storage components, incorporating RaidCore's RAID software will give it more options to compete against other server chip vendors with storage capabilities. Broadcom expects the combination of its own technology with RaidCore’s to lead to new server I/O chipsets; broadband processors, PCI-X and PCI-Express-based Serial ATA I and II controllers and multiplexers, and even Gigabit Ethernet controllers.

Big plans, but Broadcom sees RaidCore’s Serial ATA (SATA) product and management software first in new server storage products. Tom Lagatta, Broadcom's head of Enterprise Computing, says he expects Broadcom to have ROC and ROM products for midrange and entry-level OEM configurations next year.

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