Wednesday, July 24, 2019

AT&T says its 5G rollout is on track

AT&T reported Q2 2019 consolidated revenues of $45.0 billion and adjusted EPS of $0.89 compared to $0.91 in the year-ago quarter. The company raised its free cash flow guidance to $28 billion range and reaffirmed its financial guidance for the rest of the year.

Declines in revenues from legacy wireline services, Vrio, domestic video and wireless equipment were more than offset by the addition of WarnerMedia and growth in domestic wireless services, strategic and managed business services, IP broadband and Xandr.

Net debt has been reduced by $18 billion over the past 12 months and now stands at about $150 billion.

AT&T says it is on track for nationwide 5G coverage by mid-2020.

“We’re halfway through the year and on track to deliver on all our 2019 priorities,” said Randall Stephenson, AT&T chairman and CEO. “We continue to pay down debt and are more confident than ever that we’ll meet our yearend deleveraging goal, and we’ll take a look at buying back stock.  Our FirstNet build is not only running ahead of schedule – it’s become a driver of our wireless network leadership in speed, reliability and network performance. It also sets us up to have nationwide commercially available 5G coverage in the first half of 2020."


Highlights:


  • In Mobility, service revenues were up 2.4%. There were 355,000 phone net adds, including 144,000 postpaid smartphone net adds and 72,000 postpaid phone net adds. There were 341,000 prepaid net adds of which 283,000 were phones.
  • For the Entertainment Group, there was a 2.6% operating income growth with solid video and broadband ARPU gains. AT&T now has 21.6 million premium TV subscribers, with a 778,000 net loss during the quarter. There are now 1.3 million DIRECTV NOW subscribers, with a 168,000 net loss in Q2.  AT&T TV, company’s new thin client video service, is expected to begin trials in the third quarter.
  • IP broadband revenue growth was 6.5% with 318,000 AT&T Fiber gains. AT&T now has nearly 14 million customer locations passed with fiber, and 22 million when business locations are included.

https://investors.att.com/

ADVA hits new benchmarks for bandwidth/reach on terrestrial long-haul

ADVA announced new benchmarks for bandwidth and reach on terrestrial long-haul using its FSP 3000 TeraFlex platform.

The new records were achieved in a commercial long-haul terrestrial network originally built for 100Gbit/s services. ADVA’s partners included the Poznan Supercomputing and Networking Center (PSNC), EENet of HITSA and Tele2 Estonia.

Using an optical spectrum-as-a-service approach, the terminal achieved 200Gbit/s per wavelength transmission over a distance of 5,738km with 2.5bit/symbol, and 500Gbit/s over 1,016km with 5bit/symbol modulation. Record-breaking results also included 300Gbit/s per wavelength transmission over 3,751km with 3bit/symbol, and 400Gbit/s per wavelength across 1,792km with 4.5bit/symbol modulation. Feasibility of 800Gbit/s transmission over 1,016km in a single 125GHz spectral slice was also demonstrated.

ADVA said one of the keys to achieving this performance is the ability of the FSP 3000 TeraFlex to utilize network telemetry and fractional QAM to maximize reach and capacity through the automated configuration of modulation format and baud rate.

The trial also highlighted how a disaggregated open line system (OLS) approach can enhance network flexibility and leverage the most value from existing optical infrastructure.

“Our terminal technology is now redefining terrestrial long-haul data transport. Just as we proved in trials with DCI and metro networks, the software-defined transmission of our FSP 3000 TeraFlex™ is the ultimate response to soaring bandwidth needs,” said Jörg-Peter Elbers, SVP, advanced technology, ADVA. “With its programmable signal shaping and ultra-flexible modulation capabilities, our unique solution balances distance and capacity for maximum spectrum utilization and optimal performance over any reach. This gives communication service providers the power to massively increase bandwidth without the expense of a major upgrade. This demo also shows how an open coherent optical layer removes all restrictions, even when interconnecting across multiple countries. And, with our FSP 3000 TeraFlex deployed as part of a disaggregated OLS solution, it delivers complete agility for best cost efficiency.”

https://www.advaoptical.com/en/newsroom/press-releases/20190724-adva-fsp-3000-teraflex-breaks-multiple-industry-records-in-live-network-trial

Equinix boosts its private cloud network onramp to AWS

Equinix is participating in the launch of the new AWS Direct Connect Service Delivery Program, which allows Equinix customers to use Hosted Connections with 1G, 2G, 5G and 10G capacities on Equinix Cloud Exchange Fabric (ECX Fabric). The enhanced capabilities ensure lower latency and higher bandwidth capacities for hybrid cloud architectures on Platform Equinix.

Equinix said the availability of new 1G, 2G, 5G and 10G capacities allows its customers using ECX Fabric to connect to a range of AWS services via AWS Direct Connect locations in the same metro where the customer's infrastructure is located. For other workloads requiring low latency, higher bandwidth and data sovereignty adherence, Equinix customers can use the new higher capacities on ECX Fabric to access all AWS services via AWS Direct Connect locations in metros different from where the customer's infrastructure is located.

