Monday, December 17, 2018

2019 Network Predictions

Bill Fenick, VP of enterprise at Interxion

Enterprises will be smarter about the cloud
The cloud has quickly become a mainstay in the enterprise. However, early on, many businesses dove into the cloud head first, and quickly realized that that not only are not all apps meant to be reengineered for the cloud, but even a lift and shift approach doesn’t always work. Because of this, in 2019, I believe that while enterprises will continue to adopt cloud in a more ferocious way, they’ll do it with a better layer of intelligence on top.

 Artificial Intelligence will drive cloud adoption
As companies increasingly integrate a variety of AI-driven technologies across voice, vision, language and machine learning in order to transform their businesses and get the competitive edge in 2019, I believe they will be leveraging cloud technologies as a matter of course.

Location is becoming more important to enterprises
Today’s enterprises have the need for speed. Regardless of it being application to application or application to end user, businesses need data to move faster than ever before. As a result, in 2019 I expect enterprises to pay closer attention to the location of their data, whether that’s the location in proximity to other data sources including the cloud, or geographic location.

Sally Bament, VP of Service Provider Marketing, Juniper Networks

5G will create a new billion-dollar app economy
The first smartphones and eventually LTE networks paved the way for mobile apps as we know them, giving rise to a multitude of new ways companies interact with customers. 5G is poised to go live in many cities across the United States and globally in 2019, and we expect next year to really showcase the economic power of the new mobile technology. This is the year apps start to show their real value in the enterprise and industrial space with a host of new IoT, AR/VR, digital twins and connected-car applications coming to life.

Two separate high-profile cybersecurity breaches will hit critical U.S. infrastructure
The increasing amount of distributed applications and data deployed in various parts of the cloud environments will increase sophisticated breaches. In the year ahead, we will likely see major attacks on systems of livelihood including utility systems, municipal water supplies and electrical grids. Predictive analytics and end-to-end monitoring are necessary tools to thwart catastrophic structural attacks.

Expect more frenemies in the edge
The hyperscale cloud players have clearly demonstrated the power of their massive networks in terms of application hosting and development. But it’s the telcos that have the beachfront property in their established network infrastructure that’s closest to end users. Cloud providers will try to build an edge of their own, but service providers will remain keepers of the edge as they can compete with much better economic scale. Over the next year, service providers and cloud providers will compete to win the edge but expect more cloud-SP partnerships to unfold as the year progresses.

Automation is the secret to customer satisfaction
In 2019, automation will be the differentiating factor among service providers. Early software and virtualization technology have provided some relief from stagnant development but this year service providers will fully adopt automated and virtualized cloud platforms that can deploy new services in months, not years. Those who fail to implement automation will find themselves years behind competitors, as end users will find more agility and better service with those who embrace automation

Dave Wright, President of the CBRS Alliance

Expect commercial launch in the 3.5 GHz CBRS Band -- Earlier this year, the FCC announced plans for the launch of commercial services in the CBRS 3.5 GHz band, a wide swath of lightly-used spectrum that currently has U.S. Department of Defense systems as its primary user. This new opportunity is enabled through the use of a dynamic sharing mechanism which protects the incumbent government operations while allowing new commercial services. OnGo solutions for the band will offer secure, cost-effective connectivity in the places it is needed most, and at a fraction of the cost that has historically been associated with cellular technologies. There is universal agreement that mid-band spectrum will be critical for next-generation wireless services, and CBRS is the first mid-band spectrum being made available in the US.

Organizations – including existing mobile, fixed wireless, and cable operators, as well as enterprises and industrial players – are already laying the groundwork for deployment. Testing and certification programs for equipment and devices operating within the 3.5 GHz band are well underway – with a number of radio infrastructure and client devices now authorized by the FCC. The testing of the dynamic sharing databases (SASs) is also well underway. The industry is ready for commercial deployment, and 2019 will be the year of improved wireless coverage and capacity on a massive scale.

