Tuesday, July 22, 2014

IEEE Forms 25G Ethernet Study Group

A new IEEE 802.3 25 Gbps Ethernet Study Group has been formed to explore the market opportunities and needs for a single-lane 25 Gbps speed for server interconnects for Ethernet.

The reuse of serial lane 25 Gbps signaling technology, which was developed to support 100 Gbps Ethernet, enables cost optimized deployments in newly constructed data centers.

“The application of single-lane 25 Gbps signaling technologies provides Ethernet with a solution set that can be reused by those companies building the data centers of tomorrow. The new study group expects to lay the groundwork for a new Media Access Control (MAC) rate that will enable cost-optimized single-lane solutions that will increase network deployment efficiency,” said Mark Nowell, chair of the IEEE 802.3 25 Gbps Ethernet Study Group and senior director, Cisco Systems. “The heavy lifting in developing and standardizing 25 Gb/s signaling technologies has been done as part of the development of 100 Gbps Ethernet. These technologies can be reused to enable a single-lane 25 Gbps Ethernet solution set for server interconnects for these future data centers.”


Juniper to Sell Pulse Division to Siris for $250M

Juniper Networks will sell its Junos Pulse product portfolio to Siris Capital for approximately $250 million.

Junos Pulse software enables dynamic SSL VPN connectivity, network access control (NAC), mobile security, and collaboration, through a simple end-user interface.

Juniper said the divestiture of Pulse is consistent with its new Integrated Operating Plan that focuses on High-IQ networks and building the next-generation of clouds.

Siris is a leading private equity firm focused on making control investments in data, telecommunications, technology and technology-enabled business service companies.


Juniper's Sales Rise 7% YoY to $1.23 Billion

Juniper Networks reported preliminary net revenues for the second quarter of 2014 of $1,230 million, up 7% year-over-year and 5% sequentially. Juniper posted GAAP net income of $221.1 million, or $0.46 per diluted share for the second quarter of 2014.

“Juniper delivered another solid quarter of revenue growth, with continued diversification across our target verticals. With our focused strategy, we are seeing clear signs of success with customers who are in a build cycle for High-IQ networks and Cloud ecosystems,” said Shaygan Kheradpir, chief executive officer, Juniper Networks. “We are relentlessly executing on our Integrated Operating Plan and successfully implemented several initiatives to drive greater efficiencies across our organization. Throughout, we have been working to ignite our culture of innovation and maintain our unwavering commitment to shareholders to drive significant value through profitable growth.”

Juniper Networks also announced the initiation of a quarterly cash dividend of $0.10 per share of common stock.

Looking ahead, Juniper said are some near term, customer-specific dynamics that it is factoring into its outlook. This is partially offset by signs of strength in emerging verticals. The company posted the following estimates for the quarter ending September 30, 2014:

  • Revenues will be in the range of $1,150 million to $1,200 million.
  • Non-GAAP gross margin will be approximately 64.0%, plus or minus 0.5%.
  • Non-GAAP operating expenses will be $505 million, plus or minus $5 million.


VMware Continues to Grow at 17% Annual Rate

VMware announced Q2 2014 revenue of $1.46 billion, an increase of 17% from Q2 2013.  Operating income for the second quarter was $200 million, a decrease of 26% from the second quarter of 2013, reflecting the impact of the company's AirWatch acquisition.

"We continue to see strong performance across our business, further evidence that VMware is uniquely positioned as IT transitions from client server computing to the mobile cloud era," said Pat Gelsinger, chief executive officer, VMware. "Across the board, customers are turning to VMware solutions to help chart an efficient path to the future without sacrificing the vital needs for security, availability and compliance required by all businesses."


  • Last week, VMware announced the expansion of its hybrid cloud service into Asia-Pacific with two new partnerships in Japan and China. In Japan, VMware announced a joint venture with SoftBank for the first vCloud Hybrid Service in Asia. In China, the company announced plans with China Telecom to build a hybrid cloud service in Beijing based on VMware.  

