Sunday, August 9, 2009

VMware to Acquire SpringSource, Expanding its Cloud Strategy

VMware agreed to acquire SpringSource, a start-up offering enterprise and web application development and management software, for approximately $362 million in cash and equity plus the assumption of approximately $58 million of unvested stock and options.

SpringSource, which has established a presence in a majority of the Global 2000 companies, offers a an enterprise Java programming model.
This Spring Framework provides a lightweight programming environment that makes applications portable across open source and commercial application server environments from IBM, Oracle and others. Apache Tomcat is the world's most widely used Java application server, deployed at more than 60% of all organizations running Java server applications. SpringSource is the key contributor to and maintainer of Tomcat and is responsible for more than 95% of the bug fixes over the past two years. SpringSource also leads Groovy and Grails, a rapidly growing dynamic language and Web application framework, each with more than 70,000 downloads per month. Together, Groovy and Grails deliver the rapid application productivity of Ruby on Rails for web applications, while maintaining skill-set and infrastructure compatibility with Java Virtual Machine (JVM) environments.

VMware said the deal was driven by its goal of delivering new solutions that enable companies to more efficiently build, run and manage applications within both internal and external cloud architectures. Together, VMware and SpringSource plan to further innovate and develop integrated Platform as a Service (PaaS) solutions that can be hosted at customer datacenters or at cloud service providers. These solutions will allow customers to rapidly build new enterprise and web applications and run and manage these applications in the same dynamic, scalable and cost-efficient vSphere-based internal or external clouds that can also host and manage their existing applications, providing an evolutionary path to the future.

"Today's modern computing environments are moving to an application and data-centric world powered by state of the art virtualized and cloud computing platforms," said Paul Maritz, president and chief executive officer, VMware. "The combination of SpringSource and VMware capitalizes on this shift and places us right at the intersection of the most important forces in the software market today -- virtualization, modern application frameworks and cloud computing."

Procera Cites Traction with Higher Ed for its DPI Management

Procera Networks noted that over 20 universities in the U.S. have now chosen its evolved Deep Packet Inspection (DPI) solutions for traffic awareness, control and protection. This list of higher ed deployments includes Vanderbilt University, Southern Arkansas University, Palm Beach Community College, Ohio Northern University, Michigan REMC #1, LeTourneau University, Illinois Institute of Technology, Heidelberg University, Central Washington University and California Baptist University.

Procera's core product suite, the PacketLogic line of platforms, leverages the company's advanced identification engine, DRDL (Datastream Recognition Definition Language), to provide accurate identification of network traffic in real-time.

Alcatel-Lucent Delivers IP Telephony for Etisalat

Etisalat, the UAE's leading telecommunications service provider, has selected Alcatel-Lucent for the turnkey deployment of an IP-based telephony across its offices in the UAE.

The solution is based on the Alcatel-Lucent OmniPCX Enterprise IP telephony platform and will support 10,000 IP users in a pure VoIP deployment over eight main. Alcatel-Lucent's My Instant Communicator will enable optimal collaboration with a full integration of existing business applications including complete support for the IBM Lotus Sametime 7.5 environment, accessible from any computer, IP phone or personal digital assistant (PDA).

Al-Futtaim Technologies serves as Alcatel-Lucent's premium business partner in the UAE.

BroadLight to Power the Accton GPON ONTs

Taiwan-based Accton has selected BroadLight's 2nd generation of GPON System on Chip, BL2345 and BL2348, for its portfolio of GPON Customer Premises Equipment. Accton is a leading broadband CPE vendor serving key OEMs and Tier 1 TEMs.

Tech Mahindra Opens NGN Interoperability Test Lab in Bangalore

Tech Mahindra, a global systems integrator & technology solutions provider to the telecom industry has opened a state-of-the-art interoperability test lab in Bangalore, India to serve telecom service providers, telecom equipment manufacturers and Independent Software Vendors (ISVs).

