Sunday, July 19, 2015

Video: Open Source Drives Today's IT Services

In today's IT services, "open" is hitting on both sides of the wire -- the mobile side, where employees are seeking a more consumer-like experience on the job, and in the backend data center, says Robin Purohit, President, Service Support, BMC.

There is an increased blending of private cloud and public cloud IT environments.

BMC is reinventing its entire technology stack to fulfill the vision of digital service management.

Friday, July 17, 2015

NEC to Offer VNFs on HP OpenNFV Platform

Last week, HP and NEC Corporation agreed to collaborate to accelerate the market for network functions virtualization (NFV) by integrating their solutions.

NFV offers a new way for CSPs to design, deploy, and manage networking services. By decoupling the network functions from proprietary hardware appliances, CSPs can accelerate the introduction of new, compelling services quickly and cost-effectively.

When fully integrated, NEC will be able to offer its virtual network functions on the HP OpenNFV Platform, including HP Helion OpenStack Carrier Grade, providing a pre-validated solution that will deliver the reliability, scalability and performance CSPs require. The integrated offering will encompass HP hardware, including HP servers, networking and storage products. Availability is targeted for later this year. Additionally, the companies plan to develop a joint NFV reference platform to demonstrate NEC virtual network functions and management software on HP OpenNFV infrastructure in OpenStack and Linux KVM environments.

"NFV technologies enable flexible, scalable, and operationally efficient service deployment that will transform conventional network operations," said Atsuo Kawamura, senior vice president, NEC Corporation. "NEC has a track record of expertise in commercially delivering SDN/NFV solutions for mobile and fixed networks. This collaboration with HP will help us further strengthen our NFV solutions portfolio to help CSPs bring new innovative services to market more quickly and efficiently."

"CSPs are looking for ways to easily implement NFV technology," said Werner Schaefer, vice president, Network Functions Virtualization, HP. "Our collaboration with NEC is intended to create more open environments for customers, meeting their desire for faster deployment at a lower cost, continuing our commitment to enabling increased adoption of NFV technology."

Alcatel-Lucent Demos 8 Tbps per Fiber Pair on Transatlantic Cable

Alcatel-Lucent Submarine Networks (ASN) demonstrated an optical transmission capacity of 8 Tbps per fiber pair on the Apollo South transatlantic system, which connects France to the United States.

The test used ASN's current generation 1620 Light Manager submarine line terminal, equipped with the latest 100 Gbps technology and made use of innovative detection techniques and advanced error correction coding. ASN said it employed proprietary modulation and pulse shaping schemes to counteract the signal distortions and noise that impact high speed, long-distance transmission performance.

Richard Elliott, Managing Director of Apollo said: “This new demonstration further proves the technological lead of the Apollo system in offering capacity increases. The achievable capacity of 8Tbit/s per fiber pair has confirmed once again our expectation; that Apollo could carry around four times the current entire Atlantic traffic in use today.”

Philippe Dumont, President of Alcatel-Lucent Submarine Networks said: “This field trial is another proof point of the adaptability of ASN technology that continues to offer carriers a smart evolution path for tuning capacity and performance throughout the life of a system. As capacity and connectivity needs continue to increase, the high resiliency to potential degradation at higher speeds combined with the reliability of our technology offer a cost-effective and flexible networking model to cope with content providers and their end-users’ service demands.”

Alcatel-Lucent Upgrades Transatlantic Apollo Cable to 100G

Alcatel-Lucent completed an upgrade of the Apollo undersea cable system which links the UK and France to the United States for 100G channels and over 25 Tbps of total capacity.

The Apollo system consists of two of the most advanced fiber optic cables: Apollo North connects the UK to the US, and Apollo South connects France directly to the US, collectively spanning a total of 13,000 km.

Alcatel-Lucent deployed its 1620 Light Manager (LM) submarine line terminal equipment using coherent technology at 100G to provide the most efficient use of the available optical spectrum. The 1620 LM leverages Alcatel-Lucent’s advanced coherent technology, which also incorporates the latest Soft Decision Forward Error Correction (SDFEC) technology to provide highest ultimate capacity at the same time as lowest cost per bit.

