Silicom wins $30m deal for custom edge smart platform

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Silicom Ltd., an Israeli cloud and data centre solutions provider, has won a $30 million (£22.2m) design deal for a custom version of its Edge Smart platform.

Although the client has not been disclosed, it is described as a leading North American telecommunications service provider.

The client was said to be suitably impressed with how Silicom integrated its equipment with one of its partner’s software-based routers to agree to further collaboration.

Silicom will be designing a smart platform that will enhance the performance, flexibility, and manageability of the client’s major multilocation customers.

The new edge platform will be optimised for operational availability and continual deployment in the face of the ongoing global components crisis.

Thus far the client has ordered $30m in equipment planned to be delivered throughout 2022, but a run rate of more than $50m is forecast once the manufacturing and deployment processes have had time to stabilise.

Shaike Orbach, Silicom CEO, said: “This extremely important new win confirms the superiority of our innovative technologies while demonstrating, once again, the importance of the close, ongoing support and communication that characterize all of our client relationships.

“Just a year ago, when we started working with this customer, its orders for relatively ‘standard’ platforms were at a rate of just a few million dollars per annum. But as our relationship developed, we became aware of more and more opportunities, leading to this major design win: one that is approximately 10 times as large as the original, and that will hopefully pave the way to more over the coming years.”

Orbach continued: “It is important to note that, given the component crisis’s unpredictable behaviour and the customer’s need to deploy the platforms sooner rather than later, we are taking all measures necessary to facilitate the deliveries during the time period required by the customer.

“In fact, we believe that it is actually this flexibility – our ability to optimize for availability on the one side while continuing to support the customer with the industry’s best connectivity solutions – which helped us win this deal. We believe these are unique advantages of our value proposition and that they will continue to fuel our growth as we move forward.”

Additional deals with the client are expected to follow.

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