Tuesday, October 24, 2006

Cisco to Acquire Orative for Mobile Unified Communications

Cisco Systems agreed to acquire privately-held Orative Corp., a developer of mobile communications solutions, for $31 million in cash. Orative provides an application which will allow Cisco to extend its Unified Communications portfolio to mobile devices such as cell phones and smartphones. Orative was founded in 2002 and has 33 employees based in San Jose, California.

Cisco said Orative's mobile software will extend the communications and collaboration capabilities of the Cisco Unified Communications system to business mobile phone users. With Orative Enterprise Software, mobile phone users can coordinate conversations, collaborate with colleagues, view information on Unity voicemail messages, screen unwanted telephone calls and interruptions, and securely access personal and corporate phone books.

In March 2006, Cisco announced its Unified Communications system based on Cisco's service-oriented network architecture (SONA), which enables businesses of all sizes to integrate their communications systems with their IT infrastructure, thereby creating a single communications platform. http://www.cisco.comhttp://www.orative.com/index.php
  • Orative is headed by Paul Fulton, who founded the company during his Executive in Residence tenure at Mayfield. Prior to joining Mayfield, Mr. Fulton was Vice President and General Manager of 3Com's Wireless Division. Previously, Mr. Fulton was co-founder of Netcore Technology and served in key management roles at Compaq and Texas Instruments.

Metro Ethernet Forum Launches Service Provider Certification 14 Program

The Metro Ethernet Forum launched its MEF 14 Service Provider Certification Program as a means to help enterprises feel confident that their providers' Carrier Ethernet services can support mission critical and converged applications such as ERP, VoIP, videoconferencing and business continuity.

MEF 14 (Abstract Test Suite for Traffic Management) ensures conformance to the MEF Quality of Service attributes, which provides a foundation for the implementation of Service Provider operational and performance SLA's (Service Level Agreements) supporting simultaneous real-time and data-intensive business applications.

MEF 14 completes MEF 9 (Abstract Test Suite for Ethernet Services at the UNI) by adding requirements and test procedures for Service Performance and Bandwidth Profile Service Attributes defined in MEF 10. These include three EVC Related Performance Service Attributes - Frame Delay Performance, Frame Delay Variation Performance, and Frame Loss Ratio Performance -- as well as Bandwidth Profile Service Attributes defined per Ingress UNI, per EVC, and per Class of Service.

"MEF 14 certification testing is based on our Iometrix Test Plan for Traffic Management which has a total of 170 Test Cases covering EPL, EVPL and E-LAN services" according to Bob Mandeville -- President of Iometrix testing labs. "Service Providers' Carrier Ethernet must pass no less than 414 individual test cases before being granted MEF 9 and 14 certification."http://www.metroetherntforum.org
  • MEF 14 complements MEF 9 and covers two sets of MEF Service Attributes, namely "Service Performance" and "Bandwidth Profiles". The first set comprises three Service Performance attributes relating to the Ethernet Virtual Circuits (EVC): Frame delay, Frame delay variation and frame loss ratio. The second set, relating to the User Network Interface (UNI) and following the familiar example of Frame Relay, include four Bandwidth Profile attributes: CIR (Committed Information Rate), CBS (Committed Burst Size), EIR (Excess Information Rate), EBS (Excess Burst Size). Together MEF 9 and MEF 14 cover the complete set of Carrier Ethernet Service Attributes defined in the core definitional technical document MEF 10.

  • In April 2006, The Metro Ethernet Forum awarded certifications to seven service providers complying with its global Carrier Ethernet Service definitions. The companies receiving certification in this first round were: AT&T, Bell South, Cable Vision Lightpath (the first cable operator to apply), Met-Net, ntl:Telewest Business (the first European service provider to apply), Qwest and Verizon.

    Iometrix was the company responsible for the conformance testing.

    The testing involves three key stages. In the initial negotiation stage the service provider needs to prove to Iometrix that they do have a commercial Carrier Ethernet service offering that is certifiable according to any or all of Ethernet Private Line (EPL), Ethernet Virtual Private Line (EVPL) or ELAN (multipoint networking) definitions from the MEF 9 specification. This leads to the second phase, lab testing, where the service provider is required to construct a facsimile of the production network supporting their Carrier Ethernet service and then Iometrix run some 244 test cases on that system to pave the way for the third, field testing phase.

