Thursday, May 6, 2010

Netflix Leverages Amazon Web Services

Netflix has been using Amazon Web Services (AWS) for over a year to run a variety of mission-critical, customer-facing and backend applications. Now, Netflix is significantly expanding the set of applications that it is migrating from its existing technology infrastructure onto AWS. Netflix members' movie lists, website search, movie transcoding, recommendation system and other applications will all be powered by AWS, representing many of the most critical pieces of the Netflix technology infrastructure.

Some specifics:

  • Delivering content faster and on more devices: Netflix is utilizing the Amazon Elastic Compute Cloud (Amazon EC2) and Amazon Simple Storage Service (S3) to transcode and store the movie subscription service's growing movie content library for delivery on new platforms, including the Nintendo Wii and the Apple iPad. AWS allows Netflix to utilize vast numbers of servers to transcode and store TV episodes and movies into new formats

  • Maintaining a highly available and resilient member-facing website: Netflix runs several of its website application functions on AWS, and is rapidly migrating more of these components to AWS. The companies said the important functions migrating to AWS include the delivery of movie and member metadata within the Netflix website.

  • Analyzing data to improve streaming quality: Netflix is using Amazon Elastic Map Reduce to analyze streaming sessions and extract business metrics around performance, viewing patterns, etc.

Nokia's Ovi Life Tools Launched in China

Nokia launched its Ovi Life Tools
(Nokia Ovi Sheng Huo Tong) in China, providing information services covering healthcare, agriculture, education and entertainment. The service addresses the needs of rural consumers with the vision to provide livelihood and life-impacting benefits to improve their economic prosperity and quality of life. The Nokia 1616 and the Nokia 1800 are the first two phones to support the new service.

According to Sun Xiaoming, Deputy Director of China Rural Technology Development Center of China's Ministry of Science and Technology, "Currently there are almost 732 million rural residents in China: which is roughly 55 percent of the total population. The Chinese Government has consistently placed rural issues as a top priority, and this includes the development, access and dissemination of information to people in rural areas. Fast and effective communication coupled with locally relevant information will help promote economic growth and productivity.

The SMS- based service will be in simplified Chinese and is offered with six major partners -, Beijing Nongxintong Technology Co. Ltd., Beijing Etiantian Net Educational Technology Co. Ltd (Beijing Sizhong Ltd.), British Council, Kongzhong Corporation and The service is available to consumers via subscription or on demand. Consumers can activate the service from an icon on the menu of the device and can choose any one of four selected services for a 2-week free trial.

Verizon Global Wholesale Offers VoIP Security Tunnel

Verizon Global Wholesale announced new VoIP security functionality for three of its product platforms -- SIP Gateway Service, Advanced Toll Free IP Termination, and Carrier IP Termination Transport. The new capability allows these services to share a single, secure virtual private network connection called an IP Security (or IPSec) tunnel.

Verizon said it is the only major provider offering this connection, which provides additional security during call setup. Because IPSec is an industry standard and supported by most major equipment vendors, there is no need to create vendor-specific security protocols.

"We bypass other security protocols in favor of IPSec tunnel because it offers the greatest level of flexibility to meet our customers' security needs for VoIP traffic." said Mike Yancey, director of wholesale voice services for Verizon Business. "Verizon wholesale customers can rest assured we go the extra mile to protect their business traffic on our world-class global network."

An IPSec tunnel maintains integrity and confidentiality because all data is encrypted prior to transmission, then authenticated upon receipt to verify the data has not been altered. The source of the data is also authenticated to prevent the possibility of such security breaches as "spoofing" an IP address -- a fraudulent network technique in which a program or person masquerades as another.

Verizon's wholesale VoIP products continue to grow as more customers migrate from traditional voice platforms to IP platformshttp://www.verizon.comhttp://

Infonetics: Asia-Pac PON Up by 38% in 2009

Asia Pacific PON equipment revenue totaled $1.1 billion in 2009, up 38% from 2008, according to the latest figures from Infonetics Research. The Asia Pacific region accounted for 63% of the world's PON equipment revenue in 2009, and strong growth in the Chinese PON market, particularly the GPON segment, is expected to continue. Huawei leads the Asia Pacific region for PON equipment sales.

