Cisco to buy Acacia Communications in $2.6bn deal
Veteran internet communications tech giant Cisco announced today its entrance into an agreement with Massachusetts-based high-speed coherent optical interconnect product manufacturer Acacia Communications. The acquisition is part of Cisco’s initiative to pursue making its networks faster, more simple and more secure.
According to the terms of the deal, Cisco will pay US$70 per share of Acacia in cash, for a total consideration of $2.6bn.
Acacia is already an existing supplier to Cisco, specializing in the design and manufacture of high-speed, optical interconnect technologies that allow webscale companies, service providers, and data center operators to meet the fast-growing consumer demands for data.
"By innovating across software, silicon and optics, Cisco is reinventing every domain of the network with our intent-based architectures," said David Goeckeler, executive vice president and general manager of Cisco's networking and security business. "With the explosion of bandwidth in the multi-cloud era, optical interconnect technologies are becoming increasingly strategic. The acquisition of Acacia will allow us to build on the strength of our switching, routing and optical networking portfolio to address our customers' most demanding requirements."
Upon completion of the acquisition, Acacia employees will join Cisco's Optical Systems and Optics business within the networking and security business under Goeckeler.
"Coherent technology has been a game-changer for optical networking and continues to evolve with the deployment of pluggable coherent optics," said Raj Shanmugaraj, president and chief executive officer, Acacia. "Upon close, Cisco and Acacia will continue to serve and support existing Acacia customers. By integrating Acacia technology into Cisco's networking portfolio, we believe we can accelerate the trend toward coherent technology and pluggable solutions while accommodating a larger footprint of customers worldwide."
The deal is expected to close during the second half of 2020, and awaits regulatory approval.
Dr Peng Wei: Designing the Future of Autonomous Aircraft
Air traffic is expected to double by 2037. According to the International Air Transport Association (IATA), the world will need 37,000+ new passenger and freight aircraft, and more than half a million new pilots—unless we come up with another solution. Right now, a George Washington University School of Engineering and Applied Science professor, Dr Peng Wei, is starting to research autonomous electric aircraft design.
NASA will fund the research, which will study how to minimise risks for electric vertical take-off and landing (eVTOL). As Airbus states: ‘Autonomous technologies also have the potential to improve air traffic management, enhance sustainability performance and further improve aircraft safety’.
Who is Dr Wei?
An assistant professor of Mechanical and Aerospace Engineering, Dr Wei has researched aircraft control, optimisation, and AI and ML applications in aviation. Over the next three years, he’ll lead the US$2.5mn NASA grant project in collaboration with researchers from Vanderbilt, the University of Texas at Austin, and MIT’s Lincoln Lab.
Why is His Research Important?
Even though the wide adoption of self-piloting cars, much less aircraft, is still far down the road, technologies that Dr Wei and his colleagues are researching will form the commercial transport of the future. But aviation manufacturers, in order to produce autonomous aircraft, will have to meet extremely high safety standards.
‘The key challenge for self-piloting capabilities is how the system reacts to unforeseen events’, said Arne Stoschek, Wayfinder Project Executive at Acubed. ‘That’s the big jump from automated to autonomous’. In the air, AI-piloted aircraft will have to manoeuvre around adverse weather conditions, such as wind and storms, and other high-altitude risks, such as GPS hacking, cyberattacks, and aircraft degradation. And the stakes are high.
‘If a machine learning algorithm makes a mistake in Facebook, TikTok, Netflix —that doesn't matter too much because I was just recommended a video or movie I don't like’, Dr Wei said. ‘But if a machine learning algorithm mistake happens in a safety-critical application, such as aviation or in autonomous driving, people may have accidents. There may be fatal results’.
What Are His Other Projects?
In addition to the new NASA research, Dr Wei has been awarded three other grants to pursue AI-piloted aircraft:
- A 2-year grant from the Federal Aviation Administration (FAA) in conjunction with West Virginia University and Honeywell Aerospace to investigate “learning-based” aviation systems
- A six-month SBIR Phase I NASA award with Intelligent Automation to mitigate airspace congestion at vertiports—the electric craft version of airports.
- A 1-year collaborative grant with the University of Virginia and George Mason University from the Virginia Commonwealth Cyber Initiative (CCI) to develop anti-cyber attack technologies and aviation video systems
Research like NASA and Dr Wei’s three-year programme will help improve how AI reacts and adapts to challenging air conditions. In coming years, autonomous aircraft will likely take off slowly, starting with small package delivery, then upgraded drones, and finally commercialised aircraft. But congestion issues will worsen until autonomous aircraft are the best alternative.
According to BBC Future, by 2030, commuters will spend nearly 100 hours a year in Los Angeles and Moscow traffic jams, and 43 cities will be home to more than 10 million people. The final verdict? Bring on the AI-operated transit.