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Arbor Networks to Acquire Ellacoya Networks


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January 17, 2008

Arbor Networks to Acquire Ellacoya Networks

By Susan J. Campbell
TMCnet Contributing Editor

Arbor Networks, a provider of secure service control solutions for global business networks, has announced that it has signed a definitive agreement to acquire Ellacoya Networks (News - Alert), a provider of carrier-class broadband service optimization solutions. Transaction terms were not disclosed.

More than 70 percent of the world’s service provider networks are protected by Arbor Networks from security threats such as DDoS attacks, botnets and worms, as well as network issues such as traffic and routing instability.

By combining pervasive, network-wide visibility with deep applications insights, Arbor provides customers with the business intelligence necessary to protect and manage their networks, and to create and deploy new revenue-generating services.  

Ellacoya has made its name in deep packet inspection (DPI) solutions deployed at the broadband edge and peering links in some of the world’s largest Tier 1 service provider networks. As such, the company provides precise visibility into traffic along with the ability to prioritize traffic on a per-subscriber and per-application basis.
In addition, the Ellacoya solution is used to deliver new products and services, such as IPTV, digital video and on-demand quality-assured broadband services.

Arbor believes that the acquisition puts the company in position to take advantage of a significant market opportunity as service providers place increased importance on traffic and service management in an effort to efficiently and securely deliver new, revenue-generating IP services.

According to Arbor, the combination of the traditional Infrastructure Security and Service Control and DPI markets creates a $750 million market opportunity in 2008. The company estimates that the market will grow to $1.5 billion by the end of this decade.

The resulting product family from this acquisition is expected to enable service providers to detect and mitigate the full range of network-based attacks and extended protection from the service provider core down to the broadband edge.

Allowing a service provider to employ both flow-based and DPI-based technologies helps to enable measurement and protection of the entire service delivery infrastructure, while avoiding the cost of deploying inline devices throughout the entire network. 
This powerful combination can improve network performance and customer satisfaction, while also enabling service providers to deliver the full-spectrum of IP-based business lines, such as wireless, wireline, IPTC and VoIP solutions.
“With the addition of the Ellacoya technology and customer base, Arbor Networks will be in a unique position to deliver both broad and deep visibility to protect and manage networks worldwide,” said Jack Boyle, chief executive officer of Arbor Networks, in a Thursday statement.
“We believe that customers will realize enormous value from this strategic and best-in-class combination. Through Ellacoya, Arbor Networks is adding a team of professionals with exceptional skills and a culture that is highly complementary.”
“This exciting combination will address some of the most critical issues facing service providers today,” said Gerald Wesel, chairman and chief executive officer of Ellacoya Networks, in Thursday’s statement.

“Arbor’s flow-based security and network-wide analysis, combined with Ellacoya’s DPI capabilities, will provide customers with the intelligence they need to deliver personalized next-generation services that are the key to customer satisfaction and future revenue.”
Service providers are facing an increasing amount of competition that shows no end in sight. In addition, these competitors are devising new ways to attract the customer dollar, from bundling services to providing higher-quality options.

To keep up with the competition, service providers have to take a proactive and innovative approach to their offering. This latest acquisition is likely to meld two strong portfolios that can better position these service providers to effectively compete in an increasingly intense environment.
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for To see more of her articles, please visit Susan J. Campbell’s columnist page.
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