  • Equinix Posts Revenue of $73.7 million, up 26%

    Equinix, a provider of network-neutral data centers and Internet exchange services, reported Q3 revenues of $73.7 million, a 27% increase over the same quarter last year and an 8% increase over the previous quarter. Recurring revenues, consisting primarily of colocation, interconnection and managed services, were $69.9 million, a 29% increase over the same quarter last year and a 7% increase over the previous quarter. Non-recurring revenues were $3.8 million in the quarter, consisting primarily of professional services and installation fees.

    Net loss for the third quarter was $5.2 million, including stock-based compensation expense of $6.9 million and the restructuring charge of $1.5 million.

    The company added 92 customers in the quarter, including Acer Computers, Barnes and Noble College Booksellers, Coram, Fannie Mae and Shopzilla. Based on a total cabinet capacity of approximately 30,900, the number of cabinets billing at the end of the quarter was approximately 16,200, or 52%, up from approximately 15,400 the previous quarter. On a weighted average basis, the number of cabinets billing was approximately 16,200 representing a utilization rate of 52%.

    Equinix also announced that Peter Van Camp will transition from his role as chairman and CEO of Equinix to Executive Chairman once a new CEO has been appointed over the course of the next year. Until this time, Mr. Van Camp will remain fully engaged as CEO and chairman.


    Sourcefire Files for IPO -- Network Intrusion Prevention

    Sourcefire, a developer of network intrusion prevention solutions, filed papers with the Securities and Exchange Commission for an initial public offering of common stock.

    Sourcefire was founded in 2001 by Martin Roesch, the creator of SNORT open source technology for intrusion detection and prevention. According the company's website, there have been over 3,000,000 downloads of Snort around the world to date.

    The company is based in Columbia, Maryland.

    • In May, 2006 Sourcefire secured $20 million in Series D funding led by Meritech Capital Partners, a leading provider of late-stage venture capital to premier information technology companies. All previous Sourcefire venture investors: Sierra Ventures, New Enterprise Associates, Sequoia Capital, Core Capital Partners, and Inflection Point Ventures also participated in the round. The company has raised over $54 million to date.

    PCCW Selects ICTV for Interactive Services

    PCCW, the incumbent operator in Hong Kong, has selected ICTV's ActiveVideo Distribution Network platform to enable interactive channels via television to subscribers of its "now" TV service. ICTV, a start-up based in Los Gatos, California, provides the ability to deliver Web programming as MPEG video to any digital set-top box. Live and VOD programming can be blended seamlessly with content that is created and modified using standard Web tools and distributed via standard Web infrastructure.

    PCCW's first ActiveVideo channel is an interactive "Movie Trailer Channel" that PCCW has launched in partnership with United Artists, one of the leading cinema groups in Hong Kong. The Movie Trailer Channel allows subscribers to preview movies, choose cinema locations, check program times, request seat locations, and buy tickets using just their standard remote controls. The channel is the first in a series of ActiveVideo channels and applications that will deliver more interactive services to now TV's 654,000 subscribers.

    The ActiveVideo Distribution Network is a usage-based content distribution service that enables operators, programmers and advertisers to bring video programming and advertising models from the Internet to the television, including high-CPM ads that are targeted, auditable, interactive and actionable. AVDN delivers Web-driven programming and live and VOD streams - all with superior TV quality - over the existing two-way network infrastructure to any digital set-top box.

    • As of September, PCCW's total broadband access lines in service reached approximately 998,000 by the end of June 2006, up 5 percent from 953,000 at the end of December 2005. The total number of telephone lines in service was approximately 2,579,000. The number of "now" IPTV users was 608,000. The proportion of customers paying for channels rose to 73 percent from 61 percent, and their ARPU increased to HK$118 from HK$110.