Mellanox Ships Direct Attach 10/40/56 Gbps Copper Cables

Mellanox Technologies has begun shipping a new line of Direct Attach Cables (DACs) with colored jackets and colored pull tabs, supporting interconnect speeds of 10, 40 and 56Gbps for both Ethernet and InfiniBand data center networks. The new colored version reduces the chance of error in connecting server, switch and routing ports, shortens cluster installation time, and simplifies interconnect debugging and network management.

“The new colored cables can ease data center management and provide the ability to easily distinguish between different types of data traffic, applications or equipment, making data center deployments and maintenance more simple,” said Gilad Shainer, vice president of marketing at Mellanox Technologies. “The new cables are additions to our comprehensive portfolio of 10, 40, and 56Gb/s copper and fiber cables, serving both Ethernet and InfiniBand infrastructures.”


Claro Costa Rica Deploys Ericsson for LTE

Ericsson is the sole supplier of América Móvi Claro LTE network in Costa Rica.

Ericsson's full LTE solution will include several core and radio access infrastructure products such as Mobility Management Entity, Home Subscriber Server, the RBS 6000 family, and microwave transmission using the LTE-proven MINI-LINK TN, as well as services and consulting for spectrum refarming, equipment roll-out, systems integration and optimization, in addition to support for field operations, maintenance and the back office. Financial terms were not disclosed.

Claro's LTE network uses the 1800 MHz band. Service is available in some Costa Rican cantons, such as La Uruca, Santa Ana, Escazú (San José) and partially in Heredia and Alajuela provinces.

Alejandro Plater, Vice President Ericsson Latin America, said: "We have been working in partnership with América Móvil for more than 15 years, and we have a very good relationship with Claro since their arrival in Costa Rica three years ago. Enabling a full LTE network infrastructure and operations signifies a new step in our partnership, creating the best services and capabilities for our customer's end users."


Broadcom Posts Q2 Revenue of $2.04 billion

Broadcom posted Q2 2014 net revenue of $2.04 billion, up 2.9% over the preceding quarter but down 2.3% compared with the $2.09 billion reported for the second quarter of 2013. Net loss (GAAP) for the second quarter of 2014 was $1 million, or $0.00 per share (basic and diluted), compared with GAAP net income of $165 million, or $0.28 per share (diluted), for the first quarter of 2014 and GAAP net loss of $251 million, or $0.43 per share (basic and diluted), for the second quarter of 2013.

Broadcom said the GAAP net loss included charges of $187 million for its decision to exit the cellular baseband business.

"Broadcom performed well in the June quarter," said Scott McGregor, Broadcom's President and Chief Executive Officer. "We recently made the difficult, but prudent decision to wind down our cellular baseband business and focus on the Broadband, Connectivity and Infrastructure markets. As a result, we will be a stronger company, as gross margins, profitability and cash flows will noticeably improve, providing an opportunity to return more capital to our shareholders."


Monday, July 21, 2014

Interxion to Launch Cloud Connect in London, Frankfurt, Amsterdam Data Centers

Interxion outlined plans for a Cloud Connect service linking enterprises, service providers (SPs), system integrators (SIs) and carriers to multiple clouds from within Interxion data centers.

The idea is to provide a private, virtual connection between the customer and cloud service provider, bypassing the public Internet and providing service level guarantees on latency, throughput and security.

Initial Cloud Connect deployments will launch in London, Frankfurt and Amsterdam in the third quarter of 2014. More locations will follow in 2015.

Interxion is working with BTI Systems to implement the Cloud Networking Solution. BTI’s solution provides Interxion a high-density, SDN-enabled converged packet optical platform, a software control layer enabling customer self-service, and a support plan that will provide the highest performance and reliability of cloud connections.

“Every organisation beginning a migration to the cloud faces the challenge of making the hybrid model work with their existing IT installations. The choice of data centre is important because the applications running in different environments need to interact in a secure and high performance manner,” said Mario Galvez, Interxion’s VP Product Management. “Cloud Connect makes this decision-making process easier by offering multiple private connect services from a single connection. This next-generation platform offers our communities of interest - a long established, vibrant and entrepreneurial group of cloud providers, carriers, service providers and system integrators - an easy way to connect, transact and develop services with each other, at the highest performance levels.”


  • Earlier this month, Interxion announced the availability of private connections to both Amazon Web Services and Microsoft Azure from all of its 37 data centers across 11 countries.

