Thursday, January 10, 2019

IDC: Cloud infrastructure spending surged 47% yoy in 3Q18

Vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, grew 47.2% year over year in the third quarter of 2018 (3Q18), reaching $16.8 billion, according to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker.

IDC also raised its forecast for total spending (vendor revenue plus channel mark-up) on cloud IT infrastructure in 2018 to $65.2 billion with year-over-year growth of 37.2%.

"The first three quarters of 2018 were exceptional for the IT Infrastructure market across all deployment environments and the increase in IT infrastructure investments by public cloud datacenters was especially strong driven by the opening of new datacenters and infrastructure refresh in existing datacenters," said Natalya Yezhkova, research director, IT Infrastructure and Platforms. "After such a strong year we expect some slowdown in 2019 as the overall market cools down and some cloud providers work through adjustments in their supply chain. However, IDC expects the shift in IT infrastructure spending toward cloud environments will continue."

Some highlights from IDC:

  • Quarterly spending on public cloud IT infrastructure has more than doubled in the past two years reaching $12.1 billion in 3Q18 and growing 56.1% year over year, while spending on private cloud infrastructure grew at half of this rate, 28.3%, reaching $4.7 billion. Since 2013, when IDC started tracking IT infrastructure deployments in different environments, public cloud has represented the majority of spending on cloud IT infrastructure and in 2018 IDC expects this share will peak at 68.8% with spending on public cloud infrastructure growing at an annual rate of 44.7%. Spending on private cloud will grow 23.3% year over year in 2018.
  • In 3Q18, for the first time, quarterly vendor revenues from IT infrastructure product sales into cloud environments surpassed revenues from sales into traditional IT environments, accounting for 50.9% of the total worldwide IT infrastructure vendor revenues, up from 43.6% a year ago. However, for the full year 2018, spending on cloud IT infrastructure will remain below the 50% mark at 47.4%. Spending on all three technology segments in cloud IT environments is forecast to deliver double-digit growth in 2018. Compute platforms will be the fastest growing at 59.1%, while spending on Ethernet switches and storage platforms will grow 18.5% and 20.4%, respectively.
  • The rate of growth for the traditional (non-cloud) IT infrastructure segment slowed down from the first half of the year to 14.8%, which is still exceptional for this market segment. For the full year, worldwide spending on traditional non-cloud IT infrastructure is expected to grow by 12.3% as the market goes through a technology refresh cycle, which will wind down by 2019. By 2022, we expect that traditional non-cloud IT infrastructure will only represent 42.4% of total worldwide IT infrastructure spending (down from 52.6% in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions.
  • All regions grew their cloud IT Infrastructure revenues by double digits in 3Q18. Revenue growth was the fastest in Asia/Pacific (excluding Japan) (APeJ) at 62.6% year over year, with China growing at an even higher rate of 88.7%. Other regions among the fastest growing in 3Q18 included Japan (48.2%), USA (44.2%), and Canada (43.4%).
  • Long-term, IDC expects spending on cloud IT infrastructure to grow at a five-year compound annual growth rate (CAGR) of 13.3%, reaching $88.6 billion in 2022 and accounting for 57.6% of total IT infrastructure spend. Public cloud datacenters will account for 66.3% of this amount, growing at an 13.6% CAGR. Spending on private cloud infrastructure will grow at a CAGR of 12.6%.


Huawei's CloudEngine 16800 data center switch boasts 768-port 400GE

Huawei unveiled its CloudEngine 16800 data center switch built for the Artificial Intelligence (AI) era.

The platform has three defining characteristics making it suitable for the AI era: an embedded AI chip, the capacity for a 48-port 400GE line cards per slot,, and the capability to evolve to the autonomous driving network.

Huawei said its embedded, high-performance AI chip will apply an innovative iLossless algorithm for the auto-sensing and auto-optimization of the traffic model. It promises lower latency and higher throughput based on zero packet loss. The company estimates its optimization will increase the AI computing power from 50 percent to 100 percent compared to traditional Ethernet, while improving the data storage Input/Output Operations Per Second (IOPS) by 30 percent. The CloudEngine 16800’s local intelligence and the centralized network analyzer FabricInsight creates a distributed AI O&M architecture capable of identifing faults -- a key goal of an autonomous driving network.

In terms of capacity, the Huawei CloudEngine 16800 data center switch boasts the industry’s highest density 48-port 400GE line card per slot, yielding an overall 768-port 400GE switching capacity. Huawei says power consumption per bit is reduced by 50% with the massive configuration. The company also claims to have overcome multiple technical challenges such as high-speed signal transmission, heat dissipation, and power supply.

http://e.huawei.com/topic/cloud-engine2019/en/index.html?ic_medium=hwdc&ic_source=ebg_banner_EEBGHQ179Q19W



Sprint's first 5G data call using 2.5 GHz and Massive MIMO

Sprint completed the first over-the-air 5G data transmission using 2.5 GHz and Massive MIMO. The test was carried on Sprint's live commercial network in San Diego.

The field test used global 5G standards on a commercial 3GPP 5G New Radio (NR) network with Sprint's 2.5 GHz spectrum, Nokia's dual-mode AirScale Massive MIMO radio, and a mobile smartphone form-factor test device powered by the Qualcomm Snapdragon X50 5G modem and antenna modules with integrated RF transceiver, RF front-end and antenna elements. The test demonstrated a seamless transition of connectivity between Sprint's 4G LTE Advanced and 5G network, while streaming YouTube videos, conducting Skype audio and video calls, and sending and receiving Instant Messages.

"This is a big step forward – Sprint 5G is now out of the lab and in the field as we prepare for our commercial launch in the first half of this year," said Dr. John Saw, Sprint's Chief Technology Officer. "We're making great progress towards giving Sprint customers the first mobile 5G experience in nine top cities with the first 5G smartphone in the U.S."

"Nokia is pleased to work on another 5G first with Sprint and Qualcomm," said Mike Murphy, Chief Technology Officer for North America, Nokia. "By using 2.5 GHz for 5G, existing sites nationwide can be re-used, with indoor coverage as well. This first standards-based call is thus a critical step towards Sprint's offering of a 5G service to its customers."

"Today's announcement marks a major milestone in 5G commercialization using sub-6 GHz spectrum, which provides wide area and high-performance connectivity," said Durga Malladi, Senior Vice President and General Manager, 4G/5G, Qualcomm Technologies, Inc. "We look forward to continue working with Sprint and Nokia in bringing high-capacity and multi-gigabit 5G networks to consumers in 2019."

Sprint said it is on track to launch its 5G service beginning in nine top cities in the first half of 2019. They include Atlanta, Chicago, Dallas, Houston, Kansas City, Los Angeles, New York City, Phoenix and Washington, D.C.  The 5G build out is well under way with hundreds of Massive MIMO radios deployed last year.

AWS acquires CloudEndure for cloud migration and back-up tools

Amazon Web Services has acquired CloudEndure, a start-up based in Israel that specializes in cloud migration and back-up. Financial terms were not disclosed.

CloudEndure's IT Resilience Suite for the Hybrid Cloud provides disaster recovery, continuous backup, and migration of any application from any physical, virtual, or cloud-based source to cloud infrastructure.

CloudEndure, which was established in 2012, raised over $18 million from Dell Technologies Capital, VMware, Mitsui, Infosys, and Magma Venture Partners. Founders included Ofer Gadish, Ofir Ehrlich, Gil Shai, and Leonid Feinberg.

https://www.cloudendure.com/

Sophos acquires Avid Secure for AI-base cloud security analytics

Sophos has acquired Avid Secure, a start-up that offers an artificial intelligence-based cloud security analytics, compliance, and DevSecOps platform. Financial terms were not disclosed.

Avid Secure, which was founded in 2017 and is based in San Francisco with engineering operations in Gurgaon, India, uses artificial intelligence and automation to address the real-world challenges of effective cloud security including lack of workload visibility, and the constant monitoring required to stay ahead of today’s sophisticated attacks. The system provides protection in public cloud services such as AWS, Azure, and Google.

“The accelerated adoption of public cloud environments is presenting new data security challenges to organizations. With the cloud workload protection and the cloud security posture management software from Avid Secure, Sophos will expand its current capabilities in cloud security and drive leadership in this growing space,” commented Dan Schiappa, senior vice president and general manager of Products at Sophos. “We welcome the Avid Secure team to Sophos and are excited to bring their transformational technology into our portfolio, strengthening our ability to offer the best protection for our customers’ data on endpoints and networks, wherever their services are hosted.”

Ericsson refocuses Business Support System (BSS) on current platform

Acknowledging that its Business Support System (BSS) is not performing satisfactorily, Ericsson announced a further restructuring that will result in revisions to its BSS product and contract portfolio, as well as an associated headcount reduction.

Ericsson said its launch of a next-generation BSS platform, the full-stack Revenue Manager, has not been successful and to date, the full-stack Revenue Manager has not generated any revenues. Customer demand for a full-stack pre-integrated BSS solution has not materialized, and delays in product and feature development have also made the full-stack Revenue Manager less competitive. R&D resources in BSS have been focused on full-stack Revenue Manager, causing further delays in product releases of the established platform. In addition, certain complex transformation projects experienced delays and cost overruns. Ericsson said its strategy now is to focus on its established platform, Ericsson Digital BSS, and refocusing the full-stack Revenue Manager to fulfilling existing customer commitments only.

Ericsson said the restructuring will negatively impact operating income in Q4 2018 by SEK 6.1 billion (US$690 million), mainly impacting gross margin. Out of this amount, SEK 3.1 billion (US$350 million), is treated as restructuring charges. Further restructuring charges related to the planned measures, including related headcount reductions, estimated to SEK 1.5 b. are anticipated in 2019.

Silicon demos Active Optical Cable supporting HDMI 2.1 in 8K TV

Silicon Line GmbH announced the first active optical cables with embedded technology supporting all features of the recently released HDMI 2.1 specification.

At CES 2019 in Las Vegas, the company demonstrated its new active optical cable connecting HDMI 2.1-enabled 4K and 8K TVs.

“CES is the premier world stage for debuting the latest consumer technologies, and we are pleased to unveil what will become a common standard for connectivity with TVs, set-top boxes, video game consoles, mobile devices, virtual and augmented reality headsets and other consumer electronics,” said Silicon Line CEO Ruud van der Linden.  “Copper cabling presents many limitations for very high bandwidth applications that make it impractical for use in many applications,” van der Linden said. “Our embedded technology supports all the advanced new features of the HDMI 2.1 specification and will allow the production of thin, long, flexible optical HDMI cables at prices affordable to consumers.”

http://www.silicon-line.com

A10 cites five major 5G Gi-LAN security design wins in 2H2018

A10 Networks announced it secured five major 5G network design wins in the second half of 2018 for its A10 Thunder Convergent Firewall Gi/SGi firewall solution, including three wins in the fourth quarter. All five operators are planning to launch their first commercial 5G services in the first quarter of 2019.

The company said it was selected by these carriers in Asia and EMEA because of the Thunder CFW’s ability to meet the massive capacity demands of 4G and 5G networks with performance and scale, comprehensive feature set, and rich automation capabilities. Capacity demands rise significantly in 5G networks due to substantial increases in concurrent sessions, extreme reliability and higher connections per second. As a result, legacy firewalls often cannot handle the traffic.

“A10 is extremely well positioned to address the security needs of mobile carriers and their 4G and 5G networks,” said A10’s CEO Lee Chen. “We secured five major 5G design wins in recent months and are working closely with numerous other leading operators around the world on their 5G security upgrades and transformation projects.”


Liquid Telecom appoints regional CEO

Liquid Telecom has appointed Mohamed Abdel Bassit as its new Regional CEO for Middle East and West Africa (MEWA). Based in Cairo, Bassit will oversee the group’s expansion further into MEWA following the recent news that it is investing US$400m in the Egyptian market and has completed the first fibre network to stretch all the way from Cape Town to Cairo.

Bassit will also explore new market opportunities in West Africa as Liquid Telecom begins expanding its service offering into the region. He joins Liquid Telecom from Orange Group, where he served as Regional Director for voice, data and mobile services in the Middle East for the past year. He previously served as VP of operations for Gulf Bridge International, and prior to that spent 10 years as Managing Director for Middle East and North Africa at Belgacom International Carrier Services (BICS), where he helped establish the company as a leading regional voice and mobility services carrier.

Liquid Telecom to invest US$400 million in deal with Telecom Egypt

Liquid Telecom will invest 8 billion Egyptian Pounds (US$400 million) in Egypt over the next three years as part of its partnership with Telecom Egypt on network infrastructure and data centres.

Specifically, Liquid Telecom will make an initial investment of US$50 million in data centres and cloud services. Liquid Telecom plans to invest an additional US$350 million in broadband and financial inclusion initiatives, as well as high capacity data centres.

Liquid Telecom’s expanding network is almost 70,000km in length and is linked to more than 600 towns and cities in 13 countries across Africa.






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