Tuesday, January 28, 2014

AT&T: Smartphone Penetration at 77% of Postpaid Base

AT&T reported Q4 2013 consolidated revenues of $33.2 billion, up 1.8 percent versus the year-earlier period.  Q4 net income totaled $6.9 billion, or $1.31 per diluted share, compared to $(3.9) billion, or $(0.68) per diluted share, in the year-earlier quarter. Adjusting special items, earnings per share was $0.53 compared to an adjusted $0.44 in the year-ago quarter, an increase of 20.5 percent.

AT&T said it is on track to deliver the financial targets laid out with Project VIP. It expects consolidated revenue growth in the 2 to 3 percent range for 2014, including strength in wireless service and wireline consumer revenues. The company also expects stable consolidated margins with continued improvement in wireless margins helping offset Project VIP pressure in wireline. Adjusted earnings per share growth is expected to be in the mid-single digit range excluding any impact from future share buybacks.

AT&T expects capital expenditures in the $21 billion range. Free cash flow is expected to be in the $11 billion range.

Some Wireless Operational Highlights

Wireless Service Revenues -- total wireless revenues, which include equipment sales, were up 4.5 percent year over year to $18.4 billion. Wireless service revenues increased 4.8 percent in the fourth quarter to $15.7 billion. Wireless data revenues increased 16.8 percent from the year-earlier quarter to $5.7 billion. Fourth-quarter wireless operating expenses totaled $14.5 billion, down 3.9 percent versus the year-earlier quarter, and wireless operating income was $3.9 billion, up 53.8 percent year over year.

Phone-Only Postpaid ARPU -- Postpaid phone-only ARPU increased 3.9 percent versus the year-earlier quarter. Total postpaid subscriber ARPU, which includes high-margin but lower-ARPU tablets, increased 2.1 percent versus the year-earlier quarter. This marked the 20th consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU. Postpaid data ARPU increased 15.4 percent versus the year-earlier quarter.

Smartphones and Tablets -- AT&T posted a net increase in total wireless subscribers of 809,000 in the fourth quarter. Subscriber additions for the quarter included postpaid net adds of 566,000. Postpaid net adds include 299,000 smartphones. Total branded smartphone net adds (both postpaid and prepaid) were 529,000. Total branded tablet net adds were 440,000.

Connected device net adds were 398,000 -- Prepaid had a net loss of 32,000 subscribers primarily due to declines in session-based tablets; however, prepaid revenues increased both year over year and sequentially. Reseller had a net loss of 123,000 subscribers primarily due to losses in low-revenue 2G subscriber accounts.

Q4 Postpaid Churn -- The company had its lowest-ever fourth-quarter postpaid churn of 1.11 percent compared to 1.19 percent in the year-ago quarter. Total churn was stable at 1.43 percent versus 1.42 percent in the year-ago quarter.

Smartphones Reach Record 93 Percent of Phone Sales -- AT&T added 1.2 million postpaid smartphones in the fourth quarter. At the end of the quarter, 77 percent, or 51.9 million, of AT&T's postpaid phone subscribers had smartphones, up from 70 percent, or 47.1 million, a year earlier. The company sold 7.9 million smartphones in the quarter. More than 1 million of those smartphone sales were on the new AT&T Next program. Smartphones accounted for a record 93 percent of postpaid phone sales in the quarter. AT&T's ARPU for smartphones is twice that of non-smartphone subscribers. More than half of AT&T's postpaid smartphone customers now use an LTE device, and 77 percent use a 4G-capable device (LTE/HSPA+).

Some Wireline Operational Highlights

Wireline Revenues -- Total Q4 wireline revenues were $14.7 billion, down 1.4 percent versus the year-earlier quarter and up 0.3 percent sequentially. Wireline service revenues were down 0.7 percent year over year. Total U-verse revenues grew 27.9 percent year over year and were up 7.0 percent versus the third quarter of 2013. Fourth-quarter wireline operating expenses were $13.3 billion, up 1.0 percent versus the fourth quarter of 2012. AT&T's wireline operating income totaled $1.5 billion, down 18.8 percent versus the fourth quarter of 2012. Fourth-quarter wireline operating income margin was 9.9 percent, down versus 12.0 percent in the year-earlier quarter, primarily due to declines in voice revenues, success-based growth, U-verse content costs and costs incurred as part of Project VIP.