Jon Toor, CMO, Cloudian

There’s No Place Like Home: Cloud Repatriation Increases: While the growth of the public cloud will remain strong, enterprises will expand their adoption of on-premises private clouds in a hybrid cloud model. This will include repatriating data from the public cloud to avoid the bandwidth, latency and cost issues that can arise when accessing such data.

Two Clouds Are Better Than One: More enterprises will adopt a multi-cloud strategy to avoid vendor lock-in and enhance their business flexibility. However, a multi-cloud approach raises new management challenges that users will need to address to ensure a positive experience.

Object Storage: Ready, Camera, Production: Moving beyond its traditional use for large-scale archiving, object storage will play an increasing role in video production workflows. Offering a combination of limitless scalability, S3 compatibility and tremendous durability, object storage provides an ideal platform for managing video content, including over-the-top (OTT) distribution.

What Do You Get When You Mix Blue and Red?: IBM-Red Hat Deal Scrambles the Cloud Landscape – IBM’s acquisition of Red Hat will reverberate throughout 2019, giving enterprises more options for designing a multi-cloud strategy and highlighting the importance of data management tools that can work across public cloud, private cloud and traditional on-premises environments.

AI and Object Storage Play Tag: As businesses increase their use of AI to extract greater value from their digital assets, metadata tagging will become an even more critical element of enterprise storage. This will bring more attention to object storage, which is centered on metadata, and the key will be integrating well with AI tools.

Cloud Foundry Foundation’s Executive Director Abby Kearns and CTO Chip Childers

Consolidation will continue: Based on 2018’s acquisitions, we predict we’ll see a steady rollout of acquisitions in the next 12-18 months, as major enterprise tech companies rush to get a piece of the latest innovations. Shuffling in executive leadership at certain large companies is a telltale sign that acquisition opportunities will be used to grow business more rapidly. Consolidation around a specific technology is bound to happen, with the market solidifying around that tech.

Multi-platform will be the new normal: A majority of the market believes containers must be the solution to digital transformation, but in 2019, they’ll realize they’re just a tool -- not a silver bullet. We’re already seeing that companies are more broadly deploying a combination of technologies like PaaS, containers and platform in tandem, which we published in a report earlier this year. 2019 will be the year enterprises begin to embrace this versatility and see the flexibility, scalability and interoperability in a multi-platform solution.

People and process are more important than technology: In 2019, companies are going to realize the people on their teams matter more than anything. Reskilling their workforces is going to become essential to business success. Technology is evolving at the same rate as training, so most people with today’s desired skill sets are already employed. Organizations that build continuous learning cycles into their business model and upskill their employees will keep themselves ahead of the curve.

FaaS adoption will continue momentum: FaaS is a serverless technology. It’s already been adopted rapidly as glue code which will continue. However, its function as a productive way to build business applications is only beginning to take off. We will see the beginnings of an explosion of developer frameworks built on top of serverless systems. This type of tooling makes it easier to work with and build things with FaaS, so it becomes a self-perpetuating cycle.

Eyes to the east: Together, we’ve been to China seven separate times this year, and we are astonished at the pace of technological advancement there. With special interest in Artificial Intelligence, China is moving at lightning speed. In 2019, there will be global impact as China’s advancement pushes other regions to hasten their own development.

Scaling up, and quick: We’re seeing the momentum of scale steadily speed up as a result of continued enterprise adoption of cloud technologies. As the technologies mature and are integrated into cloud solutions, enterprises grow more familiar with them, gain trust in their value and increase adoption. It’s a virtuous cycle, which we wrote about in the Foundation’s latest research report, and it’s only going to start spinning faster in 2019.

Culture matters: We’ve said it before and we’ll say it again: Your people and your processes are more important than your technology. In our most recent research, we found that nearly 50 percent of organizations believe culture change is a bigger obstacle than the technology itself. The shift to digital has to happen within your organization, and that means with your people. In 2019, companies are going to prioritize a new culture that emphasizes agile, integrative, inclusive workflow. It’s just another way the cloud market is restructuring.

