The Online Reporter Daily |4 Nov 2016|

Dots in the trend lines that are analyzed in depth in the weekly The Online Reporter


Marvell Technology Restructures & Cuts 900 Jobs

Marvell, which makes Wi-Fi and chips among others, has closed some unspecified R&D and engineering processes and cut its headcount by 900, about 16%. Marvell president and CEO said, “By focusing on our strengths in storing, moving, and accessing data at high speeds, Marvell is well-positioned to enable the technology of tomorrow.” Marvell underwent major changes in April when co-founders (and husband and wife) Sehat Sutardja and Weili Dai were pressured into resigning by investors. The company said it expects to save $180 million to $200 million in annual operating expenses for which it will take a charge of $90 million to $100 million over the next four quarters. It is not yet known what if any impact the changes will have on Marvell’s Wi-Fi and HomeGrid operations.

Related: Korea Telecom Uses Marvell’s Chip to Develop 1 Gbps Broadband over All Existing Wires in MDUs


Arris Should Be a Candidate to Buy Ruckus from Broadcom

Set-top box Arris might be a candidate to buy Ruckus Wireless, which Broadcom acquired when it bought Brocade and immediately said it would sell because Ruckus competes against customers such as Cisco that buy Broadcom’s chips. Arris CEO Bruce McClelland recently said Arris wants to become “one of the major names in tech going forward.”

Arris already has expertise in Wi-Fi but Ruckus, in addition to its expertise in Wi-Fi, has been developing cellular-based products, which Arris does not have. Shortly before Broadcom bought Brocade, McClelland said, “I think [cellular] is a natural adjacency and there’s certainly technologies we have that allow us to grow into that if that becomes a big segment. We have a lot of the building blocks already to evolve in that direction. When you get into the managed wireless cellular space though, there’s a lot of very specialized technology there that we don’t have today so that would be something we’d probably have to go get.”

McClelland previously said, “I think there’s going to be quite a blurring between wireless and wireline going forward. Five years from now, everybody will be a wireless operator of some form or another, and I think there’s a lot of white space for companies like ours to bring new innovative products to make that a reality, to really make that happen. So I think that’s an area we spend quite a bit of time on trying to think through how do we become a stronger wireless technology partner.”

Back when Brocade bought Ruckus, before Broadcom bought Brocade, Brocade CEO Lloyd Carney said, “The interesting component that Ruckus had – that the other wireless providers didn’t have – was their focus on the cellular network. They’ve figured out that the line is blurring between LTE, 5G and Wi-Fi, and they have a product portfolio and strategy that firmly addresses that.”

Arris clearly see the same blurring of wireless network technologies.

Related: Broadcom Buys Brocade for $5.9b


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