"By offering Dedicated Connections, and Hosted Connections with new 1G up to 10G speeds on ECX Fabric, we are enhancing private cloud connectivity for enterprises to help them accelerate their hybrid cloud transformations," said Kaushik Joshi, Global Managing Director, Strategic Alliances, Equinix.

ECI debuts 5G cell site router

ECI introduced its "1022" cell site router, the first of the company’s end-to-end portfolio tailored for 5G.

The 1022 cell site router combines high capacity in a small form factor. It offers MPLS, network slicing, class C and D synch capabilities and open NetConf/Yang interfaces.

ECI said the 1022 represents the next evolution of its Neptune product line, inheriting its multiservice, Elastic MPLS capabilities that allow customers to support current, future and legacy services on a single platform. Its front access, extended temperature range make it equally at home at a cell site or operating as an access device for a substation.

“As carriers prepare for the step change that 5G demands, we understand that the transition to a fully compliant 5G transport network can be both complex and CapEx heavy. That is why our solutions easily traverse the divide between current and future. We want customers to know that ECI is here to help them adjust their infrastructure effortlessly and cost-effectively,” said Jimmy Mizrahi, ECI’s EVP and Head of Global Portfolio. “The 1022 marries form and function with its unique capabilities for easy migration, future-proof multiservice, and network slicing while ensuring carrier-grade redundancy and service assurance. Class C and D synch capabilities mean stringent
timing control, and open interfaces ensure it can be deployed in any network, brownfield or green. This is the first of our 5G dedicated products and solutions to be launched. The rest will follow in the coming months.”

https://www.ecitele.com/5g

CoreSite posts Q2 data center revenue of $142.9m, up4.7%

CoreSite reported Q2 operating revenues of $142.9 million, an increase of 4.7% year over year and 2.9% sequentially. The company delivered net income of $0.53 per common diluted share, a decrease of $0.04 year over year and $0.01 sequentially.

“We continued to execute on our 2019 imperatives to accelerate growth in 2020 and beyond,” said Paul Szurek, CoreSite’s President and Chief Executive Officer. “We completed projects in our property development pipeline, delivering nearly 100,000 square feet of data center capacity, and began construction for our new ground-up purpose-built data center in Los Angeles. "

Some Q2 highlights:

  • Commenced 140 new and expansion leases for 65,193 net rentable square feet (“NRSF”), representing $10.2 million of annualized GAAP rent, for an average rate of $176 per square foot
  • Signed 135 new and expansion leases for 142,824 NRSF and $27.3 million of annualized GAAP rent, for an average rate of $191 per square foot
  • Renewed 328 leases for 121,809 NRSF and $24.1 million of annualized GAAP rent, for an average rate of $198 per square foot, reflecting 2.6% cash rent growth, 7.4% GAAP rent growth and 2.4% churn
  • On April 12th, closed SV9 land purchase in Santa Clara, Clara, California, that is suitable for a data center facility of at least 200,000 NRSF. Pre-construction activity is underway.


Mellanox posts record revenue of $310.3m, up 16% yoy

Mellanox Technologies reported record revenue of $310.3 million in the second quarter, an increase of 15.6 percent, compared to $268.5 million in the second quarter of 2018. GAAP gross margins were 64.5 percent, compared to 61.4 percent in the second quarter of 2018. Non-GAAP net income amounted to $83.9 million in the second quarter, compared to $66.6 million in the second quarter of 2018.

“Mellanox delivered record revenue in Q2, achieving 2 percent sequential growth and 16 percent year-over-year growth. We continue to demonstrate leadership with our Ethernet adapter solutions for data rates of 25 gigabit per second and above. The growth in our Ethernet business reflects strong demand from our cloud customers as well as expanding channel sales. We are pleased that we’ve begun shipping 200 gigabit per second Ethernet adapters, switches, and cables to our data center customers, and expect this to be a future revenue growth driver,” said Eyal Waldman, president and CEO of Mellanox Technologies.

“We continue to see strong demand for our InfiniBand products across the high performance computing, artificial intelligence, cloud, and storage market segments, driven by our highest throughput 200 gigabit HDR InfiniBand solutions. InfiniBand accelerates six of the top ten supercomputers in the world today, including the top three. We are proud that multiple HDR InfiniBand systems have entered the TOP500 supercomputers list, led by the Frontera TACC system, which is the fastest TOP500 supercomputer built in 2019 and premiered at #5 on the list.”

“We are pleased with our financial performance this quarter and the adoption of our latest 25, 50, and 100Gb/s Ethernet and 200Gb/s HDR InfiniBand products,” continued Waldman. “We expect to maintain and grow our leadership in these segments as we expand our footprint for both adapters and switches in the data center.”


  • On March 11, 2019, NVIDIA agreed to acquire all the issued and outstanding common shares of Mellanox for $125 per share in cash. The acquisition is pending.

IDC: SD-WAN market to hit $5.25 billion by 2023

The SD-WAN infrastructure market will grow at a 30.8% compound annual growth rate (CAGR) from 2018 to 2023 to reach $5.25 billion, according to IDC's SD-WAN Infrastructure Forecast.