Consumer Revenues Increase 2.9 Percent -- Revenues from residential customers totaled $5.6 billion, an increase of 2.9 percent versus the fourth quarter a year ago and up 1.3 percent sequentially. Continued strong growth in consumer IP data services in the fourth quarter more than offset lower revenues from voice and legacy products. U-verse, which includes TV, high speed Internet and voice over IP, now represents 57 percent of wireline consumer revenues, up from 46 percent in the year-earlier quarter. Consumer U-verse revenues grew 26.8 percent year over year and were up 6.8 percent versus the third quarter of 2013.

U-verse TV Churn -- Total U-verse subscribers (TV and high speed Internet) reached 10.7 million in the fourth quarter. U-verse TV had the lowest-ever churn in its history. U-verse TV added 194,000 subscribers in the fourth quarter with an increase of 924,000 for the full year to reach 5.5 million in service. AT&T has more pay TV subscribers than any other telecommunications company. U-verse high speed Internet had a record fourth-quarter net gain of 630,000 subscribers, to reach a total of 10.4 million, and a record annual increase of 2.7 million, or 34 percent. Overall, total wireline broadband subscribers were essentially flat in the quarter but grew year over year. Total wireline broadband ARPU was up more than 7 percent year over year. Total U-verse high speed Internet subscribers now represent 63 percent of all wireline broadband subscribers compared with 47 percent in the year-earlier quarter.

About 59 percent of U-verse broadband subscribers have a plan delivering speeds up to 12 Mbps or higher.

Some Business Services Operational Highlights

Total revenues from business customers were $8.8 billion, down 3.4 percent versus the year-earlier quarter, and were essentially flat from the third quarter.

Revenues for next-generation business solutions — including VPN, Ethernet, cloud, hosting and other advanced IP services — grew 17.4 percent versus the year-earlier quarter. These services represent a $9 billion annualized revenue stream and are more than a quarter of business wireline revenues. During the fourth quarter, the company also added 78,000 business U-verse high speed broadband subscribers.

http://www.att.com/gen/press-room?pid=25228&cdvn=news&newsarticleid=37405

DragonWave Harmony Trunk C Hybrid Microwave radio

DragonWave introduced a Harmony Trunk C hybrid trunking microwave radio as part of its existing high capacity Harmony Trunk microwave product portfolio.

The small form factor of the Harmony Trunk C is available for either all-outdoor or all-indoor network requirements supporting up to 4 RF carriers in a single outdoor cabinet or indoor shelf.

DragonWave said its new Harmony Trunk C provides greater trunking options for mobile operators, military, and broadcast applications worldwide. It is available in STM-1, hybrid or full IP configurations.

http://www.dragonwaveinc.com

ONF Adds Start-ups to Membership Roster

The Open Networking Foundation (ONF) has added a number of start-ups to its membership ranks, including Criterion Networks, Corsa Technology, GuardiCore, Konodrac, Tallac Networks, and Xinguard Inc. Additional startups are currently in the membership application phase and will become ONF members in the coming months.

The ONF has introduced a new, low-cost category of membership specifically for SDN startup organizations, helping them to become more actively involved in building the SDN ecosystem.

“ONF’s dedication to the promotion and adoption of SDN through open architecture and standards development is one of the many reasons that ONF is embracing startups,” said Dan Pitt, executive director of the Open Networking Foundation. ““We want to make participation in ONF activities possible for the full range of organizations. Encouraging the innovation that startups bring to the space will further propel the advancement of open SDN and adoption of the OpenFlow™ standard.”

https://www.opennetworking.org


TE Connectivity Enhances its FlexWave Prism Distributed Antenna System

TE Connectivity is expanding its FlexWave Prism distributed antenna system (DAS) with new high-density modules capable of supporting up to 75 MHz per band, with two frequency bands per module. The new modules enable a 2-bay FlexWave Prism remote unit to support up to four frequency bands, 40 watts, or up to 300 MHz of spectrum.

TE is positioning its new module for delivering 1800 MHz, 2100 MHz, or 2600 MHz MIMO and 800 MHz digital dividend services in the EMEA and Asia-Pacific regions of the world.

“The FlexWave Prism DAS supports multi-operator, multi-protocol services in a compact, cost-effective, and power-efficient manner,” said Peter Wraight, vice president, TE Wireless. “It is ideal for mobile operators who want to deploy DAS with multiple frequencies and high power levels without the complexity of multiple DAS equipment overlays.”