By 2014, Infonetics Research forecasts 10G EPON and 10G GPON will together make up about 1/3 of all PON equipment revenue in Asia Pacific. A slowdown in PON equipment sales in South Korea is expected as infrastructure buildouts reach strategic goals, and the focus shifts to turning up new subscribers despite saturation in Seoul, Busan, and Incheon.

"Not surprisingly, China was the catalyst behind passive optical network equipment growth in 2009. China Telecom's and China Unicom's heavy investments in Ethernet-PON OLTs and ONTs in 2009 will be joined by China Mobile's Gigabit-PON fiber-to-the-home investments in 2010. Subscriber growth continued in Japan and South Korea, where much of the infrastructure buildout for fiber-to-the-building and FTTH services has already been completed. India's BSNL also helped pace the GPON market in 2009, purchasing equipment to support their 700,000-line rollout throughout 2010," notes Jeff Heynen, directing analyst for broadband at Infonetics Research.

Indosat Upgrades with Ericsson's HSPA at 42 Mbps

Indonesia's Indosat has commissioned Ericsson to modernize its network, including the deployment of Ericsson's HSPA Evolution technology, which is capable of reaching up to 42Mbps. Indosat is currently serving 39.1 million subscribers in Indonesia.

The modernization will not only prepare the network to migrate to next generation LTE technology, but it will also gear it up with features that reduce energy consumption and footprint, making the network more environment friendly while reducing operating costs. The sustainable character of this network will be boosted by a number of "green sites" powered by alternative energy sources. Financial terms were not disclosed.

As part of the agreement Ericsson will provide Indosat with its Radio Base Station (RBS) 6000, MSS Blade Cluster, and MINI-LINK TN. Network design, deployment, training and support services are also part of the agreement. The modernization will provide Indosat with the flexibility to evolve to next generation technology, known as LTE (Long Term Evolution).

Global Carrier Deploys Infinera on Transatlantic Route

A major global telecommunications service provider has deployed Infinera's optical transport platform on a transatlantic route of over 6,000 kilometers. The new route provides the service provider 1.76 Tbps of optical capacity on a single fiber pair.

The Infinera Submarine Solution enables wavelengths to be implemented on a 25 Gigahertz channel grid, providing for doubling the density or capacity compared to traditional DWDM optical systems.

Infinera said that in addition to increasing capacity, its optical transport solution is intended to enable quick and easy deployment, provisioning, and management of the network. An innovative dispersion management solution is engineered to simplify dispersion management.

The company noted that with the completion of this project, the Infinera Submarine Solution is now deployed on over 50,000km of submarine cable systems."http://www.infinera.comhttp://
  • In September 2009, Infinera introduced its new submarine optical transport solution, which is designed to be deployed at land-based terminals of submarine networks. The platform, which has already been deployed by Global Crossing, offers submarine network operators a way to protect their investment in their subsea infrastructure while adding new capacity to the network via the Infinera Digital Optical Networks architecture.

8x8 Acquires Central Host

8x8 has acquired Central Host, Inc., a Los Gatos, California-based provider of managed hosting services and cloud-based computing solutions, for $1 million in cash and 432,276 shares of common stock. Central Host claims approximately $1 million of annual revenue.

Central Host has relocated to 8x8's Sunnyvale, California headquarters and will combine its operations with 8x8's existing Network Operations Center (NOC), sales, customer service and data center operations.

"Adding managed hosting and cloud computing services to our business service offerings is an ideal extension of our current business," said Bryan Martin, Chairman and Chief Executive Officer of 8x8, Inc. "We are excited to provide additional enterprise-class services to our customer base, giving us multiple best-of-breed offerings to sell to the same installed base. Central Host's customers are ideal targets for 8x8's communications services, and we believe that many of 8x8's existing customers will benefit from the performance attributes and disruptive pricing of the Central Host offerings. We look forward to discussing the synergies and benefits of this acquisition during our fourth quarter and full-year results earnings conference call on May 19, 2010."http://www.8x8.comhttp://

NEC Confirms SingTel's LTE Trial

NEC announced its participation SingTel's LTE field trials, which are scheduled to be carried out in Indonesia, Australia and the Philippines. NEC is participating in the trial through Globe Telecom in the Philippines.

The trial will verify data capacity and throughput, as well as the handover of existing networks and interoperability with third-party devices, all of which within a high-speed transmission environment. NEC is implementing verification and interoperability tests via the provision of wireless base stations, EPC core network devices, etc.
  • In November 2009, SingTel announced plans to conduct regional LTE trials in Australia, Indonesia, the Philippines and Singapore in collaboration with Optus, Globe Telecom and Telkomsel. The trials, which are scheduled to commence in the first half of 2010, will take place over a period of six to nine months. The trials will lay the groundwork to establish a regionally compatible LTE network to facilitate growth in the mobile broadband business for the SingTel Group, which now serves a mobile-user base of more than 273 million across its various markets. Six leading network vendors were invited to participate in the LTE trials: Alcatel-Lucent, Ericsson, Huawei, NEC, Nokia Siemens Networks and ZTE.

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Wednesday, May 5, 2010

Industry Reaction to Genachowski's Third-Way

In Favor

FCC Commissioner Copps: "Frankly, I would have preferred plain and simple Title II reclassification through a
declaratory ruling and limited, targeted forbearance--wiping the slate clean of all question marks. The quicker we can bring some sense of surety and stability to the present confusion emanating from the Comcast court decision, the better off consumers--and industry, too--will be.

"But we should welcome this step toward bringing broadband back under the Title II framework where it belongs. It was a travesty to move it in the first place, and those decisions caused consumers, small businesses and the country enormous competitive disadvantage."

The Rural Telecommunications Group (RTG) , a trade association representing small, rural wireless carriers: "The 'third way' approach described by Chairman Genachowski, which would subject Internet access services to Title II regulation subject to substantial forbearance, will level the regulatory playing field by subjecting broadband service providers to a similar regulatory scheme as commercial wireless carriers. Caressa Bennet, RTG's General Counsel, stated, "The Third Way is technology neutral, creates a level playing field and will protect rural broadband consumers. The Commission's approach will utilize the same regulatory scheme as currently applied to wireless carriers, a regulatory scheme that has allowed mobile services to flourish as never before, to the benefit of the entire U.S. economy. Forbearance from all Title II regulation but Sections 201, 202, 208, 222, 254 and 255 will give broadband providers the regulatory certainty they need to develop long terms plans without hindering them with unnecessary regulatory constraints."


FCC Commissioners' McDowell and Baker: "Today the Commission embarks on a journey to cross a regulatory Rubicon by classifying Internet access service as traditional telephone service under Title II of the Communications Act. This proposal is disappointing and deeply concerns us. It is neither a light-touch approach nor a third way. Instead, it is a stark departure from the long-established bipartisan framework for addressing broadband regulation that has led to billions in investment and untold consumer opportunities. It also poses serious ramifications across the globe.

After several government investigations, no evidence of systemic failure in the broadband market has been presented to justify this new, more onerous regulatory regime. Additionally, without a specific mandate from Congress, the appellate courts are likely to hand the Commission another stinging rebuke for attempting to shatter the boundaries of its statutory authority. This proposal risks the credibility of our institution: Government agencies simply cannot create new legal powers beyond those granted by Congress."

USTelecom: "This is a deeply disturbing development. In proposing to apply 19th Century-style monopoly regulation to the competitive 21st Century Internet, the FCC has put a cloud of uncertainty over the most dynamic sector of the economy -- an area of robust job creation, thriving innovation, and extraordinary levels of consumer satisfaction. In doing so, the Commission is acting in a way that would seem to be fundamentally at odds with its own stated interest in promoting broadband deployment and adoption, encouraging expanded consumer choice through increased investment in facilities-based broadband networks, and encouraging jobs and economic growth.

"We welcome the Chairman's invitation to explore constructive ideas, and will work with him and the Commission to assure that consumers continue to enjoy the Internet freedoms they have today. But the notion of a 'third way' implies a compromise, which this is not. The Chairman's proposal goes far beyond the authority granted to the FCC by Congress. We believe it would be a mistake of historic proportions to abandon the longstanding bipartisan policy to keep the rapidly-evolving Internet free of growth-inhibiting government regulation."

TIA: "TIA's member companies have historically been negatively affected by application of many of the Title II requirements and, after years of deregulation, we would greatly regret to see the trend reverse, especially in these times of economic distress."

CTIA: "While we are disappointed with the Title II net neutrality announcement today, CTIA will continue to work to educate policymakers, including the FCC, on why net neutrality rules should not apply to wireless. This is an incredibly innovative and competitive industry that provides millions of jobs and contributes billions of dollars to our economy and is the world's leader in the provision of mobile broadband service. This complex, interdependent ecosystem is currently thriving to the benefit for all Americans. Putting that success at risk is unnecessary and dangerous, particularly in today's economic environment."

Verizon: "In enacting the 1996 Telecommunications Act, Congress intentionally excluded Internet services, like broadband Internet access, from the scope of Title II's regulatory burdens. Those regulations were designed for different services delivered by different networks in different times.

"We believe that the chairman's stated approach is legally unsupported. The regulatory and judicial proceedings that will ensue can only bring confusion and delay to the important work of continuing to build the nation's broadband future."

Citizens Against Government Waste (CAGW): "The FCC is utterly misguided if it believes that it is serving taxpayers and consumers by attempting to impose burdensome and unwarranted regulations on a constantly-changing, rapidly-growing, profitable industry such as the Internet."

U.S. Chamber of Commerce: "Given these turbulent economic times and the enormous cost of building out broadband infrastructure, the United States cannot afford policies that create regulatory uncertainty and hinder private-sector investment in this critical technology. Imposing these new requirements on broadband providers is counter to the intent of Congress and would unravel more than a decade of policies that have allowed the Internet to flourish."

Telegent Ships 80 Million Mobile TV Chips, Withdraws IPO

Telegent Systems announced a company milestone for its mobile TV chipset -- 80 million units shipped since it first launched its mobile TV receiver technology in mid-2007. Telegent is preparing to broaden its product portfolio of 'converged TV' solutions with silicon solutions for new geographies while exploring new forms of delivery and new methods of interaction with television content.

"We have seen very rapid adoption of free-to-air TV handsets incorporating Telegent's technology in emerging markets," said Samuel Sheng, Telegent's president and chief executive officer. "Consumers globally have demonstrated that they place high value on the ability to receive live broadcast television on mobile devices."

Sheng has asked Telegent's board of directors to begin the search for his successor, following which he will resume the role of chief technology officer in order to concentrate on further developing and expanding Telegent's technology platform. Sheng will continue in his current leadership position during the search.

In addition, Telegent has withdrawn its registration statement for an initial public offering. Sheng commented, "We are able to pursue our growth and diversification goals with the working capital generated from our operations as a private company, and are choosing to invest in the technology and leadership that will carry us forward before we enter the public market."

Currently, Telegent counts among its customers more than 100 device manufacturers, including a top three global handset manufacturer, two of the top five mobile handset manufacturers in Taiwan, and eight of the top ten design houses in China.

Metaswitch Tunes its Service Broker

Metaswitch announced a series of enhancements to its Service Broker, which is a network element that a network element that resides between the service layer and the converging network. The Service Broker's new capabilities ease the transition from legacy intelligent network (IN) to next-generation environments. These enhancements include:

Additional Prepackaged Inter-working Support: Further enhances the Service Broker IM-SSF /Reverse IM-SSF functionality by introducing four additional pre-defined and configurable inter-working solutions which expand the current portfolio to 21 of the major revenue-generating telecom applications.

Service Creation Environment (SCE) for Service Broker Inter-Working XML Scripting: This Visual Studio® add-in adds support for in-line help and syntax checking for Service Broker XML Scripting. The tool enables system integrators and network engineers to modify service logic for application interworking and eliminates the need for custom configuration and costly professional services and/or proprietary solutions.

Enhanced SIP Compliance: SIP Element route integrity checking and fault detection enhances the Service Broker's ability to deliver service interaction and orchestration in SIP/NGN/IMS networks.

Enhanced Third-Party Media Support Via H.248: Further enhances the Service Broker ability to control existing media gateways for bearer delivery and interworking which eliminates the need for and expense of adding new costly media gateways and added rack space every time a new service is introduced up to a new network. H.248 interoperability also extends to Metaswitch's own MG2510 and MG3510 gateways, creating a true "one-stop shop" for application and network convergence.
  • Earlier this year, Metaswitch Networks acquired AppTrigger, which supplies Service Broker solutions for carriers, for an undisclosed sum. AppTrigger pioneered the Service Broker concept with its Ignite platform, which is today deployed in multiple tier one networks worldwide. Service Brokers, a network element that resides between the service layer and the converging network, are traditionally decoupled from the core switch and the service execution or service creation environment. Service Brokers efficiently manage service interaction and network orchestration with key features such as IM-SSF, SCIM, IN to IN Trigger Management, Protocol/Call Flow Management and Subscriber Data Management Interaction.

Calix Posts Q1 Revenue of $48 Million, up 30% YoY

Calix reported Q1 revenue of $48.2 million, an increase of 30% from revenue reported for the first quarter of 2009 of $37.1 million. GAAP net loss for the first quarter of 2010 was $10.2 million, or $(0.32) per share, compared to a GAAP net loss of $12.7 million, or $(0.50) per share, reported for the first quarter of 2009 (assuming the conversion of preferred stock into common stock as of the beginning of each quarter).

"First quarter results were ahead of our expectations and represented a good start to our calendar and fiscal year. Communications service providers leveraged the increasing strength of our Unified Access portfolio to bring ‘Fiber Forward' in their networks," said Calix president and CEO Carl Russo.\

Harmonic to Acquire Omneon for $274 Million

Harmonic agreed to acquire Omneon for approximately $274 million in cash and stock. The proposed acquisition would combine Harmonic's video delivery infrastructure with Omneon's technology for the production, management and distribution of digital media.

Omneon's customer base includes the BBC, BSkyB, CBS, Comcast, Discovery Communications, Echostar, NBC Universal, News Corporation, Televisa, Turner Broadcasting System, Viacom and many other leading media companies worldwide. For the year ended December 31, 2009, Omneon's revenues were approximately $105 million, of which 67% were outside the United States, with no single customer representing more than 10% of total revenue. Omneon's gross margin was 58% in 2009. The company has approximately 280 employees worldwide, and is headquartered in Sunnyvale, California, with research and development facilities in Sunnyvale and Beaverton, Oregon.

Harmonic's portfolio includes encoding, transcoding, content preparation, stream processing, asset management, edge processing, and delivery platforms. Its customers include broadcast, cable, Internet, mobile, satellite and telecom service providers. Harmonic (NASDAQ: HLIT) is headquartered in Sunnyvale, California with R&D, sales and system integration centers worldwide.

"This proposed combination will position Harmonic to become a global leader in video infrastructure for the digital media industry," said Patrick Harshman, President and CEO of Harmonic. "Media companies are being driven by ever-increasing demand for video content coupled with consumers' desire to consume video anytime and anywhere. At the same time, the dramatic growth of video delivery over broadband and wireless networks is blurring traditional boundaries between content producers and service providers. With our deep customer relationships with content producers and service providers, and with our market leading technologies that span content acquisition through delivery, we believe that our combined company will be uniquely positioned to capitalize on these trends and to accelerate revenue growth."

DragonWave Posts Revenue of CAD$64 Million, up 14% Sequentially

DragonWave reported quarter revenue of C$63.8 million, compared with C$11.3 in the same period last year. Gross margin for the fourth quarter was 43%, compared with 26% in the fourth quarter of the prior fiscal year, and 43% in the preceding quarter.

ICANN Launches Internationalized Domain Names

The International Corporation for Assigned Names and Numbers (ICANN) officially inserted the first non-Latin script domain names into the DNS root zone today. This is the first time that non-Latin characters are being used for top-level domains in the history of the Internet. The associated countries operating such domains are Egypt, Saudi Arabia and United Arab Emirates. In addition to Arabic, there will soon be domain written in Chinese Russian, Sinhalese, Tamil, and Thai scripts.

Aepona Raises US$10 Million for Mobile NaaS

Aepona, a software company based in Belfast, announced US$10 million in new funding to support its "Network as a Service" (NaaS) engine for mobile operators. The technology enables collaboration between mobile operators and application providers.

Aepona's solution enables the mobile operator to monetize important assets and functionality within its network - such as billing, location, messaging and voice communications. It can expose and share these assets as Web Service APIs, for third-party application developers, enterprises and media companies to incorporate into new and existing mobile-enabled applications.

Aepona said its customers include more than 20 Tier One mobile operators around the world. The company has also worked on the GSM Association's OneAPI initiative and on the launch of the Canadian OneAPI commercial service, which is at the forefront of the Mobile Cloud Computing market.

BlackBerry Partners Fund, a Toronto-based global fund focused on applications, services and supporting infrastructure for mobile platforms, led the investment round and was joined by existing Aepona investors Amadeus Capital Partners, Polaris Ventures, Innovacom, Nordic Venture Partners and Sutter Hill Ventures.

Alcatel-Lucent Posts Revenue of EUR 3.247 billion, Sees Recovery in Some Markets

Alcatel-Lucent reported Q1 2010 revenues of Euro 3.247 billion, down 9.8% year-over-year and 8.2% at constant currency. There was an adjusted gross profit of Euro 1.058 billion or 32.6% of revenues, compared to 31.5% in the year ago quarter and 36.7% in the fourth quarter 2009. First quarter adjusted operating income came in at Euro (195) million or (6.0)% of revenue.

"We are witnessing a recovery in the telecommunications equipment and related services market in some geographical areas especially North America. This recovery is driven by key technologies such as IP, terrestrial optics and WCDMA/LTE. With a solid position in all of these areas, Alcatel-Lucent is experiencing a strong increase in demand.

"However, we were not able to fully satisfy customer demand for our products due to tightening components availability. This resulted in a weak financial performance this quarter, which does not reflect the overall underlying momentum within the company," stated Ben Verwaayen, CEO.

Some highlights cited by the company:

By operating segments, Networks saw a double-digit decline in revenue, partly attributable to a shortage of components in our supply chain. This has been particularly true in wireless access and terrestrial optics.

Applications revenue declined 6.3% year-over-year with enterprise solutions & Genesys almost stable (slightly growing at constant currency).

Services segment was more resilient with a 3.1% year-over-year decrease thanks to managed services and multivendor maintenance.

From a geographic standpoint and at constant currency, year-over-year revenue grew at a single-digit rate in North America (+6%), declined at a single-digit rate in Europe (-9%) and at a double-digit rate in Asia Pacific (-19%) and in the rest of the world (-23%).

For the first quarter 2010, revenues for the Networks segment were Euro 1.928 billion, a decrease of 13.1% compared to Euro 2.219 billion in the year-ago quarter and a decrease of 14.0% compared to Euro 2.242 billion in the fourth quarter 2009. At constant currency exchange rates, Networks revenues decreased 12.0% year-over-year and 17.7% sequentially.

Revenues for the IP division were Euro 272 million, a decrease of 5.6% from the year ago quarter, driven by the decline in MSWAN revenues due to continuing market contraction.

IP/MPLS service routers revenues grew at a double digit rate from the year ago quarter thanks to strong momentum in North America & EMEA and good traction in IP/MPLS mobile backhaul with new wins announced with Verizon Wireless, Pannon and MTS Ukraine.

Revenues for the Optics division were Euro 567 million, a decrease of 13.7% from the year ago quarter. Terrestrial optics declined at a high teens rate. After a strong sequential growth and limited year-over-year decline in Q4 2009, the WDM segment confirmed its recovery this quarter with strong year-over-year growth driven by the Americas and APAC.

Revenues for the Wireless division were Euro 819 million, a decrease of 10.5% from the year ago quarter. The WCDMA segment witnessed a strong growth year-over-year and sequentially driven primarily by the North American market, and the 3G CDMA (EVDO) segment experienced a sustained demand due to data traffic growth driven by the increased market penetration of smart-phones. This was offset by a decline in GSM & 2G CDMA revenues, in line with their corresponding market dynamics.

Revenues for the Wireline division were Euro 298 million, a decrease of 24.2% from the year ago quarter. Legacy ADSL access and core switching drove the decline. Demand for VDSL2 technology remained solid while GPON continues to grow footprint with a recent win for ZON, a cable provider in Portugal.

Revenues for the Applications segment were Euro 416 million, a decrease of 6.3% compared to Euro 444 million in the year-ago quarter and a sequential decrease of 22.2% compared to Euro 535 million in the fourth quarter 2009.

Revenues for the Services segment were Euro 772 million, a decrease of 3.1% compared to Euro 797 million in the year-ago quarter and a decrease of 25.0% compared to Euro 1 030 million in the fourth quarter 2009.

For 2010, Alcatel-Lucent continues to expect nominal growth (defined as between 0% and 5%) for the telecommunications equipment and related services market. The company aims to reach an adjusted operating margin in the low to mid single-digit (defined as between 1% and 5%).