Cisco acquires Acacia Communication

Network gear maker Cisco Systems Inc. said it would buy optical component maker Acacia Communications Inc. for $2.84 Billion in cash, as it seeks to garner a bigger chunk of 5G spending by telecom companies.

Globally, mobile networks would need higher-capacity optical interfaces to handle a surge of data when high-speed the fifth-generation network comes online in the next few years. The acquisition will bolster Cisco's technology for service providers upgrading to 5G and put its optical portfolio ahead of the shift toward using plug and play devices across various communication segments.

According to Cisco's Visual Networking Index, global internet traffic is projected to more than triple to 13.2 exabytes per day in 2022 from 4.1 exabytes per day in 2017. "Cisco's optical portfolio was mainly for short-range data center connections, and now gains Acacia's skill set in areas such as metro, long-haul, and undersea.

Revenue in Cisco's infrastructure platform business, which includes switches and routers, rose 5% to $7.55 billion in its third quarter. That business is expected to get a boost from 5G communication networks. The deal is Cisco's biggest since its $3.7 billion purchase of business performance monitoring software company AppDynamics in 2017.

Samsung acquires network analysis firm Zhilabs

Samsung Electronics announced its acquisition of Zhilabs, known for its Artificial Intelligence (AI) based network and service analytics, to further enhance its 5G capabilities. The acquisition lays the foundation for Samsung to foster its 5G offerings of automation and network analytics to finely tune the customer experiences in the 5G era.

AI-based automation will play a central role in the introduction of new services in the 5G era, such as industrial Internet of Things (IoT) and connected cars, as carriers will require automated solutions and network analytics beyond what was possible in previous generations. AI-based transformation can be used to analyze user traffic, classify application being used, and improve overall service quality, as such needs can no longer be addressed by existing solutions.

Samsung is looking forward to joint capabilities to create new cutting-edge technology in the transformation from 4G to 5G. In addition to the acquisition, Samsung will continue to strengthen its automation solutions that measure the quality of each user service and can also automatically optimize service quality without human intervention. The company will also explore and invest in other business opportunities powered by the emerging technologies.

In August, Samsung announced plans to boost investments in businesses that will drive its future growth, committing to a KRW 25 trillion investment over the next three years in the areas of artificial intelligence (AI), 5G, automotive electronics components and biopharmaceuticals.