    Private connections are now available from leading AWS Direct Connect and Microsoft Azure ExpressRoute network partners such as Level 3, Verizon, AT&T, IX Reach and BT – who all have points of presence in Interxion data centres.

    Private connections between public cloud platforms and enterprise IT infrastructure provide better performance, lower latency and improved security compared to Internet-based connections.

Verizon FiOS Moves to Symmetric Upload/Downloads

Verizon is moving to symmetric upload and download speeds for FiOS residential service.

New and existing customers will receive a free performance boost for in upload speeds to match their download speed tier.

Existing Speeds  New Speeds
15/5 Mbps          15/15 Mbps
15/5 Mbps          25/25 Mbps
50/25 Mbps         50/50 Mbps
75/35 Mbps         75/75 Mbps
150/65 Mbps        150/150 Mbps
300/65 Mpbs        300/300 Mbps
500/100 Mbps       500/500 Mbps

Verizon said it expects the level of upload activity on the FiOS network to double by late 2016 .


Algérie Télécom Upgrades MPLS Transport with Nokia and Juniper

Algérie Télécom, Algeria’s state-owned operator, has selected Nokia Networks to modernize its transport network with "Seamless MPLS".

Specifically, Nokia Networks Global Services will provide project management and network deployment of Juniper Networks' IP/MPLS platform.

Nokia Networks will also provide network planning, optimization and systems integration to ensure that the opeartor’s network can deliver the necessary throughput, latency and resiliency. A five-year contract also provides hardware, software and competence development services to protect Algérie Télécom’s capital investment.

Nokia Networks is also a supplier of LTE equipment to Algérie Télécom.

“This project underlines our resolve to deliver a truly differentiated customer experience to our subscribers,” said Azouaou Mehmel, president and CEO of Algérie Télécom Group. “We have complete faith in Nokia Networks’ capability to deliver on our vision due to its technical knowledge and extensive experience in similar implementations. Nokia Networks is a natural choice for this initiative that will stregthen our position as the operator of choice for Algerian subscribers.”


Work Begins on Hibernia's "Project Express" Transatlantic Cable

TE SubCom has begun manufacturing work on Hibernia Express, a new 4,600 km cable system designed to provide the lowest-latency fiber path between New York and London.  The transatlantic span will connect Halifax, Nova Scotia and Brean, UK.  Terrestrial fiber will extend connectivity to the major metro areas.

Hibernia Express will initially launch with 100 Gbps transmission capacity using TE SubCom’s C100 SLTE platform. It will be a 6-fiber-pair submarine cable, with a portion of the fibers optimized for lowest latency and a portion optimized for 100x100 Gbps design capacity. The total cross-sectional design capacity of the cable will be over 53 Tbps.

“Having a unique, low latency route combined with increased capacity allows Hibernia Express to offer unmatched services to trans-Atlantic connectivity customers,” said Bjarni Thorvardarson of Hibernia Networks. “As a pillar of the submarine cable industry, we are confident that TE SubCom will deliver a highly advanced cable system and world-class implementation. We’re thrilled to have reached this critical point in the deployment of Hibernia Express.”

“Our company’s technology portfolio and extensive trans-Atlantic installation experience make us an ideal supplier for the Hibernia Express system,” said John Mitchell, President, TE Subcom. “We’re looking forward to tackling the special challenges of this unique project and supplying the newest high capacity, low latency cable across the Atlantic.”


GoGrid Debuts “Any Cloud” Orchestration Engine

San Francisco-based GoGrid introduced its "any cloud" Orchestration Engine Service for delivering complex applications across multiple public or private clouds as well as on-premise data centers.

GoGrid has developed an orchestration engine that automates application deployments across multiple clouds and on-prem environments. The idea is to offer a "1-Button Deploy" service for activating or moving applications, whole servers or clusters of servers between clouds. This simplifies Big Data deployments in hybrid clouds. GoGrid's Orchestration Engine Service will also be available for partners to sell and deliver services.