    Lockheed Martin Selects AT&T

    Lockheed Martin awarded a $37 million, two-year contract extension to AT&T for a full range of integrated voice, data and IP services. AT&T's services will include end-to-end network-management support and a single point of contact to streamline all service orders and installations.

    Lockheed Martin employs 140,000 people in more than 900 domestic locations and 56 countries.


    Quorum Raises $15 Million for CMOS radio frequency (RF) transceivers

    Quorum Systems, a start-up based in San Diego, raised $15 million in a Series C funding, for its ultra-low-power, high-performance CMOS radio frequency (RF) transceivers.

    The company recently moved into production volume of its first "Sereno" QS1000 quad-band GSM/GPRS/EDGE transceiver. The product family will include the QS1000, QS2000 and QS3000. The QS2000 integrates quad-band GSM/GPRS and EDGE capability with 802.11b/g, enabling simultaneous operation of Wi-Fi and cellular. The Sereno QS3000 combines GSM/GPRS/EDGE and 3G HSDPA into a single-chip, offering global support for dual mode HEDGE handsets.

    Crescendo Ventures, a new investor to Quorum Systems, led the Series C funding, which also included existing investors Greylock Partners, Kleiner, Perkins, Caufield and Byers, and Enterprise Partners Venture Capital.


    ARRIS Posts Q3 Revenue of $228.6 million, up 14% YoY

    ARRIS reported preliminary Q3 revenue of $228.6 million, up 14% as compared to $201.0 million in the third quarter 2005 and up 4% as compared to $220.0 million in the second quarter 2006. Net income in the third quarter 2006 was $26.6 million, or $0.24 per diluted share, as compared to net income of $18.8 million, or $0.18 per diluted share, in the third quarter 2005 and as compared to net income of $24.8 million or $0.23 per diluted share in the second quarter 2006.

    ARRIS said demand for CMTS products continues to be driven by the Multi System Operators' (MSOs) competitive response to the telcos' aggressive marketing programs for FTTX and advanced digital subscriber line technologies as well as the need for MSOs to offer ever higher data rates to their subscribers.

    During Q3, ARRIS announced that the nation's second largest MSO, Time Warner, had signed a two-year Purchase Agreement for ARRIS C4 and C3 CMTS products. Also announced were the successful field trials of wideband data services at speeds in excess of 100 Mbps to customers of KCTV JEJU Broadcasting in South Korea using the ARRIS FlexPath wideband data solution in the ARRIS Cadant C4 CMTS and the ARRIS Touchstone WBM650B wideband modems. Ihttp://www.arrisi.com

    LSI Logic to Acquire StoreAge Networking Technologies

    LSI Logic Corporation agreed to acquire StoreAge Networking Technologies, a developer of SAN storage management and multi-tiered, data protection software, for $50 million in cash.

    StoreAge is based in Nesher, Israel with US offices in Irvine, California.

    LSI Logic said the acquisition would enable it to offer its OEM and channel customers a richer set of products and features for enterprise storage.


    Conexant to Acquire Zarlink's Packet Switching Line

    Conexant Systems agreed to acquire Zarlink Semiconductor's packet switching product line for US$5 million in cash and additional amounts based on revenue performance of the product line over the next two years.

    Based in Irvine, California, Zarlink's packet switching product line has developed a range of Fast Ethernet aggregation switches for network access equipment. Zarlink's engineering team has produced six generations of packet switches and management software.

    Conexant said the acquisition would complement its DSL central office silicon solutions, enabling non-blocking VDSL line card performance.


    BT acquires Counterpane Internet Security

    BT has acquired Counterpane Internet Security Inc., a provider of managed networked security services, as part of its strategy to expand and develop its global professional services capabilities. Financial terms were not disclosed.

    Counterpane, which is based in Mountain View, California, monitors some 550 networks worldwide, real-time view of, and response to, IT security threats.

    Andy Green, CEO BT Global Services, said: "Counterpane is a welcome addition to BT's global professional services community. As more and more of our customers seek to exploit the opportunities of globalisation, we are finding that increasingly business critical applications are dependent upon the resilience and security of their infrastructure. "http://www.btplc.comhttp://www.counterpane.com