Arbor Networks acquires Ellacoya

Network security vendor Arbor Networks announced it is acquiring Ellacoya Networks, a firm which, among other pursuits, is one of a handful of vendors for deep packet inspection technology. The marriage points to the developing trend toward combining security and service control solutions with DPI solutions into a segment best described as advanced broadband traffic and service management. Arbor said in a press release that it believes that segment opportunity will be worth about $750 million this year, and $1.5 billion by 2010.

The acquisition follows DPI vendor Allot Communications' recent acquisition of Esphion, a deal with similar technology themes. Alcatel-Lucent also has reportedly been investing in DPI development. After a year in which DPI has been at the center of Comcast's traffic delaying controversy, it looks to be one of the hottest technologies of 2008.

Meanwhile, ZDNet asks whether or not telcos should be network traffic cops. Its story takes a closer look at content filtering technologies and one of the bigger issues debated at last week's International Consumer Electronics Show in Las Vegas--AT&T's use of video screening technology from Vobile and other capabilities to improve its ability to manage traffic and service quality.

For more:
- read the Arbor Networks press release for more about the Ellacoya deal
- check out this story about AT&T's plans at ZDNet

Related articles:
- Allot said earlier this month it will acquire Esphion
- Alcatel-Lucent reportedly likes DPI, too

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