The new FlexWave Prism modules support migration from 3G to 4G services as well as multi-operator applications where two or more mobile operators share a power amplifier. Moreover, by using digital simulcast to deliver services between the DAS head end and remote units, the FlexWave Prism module enables operators to easily shift capacity from one area to another as subscriber needs dictate. The digital DAS reaches up to 20 kilometers to serve urban and suburban areas as well as stadiums, office parks, and other facilities.

http://www.TE.com

Monday, January 27, 2014

AT&T to Offer Private VPNs into Equinix Data Centers

AT&T and Equinix announced an alliance under which customers will be able to connect to cloud services hosted in Equinix facilities using their private AT&T VPN networks.

AT&T NetBond, which will be available in select Equinix data centers, will deliver highly secure connections with high reliability and performance capabilities, rather than relying on access via the public Internet.

“Business customers want rock solid network-based security protecting their traffic and applications when they use cloud services,” said Jon Summers, senior vice president growth platforms, AT&T Business Solutions. “Virtual private networking gives them better protection against Internet threats while also delivering the reliability, agility and performance they need when accessing the cloud.  This agreement with Equinix will expand the opportunity for cloud service providers to use our virtual private networking and AT&T NetBond technology to enhance the end user’s cloud experience.”

“Equinix sits at the intersection of cloud service providers, network service providers and enterprise customers that want to use those services. The alliance lets AT&T quickly expand its portfolio of AT&T NetBond-enabled cloud services by using our position as a cloud hub,” said Pete Hayes, chief sales officer for Equinix.  “Together, we’re making the network as flexible as the cloud and giving enterprises confidence they can move their most demanding applications to the cloud and still meet their security, scalability and performance requirements.”

The companies expect these capabilities to be available in the first half of 2014.

http://www.equinix.com/
https://www.synaptic.att.com/clouduser/html/productdetail/ATT_NetBond.htm


  • AT&T NetBond uses a software-defined and virtual connection that runs over AT&T’s MPLS core backbone. On its website, AT&T says NetBond will be able to provide coordinated, on-demand provisioning of private network connectivity and cloud compute resources for accommodating dynamic workload distribution across a customer’s hybrid cloud.  It will feature a pay-as-you-go pricing model with a minimum commitment.

Level 3 Opens Cloud Content Exchange

Level 3 Communications introduced a new cloud-based file transfer platform that simplifies and accelerates the process of sending large video and data files, such as syndicated content and advertising files.

Level 3's Cloud Content Exchange stores media files in a central, cloud-based library where they can be metatagged, sorted and accessed in real time with rapid upload and download speeds..  The service leverages Level 3's extensive worldwide storage platform and global network connectivity to deliver faster distribution than FTP or other alternatives.

FOX Broadcasting Company was the first to beta test the service.

"The daily movement of media files is critical to the operations of media broadcast companies such as FOX, in addition to sports teams and other large enterprises," said Mark Taylor, vice president of Media and IP Services at Level 3. "Cloud Content Exchange is a comprehensive, secure media transfer solution that delivers an easy-to-use interface offering access to data anywhere there is an Internet connection. This allows customers to realize greater efficiencies, reduce operating costs, and better meet important delivery deadlines."

http://www.level3videocloud.com
http://www.level3.com

SaskTel Picks Oracles for IMS Core

Canada's SaskTel has selected Oracle Communications Unified Session Manager to deliver the single IMS core and help secure its network borders.

SaskTel plans to use the IMS network for hosted businesses services, expanded VoLTE, rich communications services, session initiation protocol trunking and consumer voice services.

"As we transition to an all-IP environment, it was important for us to consolidate our infrastructure on a common, compact IMS core to help ensure our business and residential customers receive next-generation services quickly and securely. With Oracle Communications Unified Session Manager, we can deliver trusted real-time communications services across network borders,” said Daryl Godfrey, chief technology officer, SaskTel.

http://www.oracle.com/us/corporate/press/2113118


Ericsson Settles GSM/UMTS/LTE Patent License with Samsung

Ericsson and Samsung announced a global cross license agreement covering patents relating to GSM, UMTS, and LTE standards for both networks and handsets.  Under the multi-year deal, Samsung will make ongoing royalty payments to Ericsson. The initial payment in the agreement will impact Ericsson sales and net income in Q4 2013 by SEK 4.2 billion (US$650 million) and SEK 3.3 billion  (US$510 million) respectively.

Ericsson said that it is committed to licensing its standard-essential patents on fair, reasonable and non-discriminatory (FRAND) terms for the benefit of the industry.

