Tuesday, March 3, 2015

#MWC15 @Gigamon Discusses the Triple Challenge

The triple challenge is about how operators are deploying three new technologies simultaneously, namely, 100 Gbps transport pipes, VoLTE, and carrier network virtualization.  Andy Huckridge discusses traffic visibility concerns in each of these areas.


Blueprint: Why the IoT is Forcing Mobile Operators to Redesign

by Frank Yue, Senior Technical Marketing Manager, F5 Networks

The Internet of Things (IoT) is composed of automated machine-to-machine (M2M) devices and is poised to be a huge boon for consumers everywhere. People and businesses will be able to access data from wearable exercise monitors, home automation and security—and pretty much any device imaginable. Manufacturers are connecting water meters, cars, and even crockpots to the Internet. Some estimates put the number of IoT devices at 16 billion in 2014, growing to over 40 billion by 2020. By comparison, there are predicted to be 8.3 billion non-M2M devices by 2019.

This surge in the number of automated devices connected to the Internet will significantly impact service provider networks. M2M and automated products behave very differently when compared to biologically driven devices. Mobile service providers must take a close look at how these devices function and how they interact with the Internet through their data connections as they continue to build and update their advanced LTE mobile networks.

Until now, consumer driven connections through mobile phones, tablets, and PCs have been the focus for the design and build of LTE networks. These devices and connections consume large amounts of data as everyone's hunger for more mobile content is sated. Although generally random, the connections are statistically predictable. Service providers are using this predictability to ensure that the networks they build can support the planned demand.

Not all connections are created equal

M2M devices have an extremely different connection profile from non-M2M devices. They are designed to send periodic updates with their current state and other data. Although the amount of content is small, there is a specific cadence to the process of delivering these updates. Currently, most service providers’ networks are not designed to handle this regular connectivity.

In the 3GPP LTE network architecture, there are approximately 26(!) steps for any user equipment (UE)—including IoT devices—to attach (register) to a mobile network. When a device is idle for a period of time, it goes to sleep and detaches itself from the network. The idle timer is usually fairly short since the device is tying up precious radio bandwidth as long as it is attached (registered). In order to re-attach, the device must go through those 26 steps again.

A typical M2M device will send updates on a periodic interval such as every minute, five minutes, or 15 minutes. In addition, these devices will often send more comprehensive updates on a larger interval, often hourly or daily. For instance, a wearable training device may send updates to the Internet every 5 minutes while a residential water meter will only send a daily message to update the home’s water consumption.

All of these updates means there will inevitably be surges of registrations and floods of small chunks of data on the mobile networks. The minute-by-minute updates may lead to only small surges, but the more comprehensive updates (such as hourly or daily) may cause far larger surges. So, the raw volume of data is not the main issue; it is the number of connections and reconnections and the number of devices that is the primary concern.

The mobile service provider is not ready to handle these “harmonic surges” in registrations and updates. When a device wants to send more data, it will need to register to the network again. These surges in registration messages can easily overload the Diameter signaling infrastructure.

Cloud technologies are not just for the cloud

To properly and efficiently handle the connection and data patterns that IoT creates, mobile service providers need networks that are agile and elastic in order to create on-demand infrastructures that can support these surges. At the same time, they want to avoid the expense of purchasing and maintaining equipment that is unused except during these surge periods.
This is where service providers can leverage virtualized and cloud technologies. Network Functions Virtualization (NFV) is the architecture that can transform today’s physical networks into flexible and dynamic infrastructures that run services in cloud environments. Cloud technologies are designed to deliver the on-demand resourcing, or elasticity, that is necessary to support traffic surges. This maps directly to the planned capabilities of NFV.
An unspoken goal of NFV is to transform the mobile service provider’s core network into a cloud-like environment with all the business and operational benefits of an agile and virtualized infrastructure. To support the demands created by the growth of IoT, the registration and policy infrastructure of the evolved packet core (EPC) must be virtualized.
Note, however, that virtualization, in and of itself, does not deliver the required elasticity. On-demand resourcing is only possible with the abstraction, programmability, and orchestration of these virtualized services. The detection of surge periods must be coordinated with the spinning up of the resources required to meet the expected demand. After the flood of connections pass, these resources must also be freed up to be available for other purposes.

“Harmony,” not “harmonics”

The potential for the IoT to overwhelm the mobile network infrastructure is very real. And with the number and types of connected devices growing exponentially, the hype for IoT continues unabated.  

When it comes to building their infrastructures, mobile service providers need to work closely with the key IoT standards bodies and manufacturers to find common ground. If they do not address this growing type of connectivity, service providers will experience a devastatingly similar situation to the harmonic convergence of wind speed that caused the Tacoma Narrows Bridge to collapse in 1940

About the Author

Frank Yue is the Senior Technical Marketing Manager for the Service Provider business at F5 Networks. In this role, Yue is responsible for evangelizing F5’s technologies and products before they come to market.

Prior to joining F5, Yue was sales engineer at BreakingPoint Systems, selling application aware traffic and security simulation solutions for the service provider market. Yue also worked at Cloudshield Technologies supporting customized DPI solutions, and at Foundry Networks as a global overlay for the ServerIron application delivery controller and traffic management product line. Yue has a degree in Biology from the University of Pennsylvania.

About F5 

 F5 (NASDAQ: FFIV) provides solutions for an application world. F5 helps organizations seamlessly scale cloud, data center, telecommunications, and software defined networking (SDN) deployments to successfully deliver applications and services to anyone, anywhere, at any time. F5 solutions broaden the reach of IT through an open, extensible framework and a rich partner ecosystem of leading technology and orchestration vendors. This approach lets customers pursue the infrastructure model that best fits their needs over time. The world’s largest businesses, service providers, government entities, and consumer brands rely on F5 to stay ahead of cloud, security, and mobility trends. For more information, go to f5.com.

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Equinix Builds Programmable Network with Cisco Tail-f

Equinix is using Cisco's Tail-f Network Control System (NCS) as a foundational element for automating and programming the Equinix Cloud Exchange.

Specifically, the Equinix Programmable Network is using the NETCONF and YANG capabilities in the Tail-f NCS offering to provider multi-vendor service orchestration. This enables Equinix to provide multi-cloud services in an agile and vendor-agnostic way, simplifying and accelerating cloud access for the enterprise.

The Equinix Cloud Exchange provides direct access to leading cloud providers such as AWS, Cisco, Google Cloud Platform, Microsoft Azure, SoftLayer, and others.  Equinix said the use of NETCONF and YANG provides the automation and programmability needed for rapidly accessing and managing these cloud services.

"Our goal with the Equinix Cloud Exchange is to provide multi-cloud interconnectivity solutions that satisfy high-performance application needs in a secure environment. Tail-f NCS is a key part of our foundational programmable network and allows us to provide multi-cloud services in an agile and vendor-neutral way. Tail-f's support for YANG also allows us to quickly define new services without the burden of vendor-specific configuration protocols," stated Ihab Tarazi, chief technology officer, Equinix.


@Equinix's Ihab Tarazi on the Evolution of #SDN

Ihab Tarazi, CTO of Equinix, discusses the evolution of software-defined networking, in the emerging SDN2, OpenStack, Open Daylight, NetConf and YANG.

Nokia Leverages Real-time Network Data to Tailor Content Delivery

At this week’s Mobile World Congress, Nokia Networks is showcasing its Liquid Applications’ throughput guidance for heling content providers to optimize their transmission policy to reflect dynamically changing network resources in real-time. The goal is to improve resource utilization in mobile operator's network. YouTube has successfully conducted lab tests of the throughput guidance technology, with initial results showing improvement in network utilization and application quality of experience.

Congestion detection from Nokia’s Liquid Applications notifies upstream content providers and mobile device clients as to the most efficient time to fetch subscriber content based on real-time cell load information.

Nokia said Akamai is currently testing congestion detection as part of their Predictive Video over Cellular (PVoC) optimization solution for mobile networks. The company calculates that its smart location experience optimization service provides up to 50% increase in video streaming speeds for consumers based on insights on how applications utilize network resources.

“We are now able to provide completely new insights into the dynamically changing performance of mobile networks, to improve content delivery efficiency and increase network performance. It is important for operators and content providers to keep up with the increasing demand for localized, data-intensive content that users want to receive with the fastest possible speed to their devices,” stated Dirk Lindemeier, Head of Liquid Applications at Nokia Networks.


Alcatel-Lucent Demos NFV-based Virtualized Radio Access Network

At this week’s Mobile World Congress in Barcelona, Alcatel-Lucent is showcasing NFV-based virtualized radio access network technology in collaboration with Intel, China Mobile, and Telef√≥nica.

Alcatel-Lucent said its vRAN solutions will be available for customer trials during 2015 and for commercial operation in 2016.  Over the past year, the company has announced the virtualization of a wide range of network functions, including evolved packet core, IMS, Content Delivery Network and service routing technologies. Its CloudBand NFV platform has been featured in over 30 customer projects and has an NFV ecosystem of over 60 members.

Alcatel-Lucent’s vRAN comprises a virtualized baseband unit (vBBU) that uses general purpose servers with Intel Xeon processors.

Alcatel-Lucent and China Mobile, which have a long-standing co-development agreement in place, are showing progress in the Cloud-RAN program.

Telefónica is also showing the Alcatel-Lucent vRAN solution on its booth as part as an ambitious example of an end-to-end fully virtualized network running at #MWC15.

“A virtualized RAN will allow operators to take a big step toward 5G and benefit from the advanced features and efficiencies enabled by LTE-A. By teaming on this technology, Alcatel-Lucent, Intel and China Mobile have been able to very quickly develop a comprehensive solution that will allow operators to evolve their networks more efficiently and effectively,” stated Glenn Booth Senior Vice President and General Manger of Alcatel-Lucent’s LTE Business Unit.


DT Launches Cloud-VPNs with Cisco's Tail-f

Deutsche Telekom (DT) launched a Cloud VPN (Virtual Private Network) Service for small and medium businesses that features a self-service online portal to give customers a simple way to select, subscribe to and activate highly secure and scalable Internet services. The service portfolio includes branch, site-to-site and remote access encrypted VPNs, as well as firewall and web security, all offered as a cloud-managed IT solution on a monthly subscription basis.

Customers have access to a management dashboard on which they can track the status and performance of services and upgrade their service package, such as increasing the number of users or the bandwidth, with a click of a mouse. Provisioning is automatic and done in real time from DT’s data centre.

DT is using the Tail-F NCS platform based on Netconf/YANG. The service is built on Cisco® virtual security appliances, combined with DT’s OpenStack solutions.


Alcatel-Lucent Pursues Wireless Unified Network Strategy

Alcatel-Lucent introduced a “Wireless Unified Networks” strategy which blends the upload and download capabilities of Wi-Fi and cellular technologies to enable higher capacity and give subscribers a more consistent and higher-quality mobile voice, data and video experience in high-traffic or low-signal locations.

As part of the new strategy, Alcatel-Lucent is introducing two separate capabilities: “Wi-Fi boost”, which uses cellular to enhance the performance of Wi-Fi networks; and “Cellular boost”, which uses unlicensed spectrum to enhance the performance of cellular. Combined, they maximize performance for subscribers across both access technologies.

Alcatel-Lucent’s Wi-Fi boost technology combines the downlink of Wi-Fi with the uplink of cellular. This capability requires an OS software update to existing user devices that are capable of both cellular and Wi-Fi transmission. It also requires software updates in the network to blend the Wi-Fi and cellular access networks into a unified network.  The company calculates that Wi-Fi boost can increase download speeds up to 70% and increase upload speeds by an order of magnitude or more (compared to standalone Wi-Fi at the cell edge), while also doubling the Wi-Fi range.  Commercial availability is expected in the second half of 2015.

Alcatel-Lucent will also add a cellular downlink to the Wi-Fi downlink of the Wi-Fi boost. This pre-standard LTE Wi-Fi Aggregation (LWA) implementation can more than double download speeds relative to standalone network capabilities.

Alcatel-Lucent’s Cellular boost leverages the unlicensed spectrum bands to enhance the capacity and performance of a cellular network. Plans include the introduction of new LTE-U and Licensed Assist Access (LAA) capable small cells.

“As an industry we have historically treated cellular and Wi-Fi as unique technologies. For example, the industry debates the merits of Voice/Data over Wi-Fi versus Voice/Data over LTE. From a consumer perspective, it should simply be Voice/Data over Wireless. With Wireless Unified Networks, we are excited to be taking the important steps to transform and greatly enhance the user’s wireless experience in the home, at work, and in dense venue networks by combining existing Wi-Fi and cellular networks into one high performance network,” stated Mike Schabel, Vice President of Small Cells in Alcatel-Lucent.

Alcatel-Lucent is also presenting its new multi-standard enterprise and residential small cells and compact metro cells at #MWC15. Other innovations on display include:
  • CloudBand management system, providing a fully integrated solution that orchestrates infrastructure, applications, and network in a single virtualized NFV platform.
  • Virtualized, massively scalable Mobile and Wi-Fi gateways, including enhanced evolved Packet Data Gateway (ePDG+) support and seamless concurrent use of cellular (licensed) and Wi-Fi (unlicensed) access connections to boost performance.
  • Virtualized IMS solutions that deliver a scalable and seamless communications experience across different access networks and devices.
  • Motive customer experience management and big network analytics that deliver a more consistent, high quality experience and provide insight into network, device and application performance across the network.


Cisco, Deutsche Telekom and Intel Launch Start-up Accelerator

Cisco, Deutsche Telekom and Intel are launching Challenge Up!, a joint Internet of Things (IoT) accelerator for start-ups from the Europe, Middle East and Africa (EMEA) region. The program aims at helping innovative IoT startups go-to-market faster through joint projects, mentoring, high-value networking and corporate assets. Selected companies may also recieve strategic investment and support commercializing their product or service for global markets.

“We are looking forward to the creative ideas for new products and services from across the region to improve how we live and work together. By giving startups access to the complimentary resources of our three global companies we can help them accelerate their ideas into commercial success,” said Christian Morales, Corporate Vice President and General Manager Europe, Middle East and Africa at Intel.

“With an expected 50 billion things connected to the Internet by 2020, the Internet of Everything opens up great opportunities. To help better address these opportunities, Challenge Up! brings together the best of the technology world in an ecosystem of open innovation,” said Mike Flannagan, Vice President of Data & Analytics at Cisco.


Advantech - #NFV Reaches the Tipping Point

NFV is a big theme at Mobile World Congress 2015.  Paul Stevens previews the latest from Advantech.

#MWC15 - @Gigamon on De-risking VoLTE Deployments

Lots of interest for VoLTE and Video-over-LTE at this year's Mobile World Congress. Andy Huckridge previews Gigamon's approach to de-risking deployments.

@SAP Teams with T-Systems on Cloud-Based IoT Service

SAP and T-Systems introduced a connected logistics platform for processing large volumes of data from Internet of Things (#IoT) deployments.

The smartPORT logistics networking solution combines SAP Connected Logistics software and the Connected Car solution from T-Systems.

The Hamburg Port Authority is using the solution to provide traffic information and services relating to the port using mobile devices such as tablets or smartphones. The objective was to optimize traffic and logistics processes in order to handle large volumes of goods in the port.

SAP said its smartPORT logistics offering could be used at other logistics hubs such as airports, parcel distribution centers and production sites. Both companies are committed to work to extend the ongoing cooperation for cloud services in the domain of telematics services and real-time information for logistics solutions.

“Today, the logistics industry is frequently faced with the challenge of having to optimize flows of goods in a limited area,” said Horst Leonberger, head of the Connected Car business unit of Deutsche Telekom. “With smartPORT logistics, we enable our customers to manage their flows of goods in real time and therefore make optimum use of the limited space.”


Monday, March 2, 2015

#MWC 2015 - Unlocking the Value of Context with @SAP_Telco

The next trend in mobile transformation is unlocking the value of context by getting the right information to the right user at the right time, says Rick Costanzo, Exec. VP and GM, Telecommunication Industry & Global Mobility Solutions.

Blueprint: Rethinking Mobile Infrastructures for IoT

by Don DeLoach, CEO of Infobright

The sheer magnitude of machine-to-machine (M2M) data currently being generated by the Internet of Things (IoT) is mind-blowing. Global mobile data traffic grew 69 percent in 2014 according to a recent Cisco report, and that data is expected to increase nearly tenfold with 11.5 billion mobile-connected “smart” devices (including M2M modules) estimated to be in existence by 2019.

The report’s researchers say that growth in mobile data traffic can be traced to the rapid growth of M2M applications and mobile devices such as tablets and smartphones as the IoT – which delivers this data through M2M interfaces such as surveillance video systems, utility meters and GPS devices – is only expected to grow from its 109 million figure in the current market to 578 million by 2019. Each year, according to the report, several new devices in different forms such as smartwatches or tablets along with increased capabilities and intelligence are introduced to the market, accounting for nearly half a billion mobile connections and devices added in 2014.

What this all boils down to is that the implementation of the Internet of Things over the next few years will create a powerful, vast amount of M2M data in the hands of mobile network operators looking to glean actionable business insights from it. The problem is, not all that data is essential to the business’ bottom line. If a network operator needs to find out how many end-users are women between 18-35 years old, then end-users who are men, or outside of that age range, would not be practical for the immediate business need at hand.

The IoT is about analyzing the true value, or the utility value, of the data that will effect real change to improve whatever end result is desired by a company, such as product development, marketing campaigns, customer support resolution or SLA root cause monitoring. This is the real “Holy Grail” of the Internet of Things. This means that in order to gain the most out of their bottom line, telecoms and their service providers need to take a hard look at where their current infrastructures are falling short in collecting, storing and analyzing this wealth of data and identify the areas in which they need updating so that they can quickly and efficiently decipher the true data sets specific to their needs. Innovative companies must rethink legacy systems in order to address the sheer volume and velocity of data sets never before seen prior to the IoT explosion.

So let’s take a look at exactly how telecoms should be rethinking their infrastructures to meet these new data demands.  For starters, they should implement an explore and exploit approach to collecting, ingesting, storing, and querying new sets of data. With the explore side of the equation, it is essential for telecoms to keep a close watch on the interesting pieces of information within the data (and only the interesting pieces) that will enable them to yield the exact results they are looking for.  If they wouldn’t expend time and/or money on useless details that won’t add anything to their bottom line, why waste resources in the beginning looking for them? Once telecoms have identified those interesting data sets, they are then able to move to the exploit side of the coin, where they can reproduce that valuable insight so that they can continue to use it to change how their business works.

But in order for telecoms to even start approaching this vital explore and exploit approach to data collecting, they must ensure that their infrastructures are able to hold an enormous volume of data, held over a long period of time, and received as close to real-time as possible. This is a very different proposition from traditional analytics, which deals with this volume in a monolithic relational database and, in a lot of cases, sacrifices some functionality for the ability to load that data quickly as possible. For telecoms to gain and maintain a competitive edge, they must embed within their infrastructures real-time investigative or ad-hoc analytics solutions to provide value-added and customized services to their end-customers. One way of doing so lies with Hadoop, which has grown in popularity as a cost-effective and highly scalable way to store and manage big data. Data typically stored with Hadoop is complex, from multiple data sources, and includes structured and unstructured data. However, companies are realizing that they may not be extracting the full value of their data with Hadoop due to a lack of high-performance ad-hoc query capabilities.

To fully address the influx of M2M data generated by the IoT, telecoms can deploy a range of technologies to leverage distributed processing frameworks like Hadoop and NoSQL and improve performance of their analytics, including enterprise data warehouses, analytic databases, data visualization, and business intelligence tools. These can be deployed in any combination of on-premise software, appliance, or in the cloud.

The reality is that there is no single silver bullet to address the entire analytics infrastructure stack. Specific business requirements will determine where each of these elements plays its role. The key is to think about how business requirements are changing and move the conversation from questions like, “How did my network perform?” to time-critical, high-value-add questions such as, “How can I improve my network’s performance?”

The ability to compete based on analytical maturity, coupled with the overwhelming contribution of new data coming from the multitude of IoT devices and sensors, means conventional ways of storing and analyzing data will need to adapt. By maximizing insight into the data, mobile network operators can make better decisions at the speed of business, thereby reducing costs, identifying new revenue streams, and gaining a competitive edge.

About the Author

Don DeLoach is CEO and president of Infobright. Don has more than 30 years of software industry experience, with demonstrated success building software companies with extensive sales, marketing, and international experience. Don joined Infobright after serving as CEO of Aleri, the complex event processing company, which was acquired by Sybase in February 2010. Prior to Aleri, Don served as President and CEO of YOUcentric, a CRM software company, where he led the growth of the company before being acquired by JD Edwards in 2001. Prior to YOUcentric, Don spent five years in senior roles at Sybase.  He has also served as a Director at Broadbeam Corporation and Chairman of the Board at Apropos Inc. Don currently also serves on the Board of the Illinois Technology Association as well as the Board of the Juvenile Protective Association.

About Infobright

Infobright delivers a high performance analytic database platform that serves as a key underlying infrastructure for The Internet of Things. Specifically focused on enabling the rapid analysis of machine generated data, Infobright powers applications to perform interactive, complex queries resulting in better, faster business decisions enabling companies to decrease costs, increase revenue and improve market share. With offices around the globe, Infobright’s platform is used by market-leading companies such as Mavenir, Yahoo! Bango, JDSU and Polystar. For more information on Infobright’s customers and solutions please visit www.infobright.com

HP Brings in Aruba to Manage its Networking Business

HP agreed to acquire Aruba Networks for $24.67 per share in cash, reflecting an equity value of approximately $2.7 billion net of cash and debt.

Aruba, which is based in Sunnyvale, California, is a leading supplier of WLAN solutions for enterprises.  The company had revenues of $729 million in fiscal 2014, and has reported compound annual revenue growth of 30 percent over the last five years. It has approximately 1,800 employees.  Aruba has made rapid progress in 802.11ac Wi-Fi upgrades.  It offers integrated solutions for many vertical market segments, such as retail or healthcare.

HP said Aruba's marketing and channel model will complement its own networking business and go-to-market breadth.  Together, the companies will focus on next-generation converged campus solutions, leveraging the strong Aruba brand.  This new combined organization will be led by Aruba’s Chief Executive Officer Dominic Orr, and Chief Strategy and Technology Officer, Keerti Melkote, reporting to Antonio Neri, leader of HP Enterprise Group.  With this move, HP will be uniquely positioned to deliver both the innovation and global delivery and services offerings to meet customer needs worldwide.

“Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT,” said Meg Whitman, Chairman, President and Chief Executive Officer of HP.  “By combining Aruba’s world-class wireless mobility solutions with HP’s leading switching portfolio, HP will offer the simplest, most secure networking solutions to help enterprises easily deploy next-generation mobile networks.”

“Together with HP, we have a tremendous opportunity to become an even greater force in enterprise mobility and networking,” said Mr. Orr.  “This transaction brings together Aruba’s best-of-breed mobility hardware and software solutions with HP’s leading switching portfolio.  In addition, Aruba’s channel partners will have the opportunity to expand their businesses with HP offerings.  Together, we will build on Aruba’s proven ‘customer first, customer last’ culture, creating an innovative, agile networking leader ideally positioned to solve our customers’ most pressing mobility, security and networking challenges.”


Nokia Rolls Out Radio Enhancements

At this week’s Mobile World Congress, Nokia Networks is rolling out enhancements across its radio portfolio.  Some highlights:
  • Extending the unique macro parity Small Cells offering with dual band LTE pico cells and a Flexi Zone 3G/Wi-Fi base station.
  • Significant LTE-Advanced enhancements across all dimensions, with Carrier Aggregation launches for TDD-FDD, Small Cells and between sites.
  • Capitalizing on new radio spectrum thanks to a new 8-pipe TD-LTE-Advanced 3.5GHz radio and future expansion to unlicensed bands with LTE-U technology; both demonstrated at MWC.
  • Improving spectral efficiency with enhancements in both LTE- and TD-LTE-Advanced, including MIMO 4x4 and Downlink CoMP (Coordinated Multipoint).
  • Single RAN Advanced portfolio now enables carbon neutral base station sites, with several launches including the launch of a new Radio Antenna System and advanced energy saving software .
  • Consulting services to guide operators to the best and most cost efficient network evolution strategies, and a new Multi-layer Optimization service that can reduce unnecessary handovers by up to 20%.
“Operators are preparing for the huge data growth that is coming with 5G and ultra-dense networks. We help them plan ahead to evolve their networks, making the most of their existing equipment as well as deploying the newest technologies to provide a seamless experience for mobile users across all access technologies and network layers,” said Marc Rouanne,  Executive Vice President, Mobile Broadband at Nokia Networks.


NXP to Acquire Freescale for $11.8 Billion

NXP Semiconductor agreed to acquire Freescale for $6.25 per share in cash and 0.3521 of an NXP ordinary share for each Freescale common share, implying a total equity value for Freescale of approximately $11.8 billion (based on NXP's closing stock price as of February 27, 2015) and a total enterprise value of approximately $16.7 billion including Freescale's net debt.

The deal creates the largest supplier of semiconductors for the automotive industry and the No.1 supplier of general microcontrollers (MCUs).

The combined company will capitalize on the growing opportunities created by the accelerating demand for security, connectivity and processing. NXP estimates annual cost synergies of $500 million.

"Today's announcement is a transformative step in our objective to become the industry leader in high performance mixed signal solutions. The combination of NXP and Freescale creates an industry powerhouse focused on the high growth opportunities in the Smarter World. We fully expect to continue to significantly out-grow the overall market, drive world-class profitability and generate even more cash, which taken together will maximize value for both Freescale and NXP shareholders," said Richard Clemmer, NXP Chief Executive Officer. Mr. Clemmer will continue to be the President and Chief Executive Officer of the merged company.

"We believe this merger, which combines two highly successful and complementary companies, will create significant value for Freescale's and NXP's shareholders, customers and employees. Both companies have built leadership positions and have a sharp focus on delivering superior value to customers. Our combined scale, size and global reach will position our new company to deliver sustainable above market growth. It will also serve to accelerate the strategic plans both companies have invested in, enabling us to deliver more complete solutions to customers," said Gregg Lowe, Freescale Semiconductor President and Chief Executive Officer.


Mitel to Acquire Mavenir for $560 million

Mitel agreed to acquire Mavenir Systems (NYSE:MVNR) in a cash and stock deal valued at approximately $560 million.

Mitel specializes in enterprise and mobile IP unified communications.  Mavenir prrovides software-based mobile networking solutions, including a portfolio of voice/video, messaging and mobile core products that include IP Multimedia Subsystem (IMS), Evolved Packet Core (EPC) and Session Border Controllers (SBCs). Mavenir was the supplier for the world’s first live network deployments of Voice over LTE (VoLTE) and RCS5 with MetroPCS (now T-Mobile); the first mobile network deployment of IMS-based VoWi-Fi (Wi-Fi calling) with T-Mobile US; and the first implementation of Virtualized RCSe with Deutsche Telekom.

Mavenir said the deal provides it with the financial and operational footprint to drive further market expansion.

“Mitel is a leader in enterprise and cloud communications, markets in which mobility is becoming increasingly influential. With wireless adoption of IP and 4G LTE and demand for next gen mobile services ramping quickly, we see a compelling opportunity to capitalize on a major market transition to add a high-growth mobile business to Mitel,” said Rich McBee, President and CEO of Mitel. “We believe the combination of Mitel and Mavenir creates a powerful new value proposition for enterprises and mobile service providers, using a common IP technology layer as the foundation for convergence, growth and competitive differentiation.”

“The move to all-IP LTE mobile networks has created a unique opportunity for service providers to leverage a converged all-IP network to offer feature-rich business and consumer communication services to any device, anywhere, on any access network,” said Pardeep Kohli, President and CEO, of Mavenir. “We believe that the combined company is ideally positioned to capitalize on the trends within the communications industry today; namely, the convergence across enterprise and mobile networks to all-IP technologies, and the transition to cloud-based unified communications telephony and software-defined virtualized infrastructure.”