Qualcomm IoT modem integrates LTE-M, NB-IoT, 2G/E-GPRS

by James E. Carroll

Qualcomm introduced a modem that integrates global multimode LTE category M1 (eMTC), NB2 (NB-IoT) as well as 2G/E-GPRS connectivity capabilities

The new Qualcomm 9205 LTE modem is designed for Internet of Things (IoT) applications such as asset trackers, health monitors, security systems, smart city sensors and smart meters, as well as a range of wearable trackers.  In addition to connectivity, the integrated chipset performs application processing, geolocation, and hardware-based security. It offers support for cloud services and accompanying developer tools.

Qualcomm said that compared to its predecessor, the 9205 modem can reduce power consumption by up to 70% in idle mode, a critical consideration for battery-powered IoT devices that need to operate for 10 years or longer in the field. The Qualcomm 9205 LTE modem is also 50% smaller and more cost-effective than its predecessor. The new modem is also softwarecompatible with the company’s prior LTE IoT solutions which allows module manufacturers to reuse software investments to develop new module solutions.

“The innovations included in the Qualcomm 9205 LTE modem are critical to support many of the 6 billion IoT devices expected to use low-power, wide-area connectivity by 2026,” said Vieri Vanghi, vice president, product management, Qualcomm Europe, Inc. “LTE IoT technologies are the foundation of how 5G will help connect the massive IoT, and we are making these technologies available to customers worldwide to help them build innovative solutions that can help transform industries and improve people’s lives.”

Qualcomm 9205 LTE modem technology highlights

  • Global multimode LTE IoT modem and connectivity: Support for both 3GPP release 14 Category M1 and NB2 for operation with networks using any of these LTE IoT modes, as well as 2G/E-GPRS to allow for connectivity in areas where LTE IoT is not yet deployed. Category M1 mode also supports voice for applications such as monitored security panels, and mobility for applications such as asset trackers.
  • RF transceiver with fully integrated front-end: The Qualcomm 9205 LTE modem features an RF transceiver with extended bandwidth support from 450 MHz to 2100 MHz. It also integrates a comprehensive RF front-end, a commercial first in the cellular IoT space, which is designed to greatly simplify the design and certification of products using the new modem, and therefore accelerate time to commercialization.
  • Advanced battery life management: To maximize battery life, the modem couples ultra-low system-level cut-off voltage with provisions for adapting power usage according to the state of charge of the battery.
  • Applications processor: Arm Cortex A7 up to 800MHz with support for ThreadX and AliOS Things real-time operating systems. The integrated applications processor avoids the need for an external microcontroller to improve cost-efficiency, and device security.
  • Geolocation: Integrated global positioning support for Global Navigation Satellite Systems (GNSS) including GPS, Beidou, Glonass, and Galileo. The Qualcomm 9205 LTE modem enables design flexibility allowing for the use of either a shared GNSS/LTE
  • antenna or a dedicated one.
  • Hardware-based security: Secure boot from hardware root-of-trust, Qualcomm Trusted Execution Environment, hardware cryptography, storage, and debug security. 
  • LTE IoT Software Development Kit (SDK): Designed to support developers in running custom software on the integrated applications processor, as well as to provide them access to additional capabilities of the Qualcomm 9205 LTE modem, such as geolocation. The SDK offers pre-integrated support for many cloud platforms, including Alibaba Cloud Link One, China Mobile OneNET, DTSTON DTCloud, Ericsson IoT Accelerator, Gizwits and Verizon ThingSpace, and it also allows developers to extend this integration further and develop support for other major IoT cloud providers.


AT&T and Tillman Infrastructure cite progress in new tower builds

Tillman Infrastructure has built hundreds of new macro cell towers for lease to AT&T and hundreds of additional tower builds are underway nationwide/

The announcement comes just over one year after the companies announced an infrastructure deal.