Tech Mahindra plans to host a variety of network infrastructure elements sourced from multiple vendors enabling it to execute IOT Programs focused towards multiple technology areas. The span of technologies include Class4/Class5 migration, Fixed mobile convergence, IMS, 3G/4G Wireless & PacketCable/DocSIS.

As the first IOT lab customer, Tech Mahindra has signed a contract with Sonus Networks to deliver IOT programs for Sonus Networks' Class 4 and Class 5 Softswitch & IMS based products.

tw telecom Expands IP/MPLS Services to 64 Countries

tw telecom has expanded its MPLS IP VPN service portfolio into 64 countries.
This added capability enables the company to connect a customer's voice, Internet and data traffic seamlessly, reliably and securely across town, across the country and now to international destinations.

Chelsio Releases 10G iSCSI-to-Fibre Channel Storage Router

Chelsio Communications announced the availability of its Unified Storage Router (USR-1000), a 10G iSCSI-to-Fibre Channel router that is targeted at mid-range and high-end enterprises that have extensive existing investment in FC SANs and require the ability to integrate low-cost Ethernet-connected servers in departments or remote locations.

The Unified Storage Router, based on Chelsio's Unified Wire adapter technology, features two 10GbE ports, two 1GbE ports, four 8Gb FC ports, Multi-Path I/O for both iSCSI clients and FC storage, and web-based management.

In designing the new product, Chelsio said its goal was to extend FC SAN investment by enabling integration of low-cost Ethernet servers into the SAN without requiring additional storage arrays or management costs. FC SANs can leverage IP networks to extend SAN advantages into smaller departments and remote locations where budget constraints would not allow for a FC SAN.

Atrato, an integration partner of Chelsio, is utilizing the USR-1000 as well as the S320e Unified Wire adapter family to help its Velocity1000 (V1000) storage system deliver high-speed, high-density data access for the most demanding entertainment, Web 2.0, video-on-demand, and high performance computing applications.

DISH Network Customer Base Stands at 13.6 Million

DISH Network, reported total revenue of $2.904 billion for the quarter ended June 30, 2009, a 0.4 percent decrease compared with $2.915 billion for the corresponding period in 2008. Net income totaled $63 million for the quarter ended June 30, 2009, compared with $336 million during the corresponding period in 2008. Basic earnings per share were $0.14 for the quarter ended June 30, 2009, compared with basic earnings per share of $0.75 during the corresponding period in 2008.

DISH Network added approximately 26,000 net subscribers during the quarter ended June 30, 2009, ending the quarter with approximately 13.610 million subscribers.

Verizon Expands its VOD Library

Verizon has expanded the video on-demand library of its FiOS TV service with new content from 20th Century Fox, AMC, HSN, Disney Family Movies, Univision, Cinetic Film Buff, American Pop Classics and the Dew Tour. FiOS TV's Video on Demand now boasts more than 15,000 titles per month, 70 percent of which are free.  FiOS TV VOD also features more than 1,400 HD titles per month, more than 1,100 of which are free. FiOS TV also offers 500 all-digital channels, including more than 115 HD channels.  The service also offers an innovative Interactive Media Guide that provides next-generation, personalized interactive services, including free Facebook and Twitter social media applications, news and entertainment widgets, ESPN Fantasy Football, a robust search engine, and many other features.

NSN Supplies HSPA to T-Mobile in Czech Republic

T-Mobile in the Czech Republic is upgrading its 3G network using the energy-efficient Nokia Siemens Networks Flexi Multiradio Base Stations and HSPA (High Speed Packet Access) technology. An upgraded HSPA service is expected to be launched in Prague by the end of the year with download and upload peak rates of up to 14.4 Mbps and 5.7 Mbps respectively. .The agreement between T-Mobile and Nokia Siemens Networks was signed earlier this month. Financial terms were not disclosed.
Nokia Siemens Networks is also providing T-Mobile with network integration services, the NetAct network management system to monitor, manage and optimize the network and an upgrade of the core network to support advanced 3G services.