GoGrid said its orchestration service can orchestrate anything with an API. The service is currently running in three data centers (San Francisco, Ashburn, and Amsterdam)

“We’re the first cloud operator to enable the delivery of complex application solutions like Big Data environments for Hadoop and Cassandra on-demand, and we’ve done so using an ‘un-opinionated’ Orchestration Engine Service that allows these solutions to be deployed onto any cloud,” said John Keagy, GoGrid’s CEO. “That means telcos could work with our ISV partners to make their solutions and technologies available on regional clouds to support specific data sovereignty requirements as well as on GoGrid’s high-performance Big Data cloud.”


Huawei's 2014 H1 Revenue Rises 19% YoY

Huawei reported 1H2014 sales revenue of CNY135.8 billion (US$21.86 billion), an increase of 19% year-on-year with an operating margin of 18.3%.  Huawei is employee-owned.

"Revenue and profit for the first half of 2014 are in line with our expectations. Driven by increasing investments in LTE networks worldwide, Huawei has further solidified its leadership position in mobile broadband. Rapid growth in software and services helped maintain steady growth in our carrier network business. Our efforts in the enterprise business have begun to pay off. We have enjoyed accelerated growth in this area. We also achieved quality and sustainable growth in our consumer business thanks to the increase of brand awareness and smart devices sales worldwide. Our flagship smartphone, the Ascend P7, is being sold in more than 70 countries and regions." said Cathy Meng, Huawei's Chief Financial Officer. "We are confident that in 2014 we will achieve sustainable growth, robust operations, and healthy financials."


Cisco Supplies 100G for Romania's Romtelecom

Romania's Romtelecom is deploying the Cisco ASR9000 and Cisco CRS-3 to enable 100G in its national network.  The upgrade program for Romtelecom's IP core network was initiated in 2013 and will be finalized in 2015.  The carrier plans to transition to an "all-IP" network by 2018.

"We operate the largest national network in Romania and are constantly working to expand its capabilities for the benefit of our customers. This deployment marks the implementation of an innovative solution to increase the data network capacity, at the same time increasing its availability and reliability", stated Bob Konstantidinis, Chief Technology and Operations Officer, Romtelecom and COSMOTE Romania.


Sunday, July 20, 2014

Hot Interconnects Symposium - August 26-28

The 22nd annual IEEE Hot Interconnects symposium will be held at Google headquarters in Mountain View, California on August 26-28.

The event is an international forum for researchers and developers of state-of-the-art hardware and software architectures and implementations for interconnection networks of all scales, ranging from multi-core on-chip interconnects to those within systems, clusters, and data centers.

Early registration ends July 31.


VeloCloud Launches Subscription-based Virtualized WAN Service

VeloCloud Networks, a start-up based in Los Altos, California, is launching a subscription-based, virtualized WAN service for enterprises that aggregates multiple access lines (cable modem, DSL, LTE) into a single secure connection that is defined and controlled in the cloud.

The VeloCloud service uses an Intel-based customer premise device at a branch office to communicate with a VeloCloud gateway in the cloud. The service analyzes network performance and application traffic to determine the best path and dynamically steer traffic to corporate data center or cloud services.

Compared to MPLS VPNs, VeloCloud said its services offers a significant cost savings because it uses available Internet access lines while delivering enterprise-grade reliability and performance. Advanced network services, such as application-aware firewalls, can be virtualized on the CPE or delivered in the network.  VeloCloud will charge a flat fee per month per location served. The subscription service comprises a Cloud Orchestrator, distributed Cloud Services Gateways and a Cloud Services Edge per branch.

“The VeloCloud service transcends the congestion, expense and complexity that plague WAN connections today, so that branch operations no longer struggle with a networking dilemma,” said Sanjay Uppal, co-founder and CEO of VeloCloud. “Our disruptive approach takes full advantage of cloud and virtualization technologies to both simplify and fortify the WAN, turning what is

“VeloCloud’s solution transforms WAN networking by leveraging the economics of the Internet, the architecture of the cloud and the virtualization of network appliances,” said Alan Boehme, member of the board of advisors of VeloCloud and head of Enterprise Architecture, the Coca-Cola Company. “This is beneficial for any enterprise and absolutely the right direction for the migration to hybrid data centers.”

VeloCloud plans to promote its service through channel partners, value-added resellers (VARs), system integrators and managed service providers (MSPs).