Rapid7 Pops in IPO

Rapid7, which provides security data and analytics solutions, completed an initial public offering of 6,450,000 shares of common stock at a price to the public of $16.00 per share.

On the first day of trading, shares of Nasdaq: RPD closed at $25.28, up 58% for the day.

Cinarra Raises $20 Million for Deep Mobile Data + Advertising

Cinarra Systems, a start-up based in Santa Clara, California announced $20 million in Series B funding for its analytics ecosystem for mobile operators and advertisers.

The funding was led by Japan's SoftBank Corp., in participation with Alma Capital and Cisco Systems. In addition, Cinarra has begun joint business operations in Japan with SoftBank, offering new opportunities for Japanese advertisers to engage with consumers. SoftBank has introduced the service to its network in Japan, operating a targeted advertising platform.

Cinarra said its mediation platform eliminates the complexities of integrating operator and advertising platforms, while addressing head-on the issue of consumer data privacy.

“Our relationship with SoftBank signifies a fundamentally new phase for Cinarra,” said Alex Zinin, co-founder and CEO of Cinarra. “With SoftBank’s investment and partnership, we are in an excellent position to be the first to establish a global platform that is open for mobile operators and advertising platforms in Japan and around the world, enabling them to participate in a new business model that will drive the next phase of growth for the mobile Internet economy. With this foundation, the opportunities created by the platform will expand beyond the telecom and advertising industries.”

“Growing needs in mobile communication have propelled us into a new mobile Internet economy,” said Ken Miyauchi, President & CEO of SoftBank. “The next phase of the industry evolution requires a new technology to leverage the ‘always on’ consumer lifestyle. Partnering with Cinarra, whose technology and direction align with our vision of a new Internet economy, is strategic to our business. We are confident that our investment and partnership will further enhance our services for customers.”

Ooma Declines in IPO

Ooma, which offers Internet-based telephony services based on a proprietary CPE device and cloud platform, completed its initial public offering of 5,000,000 shares of its common stock at a price to the public of $13.00 per share.

On the first day of trading, shares in NYSE: OOMA opened for trading at $12.10 and then closed the day at $10.95, down 15.77% for the day.

Thursday, July 16, 2015

"Darkode" Cyber Crime Forum Taken Down

The U.S. Department of Justice and the FBI, with the assistance of law enforcement authorities in 19 countries, have taken down "Darkode" -- underground, password-protected, online forum for buying, selling, and trading malware, botnets, stolen personally identifiable information, credit card information, hacked server credentials, and other pieces of data and software that facilitated complex cyber crimes all over the globe.

Operation Shrouded Horizon has resulted in legal charges, arrests, and searches involving 70 Darkode members and associates around the world; U.S. indictments against 12 individuals associated with the forum, including its administrator; the serving of several search warrants in the U.S.; and the Bureau’s seizure of Darkode’s domain and servers.

Access to the Darkode forum was "by invitation only" and authorities believe 200~300 individuals participated.

"Hackers and those who profit from stolen information use underground Internet forums to evade law enforcement and target innocent people around the world,” said Assistant Attorney General Caldwell. “This operation is a great example of what international law enforcement can accomplish when we work closely together to neutralize a global cybercrime marketplace.”

“Of the roughly 800 criminal Internet forums worldwide, Darkode represented one of the gravest threats to the integrity of data on computers in the United States and around the world and was the most sophisticated English-speaking forum for criminal computer hackers in the world,” said U.S. Attorney David J. Hickton. “Through this operation, we have dismantled a cyber hornets’ nest of criminal hackers which was believed by many, including the hackers themselves, to be impenetrable.”

Some charges announced by the FBI include:

  • Johan Anders Gudmunds, aka Mafi aka Crim aka Synthet!c, 27, of Sollebrunn, Sweden, is charged by indictment with conspiracy to commit computer fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. He is accused of serving as the administrator of Darkode, and creating and selling malware that allowed hackers to create botnets. 
  • Morgan C. Culbertson, aka Android, 20, of Pittsburgh, is charged by criminal information with conspiring to send malicious code. He is accused of designing Dendroid, a coded malware intended to remotely access, control, and steal data from Google Android cellphones. The malware was allegedly offered for sale on Darkode.
  • Eric L. Crocker, aka Phastman, 39, of Binghamton, New York, is charged by criminal information with sending spam. He is accused of being involved in a scheme involving the use of a Facebook Spreader which infected Facebook users’ computers, turning them into bots which Crocker controlled through the use of command and control servers. Crocker sold the use of this botnet to others for the purpose of sending out massive amounts of spam.
  • Naveed Ahmed, aka Nav aka semaph0re, 27, of Tampa, Florida; Phillip R. Fleitz, aka Strife, 31, of Indianapolis; and Dewayne Watts, aka m3t4lh34d aka metal, 28, of Hernando, Florida, are each charged by criminal information with conspiring to send spam. 
  • Murtaza Saifuddin, aka rzor, 29, of Karachi, Sindh, Pakistan, is charged in an indictment with identity theft. Saifuddin is accused of attempting to transfer credit card numbers to others on Darkode.
  • Daniel Placek, aka Nocen aka Loki aka Juggernaut aka M1rr0r, 27, of Glendale, Wisconsin, is charged by criminal information with conspiracy to commit computer fraud. He is accused of creating the Darkode forum, and selling malware on Darkode designed to surreptitiously intercept and collect e-mail addresses and passwords from network communications.

Google Puts its Weight Behind the Open Stack Foundation

Google is becoming a sponsor of the OpenStack Foundation, the industry effort dedicated to creating an open infrastructure-as-a-service stack for enterprises.

Google said it sees OpenStack is emerging as a standard for the on-premises component of hybrid clouds. It also sees container-oriented computing, and the Kubernetes container cluster scheduling and management tool, as the second key trend for the future of computing in the enterprise.

“OpenStack is a platform that frees users to run proven technologies like VMs as well as new technologies like containers,” said Mark Collier, COO of the OpenStack Foundation. “With Google committing unequaled container and container management engineering expertise to our community, the deployment of containers via proven orchestration engines like Kubernetes will accelerate rapidly. OpenStack continues to set itself apart as the single open source cloud platform for the widest diversity of workloads, all supported by one environment with one control plane, one API, one dashboard.”

Google Container Engine Enters Beta Along with Container Registry

Google Container Engine entered public beta and the new Google Container Registry became generally available. Google Container Engine, based on the Kubernetes open source container orchestration system, provides tools for setting-up and managing a cluster of containers. Container Engine supports the common Docker container format. Google also announced pricing for once the free beta period is over: standard clusters that run up to 100 virtual...

Crowdstrike Raises $100M for SaaS-based Endpoint Protection

CrowdStrike, a start-up based in Irvine, California, has completed a $100 million Series C financing round for its Software-as-a Service (SaaS) based next-generation endpoint protection platform.

The company says its Falcon platform enables organizations to detect, prevent and respond to attacks, at any stage – even malware-free intrusions - more effectively than traditional antivirus and malware-centric security solutions. CrowdStrike said it has seen massive deployments by Fortune 500 companies worldwide and that total billings have triple year-over-year.

The new funding round was led by Google Capital. Rackspace, a CrowdStrike customer, also participated in the round along with existing investors Accel and Warburg Pincus. This brings the company’s total funding raised to $156 million.

JDSU Separation to be completed August 1

JDSU confirmed that its pending separation into two publicly-traded companies will occur on August 1, 2015, and that Lumentum shares to be distributed to shareholders the first trading day thereafter, August 3, 2015.

“By operating as two independent companies, we believe Lumentum and Viavi Solutions will each be able to leverage a strong history while being more flexible and better positioned to capitalize on new opportunities in their respective markets,” said Tom Waechter, president and chief executive officer of JDSU, and CEO-designate for Viavi Solutions. “We look forward to completing the final steps in this process and launching exciting, new chapters for Lumentum and Viavi Solutions.”

For every five shares of JDSU common stock held, JDSU shareholders will receive one share of Lumentum common stock.  Shareholders will receive cash in lieu of fractional shares.

JDSU Companies to be Lumentum and Viavi Post-Split

Following its upcoming split into two companies, JDSU’s stand-alone Communications and Commercial Optical Products (CCOP) business segment will be called Lumentum while its Network Enablement (NE), Service Enablement (SE) and Optical Security and Performance Products (OSP) business will be named Viavi.  JDSU anticipates that the split will occur by Q3 this year.

The new Lumentum brand was chosen to reflect CCOP’s leadership in optical technologies, commitment to driving innovation, and its ability to effectively address its customers’ unique requirements while scaling with quality through well-established technological and operational expertise.  The company will be a global leader in optical components and subsystems for the telecommunications market, with high growth opportunities in data communications, driven by the rapid expansion of cloud networking and data center infrastructure, and in high performance lasers for both macro and micro materials processing applications.  The company will be led by Alan Lowe as chief executive officer. He joined JDSU in September 2007 as senior vice president of the Lasers business and became president of JDSU’s newly formed CCOP business segment in 2008, which combined JDSU’s Optical Communications and Lasers businesses.

Viavi Solutions, which includes JDSU’s Network Enablement, Service Enablement  and Optical Security and Performance Products will provide solutions for end-to-end network and application visibility from a portfolio of instruments, software and services. These solutions address its customers’ need to profitably scale to meet the demands of the fast-growing volume of connected devices and applications, and to transition to virtualized, software-based networks. In addition, Viavi’s OSP business is a leader in anti-counterfeiting solutions for currency authentication and high-value optical components and instruments for security, safety, electronics and other applications. Tom Waechter, JDSU’s current president and chief executive officer, will continue to lead Viavi. He became president and chief executive officer of JDSU in January 2009.

SUSE Linux Enterprise is coming to 64-bit ARM Processors

SUSE is working to extend support for its Linux Enterprise 12 to 64-bit ARM server processors.

This will enable partners to develop, test and deliver products to the market using 64-bit ARM chips from vendors including AMD, AppliedMicro and Cavium along with server manufacturers Dell, E4 Computer Engineering, HP and SoftIron.

"SUSE has always been a leader in porting Linux to other platforms, and this program brings the same benefits and interaction to the ARM AArch64 ecosystem that our partners providing x86-64, Power and System z solutions already experience," said Ralf Flaxa, SUSE vice president of engineering. "SUSE's ARM partner program will provide ARM ecosystem partners access to AArch64-supported SUSE Linux Enterprise 12 software and expertise, establishing relationships that will result in supported enterprise solutions on different hardware platforms to meet a variety of customer needs."

Arianespace Launches Embratel Star One Satellite

Arianespace has successfully launched two geostationary satellites: Star One C4 for Embratel Star One, and MSG-4 for EUMETSAT, the European organization dedicated to weather, climate and environmental monitoring.

The Brazil-based Embratel Star One is the leading satcom operator in South America. Star One C4, built by Space Systems/Loral (SSL), is the company's tenth satellite.

Star One C4 features 48 Ku-band transponders, which will be used for broadcast satellite services from its orbital slot at 70 West longitude. The satellite will provide Direct-To-Home television service in Brazil and will expand Embratel Star One’s broadcasting services to other Latin American countries and to the United States. It uses the SSL 1300 platform and is designed to provide service for 15 years or more.

With this launch, there are 79 SSL-built GEO satellites currently on orbit.

SSL is also building a second satellite for Embratel Star One, which will be launched in 2016.  Star One D1 is a multi-mission satellite that includes a high throughput satellite (HTS) payload and will be used for telecommunications, television broadcast, broadband, Internet access and other services such as digital inclusion in Brazil and in the Latin American region.