Extreme Networks Acquires Soapstone's Provisioning and Control Plane Software

Extreme Networks has acquired the software assets of Soapstone Networks. Financial terms were not disclosed.

The transaction transfers ownership of the Soapstone Networks software control plane and service aware provisioning system to Extreme Networks, enabling Extreme Networks to simplify the service provider's job of provisioning and maintaining Ethernet services for their subscribers. The software serves as a foundation for provisioning and service assurance for carrier Ethernet networks. Extreme Networks plans to integrate the software into its EPICenter Network Management System, providing a service level view, provisioning and management of carrier Ethernet networks and protocols including Provider Bridging (PB), Provider Backbone Bridging (PBB), Provider Backbone Bridging with Traffic Engineering (PBB-TE), Ethernet Access Protection Switching (EAPS) and Virtual Private Line (VPLS).

"The addition of the software assets from Soapstone Networks into the Extreme Networks intellectual property portfolio continues our commitment to carrier Ethernet," said Glenn Weinberg, Vice President and General Manager, Extreme Networks Software Business Unit. "The unique provisioning and service aware capabilities of the Soapstone Networks software will enable Extreme Networks to deliver a more complete, extensible solution to carrier Ethernet service providers."
  • Late last month, the stockholders of Soapstone Networks voted to approve the liquidation and dissolution of the company. In connection with the approval of the company's Plan of Liquidation, the company's Board of Directors issued an extraordinary cash dividend of $3.75 per share of the company's common stock. A certificate of dissolution has been filed with the Delaware Secretary of State. Soapstone Networks, which was the company created when Avici Systems decided to exit the core router business, developed control plane software to help automate service provider networks. One of its main capabilities was PBB-TE module for the PNC which includes the dynamic provisioning, monitoring and repair of services across a multi-vendor Carrier Ethernet network as well as network operations support.

Mike Zafirovski Steps Down as Nortel's CEO

Mike Zafirovski has stepped down as President and CEO of Nortel, saying that the company has reached natural transition point for a change in leadership to occur. Nortel's Board of Directors has also decided to reduce its size from nine to three members: John A. MacNaughton, Jalynn H. Bennett and David Richardson, with Mr. Richardson serving as Chairperson.

"We have taken many steps. We have completed the organizational moves of Nortel's businesses to vertically integrated, standalone business units, and on June 19th, we announced that we would work to maximize value through the sale of these businesses.  We have sales agreements with Ericsson for US$1.13 billion regarding the CDMA/LTE Access business, including preserving 80 percent of the jobs associated with that business. We also have a stalking horse agreement for the sale of our Enterprise Solutions business and we are in active discussions for our other businesses.  The direction has been set and we are now at a natural transition point as we continue to service customers, maximize value through sales and continue restructuring activities," stated Mike Zafirovski.

"Mike came to Nortel to transform this company. He made great progress on many fronts including addressing significant accounting and related legal issues; improving the quality of Nortel products and the company's cost structure. His ambitious vision helped shift the economic center of the company from legacy to growth investments.  It was unfortunate the transformation was derailed by a deteriorating economic climate and the company's legacy cost structure. The operating improvements and strategic investments made during his tenure significantly contributed to the fact that Nortel's businesses are so attractive to potential buyers today," said Harry Pearce, Chairman of Nortel's Board of Directors.

Concurrent with today's announcement, Nortel is establishing a streamlined structure. The company's business units - Wireless Networks, Enterprise Solutions, Metro Ethernet Networks, Carrier VoIP and Application Solutions and the LG-Nortel joint venture - will report to the Chief Restructuring Officer, Pavi Binning.  The company's mergers and acquisitions teams will continue their work under the Chief Strategy Officer, George Riedel. Nortel Business Services (NBS) will continue to serve the transitional operations needs of Nortel businesses as they are sold to ensure customer and network service levels are maintained throughout the sale and integration processes.  NBS will continue to be led by Joe Flanagan.
  • Mike S. Zafirovski

    was selected to succeed Bill Owens as Nortel's president and CEO on November 15th, 2005. He previously served as president and chief operating officer of Motorola (2002 to 2005). He joined Motorola in 2000 as president and CEO of its Personal Communications Sector division. From 1975 to 2000, Zafirovski held a succession of executive positions at General Electric's key divisions: president and CEO, GE Lighting; president, GE Capital Mortgage Corporation; and president and CEO, GE Capital Fleet Services.

