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AMD to acquire Pensando Systems for $1.9 billion USD

Written by Thu 7 Apr 2022

AMD announced an agreement to acquire Pensando Systems, a leading data centre networking company in return for $1.9 billion USD. AMD will add distributed systems capabilities to existing business, providing a scalable infrastructure solution for data centre customers.

 

Founded in 2017, Pensando Systems provides a high-performance distributed services platform that improves data centre systems performance through efficient, orchestrated workload balancing of multiple infrastructure services. In the press release announcing the acquisition, AMD noted that Pensando’s solution “Demonstrates between 8x and 13x greater performance compared to competitive solutions.”

John Chambers, Chair of Pensando, added: “Pensando is built upon strong customer relationships and a solution that is at least two years ahead in cloud, edge and enterprise.”

In what CRM described as a ‘shot’ at Amazon Web Services, Chambers said: “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.”

Adding Pensando to the AMD portfolio is intended to be a strategic improvement to the AMD business model. Dr. Lisa Su, CEO and chair of AMD emphasised the value of adding Pensando services to the AMD portfolio – “To build a leading-edge data centre with the best performance, security, flexibility and lowest total cost of ownership requires a wide range of computer engines.” He continues:

“Today, with our acquisition of Pensando, we add a leading distributed services platform to our high-performance CPU, CPU FGPA and adaptive SoC portfolio.”

AMD will also add Pensando’s impressive list of customers to its own portfolio, with clients including Goldman Sachs, IBM Cloud, Microsoft Azure and Oracle Cloud. Late last year, Pensando offered its Distributed Service Card (DSC) as an alternative to Nvidia’s BlueField-2 card in the VMWare Project Monterey.

In a blog, Pensando’s CMO Christopher Ratcliffe said that the DSC was “A generation ahead of the nearest competitor, offering class-leading capabilities and order of magnitude improvements in scale, latency, and jitter with a low power profile.” Ratcliffe says:

“The Pensando platform is capable of applying services up to tens of millions of packets per second, with a scale of millions of routes and ACLs, while maintaining latency and jitter measured in microseconds.”

Written by Thu 7 Apr 2022

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Cloud Pensando systems technology
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