"Our work with Tillman Infrastructure exemplifies our future model for the cell tower industry," said Susan Johnson, executive vice president– Global Connections and Supply Chain, AT&T. "We're committed to working with vendors who offer a sustainable cost model while also delivering best in class cycle times and tower construction."

"Tillman is proud of the progress we've made with AT&T, in such a short time," said Bill Hague, CEO of Tillman Infrastructure. "We're bringing a real alternative to the tower infrastructure space for all mobile operators, with competitive pricing and flexible lease terms that accommodate sustainable growth. We will continue to work aggressively to construct and operate thousands of additional sites, while improving capacity and coverage for the entire country, especially in underserved rural areas."

http://www.tillmaninfrastructure.com

AT&T and Verizon strike a deal to build cell towers with Tillman

AT&T and Verizon reached an infrastructure sharing agreement in which they will work with a third party, Tillman Infrastructure, to build hundreds of cell towers.

Tillman will build, own and operate the towers, small cells and smart cities infrastructure. AT&T and Verizon have committed to leasing and co-anchoring the co-located towers. Construction will begin in Q1 2018. Financial terms were not disclosed.

The three companies see the potential for significantly more new site locations in the future.

“We continue to focus on technology innovation and investing in the latest software platforms to provide the best possible customer experience on our network,” said Nicola Palmer, Chief Network Officer for Verizon Wireless. “At the same time, it is imperative to reduce operating costs. We are reviewing all of our long-term contracts as they come up for renewal and we are excited to develop new vendor partners to diversify our infrastructure providers.”

Telenor picks Nokia for 5G cloud core

Telenor will deploy a cloud-native core solution based on Nokia AirGile technology, including the AirFrame data center and Cloud Packet Core, in Denmark, Sweden and Norway. The deployment will include Nokia's Cloud Mobility Manager and Cloud Mobile Gateway, Nuage Networks SDN technologies, the CloudBand Management and Orchestration Software and third-party security solutions. Financial terms were not disclosed.

Nokia said its cloud-native core solution will deliver new flexibilities and capabilities in automation, enabling Telenor's networks to instantly adapt and scale services to meet the changing demands of people and connected things. The ability to quickly onboard virtualized network functions across a cloud-based infrastructure will reduce time-to-market for new services. With the introduction of 5G, the solution will enable network slicing, allowing Telenor to further expand its service offerings to meet the ever-growing and diverse demands of people and industries.

This agreement follows Nokia's earlier successful deployment of a cloud-native core solution for Telenor's operations in Thailand, Malaysia, Myanmar, Bangladesh and Pakistan.

Morten Karlsen Sørby, EVP and head of Telenor Group's Scandinavia cluster, said: "The transition to 5G will be driven by use-cases, allowing us to meet the needs of existing and new markets with innovative services. We are pleased to leverage Nokia's technology and services capabilities to help us transform our cloud networks in our Scandinavian markets and provide us with new efficiencies and capabilities as we make that journey."

Red Hat posts Q3 revenue of $847 million, up 13%

Red Hat reported revenue of $847 million, up 13% year-over-year, or 15% measured in constant currency, for its third quarter of fiscal year 2019 ended November 30, 2018. Subscription revenue for the quarter was $741 million, up 13% year-over-year, or 15% measured in constant currency. GAAP operating income for the quarter was $109 million, down 8% year-over-year. GAAP net income for the quarter was $94 million, or $0.51 diluted earnings per share (EPS), compared with GAAP net income of $102 million, or $0.55 diluted EPS, in the year-ago quarter.

Subscription revenue in the quarter was 87% of total revenue. Subscription revenue from Infrastructure-related offerings for the quarter was $534 million, an increase of 8% year-over-year, or 9% measured in constant currency. Subscription revenue from Application Development-related and other emerging technology offerings for the quarter was $207 million, an increase of 28% year-over-year, or 30% measured in constant currency.

"Adoption of Red Hat’s technologies that enable customers to build and deploy applications more securely and consistently across hybrid and multi-cloud environments continued to drive our growth in Q3,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. “For instance, our Certified Cloud and Service Providers (CCSP) program reached the $300 million annualized run-rate milestone in Q3 with 25% year-over-year growth of Red Hat Enterprise Linux on-demand in the public clouds. In addition, we continue to experience strong customer growth in Red Hat OpenShift, our enterprise Kubernetes platform, and Red Hat Ansible Automation, both of which added more than 100 customers in Q3."

"In Q3, we closed 100 deals over $1 million and delivered double digit total revenue growth of 13% year-over-year, or 15% in constant currency and deferred revenue growth of 20% year-over-year, or 23% in constant currency despite continued foreign exchange volatility. Moreover, our total backlog grew 22% year-over-year to approximately $3.5 billion,” said Eric Shander, Executive Vice President and Chief Financial Officer for Red Hat. “Strong renewals of our largest deals also helped drive these results with all of our top 25 deals renewing at an upsell rate above 120%."

Oracle's cloud business grows 32%, overall revenue are flat

Oracle reported revenues of $9.6 billion for its fiscal 2019 Q2, flat overall and up 2% in constant currency, compared to Q2 last year.

  • Total Cloud Services and License Support plus Cloud License and On-Premise License revenues were up 1% to $7.9 billion. 
  • Cloud Services and License Support revenues were $6.6 billion, while Cloud License and On-Premise License revenues were $1.2 billion.

GAAP operating income was up 2% to $3.1 billion and non-GAAP operating income was down 2% to $4.1 billion. GAAP net income was up 5% to $2.3 billion and non-GAAP net income was up 3% to $3.1 billion. GAAP Earnings Per Share was up 18% to $0.61 while non-GAAP Earnings Per Share was up 16% to $0.80.

“Oracle’s two cloud ERP businesses, Fusion ERP and NetSuite ERP, delivered a combined revenue growth rate of 32% in Q2,” said Oracle CEO, Mark Hurd. “With nearly 6,000 Fusion ERP customers and over 16,000 NetSuite ERP customers, Oracle is the clear leader in cloud ERP. ERP has always been the largest segment of the enterprise applications business, so we have lots of room to grow as customers migrate from their traditional on-premise ERP to the Oracle Fusion ERP Cloud.”

AT&T launches Cloud Recovery with Sungard Availability Services

AT&T is launching Cloud Recovery with Sungard Availability Services (Sungard AS), which is supported by Amazon Web Services (AWS).

The managed service aims to help businesses recover faster when a disaster impacts their cloud storage and services. Implementation, testing, operation, monitoring, and maintenance of the recovery process are all handled through Sungard AS.

“Business doesn’t stop when disaster strikes,” said Josh Goodell, VP, Intelligent Edge, AT&T Business. “Companies need to be able to recover and continue operations ASAP, without pulling resources from other places to get back up and running. This gives them the perfect chance to do just that.” 

“Sungard AS brings its heritage of delivering resilient, recoverable IT infrastructures to AT&T customers for an enterprise-class, SLA-backed cloud recovery service supported by AWS,” said Jim Paterson, Senior Vice President, Product Management, Sungard AS. “Our cloud recovery solution leverages the cost efficiency and flexibility of public cloud to deliver business resilience so that companies can move forward with confidence, knowing their applications and data are always available.”

https://www.business.att.com/products/enterprise-recovery-services.html

Dell'Oro: Cloud-native Evolved Packet Core revenues up 145%

Cloud-native evolved packet core (EPC) revenues reached new heights in 3Q18 with a 145 percent Y/Y growth rate, according to a recently published report from Dell'Oro Group.

Huawei ranked first in revenue share for the quarter, and was followed by Ericsson.

"Service providers are moving aggressively to deploy cloud-native EPC for 5G network launches," observed David Bolan, Senior Analyst at Dell'Oro Group. "We see examples of these EPC deployments with the recent announcements of 5G network launches in Korea and the anticipated launch by AT&T in the US by the end of the year."

