About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Intel Expands Networking Clout with QLogic Buy … But What Impact on Trading Systems?

Subscribe to our newsletter

Intel’s planned acquisition of QLogic’s InfiniBand business – announced last week – further advances its general ‘world domination’ plans in networking. And while its aspirations go way beyond low-latency trading, expect a trickle down that will over time impact how automated trading systems are implemented.

QLogic’s InfiniBand offerings – shortly to be owned by Intel – include switches and network cards, based on its own TrueScale silicon. It’s a product line that will “bring increased options and exceptional value to our data centre customers,” says an Intel executive.

Don’t expect much near-term impact on systems deployed in the financial markets, since QLogic was hardly a player in the vertical where InfiniBand and Mellanox Technologies are synonymous.

Longer term, though, Intel’s continuing push into networking will likely affect not only how data centres in general are built, but technology choices for those implementing low-latency architectures for financial trading.

That push began in 2008 with the acquisition of NetEffect, which used previous InfiniBand experience to implement Remote Direct Memory Access (RDMA) protocols in 10 gigabit Ethernet network adaptors.

Last year, it snapped up Fulcrum Microsystems, which develops Ethernet silicon that is found in switches from the likes of Arista Networks and IBM System Networking (Blade Network Technologies as was).

Now it has InfiniBand technology to go along with its strong Ethernet lineup. More significantly, its technology leadership credentials are strong enough to heavily influence technology directions in the financial markets.

While Ethernet technology is approaching the performance of InfiniBand in terms of latency and jitter, the general school of thought is that InfiniBand still has the edge, though it comes with implementation and management baggage. With Intel’s muscle behind Fulcrum’s core technology, further improvements in latency/jitter are very likely, as is packaging of compute and network processing on a single chip.

It will be interesting to see how Intel slices up the networking pie between Ethernet and InfiniBand. One might reasonably surmise that it will continue to push Ethernet in the financial markets, and direct InfiniBand to HPC applications, and leverage it for its many-core processor developments.

It will also be worth watching whether this acquisition also pushes Mellanox into a similar corporate event, as it faces increased competition in its general markets. Some have suggested that Oracle might make a pitch, since it uses Mellanox’s InfiniBand technology in several of its appliance products (including those tuned to run Java for financial trading). Oracle also has an 8.7% stake in Mellanox.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Navigating the Build vs Buy Dilemma: Cloud Strategies for Accelerating Quantitative Research

Date: 20 May 2026 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes For many quantitative trading firms and asset managers, building a self-provisioned historical market data environment remains one of the most time-consuming and resource-intensive steps in establishing a new research capability. Sourcing data, normalising symbologies, handling corporate actions and maintaining...

BLOG

ITRS Acquires IP-Label to Expand Digital Experience Monitoring Capabilities

ITRS, the performance monitoring and analytics provider, has agreed to acquire IP-Label, the Paris-based specialist in Digital Experience Monitoring (DEM) and performance analytics, with the aim of strengthening its DEM capabilities and expanding its presence in Europe. The acquisition brings IP-Label’s Ekara platform into the ITRS portfolio, adding capabilities including Synthetic Transaction Monitoring (STM), Real...

EVENT

TradingTech Summit London

Now in its 15th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Regulatory Data Handbook – Third Edition

Need to know all the essentials about the regulations impacting data management? Welcome to the third edition of our A-Team Regulatory Data Handbook which provides all the essentials about regulations impacting data management. A-Team’s series of Regulatory Data Handbooks are a great way to see at-a-glance: All the regulations that are impacting data management today...