Cisco Buys Optical Networking Company Lightwire

Cisco Systems has decided to acquire Lightwire, a small chip making start-up specialising in the manufacture of optical technology used in high-speed networking. According to Cisco Systems, the high-speed chips of Lightwire can be utilised for transmitting data through light pulses rather then electric signals - giving Cisco Systems a leading edge over other competitors.

Investing an $271 million into this deal, senior VP of Cisco's Service Provider Networking Group, Surya Panditi, explained that the acquisition "will support our data center and service provider customers as they manage the continuing deluge of network traffic alongside tight capital and operating budgets," reported IT World.

Through this acquisition Cisco Systems plans to import Lightware's optical networking technologies within the company data center by creating high speed and high volume switches, priced specially for data centers.

Lightwire is known for developing the optical chip by employing the conventional "complementary metal-oxide semiconductor (CMOS) processing", as opposed to assembling them from numerous parts that are produced made with costly compound semiconductor technology. It is this technology that will create a positive impact on optical interconnects by offering low cost, high data rates as well as low power consumption.