The SD-WAN infrastructure market to be highly competitive, according to IDC, with sales increasing by 64.9% in 2018 to $1.37 billion.

IDC finds that Cisco holds the largest share of the SD-WAN infrastructure market, fueled by its extensive routing portfolio that is used in SD-WAN deployments, as well as its Meraki portfolio and its SD-WAN management platform powered by technology it acquired from Viptela in August 2017. VMware, with its SD-WAN service powered by VeloCloud (which VMware acquired in December 2017), holds the second-largest market share in the SD-WAN infrastructure market, followed by Silver Peak, Nokia-Nuage, and Riverbed.

"SD-WAN continues to be one of the fastest-growing segments of the network infrastructure market, driven by a variety of factors. First, traditional enterprise WANs are increasingly not meeting the needs of today's modern digital businesses, especially as it relates to supporting SaaS apps and multi- and hybrid-cloud usage. Second, enterprises are interested in easier management of multiple connection types across their WAN to improve application performance and end-user experience," said Rohit Mehra, vice president, Network Infrastructure. "Combined with the rapid embrace of SD-WAN by leading communications service providers globally, these trends continue to drive deployments of SD-WAN, providing enterprises with dynamic management of hybrid WAN connections and the ability to guarantee high levels of quality of service on a per-application basis."

IDC's Market Share and Market Forecast reports focus specifically on the SD-WAN infrastructure market, which includes both hardware and software used in SD-WAN deployments. IDC defines SD-WAN as a dynamic, policy-enabled hybrid WAN that uses at least two or more connection methods (such as MPLS, broadband internet, 3G/4G, etc.) and includes a centralized application-based policy controller that provides intelligent path selection, along with an optional forwarder for routing capability. The SD-WAN infrastructure Market Share and Forecast reports do not include managed services related to SD-WAN, such as setup or operational support, nor do they include connectivity costs.

The IDC SD-WAN Infrastructure Forecast provides an outlook for this market across major regions for the period extending to 2023, including historical numbers through 2017 and forecast numbers from 2019 to 2023. It also provides regional geographic segmentation of the SD-WAN infrastructure market, including market sizes and CAGRs for each major region (North America, EMEA, APJ, Latin America).

https://www.idc.com/getdoc.jsp?containerId=prUS45380319

LinkedIn to transition its workloads into Azure

LinkedIn, which is a business subsidiary of Microsoft, will migrate away from private data centers into the Azure public cloud.

The strategic shift was confirmed on the LinkedIn Engineering blog in a posting by Mohak Shroff.

LinkedIn currently serves 645million users and the company boasts that someone is hired due to their LinkedIn profile every eight seconds.

https://engineering.linkedin.com/blog/2019/building-next-infra

T-Mobile activates LTE over 60,000 square miles of the Gulf of Mexico

T-Mobile has activated LTE coverage over 60,000 square miles of the Gulf of Mexico. The rollout leverages T-Mobile’s 600 MHz and RigNet’s 700 MHz spectrum Gulf of Mexico digital microwave infrastructure mounted on oil rigs. T-Mobile used 5G-ready equipment to light up LTE in the Gulf.

“We’re putting an end to the pain that businesses and consumers in the Gulf have felt for years with limited connectivity – and in some cases, none at all,” said Neville Ray, Chief Technology Officer at T-Mobile. “We already cover 99% of Americans with an advanced LTE network, and we cover places no one else does – like the soldiers, families and civilians at Naval Station Guantanamo Bay in Cuba. Now, T-Mobile has you covered, even in the Gulf, and of course…we won’t stop!”

HPE to invest $500m in India over 5 years

Hewlett Packard Enterprise will invest $500 million in India over the next five years in an effort to grow its operations, manufacturing and employee base in the country, increase its R&D and services exports, as well as invest in technology initiatives to drive positive change for local Indian communities.

Specifically, HPE plans to increase its workforce in India by 20% over the next three to five years. In particular, HPE will hire new engineering talent with expertise in areas of critical importance to customers such as AI and networking. HPE will also begin construction of a high-tech extension to its Mahadevapura Campus in Bengaluru that will be able to house more than 10,000 employees, as well as state-of-the-art R&D facilities. When complete, the 1.3-million-square-foot campus will feature a state-of-the-art workplace, powered by HPE technologies, designed to enhance the employee, customer, and partner experience and foster a culture of innovation. The campus will support a broad range of functions including R&D, engineering services, finance, and sales.

“The Modi 2.0 administration’s vision of a $5 trillion economy is impressive and fitting for a country with this level of energy and opportunity,” said Antonio Neri, President and CEO of HPE and a member of the US-India CEO Forum. “India is one of the largest and fastest-growing economies in the world, and our investments will further develop the country as a critical market for HPE’s global business, as well as benefit our customers, partners, employees and the citizens of India.”

"It is a matter of great assurance that a global giant like Hewlett Packard Enterprise is making big investments in India both in manufacturing as well as research and development,” said Mr. Ravi Shankar Prasad, Union Minister for Law & Justice, Communication and Electronics & Information Technology. “This shows the rising confidence of global investors in India's rapidly growing electronics manufacturing sector and the success of Digital India."

See also