Member access

4-Traders Homepage  >  Shares  >  Nyse  >  Goldman Sachs Group Inc    GS   US38141G1040

Delayed Quote. Delayed Nyse - 09/23 12:08:55 pm
186.5799 USD   +0.70%
14m ago DOW MOVERS : Pfe, gs
5h ago Underwriters to Get Commissions of USD300mn from Alibaba
8h ago GOLDMAN SACHS : ups China Mobile to HK$113
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 

Goldman, Redpoint Add to $25 Million Funding Round for Networking Start-up Big Switch

10/30/2012 | 07:13pm US/Eastern
Recommend:
0

By Drew Fitzgerald

Big Switch Networks Inc. said funds run by Redpoint Ventures and Goldman Sachs Group Inc. (>> Goldman Sachs Group, Inc.) have joined existing venture-capital backers with a $25 million in Series B investment in the networking start-up, among the latest to attract attention in Silicon Valley.

Founded in 2010, Big Switch is among a fast-growing crop of start-ups rushing to offer tools for software-defined networking, or SDN, a concept that promises to dramatically simplify the way information-technology managers run the mesh of routers and switches that connects their data centers. The company raised $14 million last year from Index Ventures and Khosla Ventures, two other funds with experience in IT.

Software provider VMware Inc. (>> VMware, Inc.), no stranger to technology involved in giving programs more control of hardware, in July offered $1.26 billion to buy Nicira Inc., another SDN company founded by a former professor at Stanford University.

Big Switch Chief Executive Guido Appenzeller, who ran a Stanford lab that helped create new standards to form a base for the technology, declined to name his company's customers, though Big Switch says it has generated revenue since its inception.

Mr. Appenzeller said the software maker could have raised twice as much in the second round but didn't make deals with some potential backers to avoid diluting the founders' shares. Big Switch can operate on a much leaner budget than many traditional networking companies because of the nature of its technology, he said.

"We're simply building software," Mr. Appenzeller said."We don't have a single hardware engineer working for us."

Analysts say such software could threaten traditional network gear makers such as Cisco Systems Inc. (>> Cisco Systems, Inc.) and Juniper Networks Inc. (>> Juniper Networks, Inc.) by making the brand underlying software controllers less relevant, eating into their margins. Mr. Appenzeller said most major hardware companies in the sector have cooperated to help Big Switch's technology work with their products, though some have been slower to move.

Write to Drew Fitzgerald at andrew.fitzgerald@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Recommend :
0
React to this article
Latest news on GOLDMAN SACHS GROUP INC
14m ago DOW MOVERS : Pfe, gs
5h ago Underwriters to Get Commissions of USD300mn from Alibaba
8h ago GOLDMAN SACHS : ups China Mobile to HK$113
8h ago GOLDMAN SACHS : raises China Unicom to HK$14.5
8h ago GOLDMAN SACHS : lifts China Telecom to HK$5.3
1d ago Alibaba IPO ranks as world's biggest after additional shares sold
1d ago Alibaba IPO underwriters earn $300 million in fees, 1.2 percent of deal
1d ago Bayer asks Rothschild to advise on plastics business flotation - sources
1d ago Alibaba IPO ranks as world's biggest after additional shares sold
1d ago GOLDMAN SACHS : Ex-VTB executive Bostandjiev launches emerging market fund Gemco..
Advertisement
Chart
Duration : Period :
Goldman Sachs Group Inc Technical Analysis Chart | GS | US38141G1040 | 4-Traders
Income Statement Evolution
Goldman Sachs Group Inc : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF