Monday, January 16, 2017

IDC: Growth in Cloud IT Infrastructure Spending to Rise by 18% in 2017

Total spending on IT infrastructure products (server, enterprise storage, and Ethernet switches) for deployment in cloud environments will increase by 18.2% in 2017 to reach $44.2 billion, according to IDC's latest Worldwide Quarterly Cloud IT Infrastructure Tracker.

IDC expects the majority (61.2%) of spending will be done by public cloud datacenters, while off-premises private cloud environments will contribute 14.6% of spending.

Spending on IT infrastructure for on-premises private cloud deployments will growth at 16.6%. In comparison, spending on traditional, non-cloud, IT infrastructure will decline by 3.3% in 2017 but will still account for the largest share (57.1%) of end user spending. (Note: All figures above exclude double counting between server and storage.

Some forecasts for 2017:

  • Spending on IT infrastructure for off-premises cloud deployments will experience double-digit growth across all regions.
  • The majority of 2017 end user spending (57.9%) will still be done on on-premises IT infrastructure which combines on-premises private cloud and on-premises traditional IT. 
  • Ethernet switches will be fastest growing segment of cloud IT infrastructure spending, increasing 23.9% in 2017, while spending on servers and enterprise storage will grow 13.6% and 23.7%, respectively. In all three technology segments, spending on private cloud deployments will grow faster than public cloud while investments on non-cloud infrastructure will decline.
  • Spending on off-premises cloud IT infrastructure will experience a five-year compound annual growth rate (CAGR) of 14.2%, reaching $48.1 billion in 2020. Public cloud datacenters will account for 80.8% of this amount. Combined with on-premises private cloud, overall spending on cloud IT infrastructure will grow at a 13.9% CAGR and will surpass spending on non-cloud IT infrastructure by 2020. Spending on on-premises private cloud IT infrastructure will grow at a 12.9% CAGR, while spending on non-cloud IT (on-premises and off-premises combined) will decline at a CAGR of 1.9% during the same period.

"In the coming quarters, growth in spending on cloud IT infrastructure will be driven by investments done by new hyperscale datacenters opening across the globe and increasing activity of tier-two and regional service providers," said Natalya Yezhkova, research director, Storage. "Another significant boost to overall spending on cloud IT infrastructure will be coming from on-premises private cloud deployments as end users continue gaining knowledge and experience in setting up and managing cloud IT within their own datacenters."

http://www.idc.com

Börje Ekholm Takes Command at Ericsson

Börje Ekholm officially assumed the position as President and CEO of Ericsson.

Jan Frykhammar remains a member of the Executive Leadership Team and is, effective today, appointed Executive Vice President and Advisor to the CEO. Magnus Mandersson remains Executive Vice President, Advisor to the CEO and a member of the Executive Leadership Team. Carl Mellander remains acting Chief Financial Officer and a member of the Executive Leadership Team.

"I am very excited to assume the role as President and CEO of Ericsson, a company that I have admired for as long as I can remember. Ericsson has shaped an entire industry and led technology developments that have benefitted so many. Yet, we are only at the beginning of the mobility journey as we in coming years will see massive transformation across industries as 5G is introduced," stated Börje Ekholm, President and CEO, Ericsson.

http://www.ericsson.com
  • Prior to his appointment as CEO of Ericsson, Börje served as CEO of Patricia Industries, a division within Investor. Prior to assuming this position in 2015, Börje Ekholm held the position as President and CEO of Investor AB between 2005 and 2015. Previous positions also include President of Investor Growth Capital Inc., as well as positions with Novare Kapital AB and McKinsey & Co Inc.

Hans Vestberg is Out as CEO of Ericsson

Hans Vestberg has stepped down as President and CEO and member of Ericsson's Board of Directors.

Jan Frykhammar, Executive Vice President and CFO, will assume the CEO position until a new CEO is in office.

The resignation comes under pressure from the company's Board of Directors, which issued a statement saying that new leadership is required to address changing market conditions and "drive the next phase of Ericsson's development."  As stated during the disappointing financial report last week, the company must further cut expenses.

In a press statement, Chairman of the Board Leif Johansson says: "Hans Vestberg has led the company for seven years through significant industry and company transformation. Hans has been instrumental in building strong relationships with key customers around the world and his leadership and energy have been an inspiration to employees and leaders across Ericsson. However, in the current environment and as the company accelerates its strategy execution, the Board of Directors has decided that the time is right for a new leader to drive the next phase in Ericsson's development."

https://www.ericsson.com/news/2030327


  • In June 2009, Hans Vestberg took over as CEO of Ericsson, replacing Carl-Henric Svanberg who had taken over as CEO of BP.

Megaport Enables Singapore - Hong Kong - Los Angeles Route

Megaport announced a new route connecting Hong Kong to Los Angeles and a secondary path from Singapore to Hong Kong to meet high customer demand. As with all Megaport enabled infrastructure, consumption will be based on cloud computing models, including month-to-month services.

The connectivity provides enterprise customers with access trans-pacific capacity via Megaport’s global Software Defined Network, enabling customers to link services including cloud connections, Point to Points, and remote peering between Hong Kong, Singapore, and the U.S., without requiring a physical presence in all locations. Customers can directly connect to Amazon Web Services, Google, Microsoft Azure, and more cloud service providers through Megaport
partnerships.

“This link represents a great step forward for Megaport from a growth standpoint as we not only are enabling a secondary path between Singapore to Hong Kong to keep up with demand, but are also linking two of our key markets,” said Denver Maddux, CEO, Megaport. “Through this new route, we are able to bring together Megaport’s backbone in Asia and our terrestrial network in North America, therein providing a more immersive network and a richer fabric through the increased number of customers, partners, and providers on the combined footprint.”

In January, Megaport enabled transatlantic capacity for customers through a partnership with Aqua Comms Limited, the owner/operator of AE Connect, a
13TB undersea cable connecting New York, Dublin, and London.

http://www.megaport.com



What does the future of Internet Exchange points look like? Software will bring new capabilities.

SEA-US Trans-Pacific Cable Access in CoreSite’s L.A. Data Centers

CoreSite will be the access point for the SEA-US Trans-Pacific Cable System in its Los Angeles data center campus.

Specifically, SEA-US’s Submarine Line Terminating Equipment (SLTE) will be hosted by CoreSite and directly connect the West Coast of the U.S. with Indonesia and the Philippines, including Manado in Indonesia, Davao in Southern Philippines; Piti in the territory of Guam; as well as Honolulu (on the island of Oahu), Hawaii.

The SEA-US system, which spans approximately 15,000 kilometers, is configured with 2-fiber-pairs for an initial capacity of 20 Tbps. The SEA-US system bypasses the is expected to begin operating during the second quarter of 2017.

The CoreSite Los Angeles campus includes two data center facilities – LA1, also known as One Wilshire, and LA2 with over 424,000 square feet of scalable space in downtown Los Angeles, connected by robust dark-fiber assets. With over 500 current customers, 240 of which are networks.

“CoreSite drives high-performance solutions to business requirements by connecting strategic communities of interest supported by best-in-class network and computing services,” said Paul Szurek, CEO of CoreSite. “The SEA-US submarine cable system will be the sixth subsea cable to offer direct access from our Los Angeles campus, augmenting the importance of CoreSite’s data center platform in the trans-Pacific route to key Indonesian and Asian markets.”

he SEA-US trans-Pacific cable system is backed by a consortium of seven investing companies, including PT. Telekomunikasi Indonesia International, Globe Telecom, Hawaiian Telecom, Teleguam Holdings, GTI Corporation, RAM Telecom International (RTI), and Telkom USA.

http://www.CoreSite.com

NEC to Build Southeast Asia to U.S. Cable System



NEC was selected by a consortium of seven global telecommunications companies to build a new submarine cable system that directly connects Southeast Asia and the United States. The Southeast Asia -- United States (SEA-US) cable will span 15,000 km and connect the five areas and territories of Manado (Indonesia), Davao (Philippines), Piti (Guam), Oahu (Hawaii) and Los Angeles. When completed in the Q4 2016, the cable system will support 100G wavelengths...


Ericsson and Cisco Land Vodafone Hutchison as Key Customer

Ericsson and Cisco Systems have been selected to transform and virtualize Vodafone Hutchison Australia (VHA)'s networks. The deal represents the first major collaboration between Ericsson and Cisco on Telecom Cloud infrastructure.

The joint architecture solution comprises of Ericsson Hyperscale Datacenter System and software components such as Ericsson Cloud Execution Environment, Ericsson Cloud Manager, Cloud SDN controller; together with Cisco WAN Automation Engine, Cisco Network Services Orchestrator (NSO), Cisco IP Network VNFs including IOS XR 9000v and Cloud Services Router 1000v, and both virtualized and physical security technologies such as the Adaptive Security Appliance and Cisco Firepower security gateway, along with services and support. This builds on VHA's selection, in 2014, of Ericsson to replace and upgrade VHA's complete core network, including virtual EPC and virtual IMS/ Voice over LTE.

The companies said this upgrade will enable VHA to better prepare for new emerging services and to evolve its core network to increase the level of agility and programmability from network slicing. Ericsson will lead the transformation program, having responsibility for not only building the infrastructure but ensuring the delivery of an end-to-end operational system.

Rima Qureshi, Head of Region North America and responsible for the strategic partnership with Cisco at Ericsson says: "This major transformation deal clearly demonstrates Ericsson's global end-to-end transformation and operations capabilities as a trusted transformation partner. As the first collaboration between Ericsson and Cisco on .Telecom Cloud infrastructure, it also shows how our global partnership is speeding digital transformation for customers across industries.