"We are pleased that we could reach a mutually fair and reasonable agreement with Samsung. We always viewed litigation as a last resort," said Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson. "This agreement allows us to continue to focus on bringing new technology to the global market and provides an incentive to other innovators to share their own ideas."

http://www.ericsson.com/news/1757163

Ireland's Research Network Upgrades with Coriant

HEAnet, Ireland's National Education and Research Network, has commissioned a new national all-optical transmission network supplied by Coriant.  The upgrade increases network capacity and enhances network resiliency for the research network, which supports some 200,000 third-level students and associated staff as well as approximately 800,000 first and second-level students and associated staff.

"Our advanced optical networking solutions portfolio provides HEAnet with a new level of optical layer efficiency, scalability, reliability and automation to deliver enhanced service value to its customer base," said Herbert Merz, President and CEO, Coriant.

http://www.coriant.com/company/press_release.asp?id=1044

Mellanox Releases 40 GigE NIC for Open Compute Project

Mellanox Technologies is offering its 40GbE NIC as a proposed contribution to the Open Compute Project.

The new 40GbE NIC uses Mellanox’s ConnectX-3 Pro ICs and is designed to meet OCP specifications. It supports RDMA over Converged Ethernet (RoCE).

“Mellanox has been active in the OCP Network Project and has contributed to the open hardware and software model to help achieve OCP’s vision for true open standards and faster pace in network technology innovation,” said Kevin Deierling, vice president of marketing at Mellanox Technologies. “We’re pleased to continue our collaborations with Facebook in delivering 40GbE NIC technology to OCP to deliver unmatched performance and rich feature-sets that enable superior data center productivity and efficiency.”

http://www.mellanox.com/page/press_release_item?id=1217

Liberty Global to Acquire Ziggo, the Dutch Cable Operator

Liberty Global agreed to acquire Ziggo, a Dutch cable operator, for around EUR 10 billion in stock and cash.

Ziggo serves approximately 2.8 million households, with 1.9 million Internet subscribers, almost 2.3 million subscribers for digital television and 1.6 million telephony subscribers.

Liberty Global is an international cable provider with operations in 14 countries and 24 million customers.

The acquisition will give Liberty Global a footprint reaching about 90% of Dutch households.

http://www.libertyglobal.com/pdf/press-release/Joint-announcement-press-release-Ziggo-Final.pdf

Crehan: Data Center Switching Market Hits New Phase

2014 should be a year of major transition for Infiniband, Fibre Channel and Ethernet data center switch technologies, according to Crehan Research.

Crehan's most recently published Data Center Switch Long-Range Forecast Report, predicts that each technology will surpass its incumbent, becoming the majority of its respective segment on an annual basis:

  • In Infiniband, 56Gbps FDR will overtake 40Gbps QDR to comprise more than 50% of shipments.
  • In Fibre Channel, 16Gbps will exceed 8Gbps to comprise more than 50% of shipments.
  • In Ethernet, 10 Gigabit will outstrip 1 Gigabit to comprise more than 50% of shipments.

“10 Gigabit Ethernet (10GbE) is finally on the verge of becoming the most popular data center switch port connection, after a long and sometimes rocky adoption curve,” said Seamus Crehan, president of Crehan Research. “And as 40GbE starts to ramp, we are still forecasting its adoption curve to look much better than that of 10GbE. This is already evidenced by the fact that recent data center switch introductions are really pushing the envelope on 40GbE port densities and economics,” he added.

In its year-ago Data Center Switch Long-Range Forecast Report (January 2013), Crehan illustrated that 40GbE would comprise close to one-third of all data center switch shipments by 2017, and this latest forecast maintains the same outlook. In Fibre Channel, the report further shows that despite a more gradual ramp than that seen for 8Gbps, 16Gbps Fibre Channel adoption is picking up steam. Crehan predicts that it will become the majority Fibre Channel switch technology by 2014.

"In the Infiniband switch market, 56Gbps FDR is well on its way to becoming the next de facto high-speed interconnect, setting the foundation for upgrades to the forthcoming 100Gbps EDR products."

Stanford's Professor Paulraj Wins Marconi Prize for MIMO Breakthrough

Stanford University's Professor (Emeritus) Arogyaswami Joseph Paulraj has been awarded the prestigious 2014 Marconi Society Prize for his idea for using multiple antennas at both the transmitting and receiving stations.

His work in MIMO technologies is fundamental to current Wi-Fi and 4G systems.

In 1992, Paul was granted a U.S, patent titled “Distributed Transmit – Directional Receive DTDR” (with his then supervisor Prof. Kailath as co-inventor).  Spatial Multiplexing, as this is now known, boosts spectral efficiency by creating “parallel spatial data streams” within the same frequency channel.

