Friday, June 6, 2014

Infonetics: Growing Market for Femtocell and Enterprise Small Cells

Worldwide femtocell and enterprise small cell equipment revenue reached $144 million in 1Q14, up 6% from 4Q13, according to a new report from Infonetics Research.

Overall, the femtocell and enterprise small cell equipment market has seen robust unit and revenue growth over the previous half-year period, and we remain optimistic that these small cell segments have sufficient market drivers and support among operators to sustain continuous year-over-year unit and revenue growth through 2018,” notes Richard Webb, directing analyst for mobile backhaul and small cells at Infonetics Research.

“4G macro network deployments are underway in many places, and operators are starting to launch 4G-based femtocells to augment mobile broadband services,” adds Webb. “Boosted by enterprise small cell adoption kicking in to help mobile operators support enterprise-specific voice and data offerings, we believe 4G femtocell and enterprise small cell revenue will climb to $2.3 billion in 2018, a compound annual growth rate (CAGR) of 77 percent from 2013 to 2018.”

Some highlights:

  • LTE femtocells, the highest ARPU products in the market, are a driving force behind revenue growth, though W-CDMA femtocells still make up the dominant proportion of unit shipments
  • The residential segment led with 59% of femtocell revenue in 1Q14, ahead of the enterprise small cell segment
  • These are distinct markets in their own right, and Infonetics expects to see increasing specialization from vendors and operators alike
  • Integrated femtocells grew to 8% of total units in 1Q14 and are anticipated to account for about a third of unit shipments by 2018, predominantly into the residential segment
  • Femtocell/enterprise small cell equipment revenue market share leaders in 1Q14 are, in alphabetical order, Airvana, Alcatel-Lucent, Cisco, and ip.access

http://www.infonetics.com

Arista Rockets in IPO -- NYSE: ANET

Shares in Arista Networks rocketed upwards on their first day of trading on the New York Stock Exchange under the symbol "ANET".

Arista's IPO consisted of 5,250,000 shares of its common stock at a price to the public of $43.00 per share, raising $225.8 million for the firm. The stock closed on Friday at $55, up nearly 28% for the day.  This gives Arista a market cap of $3.56 billion.

Arista supplies 1/10/40 and 100GbE switching systems for next generation enterprise and cloud data centers. The company combines a merchant silicon approach with a highly programmable Extensible Operating System (EOS) in a leaf/spine data center architecture to enable scalability to hundreds of thousands of nodes.

The company is based in Santa Clara, California.
http://www.aristanetworks.com

In March, Arista Networks announced two new 100GbE modules for its 7500 Series switches:

  • 7500E Series 6 port 100GbE card with support for CFP2 optics up to 40km over single mode fiber is orderable in Q2 2014 with pricing starting at $6600 per 100GbE port. 
  • 7500E Series 12 port 100GbE card is planned for availability in 2H 2014 along with a full range of QSFP-100 optics and cables.
Arista said that with 100GbE in the spine layer, customers can now achieve network virtualization using VXLAN support in the modular platforms to deploy their cloud multi-tenant networks at large scale with high bandwidth. Additionally, those deploying the Arista DANZ features within Arista EOS can now get intelligent traffic visibility on 100GbE networks by leveraging Tap Aggregation on Arista 7500E modular platforms. Arista’s Data Analysis DANZ solution is now expanded to modular chassis platforms and enables customers to connect to 100GbE spline or spine networks and to deliver tap aggregated 10GbE connections into a single 100GbE uplink to network monitoring, management and analytic tools.

“We selected the Arista 7500E platform for our data center to provide customers with true 100 Gigabit Ethernet services,” said Ihab Tarazi, Chief Technology Officer at Equinix. “Because of the open architecture and cloud interconnect protocols, including VXLAN, the programmability of Arista EOS and multi-speed mode, we are able to allocate data center resources at 10/40 or 100 gigabits in a reliable and cost-effective manner.”

Arista also noted that its 7300X Series with 10GBASE-T modules are gaining adoption among customers deploying cost-effective single tier and two tier networks.

Ciena Posts Revenue of $560 Million, up 10.3% YoY

Ciena reported revenue of $560.0 million for its fiscal second quarter ended April 30, 2014, up 10.3% from the same period in 2013.  Ciena's net loss (GAAP) was $(10.2) million, or $(0.10) per common share, which compares to a GAAP net loss of $(27.1) million, or $(0.27) per common share, for the fiscal second quarter 2013.

“As a direct result of our expanding role and reach in the industry, we delivered strong financial results in both our second quarter and first half of fiscal 2014, including continued revenue growth and increased operating leverage,” said Gary B. Smith, president and CEO, Ciena. “As the shift continues toward on-demand networking models and as we continue to diversify our business, we expect to deliver steadily improving financial performance, including performance in the second half of the year that is stronger than the first half.”

Revenue breakdown for Q2 2014 was as follows:  Converged Packet Optical 63.7%, Packet Networking 11.9%, Optical Transport 5.3%, Software/Services 19.1%.

Regionally, the U.S. market represented 57.8% of Ciena's sales in Q2.

http://www.ciena.com

Fusion-io Launches Next Gen Flash Platform

Fusion-io introduced a new flash memory platform for appliance and server applications.  The Atomic Series boasts double the capacity on the smallest available NAND footprint.  The company claims the highest transaction rate per gigabyte and up to 6.4 TB per product.

“Patience is no longer a virtue in a world where we expect information at our fingertips with ever increasing velocity,” said Fusion-io CEO and Chairman of the Board Shane Robison. “Latency is the new dial up. Our newest advancements in flash memory with the release of Atomic Series ensure that data flows seamlessly and with greater speed, efficiency and reliability by accelerating data-driven applications.”

http://www.fusionio.com/atomicseries/
http://www.fusionio.com

See also