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Ethernity keeps the online traffic moving

Published: 09:01 23 Nov 2017 GMT

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Speed is the key for the internet's growing number of applications

Recent AIM-listee Ethernity Networks PLC (LON:ENET) specialises in technology that helps data traffic move efficiently in huge quantities.

Offloading is what it is called and Ethernity’s chief executive David Levi is looking forward to a surge in business as network operators, server manufacturers and telecoms equipment groups adjust to the new data-hungry environment.

Levi likens Ethernity to a traffic policeman, directing the data traffic to enable it to pass through faster.

Network processing is changing, he explains.

As servers are now required to handle multiple tasks such as security video streaming, voice telephony, file downloads, interactivity, social networks, smart devices and the Internet of Things. more flexibility is required.

And the programmable technology Ethernity has developed and uses for its new range of network processing adaptors is right in the sweet spot of where the industry is moving, says Levi.

“An adaptor that manages the traffic flow, prioritises different applications , routes flows to their destination and interprets the different types of protocols and different languages so they can all talk to one another.

 “That is what we are.”

WATCH: Overview of Ethernity Networks’ Smart-NIC platform

Levi has experience of this before. Prior to Ethernity, Levi founded Broadlight, a company built on patented technology he invented and that was acquired by Broadcom for US$230mln.

Technology vice president Shavit Baruch has a similarly impressive track record in telecoms components and systems.

Both Levi and Baruch remain big shareholders in Ethernity. Levi has a near 21% stake and Baruch almost 14%.

The placing that raised £15mln ahead of the IPO in June, meanwhile, brought in Legal and General with 5.7% and small cap specialist Miton for 8.8%.

European private group Cipio also has a 20.2% stake through one of its funds.

Levi says the £15mln of additional financial firepower means Ethernity is now on the radar on most of tier1equipment suppliers and networks.

Ethernity is also making money. Revenues in the six months to June were US$989,000, while profits were US$180,000.

In the previous year, Ethernity made US$251,000 on sales of US$2.16mln, while the company’s products are already installed on over 400,000 systems globally.

But it will be the new FPGA–based (field programmable gate array) adaptors that will be the game changer for the business says Levi.

As the cost of FPGA-based tech falls, markets previously only served by silicon-based products are coming into range along with penetrating the existing technology into tier one equipment vendor platforms.

There is a great push for the technology says Levi and Ethernity can deliver a low cost programmable option.

The aim is to accelerate the performance of the software that runs on the server.

“We have the content for these devices - anything with programmable logic.”

The new Intelligent NIC adaptor recently came though a proof of concept study in a number of different consumer environments.

That was a 40G option, but the next target is 100G adaptors, which Levi says Ethernity should have available in the middle of 2018, with an upgrade to 200G the following year.

That is ultra fast. At 40G alone, Ethernity believes it can accelerate a server’s performance by 50 times.

Add in the power consumption savings of better traffic flow and the need for fewer servers and it is easy to understand why Levi is upbeat.

“We can reduce 50 servers into one with our technology.”

An order from a tier one equipment group for the new programmable applications would be the game –changer believes Levi and lead to an ‘exponential’ rise in sales.

To that end Levi says it building relationships with end-customers and the door may now also be starting to open.

“The industry giants – Intel, Microsoft, Amazon – now believe in the direction we started 14 years ago.”

At 156p, Ethernity is valued at £48.2mln. 

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