The division of Intel Corp. that makes software for communications including voice over IP (VoIP), wireless and broadband – Trillium Digital Systems Inc. – will be sold for an undisclosed sum to San Diego-based Continuous Computing Corp. (CCPU).
The purchase includes Trillium protocol stacks for the IP telephony, wireless, broadband, wireless and signalling markets using Los Angeles-based Trillium’s Advanced Portable Architecture (TAPA). However, it does not include Trillium’s professional services division – that will remain with Intel to assist customers in developing products for its IXA network processor product line.
CCPU will maintain the current business model of licensing source code and providing maintenance and support to customers. As part of the deal, CCPU will be hiring some of Intel’s Los Angeles-based engineers and members of its worldwide sales and support organization.
Intel purchased Trillium for US$300 million in August of 2000.
According to CCPU, the purchase will allow the company to deliver source code, bundled software and hardware, and complete turnkey central office systems for network equipment providers.
“The Trillium software base supports millions of active users,” said Ken Kalb, CEO of CCPU. “Our technology complements and enhances this source code model. Combined, CCPU and Trillium will help customers get their applications to market quickly and cost effectively on their choice of open architectures.”
The purchase is part of CCPU’s strategy of obtaining technology to build on its strategy of providing high-availability, application-ready platform solutions for network equipment providers.
It also fits in with Santa Clara, Calif.-based Intel’s strategy of cost-cutting and focusing on its core business of chip design and production.
Earlier this year, Intel sold the division responsible for its LANDesk products as well as unloading its Network Systems Group derived from a 1998 acquisition of a virtual private network (VPN) company called Shiva.
It also sold off Ziatech, a company that made up part of its Communications Platform Division, and scrapped its Web hosting business in June 2002 after only three years of operation.
However, the divesting of its fringe businesses has seemed to pay off for Intel, as its fourth quarter results announced Tuesday exceeded expectations.
For more information, visit www.ccpu.com.
– With files from IDG New Service