Why We Invested in Arrcus, the Connected Edge Network Platform
Network infrastructure, the backbone of internet and telecommunications connectivity is undergoing massive disruption and transformation with innovations such as 5G and software-based disaggregation. As applications move closer to the edge and require access to cloud and communications infrastructure, legacy networking vendors' closed, custom silicon, hardware-based proprietary solutions are no longer suited as they lack flexibility, scalability, and affordability.
Creating a viable alternative to vertically integrated solutions and eliminating vendor lock-in requires both new technology innovation and excellence in execution to establish traction in the marketplace. Arrcus has achieved that with its Arrcus Connected Edge (ACE) platform that is hardware-agnostic and designed to meet the hyperscale performance needs of 5G, multi-cloud, and edge networks.
We invested in Arrcus because it has demonstrated the viability of using routing-centric software architecture to deliver cloud-style economies of scale to modernize the data center, edge, and telecommunications networks. The cornerstone of the ACE platform is ArcOS, the network operating system for disaggregated routers and switches with ArcEdge as the overlay networking software to enable hyperscale networking fabric for 5G and multi-cloud networks. ArcOrchestrator and ArcIQ complete the platform for programmability, analytics, and orchestration.
Samsung Next has joined with a group of infrastructure-savvy investors who believe that Arrcus is on the cusp of transforming the networking landscape with an open networking solution delivering hyperscale performance and cloud economies of scale. We believe Arrcus has established trust in a conservative marketplace dominated by larger legacy networking vendors. In a world where telecommunications service providers and large enterprises alike are seeking viable alternatives, Arrcus has a proven, high-performance, and cost-effective solution.
We’re not alone in our assessment of Arrcus. Liberty Global – a world leader in converged telecommunications services – led the most recent $28 million Series-C round and Japan’s SoftBank Corp. also participated. Other existing investors include top-tier infrastructure investors – Clear Ventures, General Catalyst Partners, and Lightspeed Venture Partners.
In concert with our infusion of capital, we are also super excited to welcome Arrcus’s new CEO Shekar Ayyar, who will be leading the company into its next phase of growth. Shekar most recently served as executive vice president and general manager of VMware, where he was responsible for the company’s telco and edge cloud business, one of the fastest growing vertical businesses for VMware. His experience complements the deep networking expertise of co-founders Keyur Patel and Derek Yeung.
We believe Arrcus has developed an edge networking solution that will help integrate the power of 5G and edge computing into one seamless, open global network.
Raymond Liao is Managing Director at Samsung Next. Samsung Next's investment strategy is limited to its own views and does not reflect the vision or strategy of any other Samsung business unit, including but not limited to Samsung Electronics.
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