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Emulex Partners with Myricom to Enter High Performance Networking Market for Low Latency Applications

COSTA MESA, Calif, May 8, 2012 - Emulex Corporation (NYSE:ELX) today announced the introduction of a family of new OneConnect® Network Xceleration™ solutions for the High Performance Networking (HPN) market.

Emulex is bringing its new family of OneConnect (OC)e12000 10Gb Ethernet (10GbE) Network Xceleration solutions to market in partnership with Myricom, an industry leader in delivering high performance, latency optimised Ethernet solutions for vertical market applications. This multi-generational marketing and development partnership leverages Myricom's deep expertise in HPN, specifically low latency, high packet-rate, vertical application optimisations, and Emulex's broad enterprise reach, high volume, enterprise-hardened hardware roadmap, and global go-to-market channels.

"By partnering with Myricom, Emulex is offering I/O connectivity solutions that broaden our reach in the Ethernet market and fast growing HPN vertical segments, such as High Frequency Trading (HFT), network security, and cloud-enabled video distribution," said Shaun Walsh, senior vice president of marketing, Emulex. "Ethernet-based High Performance Computing (HPC) is a rapidly growing market segment with a 63 percent compounded annual growth rate (CAGR) through 2016[1], and together, our partnership will provide our customers with a roadmap of solutions that leverage Emulex's market-proven I/O connectivity and Myricom's unique software IP."

Emulex OneConnect Network Xceleration solutions provide extreme performance for specific enterprise applications that rely on low latency, superior message rate or packet pacing through FastStack™ application acceleration software powered by Myricom. Using FastStack acceleration, customers get the benefit of high performance networking for their applications, within industry-standard 10GbE. Going forward, Myricom and Emulex will be jointly developing additional FastStack software solutions which will optimise Emulex's I/O connectivity solutions across additional vertical markets.

"Partnering with Emulex allows Myricom to bring its unique high performance networking software solutions for specific vertical market applications to a broader market," said Dr. Nan Boden, chief executive officer, Myricom. "Emulex's market strength and industry-leading Ethernet road map combined with Myricom's ultra-low latency performance, lossless packet capture/injection and traffic shaping technology enables the two companies to provide best-of-breed HPC networking."

Emulex is offering three OneConnect Network Xceleration solutions targeted at specific vertical applications which leverage kernel bypass operations that reduce latency and transaction times in conjunction with the OCe12000 adapters, including FastStack DBL™ (financial trading), FastStack Sniffer10G™ (cyber/network security) and FastStack VideoPump™ (video streaming and digital content delivery).

FastStack DBL
The Emulex OCe12000 combined with FastStack DBL software delivers industry-leading performance by accelerating UDP and TCP communication in HFT environments over industry-standard 10GbE network and IP protocols, and features:

  • Low Latency Performance: Delivers low latency, enabling faster transactional performance in HFT environments.
  • Broad Platform Support: Optimised for use on Linux and Windows operating system platforms which are broadly used in HFT environments.

  • Transparent Acceleration: Superior performance while accelerating existing Linux and Windows sockets applications without modifications.

  • Flexible Architecture: FastStack DBL can be combined with FastStack Sniffer10G to not only improve financial transaction performance, but also identify and address latencies which help optimise overall performance.

FastStack Sniffer10G
The Emulex OCe12000 combined with FastStack Sniffer10G software provides a powerful, cost-effective solution for network traffic capture, injection and analysis for performance-sensitive and mission-critical market segments, such as network surveillance, monitoring and analysis, deep packet inspection (DPI), test and measurement, and distributed denial-of-service (DDoS) defense appliances. FastStack Sniffer10G includes the following features:

  • 100 Percent Lossless Packet Capture: FastStack Sniffer10G provides 100 percent lossless packet capture and packet injection for all Ethernet packet sizes on a 10GbE data stream. This line-rate performance enables more thorough inspection and better detection of threats for cyber security environments and further refinement of market models and trading software algorithms for HFT environments.
  • Improved Multi-Core Utilisation: FastStack Sniffer10G can distribute incoming packets over multiple CPU cores to not only improve CPU utilisation, but also improve application performance through partitioning, duplication, and process sharing.

  • Increased Bandwidth: Port aggregation allows network traffic from two or more ports from the same or different OCe12000 adapters.

  • Cloud Multi-Tenancy Security SLAs: FastStack Sniffer10G helps cloud providers implement and track security policies in public cloud infrastructures to meet the demands of security service level agreements (SLAs) in multi-client environments.

FastStack VideoPump
The Emulex OCe12000 combined with FastStack VideoPump software, which will be available this summer, delivers more video streams per server and improves asset utilisation for video streaming and IPTV, and features:

  • Predictable QoS: Designed for live streaming video, FastStack VideoPump traffic shaping technology provides predictable QoS with more effective data pacing and efficient bandwidth usage, improving the end-user experience.
  • Reduced Capital Expenditure (CAPEX): FastStack VideoPump supports more than 25,000 video streams per server, increasing server utilisation and resulting in reduced costs and energy consumption.

  • Increased Scalability: FastStack VideoPump addresses the continuous growth of digital media content with line-rate streaming of multiple network adapters per server and more than 25,000 Over-the-Top (OTT) high-definition video streams (typically 3Mb per stream), by far the most scalable in the industry.

"As performance and latency become increasingly important, we expect that Ethernet products which can offer these characteristics will enjoy strong network adoption," said Seamus Crehan, founder and president, Crehan Research. "This partnership, which combines Emulex's current 10GbE port shipment leadership position with Myricom's HPC expertise, is well positioned to address this fast-growing market."

"Organisations looking for low latency solutions should consider the advantages of consolidating onto a common Ethernet platform because as data centres grow in size and complexity, achieving simplicity while driving down costs and overhead will become very important," said Bob Laliberte, senior analyst, Enterprise Strategy Group. "Emulex, in partnership with Myricom, is offering a compelling low latency Ethernet solution with excellent price-to-performance capabilities and the ability to deliver predictable, repeatable low latencies, while leveraging a common infrastructure to do it."

"The HPC market will be expanded by servers running data-intensive workloads, with spending for HPC servers expected to exceed $14 billion in 2016," said Steve Conway, vice president, HPC research, IDC. "With data-intensive workloads comes the need for the I/O to support them, and the new HPN solutions from Emulex aim to address this growing need for business and industry, government, and academia, and across vertical markets including financial services and digital content creation, among others."

The OCe12000 Network Xceleration and FastStack DBL or FastStack Sniffer10G software and hardware bundles are available now and range from $690 to $1,090 MSRP.

[1] According to Crehan Research, April 2012

Follow Emulex on Twitter: http://www.twitter.com/emulex

About Emulex
Emulex, the leader in converged networking solutions, provides enterprise-class connectivity for servers, networks and storage devices within the data centre. The Company's product portfolio of Fibre Channel host bus adapters, network interface cards, converged network adapters, controllers, embedded bridges and switches, and connectivity management software are proven, tested and trusted by the world's largest and most demanding IT environments. Emulex solutions are used and offered by the industry's leading server and storage OEMs including, Cisco, Dell, EMC, Fujitsu, Hitachi, Hitachi Data Systems, HP, Huawei, IBM, NEC, NetApp and Oracle. Emulex is headquartered in Costa Mesa, Calif., and has offices and research facilities in North America, Asia and Europe. More information about Emulex (NYSE:ELX) is available at www.Emulex.com.

Emulex Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. Emulex wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include among others, intellectual property claims, with or without merit, that could result in costly litigation, cause product shipment delays, require Emulex to indemnify customers, or require Emulex to enter into royalty or licensing agreements, which may or may not be available. Furthermore, Emulex have in the past obtained, and may be required in the future to obtain, licenses of technology owned by other parties. Emulex cannot be certain that the necessary licenses will be available or that they can be obtained on commercially reasonable terms. If Emulex were to fail to obtain such royalty or licensing agreements in a timely manner and on reasonable terms, Emulex's business, results of operations and financial condition could be materially adversely affected. Ongoing lawsuits, such as the action brought by Broadcom Corporation ("Broadcom"), present inherent risks, any of which could have a material adverse effect on Emulex's business, financial condition, or results of operations. Such potential risks include continuing expenses of litigation, risk of loss of patent rights and/or monetary damages, risk of injunction against the sale of products incorporating the technology in question, counterclaims, attorneys' fees, incremental costs associated with product or component redesigns, and diversion of management's attention from other business matters. With respect to the Broadcom litigation such potential risks also include the availability of an adequate sunset period of time to make design changes, the ability to implement any design changes, the availability of customer resources to complete any re-qualification or re-testing that may be needed, the ability to maintain favorable working relationships with Emulex suppliers of SerDes modules and the ability to obtain a settlement that does not put Emulex at a competitive disadvantage. In addition, the fact that the economy generally, and the technology and storage segments specifically, have been in a state of uncertainty makes it difficult to determine if past experience is a good guide to the future and makes it impossible to determine if markets will grow or shrink in the short term. The current economic downturn and the resulting disruptions in world credit and equity markets that are creating economic uncertainty for Emulex's customers and the storage networking market as a whole has and could continue to adversely affect Emulex's revenues and results of operations. Furthermore, the effect of any actual or potential unsolicited offers to acquire Emulex may have an adverse effect on Emulex's operations. As a result of these uncertainties, Emulex is unable to predict its future results with any accuracy. Other factors affecting these forward-looking statements include, but are not limited to, the following: faster than anticipated decline in the storage networking market; slower than expected growth of the storage networking market or the failure of Emulex's Original Equipment Manufacturer ("OEM") customers to successfully incorporate Emulex products into their systems; Emulex's dependence on a limited number of customers and the effects of the loss of, decrease in or delays of orders by any such customers, or the failure of such customers to make timely payments; the emergence of new or stronger competitors as a result of consolidation movements in the market; the timing and market acceptance of Emulex products or Emulex OEM customers' new or enhanced products; costs associated with entry into new areas of the storage technology market; the variability in the level of Emulex's backlog and the variable and seasonal procurement patterns of Emulex's customers; any inadequacy of Emulex's intellectual property protection and the costs of actual or potential third-party claims of infringement and any related indemnity obligations or adverse judgments; impairment charges, including but not limited to goodwill and intangible assets; changes in tax rates or legislation; the effects of acquisitions; the effects of terrorist activities; natural disasters, such as the earthquake and resulting tsunami off the coast of Japan in March 2011 and the significant flooding in various parts of Thailand in October 2011, and any resulting disruption in Emulex's supply chain or customer purchasing patterns or any other resulting economic or political instability; the highly competitive nature of the markets for Emulex products as well as pricing pressures that may result from such competitive conditions; the effects of changes in Emulex's business model to separately charge for software; the effect of rapid migration of customers towards newer, lower cost product platforms; possible transitions from board or box level to application specific integrated circuit ("ASIC") solutions for selected applications; a shift in unit product mix from higher-end to lower-end or mezzanine card products; a faster than anticipated decrease in the average unit selling prices or an increase in the manufactured cost of Emulex products; delays in product development; Emulex's reliance on third-party suppliers and subcontractors for components and assembly; Emulex's ability to attract and retain key technical personnel; Emulex's ability to benefit from research and development activities; Emulex's dependence on international sales and internationally produced products; changes in accounting standards; and the potential effects of global warming and any resulting regulatory changes on Emulex's business. These and other factors that could cause actual results to differ materially from those in the forward-looking statements are also discussed in Emulex's filings with the Securities and Exchange Commission, including its recent filings on Forms 8-K, 10-K and 10-Q. Statements in this release are based on current expectations and, except as required by law, Emulex undertakes no obligation to revise or update any forward-looking statements for any reason. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

# # #

Press Contacts:
Katherine Lane
Director, Corporate Communications
+1 714-885-3828
[email protected]

Martin Brindley
Davies Murphy Group
+44 1256 807360
[email protected]

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