  • In June, VeloCloud Networks, a start-up based in Los Altos, California, announced $21 million in funding for its Cloud-Delivered WAN vision. The funding was led by New Enterprise Associates (NEA) and Venrock, and included the incubator firm, The Fabric.
  • VeloCloud is headed by Sanjay Uppal, who previously ran OnMobile Global.  He also spent time at Citrix through the acquisition he negotiated with Caymas where he was President and CEO. At Citrix, he defined the product strategy and go to market for the Access Management, Delivery Controller and WAN acceleration product lines.  VeloCloud co-founders also include Ajit Mayya (previously Sr. Director of Engineering in the Cloud and Infrastructure Management division of VMware) and Steve Woo (previously head of cloud strategy at Aerohive Networks).

ViaWest Opens 140,000 Sq Ft Data Center in Denver

ViaWest opened its fifth data center in the Denver area.

The Compark data center, located in the Denver Technology Center near southeast Denver, boasts 140,000 square feet of raised floor space and  high-density configurations supporting 700+ watts per square foot. The data center also is marked by a Projected Power Usage Effectiveness (PUE) rating of 1.2.

“As our fifth data center in the Denver area and 27th across the U.S., Compark was built to support mission critical infrastructures that require high reliability,” states Margie Sims, Regional Vice President of Sales & General Manager for ViaWest. “We have seen demand from not only Colorado-based companies, but businesses nationwide, for high quality, secure colocation and cloud infrastructure services. Our customers continue to count on us for production and disaster recovery environments and we are pleased to add Compark to our fleet in order to support their ever-changing business needs.”


Sea-Me-We 5 Project Takes Another Step Forward

Orange signed a construction and maintenance agreement for Sea-Me-We 5 (South East Asia-Middle East-Western Europe 5), a new submarine cable that will connect  Singapore, Indonesia, Malaysia, Thailand, Myanmar, Bangladesh,  Sri-Lanka, India, Pakistan, Oman, the United Arab Emirates, Yemen,  Djibouti, Saudi Arabia, Egypt, Italy and France.

Sea-Me-We 5 initially offer an aggregate capacity of 24 Tbps and the ability to carry 100G wavelengths. It is expected to enter service at the end of 2016.

Orange noted that it is also co-owner of three other submarine cables that run between Asia  and Europe: Sea-Me-We 3, Sea-Me-We 4 and IMeWe, which were launched in  1999, 2005 and 2010 respectively.


  • In March 2014, Alcatel-Lucent and NEC both announced contract wins for the new SEA-ME-WE5 project, a 100G undersea cable system that will span 20,000km from Singapore to Europe. 
    The South East Asia-Middle East-Western Europe 5 (SEA-ME-WE 5) project is backed by consortium of 15 leading telecom operators.

    Alcatel-Lucent will be deploying the segments spanning from Sri Lanka to France. Co-contractor NEC will be deploying the Singapore to Sri Lanka segment.

Ericsson's Q2 Sales Were Flat Y-o-Y

Ericsson reported sales of SEK 54.8b (US$8.01 billion), down -1% YoY and up 13% QoQ.

Sales in the quarter year-over-year were driven by growth in the Middle East, China and India, as well as continued capacity business in North America. This was offset by, as previously communicated, lower revenues from two large mobile broadband coverage projects in North America that peaked in the first half of 2013, and reduced activity in Japan.

Ericsson said it has started to deliver on  on previously awarded 4G/LTE contracts in Mainland China and Taiwan. The company also cited political unrest in parts of the Middle East and Africa as impacting sales, however the situation in Russia and the Ukraine did not impact sales in Q2.

Revenue by segment:

  • Networks: 29.0b, up 3% YoY
  • Global Services: 23.1b, down 7% YoY
  • Support Services: 2.8b, up 21%


Friday, July 18, 2014

Zhone Names New CEO

James Norrod has been named as new President and Chief Executive Officer of Zhone Technologies, replacing Mory Ejabat who will remain as Executive Chairman.

Mr. Norrod has previously served as CEO of Infinite Power Solutions, Segway, Telebit, ITK, CGX and Octocom. His career started with 10 years at IBM where he managed the GM account for IBM.