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Marvell Reveals Post-Cavium Roadmap

October 1, 2018

Author: Bob Wheeler

As Marvell works to integrate its Cavium acquisition, it’s paring unneeded and overlapping product lines. The changes affect both Cavium and Marvell roadmaps despite the acquirer’s earlier claim that roadmaps would be unaffected. Unsurprisingly, the changes eliminate overlapping product lines in embedded processors and Ethernet switching—we observed last year that Marvell would have to revisit the roadmaps for these lines. The acquirer also divested Cavium’s Monta Vista software, a small legacy business.

In embedded processing, the company consolidated its roadmap around Cavium’s Octeon line, which in 2017 generated about 2.5x the revenue of Marvell’s Armada line. It will continue to support Armada customers, but its roadmap will focus on Octeon TX. Also, Marvell says it’ll continue Cavium’s ThunderX2 line of Arm server processors, which are starting to win customer designs. In Ethernet switching, the company chose to focus on its established Prestera line and halt development of the programmable Xpliant line from Cavium. It will support existing Xpliant customers but has already combined the Cavium and Marvell switch-development teams.

Cavium’s revenue contribution for the first quarter after the acquisition was well below expectations, as was its revenue before the acquisition closing. On the plus side, Marvell now expects $200 million in annual cost reductions (“synergies”) versus a prior range of $150 million to $175 million. At the same time, it’s maintaining its prior revenue-growth target of 6–8%, so the cuts don’t represent a strategic shift. Having completed the integration of Cavium, Marvell can now focus on product execution in its newly pruned roadmaps.

Subscribers can view the full article in the Microprocessor Report.

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