Company Update (NASDAQ:CAVM): Cavium Inc Partners with Canonical to Demonstrate Optimized Cloud Infrastructure with OpenStack at Scale on ThunderX™

Cavium Inc (NASDAQ:CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, cloud, wired and wireless networking, is partnering with Canonical to demonstrate OpenStack on a cluster of ThunderX reference servers deploying leading server applications at the OpenStack Summit during the week ofMay 18, 2015 at the Vancouver Convention Centre in Vancouver, BC. The OpenStack Summit is a five-day conference for developers, users, and administrators of OpenStack Cloud Software and recognizes the growing importance of OpenStack to Public and Private Cloud infrastructure.

Cavium and Canonical have partnered to deliver a complete optimized solution for ThunderX that includes the Ubuntu Operating System and most current release of OpenStack.  Ubuntu is the world’s most popular operating system for OpenStack and enables customers to build an enterprise-scale cloud from provisioning to deployment and management.  The partnership between Canonical and Cavium includes core support on ThunderX for key management and provisioning tools such as Metal-as-a-Service (MaaS) and orchestration management tool JuJu that accelerate system and workload deployment.

Cavium has integrated functionality in ThunderX that is critical for the most demanding Public and Private Cloud workloads.  This functionality includes:

  • virtSOC™ technology the delivers full system virtualization and SR-IOV capable IO.  Hypervisor support for both KVM and Xen are fully enabled.
  • Integrated security, networking and storage hardware accelerators.  Easily enabled with standard kernel and library interfaces these hardware accelerators provide significant performance improvements in key cloud workload elements such as security, storage and big data/analytics.
  • Fully integrated I/O that includes 10G and 40G Ethernet, PCIe Gen3 and SATAv3.  ThunderX delivers leading bandwidth and low latency across all of these optimized interfaces.
  • Support for industry standards that include UEFI and ACPI along with upstream support in the Linux Kernel, GCC Toolchain and OpenJDK Java.

The demonstrated OpenStack infrastructure will provide support for workloads that include

  • Cloud storage with CEPH object and block storage that utilizes ThunderX storage accelerators and integrated SATAv3 controllers.
  • Apache Hadoop for Big Data Analytics that is well suited to the ThunderX’s storage and big data accelerators.
  • Distributed data bases such as MySQL and Cassandra.
  • Additional popular Cloud applications such as Redis, Varnish and NGINX.

“This is another important milestone in the Canonical and Cavium partnership as we combine our core expertise to deliver the leading Public and Private Cloud infrastructure on ThunderX,” said Mark Shuttleworth, Founder of Ubuntu and Canonical.  “The OpenStack Summit is a key industry venue to showcase the optimized platform that ThunderX enables for Cloud deployments. The impressive level of performance on the 48 core ThunderX system coupled with Canonical’s LXD container hypervisor clearly shows that ThunderX will be an excellent choice to provide the efficiency, scalability and performance required by today’s most demanding Cloud environments.”

“Canonical’s public demonstration of OpenStack on ThunderX is yet another key proof point supportingCavium’s focus on Public and Private Cloud partners and end users.  ThunderX was architected specifically to address the performance and deployment requirements of the world’s largest Cloud environments,” said Larry Wikelius, Director Thunder Ecosystems and Partner Enablement at Cavium. “The collaboration with Canonical continues to highlight Cavium’s aggressive focus on building the industry’s most complete technical and commercial ecosystem for ARMv8 based servers.  We look forward to continuing to build on the OpenStack infrastructure for more application and end user deployments.”

The ThunderX product family is Cavium’s 64-bit ARMv8 server processor for next generation Data Center and cloud applications. With high performance custom cores, single and dual socket configurations, high memory bandwidth, large memory capacity, integrated hardware accelerators, integrated feature rich high bandwidth network and storage IO, fully virtualized core and IO, and scalable high bandwidth, low latency Ethernet fabric ThunderX enables best in class performance per dollar and performance per watt.  The ThunderX family includes multiple workload optimized SKUs that enable servers and appliances that are optimized for compute, storage, network and secure compute workloads. The ThunderX processor family is fully compliant with ARMv8-A architecture specifications as well as ARM’s SBSA and SBBR standards and is widely supported by industry leading OS, Hypervisor and SW tool and application (Original Source)

Shares of Cavium closed last Friday at $67.73 . CAVM has a 1-year high of $74.26 and a 1-year low of $38.73. The stock’s 50-day moving average is $68.51 and its 200-day moving average is $63.08.

On the ratings front, Cavium has been the subject of a number of recent research reports. In a report issued on April 30, Canaccord Genuity analyst Matt Ramsay reiterated a Buy rating on CAVM, with a price target of $77, which represents a potential upside of 13.7% from where the stock is currently trading. Separately, on the same day, FBR’s Christopher Rolland maintained a Buy rating on the stock and has a price target of $75.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matt Ramsay and Christopher Rolland have a total average return of 8.3% and 10.3% respectively. Ramsay has a success rate of 72.2% and is ranked #759 out of 3604 analysts, while Rolland has a success rate of 68.5% and is ranked #311.

The street is mostly Bullish on CAVM stock. Out of 6 analysts who cover the stock, 5 suggest a Buy rating and one recommend to Hold the stock. The 12-month average price target assigned to the stock is $71.80, which implies an upside of 6.0% from current levels.

Cavium Inc designs, develops and markets semiconductor processors that enable intelligent processing for wired and wireless networking, communications, storage, cloud, wireless, security, video and connected home and office applications.

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