The Marconi Society, which is celebrating its 50th year in 2014, has posted Professor Paulraj's story online.

http://www.marconisociety.org/press/2014paulrajannouncement.html

Sprint Activates 40 More LTE Markets

Sprint activated LTE service in 40 more towns and cities across the U.S., bringing its total number of markets served to 340 across the country.

"We are making great strides towards achieving nationwide scale with 4G LTE. The momentum we have demonstrates our commitment to provide an exceptional wireless experience for our customers,” said Bob Azzi, chief network officer. “Today we are well underway with our build-out and delivering faster data speeds to our customers in more places where they live, work and play.”

http://network.sprint.com/?ECID=vanity:network

*** Planning Coverage for Mobile World Congress 2014 in Barcelona ***



Planning is underway for news coverage at Mobile World Congress 2014, especially in the areas of Small Cells, LTE-A, VoLTE, NFV solutions, and methods to improve the customer experience.  I'm interested in interviewing mobile operators engaged in any of these areas.  Contact us for more details.

http://www.convergedigest.com/p/mwc14-video-showcases.html

Sunday, January 26, 2014

JDSU: 0.1% of LTE Users Consume Over 50% of Downlink Data

The most extreme data hogs are far more voracious on 4G network than previously seen on 3G networks.

According to new data from JDSU’s Location Intelligence Business Unit (formerly Arieso), just 0.1% of 4G users consume more than HALF of all 4G downlink data measured.  Beyond the 5s, Apple products account for six of the top ten ‘hungriest handsets’, along with two Samsung products, one HTC and one Sony.

The study found that iPhone 5s users are 'hungriest' data users, consuming seven times as much data as benchmark iPhone 3G users in developed markets, and 20 times as much data as benchmark iPhone 3G users in developing markets.

"For the past three years we’ve seen explosive growth in mobile data usage, causing operators to have to wrestle with the challenges their success is creating," said Dr. Michael Flanagan, CTO of Mobility for the Network and Service Enablement business segment of JDSU and author of the study.

“Each new generation of iPhone has resulted in increases in data consumption of between 20-40 percent - even today when data use is common. Though interestingly, users of the more economically-priced iPhone 5c consume data in the range between that of the iPhone 4s and 5 users,” said Flanagan.

“The faster the speeds that mobile operators provide, the more consumers swallow it up and demand more,” continued Flanagan. “One would expect a honeymoon period in which early adopters test their toys. But for 4G users to consistently exhibit behaviour 10 times more extreme than 3G users well after launch constitutes a seismic shift in the data landscape. This has important ramifications for future network designs.”

In the tablet segment, users of the fourth generation iPad consumed almost 40 percent more data than last year’s hungriest device, the Samsung Galaxy Tab 2 10.1.  The study also reveals that the new iPad mini is seen to be “mini” in name and in data consumption, consuming 20 percent less data than second- and third-generation iPads.

“Last year, we were surprised to see that smartphones trumped tablets when it came to data consumption. Lost ground has not been made up by tablets, in spite of the progress of the fourth generation iPad. Only two of our top ten most hungry devices were tablets this year, compared to three last year,” commented Flanagan.

http://www.jdsu.com/News-and-Events/news-releases/Pages/iPhone-5s-users-and-4G-network-users-now-most-data-hungry-globally.aspx

 Last year, JDSU acquired Arieso, a developer of location-aware software for mobile network operators, for $85 million in cash.

Arieso, which is based in Newbury, United Kingdom, offers a multi-vendor, location-aware network monitoring and optimization solution that delivers intelligence for more effective network performance engineering.  It also supplies an automated network planning technology that searches all possible configurations to deliver optimum network designs. Arieso said its proprietary algorithms provide highly rich and targeted data from mobile connection events to give mobile operators visibility into service level activity and usage patterns. Arieso’s bookings for calendar 2012 were approximately $27 million.

JDSU said the acquisition advances its mobility strategy by extending visibility all the way to the subscriber location, providing critical intelligence that allows radio access network (RAN) optimization teams to maximize return on investment by identifying ideal locations for small cells and other self-optimizing network enhancements with surgical precision, across the widest range of technologies and vendors.  JDSU will integrate Arieso’s products with complementary solutions such as PacketPortal, JDSU’s open software platform, providing end-to-end visibility across mobile networks.

Amazon Redshift Boosts Performance on SSD-Nodes

Amazon Web Services (AWS) introduced higher performance and lower cost Dense Compute Nodes for its Amazon Redshift managed, SQL-based data warehousing service.

The new SSD-based storage option is available in two sizes:

  • Large - 160 GB of SSD storage, 2 Intel Xeon E5-2670v2 virtual cores, and 15 GiB of RAM.
  • Eight Extra Large - 2.56 TB of SSD storage, 32 Intel Xeon E5-2670v2 virtual cores, and 244 GiB of RAM.

The Dense Compute nodes feature a high ratio of CPU power, RAM, and I/O performance to storage. Pricing starts at $0.25/hour. AWS says it can scale all the way up to a cluster with thousands of cores, terabytes of RAM, and hundreds of terabytes of SSD storage.

The new Dense Compute nodes are available in the following AWS Regions:

  • US East (Northern Virginia)
  • US West (Oregon)
  • EU (Ireland)
  • Asia Pacific (Singapore)
  • Asia Pacific (Tokyo)
  • Asia Pacific (Sydney)

http://aws.typepad.com/

CoreSite Implements AWS Direct Connect in NJ

Customers at CoreSite's recently opened "NY2" data center in Secaucus, N.J., can now order connections to the native AWS Direct Connect deployment at CoreSite’s existing NY1 data center in Manhattan.  The AWS Direct Connect gives CoreSite customers access to all of AWS's cloud services through a private, enterprise-grade network connection. AWS Direct Connect helps customers reduce bandwidth costs, improve network security and achieve more consistent network performance. Additionally, the service can be scaled efficiently to meet future connection needs.

"CoreSite is proud to expand the availability of AWS Direct Connect into New Jersey as it aligns with our commitment to delivering network-dense, cloud-enabled data center solutions to customers across the country," said Jarrett Appleby, chief operating officer at CoreSite. "Enterprises in Manhattan and throughout the tri-state metro area can connect directly to AWS in New Jersey, obtaining enhanced security, reliability and scalability at a much lower cost to operate while maintaining optimal performance."

Available as either a 1 Gbps or 10 Gbps connection, AWS Direct Connect is compatible with all AWS services, including Amazon Simple Storage Service (S3), Amazon Elastic Compute Cloud (Amazon EC2), Amazon Virtual Private Cloud (Amazon VPC) and Amazon Relational Database (RDS). Because the service is scalable, CoreSite customers can easily provision multiple AWS direct connections as their capacity needs change.

The CoreSite's NY2 facility opened in December 2013.

In addition to New Jersey, CoreSite offers AWS Direct Connect service in Los Angeles, Silicon Valley, Northern Virginia/DC and Boston.

http://www.coresite.com/secaucus-data-center.php

Samsung Electronics and Google Sign Patent Deal

Samsung Electronics and Google announced a 10-year, global patent cross licensing deal.  The arrangement provides both companies with access to each other’s patent portfolios.

“We’re pleased to enter into a cross-license with our partner Samsung,” said Allen Lo, Deputy General Counsel for Patents at Google. “By working together on agreements like this, companies can reduce the potential for litigation and focus instead on innovation.”

http://global.samsungtomorrow.com/?p=33461

Saturday, January 25, 2014

SunGard to Split Off Its Availability Services Business

SunGard Data Systems will split off its Availability Services business on a tax-free basis to its existing stockholders, including its private equity owners. Once the split-off is completed, the SunGard Availability Services business will be a separate company from SunGard and have its own board of directors. SunGard’s remaining software and processing businesses will consist of Financial Systems (SunGard’s largest business), Public Sector and K-12 Education.

Both SunGard and SunGard Availability Services will continue to be owned principally by the consortium of private equity investment funds associated with Bain Capital Partners, The Blackstone Group, Goldman Sachs & Co., Kohlberg Kravis Roberts & Co., Providence Equity Partners, Silver Lake and TPG, which acquired SunGard in a leveraged buy-out in August 2005.

Russ Fradin, SunGard’s president and chief executive officer, said, “We believe a strategic separation of SunGard into two financially strong, independent companies will allow each to better focus on its distinct type of business and better pursue its own growth opportunities. While both businesses have been together as part of SunGard for a long time, they serve vastly different customer needs and have very different business profiles, with distinct capital requirements, sales forces and competitors. This separation will bring greater clarity and alignment to each company’s mission.”

The split-off company will continue to use the SunGard Availability Services name.

SunGard Availability Services provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software.  It operates approximately five million square feet of datacenter and operations space.

http://www.sungardas.com