  • In April 2004, Nortel Networks named William Owens as its new president and CEO, replacing Frank Dunn, who was dismissed "for cause." At the time, Nortel Networks also fired its former chief financial officer, Douglas Beatty, and former controller, Michael Gollogly, both of whom had been placed on paid leave of absence by Nortel Networks on 15-March-2004.

Nortel Reports Stabilization in Q2

Nortel reported Q2 revenue of $1.97 billion, down 25 percent compared to prior year period but up 14 percent compared to the first quarter of 2009. Gross margin was 38.2 percent in the quarter, a decrease of 4.9 percentage points from the year ago quarter, and an increase of 2.1 percentage points from the previous quarter. The company's cash balance at June 30, 2009 was $2.56 billion, compared to $2.48 billion at March 31, 2009. 

"While we continue to be impacted by the economic environment and the Creditor Protection Proceedings, we have successfully stabilized the business since filing for creditor protection. Despite these challenges, our revenue is up quarter over quarter by 14 percent overall while our corresponding operating costs are down 15 percent resulting in strong margins. At the same time, our customer service levels remain strong," said Nortel CEO Mike Zafirovski.

Some highlights for the quarter:
  • CN revenues in the second quarter of 2009 were $920 million, a decrease of 20 percent compared with the year ago quarter with declines in the GSM and UMTS solutions and Circuit packet voice solutions businesses, while the CDMA solutions business was essentially flat.  The wireless segment benefited in the second quarter from the network expansion of a certain customer, however, in addition to the factors above, was negatively impacted by a reduction in spending by certain customers as a result of their change in technology migration plans. 

  • ES revenues in the second quarter of 2009 were $465 million, a decrease of 28 percent compared with the year ago quarter as a result of the factors noted above, namely decreased customer spending due to the economic conditions and the uncertainty created from the Company's Creditor Protection Proceedings. ES had strong growth sequentially due to increased spending by customers compared to the first quarter of 2009 when delays in spending were experienced and an increase in the recognition of deferred revenues in the second quarter of 2009.

  • MEN revenues in the second quarter of 2009 were $333 million, a decrease of 27 percent compared with the year ago quarter with impacts across all businesses. In addition to the factors above, revenues from certain customers in the second quarter of 2008 that did not repeat to the same extent in the second quarter of 2009 also impacted the year over year decline.

  • LGN revenues in the second quarter of 2009 were $199 million, a decrease of 37 percent compared with the year ago quarter. In addition to the factors described above, a majority of the decline was in LGN Carrier, primarily due to the recognition of certain deferred revenues in the second quarter of 2008 not repeated in the second quarter of 2009 and high sales volumes related to our 3G wireless products in the second quarter of 2008 not repeated to the same extent in the second quarter of 2009, as well as a significant foreign exchange impact due to the devaluation of the Korean WON against the US dollar.  The decrease was partially offset by the completion of network expansions related to certain customers in the second quarter of 2009.

Broadcom's MoCA Chip Reference Design Receives Certification

Broadcom received MoCA 1.1 Certification from the MoCA Certification Board. for its home networking reference design platform for set-top box (STB) and broadband access products. MoCA 1.1 enables home networking throughput of 175 Mbps using packet aggregation, which is a significant increase over MoCA's previously stated performance metric of 100 Mbps (with unmatched coax outlet coverage).  Additional features include parameterized quality of service (PQoS) for bandwidth management and the ability to prioritize multiple streams of high definition (HD) content.  Broadcom noted that its MoCA 1.1 certified home networking reference design platform also includes an increase in network size from 8 nodes to 16 nodes.