AMD's acquiring Pensando for $1.9 Billion to expand its Data Center capabilities
First Xilinx, now Pensando
Published: 4th April 2022 | Source: AMD |
AMD's making another big purchase, hoping to expand its prescience within the datacenter market
AMD had today announced that they are acquiring Pensando, the distributed networking company, for $1.9 billion. This move is designed to compliment AMD's EPYC product lines and their other data center products (GPUs, FPGAs, and adaptive SOCs).
Pensando has created both hardware and software to manage an accelerate distributed computing workloads. This is a huge add-on for AMD moving forward, as Pensando's technology can allow customers to make more effective use of AMD's other products. Using Pensando's packet processors, networking can be accelerated and workloads can be offloaded from a server's CPU, increasing overall system performance. This allows AMD to offer its customers a broader range of services within the datacenter market, making AMD a one-stop-shop for data center computing solutions.
In a sense, this acquisition does for AMD what Nvidia's Mellanox acquisition did for them. It brings AMD into the networking market and gives them another area where they can compete with both Intel and Nvidia. Before this acquisition, networking was an area where AMD's competitors had an advantage. Once this acquisition closes, that ceases to be the case. This acquisition fills a hole in AMD's product stack, and buying Pensando for $1.9 billion is cheaper and faster than building their own technology from scratch.
Below is what AMD's CEO, Lisa Su, had to say regarding the acquisition.
To build a leading-edge data center with the best performance, security, flexibility and lowest total cost of ownership requires a wide range of compute engines. All major cloud and OEM customers have adopted EPYC processors to power their data center offerings.
Today, with our acquisition of Pensando, we add a leading distributed services platform to our high-performance CPU, GPU, FPGA, and adaptive SoC portfolio. The Pensando team brings world-class expertise and a proven track record of innovation at the chip, software and platform level which expands our ability to offer leadership solutions for our cloud, enterprise and edge customers.
Press Release - AMD Expands Data Center Solutions Capabilities with Acquisition of Pensando
AMD today announced a definitive agreement to acquire Pensando for approximately $1.9 billion before working capital and other adjustments. Pensando’s distributed services platform includes a high-performance, fully programmable packet processor and comprehensive software stack that accelerate networking, security, storage and other services for cloud, enterprise and edge applications.
“To build a leading-edge data center with the best performance, security, flexibility and lowest total cost of ownership requires a wide range of compute engines,” said Dr. Lisa Su, AMD chair and CEO. “All major cloud and OEM customers have adopted EPYC processors to power their data center offerings. Today, with our acquisition of Pensando, we add a leading distributed services platform to our high-performance CPU, GPU, FPGA and adaptive SoC portfolio. The Pensando team brings world-class expertise and a proven track record of innovation at the chip, software and platform level which expands our ability to offer leadership solutions for our cloud, enterprise and edge customers.”
Pensando’s products are already deployed at scale across cloud and enterprise customers, including Goldman Sachs, IBM Cloud, Microsoft Azure and Oracle Cloud. Pensando’s high-performance, highly scalable distributed services platform includes a programmable packet processor that can be distributed throughout a network to efficiently accelerate multiple infrastructure services simultaneously, offloading workloads from the CPU and increasing overall system performance. Combined with Pensando’s system software stack, the platform offers unprecedented performance, scale, flexibility and security. In real-world cloud deployments, Pensando’s solution demonstrates between 8x and 13x greater performance compared to competitive solutions.
“We are excited to join the AMD family. Our shared cultures of innovation, excellence and relentless focus on partners and customers make this an ideal combination. Together, we have the talent and tools to deliver on our customers’ vision for the future of computing,” said Pensando CEO Prem Jain. “In less than five years Pensando has assembled a best-in-class engineering team that are experts in building systems together with a rich, deep ecosystem of partners and customers who have currently deployed over 100,000 Pensando platforms into production. Joining together with AMD will help accelerate growth in our core business and enable us to pursue a much larger customer base across more markets.”
“Industry leadership is based on catching business model disruptions enabled by new technologies,” said John Chambers, chair of the board of Pensando. "Pensando is built upon strong customer relationships and a solution that is at least two years ahead in cloud, edge and enterprise. For example, the performance and scale of Pensando’s distributed services platform is 8x-13x of the largest cloud provider and uses less power. Pensando’s smart switching architecture has 100x the scale, 10x the performance at one-third the cost of ownership of any comparable products in the enterprise market. Pensando’s leadership position in software-defined cloud, compute, networking, security and storage services as part of the much larger AMD portfolio is in my opinion a perfect fit to shape the data center computing landscape for the next decade.”
CEO Prem Jain and the Pensando team will join AMD as part of the Data Center Solutions Group, led by AMD Senior Vice President and General Manager Forrest Norrod. Pensando will remain focused on executing their product and technology roadmaps, now with additional scale to accelerate their business and address growing market opportunities across a broader number of customers.
The acquisition is expected to close in the second quarter of 2022, following satisfaction of customary closing conditions including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.