"During the quarter, Huawei moved into first place in vendor rankings as Ericsson slid into second place. Huawei capitalized on the strong subscriber growth in China, adding over 40 million LTE subscribers. Nokia retained its third place ranking and ZTE moved into fourth place rebounding after the end of the US ban," Bolan added.

Additional highlights of the Wireless Packet Core 3Q18 report include:

  • 4G core is growing to handle more data, Voice over LTE (VoLTE), Internet of Things (IoT), and connected devices (watches, tablets, PCs, and cars).
  • Regional rankings for 3Q18 by sessions was Asia Pacific, Europe, Middle East, and Africa, North America, Caribbean and Latin America.

Zayo plans data center in Piscataway, New Jersey

Zayo will open a data center in Piscataway, New Jersey and has signed an anchor agreement with a leading financial services tenant. The contract includes space and power in the data center and two dark fiber rings.

Zayo said its new carrier-neutral facility will add more than 47,000 total square feet and up to five megawatts (MW) of critical power. Zayo will renovate the remaining space and upgrade critical power to sell to additional customers. The facility tethers to Zayo’s data center at 165 Halsey St. in Newark and includes connectivity to local carrier hotels and more than 1,000 data centers globally.

“The tri-state area is one of the most important data center markets in the world, with a diverse base of businesses, including financial and professional service companies, contributing to strong demand,” said Bruce Garrison, senior vice president of Zayo’s zColo business segment. “This facility provides an excellent option for colocation space in the Northeast with connectivity across North America and around the world.”

http://www.zayo.com/services/data-center-colocation

Globalstar hails 3GPP's approval of Band 53 for 2.4 GHz Terrestrial Spectrum

3GPP has approved a global standard for terrestrial use of Globalstar’s spectrum at 2483.5-2495 MHz.

Specifically, 3GPP has designated Globalstar’s terrestrial S-band as Band 53, which now permits LTE services in the U.S. with additional geographies expected to be added in 2019. The approval provides for Time Division Duplex (TDD) services in Band 53 as a standalone band and allows Globalstar’s spectrum to serve as an anchor channel for carrier aggregation and LAA next year.

Jay Monroe, Executive Chairman of Globalstar, commented, “3GPP standardization represents an important milestone in the Company’s spectrum efforts. We appreciate the industry’s support of our band and the many parties who participated in its technical development leading to approval. This process is the culmination of intensive standards work and we highly value our technical team who drove this to completion on an accelerated schedule.”

Keysight supplies 5G virtual drive testing tools to MediaTek

Keysight Technologies is supplying its 5G virtual drive testing (VDT) Toolset to MediaTek to accelerate end-to-end data throughput performance validation of multimode 5G New Radio (NR) Devices. MediaTek is able to validate the performance of new 5G products under typical mobile user conditions such as video streaming, web browsing, and voice calls without running consuming field tests. MediaTek currently uses Keysight’s VDT Toolset to validate 4G devices for operation in high speed train (HST) scenarios.

"We’re delighted to extend our collaboration with MediaTek to support their efforts in validating 5G devices by simulating real world conditions in the lab," said Janne Kolu, head of VDT solutions at Keysight Technologies. "Real-world emulation of networks is essential for successful 5G deployments. Keysight’s channel emulation expertise combined with our innovative software-based 5G test solutions is the ideal solution for bridging the gap between lab and field testing."

Prysmian to supply subsea power cable in Massachusetts

Prysmian Group has been selected for the design, manufacture, supply and testing of a 6 km 3x630 mm² 115kV submarine cable system with XLPE insulation, plus all related cable accessories to connect Deer Island to mainland Massachusetts (USA).

The company will also be responsible for the project’s land section, for which it will supply and install 8 km of 115kV land cabling, along with all related accessories.

All submarine cables will be produced at Prysmian’s facility in Arco Felice (Italy). The land cables will be manufactured at Prysmian’s factory in Abbeville, South Carolina.

See also