Nvidia Buys Cumulus Networks


On Monday Nvidia announced that they had acquired another company which specialises in data centres. You might remember that they closed a similar deal last month for Mellanox - a company who also specialises in data centres.

With these two acquisitions, Nvidia is now establishing themselves in the very lucrative data centre industry. The strategy here is to vertically integrate into an industry with high growth potential. Nvidia should see that growth on two fronts. The first is on the management of the data centres themselves. The second is through ensuring that all the centres use Nvidia cards. This looks like a good long term investment from the company.

You can read what Tech Cruch has to say here - Nvidia acquires Cumulus Networks.