The Linley Group

Last week, LSI announced the APP3300 network processor for access applications. The new chip carries forward the Agere NPU architecture but increases performance by 75% compared with the APP300. The second-generation access NPU also adds a number of features, new I/O interfaces, and other performance enhancements.

The APP3300 packet-processing pipeline is rated at 3.5Gbps and 7Mpps. The chip's GbE MACs have been enhanced to support 2.5Gbps operation using integrated serdes for backplane connections. New interfaces include a TDM port, PCI, and USB. Compared with the APP300, the APP3300 adds a major new function in the form of security-protocol processing. The data path includes a new 1.5Gbps security engine for IPSec and SRTP while a public-key crypto engine was added to the control-processor side of the chip. The NPU integrates a pair of ARM11 CPUs, one of which can be dedicated to the IKE protocol in IPSec applications.

Other changes are more evolutionary but help reduce system cost and power dissipation. Additional on-chip memory eliminates the need for external memories for reassembly and, in some designs, even classification. LSI is using a 90nm process to pack all this functionality into a chip that dissipates only about one watt more than the 130nm APP300 design. The APP3300 is currently sampling. LSI did not announce pricing, but we expect the new chip to carry similar pricing as the APP300, replacing it for new designs.

Overall, the APP3300 improves performance and integration for two key access applications: VDSL2 line cards and Node B NICs. The addition of security processing eliminates a competitive disadvantage relative to Wintegra's WinPath2 NPU. Compared with WinPath2, the APP3300 should deliver superior density for VDSL2 line cards. But most important, this announcement shows LSI, following its strategic review of all ex-Agere products, remains committed to the APP line. —Bob

Last week, NetLogic announced that it had signed an agreement to acquire 10G startup Aeluros for $57 million plus up to $20 million in performance-based incentives. As part of the deal, Aeluros will become a division of NetLogic headed by current Aeluros CEO Stefanos Sidiropoulos. Founded in 2001, Aeluros had raised $20 million and has a staff of about 30 employees, who will all be offered positions at NetLogic.

In 2004, Aeluros sampled 10Gbps PHY products that dissipated less power and were smaller in size than the market-leading devices from Quake. Consequently, Aeluros enjoyed broad success at optical module vendors and OEMs. We expect this PHY revenue to be about $10 million in 2007 and to grow in 2008. After six years, Aeluros's founders decided to cash in and use NetLogic's resources to grow the business rather than wait a few more years for a public stock offering.

Under pressure to show a growth path, NetLogic had broadened its portfolio into Layer 4-7 processing, but this product line has generated little revenue. Aeluros represents immediate revenue as well as the potential for the PHY product line to eventually increase NetLogic's revenue by more than 20 percent.

This acquisition should also strengthen NetLogic's position at common customers such as Cisco and Juniper. NetLogic now has the IP to add high-speed serial interfaces to its core TCAM products and take the lead on IDT and Renesas. Furthermore, NetLogic can develop new serdes products for PCI Express and SATA to expand its portfolio. Thus, this acquisition has the potential to restart NetLogic's growth, strengthen its position with key customers, and allow the company to enter new markets. —Jag

New Report on Communications Processors

As residential and SOHO gateways move from basic ADSL to high-speed technologies, they're adding new services such as VoIP and NAS. These emerging high-end gateways require inexpensive yet powerful processors with data-plane acceleration to deliver the necessary throughput and quality of service (QoS).

Small and medium businesses (SMB) need many of these same features as they move to gateways and office-in-a-box designs. But SMB processors must deliver greater throughput, more voice channels, and greater flexibility on the WAN interface than their SOHO counterparts. Access equipment, such as wireless basestations, also demand a combination of a powerful CPU with data-plane acceleration.

The demand is being filled by communications processors--highly integrated devices that combine a powerful CPU with data-plane acceleration to deliver the throughput and features required by these applications. Although Freescale's PowerQuicc was the first to serve these markets, many competitors have emerged, including new products such as LSI's APP2200, Mindspeed's Comcerto 100, and Intel's Tolapai. Further competition comes from vendors such as Cavium, Ikanos, PMC-Sierra, and Ubicom. Many of these companies offer a broad array of products to service a range of SOHO, SMB, and access applications.

"A Guide to Communications Processors" provides an in-depth look at these products and vendors. Building on "A Guide to SOHO Gateway Processors" published in 2006, this report provides extensive coverage of processors targeting VDSL2 and PON gateways. We have added coverage of communications processors targeting SMB gateways as well as access infrastructure. This handy guide, packed with valuable information, gives you the analysis you need to help choose a supplier or partner in this field.

The report covers the latest in technology trends and delivers thorough coverage of all announced products in this area. For each of these vendors, the report examines the performance, feature set, and architecture of each product, highlighting its strengths and weaknesses in a consistent, easy-to-compare fashion. Analysis of each vendor's software and development tools, example system designs, and product roadmaps are also included. The report concludes with our own comparisons of these products and conclusions about which will fare best.

Don't delay! Order A Guide to Communications Processors order by November 30 to receive a special prepublication discount. For more information on this report, visit our web site.