Intel licenses networking technology

Chip giant Intel will license technology from network management specialist Packeteer to further its competitive aims in the Internet equipment market.

Packeteer makes a set of hardware and software that serve as a network "traffic cop," managing data streaming through a network and allocating bandwidth as needed. Intel will use the technology as it takes aim at the needs of Web hosting companies, which house large Web sites on systems for a fee.

By licensing Packeteer's hardware and software, Intel furthers its ambitions to provide network switching devices to various segments of the Internet's infrastructure--a far cry from its roots as a low-end, price conscious networking player. Intel's strategy is to give a network operator or Web hosting manager control of the data going to and from a system housing a Web site, according to Barry Hartman, product line manager for Intel.

Intel plans to license Packeteer's PacketWise technology and use it in its NetStructure line of networking devices, which Intel characterizes as a set of "appliances" because they perform a particular function on a network. The new Intel-branded devices will be available later this month.

In turn, Packeteer said it plans to implement a security acceleration technology from Intel in a new product scheduled to ship next month.

Terms of the deal were not disclosed.