Yvette Kanouff senior vice president, general manager, service provider business, Cisco, says: "Cisco and Ericsson have been working with key strategic accounts around the globe to validate a telecom cloud infrastructure.  This broad and significant engagement with VHA demonstrates how our two companies are utilizing our complementary assets to deliver technical and commercial innovation and systems integration leadership to the benefit of our customers."

http://www.ericsson.com
http://www.cisco.com

SEA-US Cable Secures FCC License

Hawaiian Telcom confirmed that the Federal Communication Commission has approved the landing license for the new Southeast Asia – U.S. (SEA-US) fiber cable system. The company noted that the SEA-US undersea fiber cable has been successfully connected at the shore-end in Hermosa Beach, California where construction of the cable landing station is expected to be completed later this month. The ship laying the submarine fiber is en route to Honolulu, scheduled to arrive in February.

The $250 million SEA-US cable system is designed to bypass congested, earthquake-prone regions (Luzon Straight) and optimize stable connectivity. It will deliver an initial 20 terabit per second (Tb/s) capacity.

SEA-US consortium members include Globe Telecom (Manila, Philippines), GTA (Tamuning, Guam), GTI (Los Angeles, California), RTI (San Francisco, California), Telin (Jakarta, Indonesia), and Telkom USA (Los Angeles, California).

“Hawaiian Telcom invested $25 million to become an owner and operator of SEA-US, the most technologically advanced trans-Pacific cable system providing the fastest direct access between the U.S. and Indonesia,” said CEO Scott Barber. “With this investment, we have added needed broadband capacity, which will serve the state of Hawai?i for many years to come. SEA-US will connect Hawai?i to more than two billion people in the Philippines, Indonesia and Southeast Asia, as well as the mainland U.S., providing the infrastructure to launch new economic opportunities.”

http://www.hawaiiantel.com

Comcast Business Brings 10 Gbps Private Links to Microsoft's Cloud

Comcast Business is now supporting 10 Gbps private connectivity for enterprise customers to the Microsoft Cloud, including Microsoft Azure, Microsoft Office 365, and Microsoft Dynamics 365. The Azure ExpressRoute service is available to its more than one million Comcast Business Ethernet-enabled buildings nationwide.

The private cloud connectivity service provides businesses with predictable and often better performance, security and availability compared to connecting over the open internet, and is backed by a service level agreement (SLA).  Comcast Business is now a member of the Microsoft ExpressRoute partner program.

"As businesses increasingly rely on cloud services to virtualize more of their IT applications, they require connectivity with measurable performance, reliability and security," said Rosemary Cochran, principal at Vertical Systems Group. "The addition of Comcast Business to the Microsoft ExpressRoute partner network offers companies the cloud connectivity they need, backed by the reach and flexibility of Comcast’s expansive Ethernet service footprint."

http://www.comcast.com


Ericsson and Telstra Demo Encryption over 10Gbps Transpacific Link

Ericsson and Telstra demonstrated the ability to encrypt data securely while in transit between Los Angeles and Melbourne at 10Gbps. The tests used Ciena's ultra-low latency 10G wire-speed encryption solution.

The companies said the trial demonstrates the advanced security that can be delivered while data is "in transit".

Darrin Webb, Executive Director of International Operations and Services, Telstra, says: "Our market-leading subsea cable network is the largest in the Asia-Pacific region and this innovation continues our commitment to providing customers with a world-class network experience. The outcome of this test shows that data can now be encrypted while in transit across a long distance, while maintaining the speed and reliability our customers have come to expect from our international network. We will continue to work with Ericsson and Ciena to take this trial to the next level with a 100Gbps encryption test."

http://www.telstra.com
http://www.ericsson.com

O3b Networks Sees Growth Across Asia Pacifiv

O3b Networks ended 2016 contracting upwards of 7.5 Gbps throughout the Asia Pacific region, and generating an increase of approximately 30% year-on-year growth for the total used bandwidth.

The company said its fast growth in APAC was a direct result of the successful performance of its high throughput, low latency satellite-enabled network and growing demand for high-quality connectivity.

During 2016, all existing O3b APAC customers upgraded their contracted capacity and, most notably, two Tier-1 Telco providers were added to the company’s customer roster. In 2016 a number of the O3b APAC customers implemented ultra-high availability solutions, to further improve service up-time. In partnership with its customers, O3b has implemented both Site Diversity with additional O3b Terminals, and Hybrid Band diversity through SES C-Band satellite capacity, enabling mission critical services to be maintained through network restoration techniques. O3b is delivering these solutions through its O3b Network Services capabilities, combining unrivalled satellite performance with always-on networking.

“As we reflect on growth in 2016 and move forward into the new year, we are massively proud of the strides we have made in the Asia Pacific Region,” said Steve Collar, CEO of Asia Pacific, O3b Networks. “Today our MNO customers are capable of providing 3G/4G LTE mobile data services to their subscribers, with a quality of experience that was previously out of reach. The surge in data use has been incredible; leading customers in the region have increased capacity to more than 1Gbps. We look forward to expanding our customer base, and providing fiber-equivalent connectivity for more of the region.”

http://www.o3bnetworks.com

See also