ZTE and KT Collaborate on 5G Research

ZTE has signed a strategic cooperation agreement with KT Corporation on research and commercialization of 5G technology.

Specifically, ZTE and KT will launch 5G Test Bed construction in Seoul, and jointly develop, present, and design the future 5G network architecture based on the Test Bed. The partnership between ZTE and KT will help advance 5G standardization and the development of the industry ecosystem globally. The agreement was announced at the Mobile World Congress Shanghai conference.

ZTE said its pre-5G base station enhances spectral efficiency more than fourfold by using Massive MIMO technology. ZTE is working on other significant pre-5G technologies, such as UDN and MUSA.

“ZTE is committed to help operators transition successfully to 5G technology, and the agreement with a strong partner such as KT will strengthen our core capabilities,” said Xu Huijun, Senior Vice President of ZTE. “ZTE has a wealth of experience in technology development and network evolution. We believe that the Pre5G technology can better meet practical requirements for seamless development of networks.”

Wednesday, July 15, 2015

China Mobile Demos 220 Mbps on 3.5 GHz interband TD-LTE

China Mobile has demonstrated 220 Mbps peak data transmission rates based on 3.5 GHz interband TD-LTE-Advanced carrier aggregation.

The live demo, which was conducted at this week's Mobile World Congress Shanghai 2015, used a commercial Nokia Flexi Multiradio 10 Base Station and a test device to run combined 3.5 GHz and 2.6 GHz TD-LTE frequency bands.

The 3.5 GHz band is another important spectrum resource for 4G networks, which will be used in TD-LTE. This demo not only proves the commercial feasibility of the 3.5 GHz TD-LTE band, but also shows 3.5 GHz can be aggregated with current bands, enhancing 4G networks with more capacity.”

Nokia Launches LTE Radio and Core Features for IoT

Nokia Networks launched its IoT connectivity solution for LTE core and radio networks.Currently, mobile networks are primarily optimized for smartphone traffic. IoT applications are expected to bring new requirements for the network infrastructure, such as the number and type of connected devices, as well as different traffic patter.

The new IoT connectivity solution consists of two elements: Nokia’s Core for IoT and its enhanced Smart Scheduler for LTE radio.

Nokia’s Core:

  • Drives down total cost of ownership (TCO) for IoT solutions on operators’ networks and allows for a business mix of high ARPC and low ARPC M2M traffic
  • Improves operational efficiency by about 35% compared to legacy networks and provides 40% better CPU utilization e.g. for smart meter traffic
  • Open APIs allow for real-time data mining, service control and integration, making it much easier to ensure network optimization and service enablement for IoT applications
  • Programmability enables operators to cope with a multitude of applications and proactively reduce signaling traffic, e.g. by adjusting the timer value for service based paging for connected cars

Nokia’s enhanced Smart Scheduler:

  • With self-adapting algorithms in Flexi Base Stations, it adapts to the IoT device traffic profile, which will become more relevant with the increasing variety of IoT use cases from stationary metering applications to demanding vehicle-to-infrastructure communications
  • It reduces signaling load in the network, enhances responsiveness of the service and lowers power consumption of the IoT modem
  • It improves connection quality even at the cell edge with minimized impact on network capacity

"While IoT represents a major growth opportunity for operators, they need to prepare their networks well. Nokia’s IoT connectivity solution is a key building block required to efficiently manage the related M2M traffic. A secure connectivity layer will then open up further opportunities for management and application platforms, as well as analytics and user services,” stated Michael Clever, Head of Mobile Broadband Core Cluster at Nokia Networks.

Intel Sees Strength in Data Center & IoT Segments

Intel reported revenue of $13.2 billion for 2Q 2015, consistent with its previous guidance, gross margin of 62.5%, operating income of $2.9 billion, net income of $2.7 billion and EPS of 55 cents. The company said data center, memory and IoT represented a growing share of its profits, more than offsetting weakness in the desktop PC market.

Revenue by segment:

  • Client Computing Group revenue of $7.5 billion, up 2 percent sequentially and down 14 percent year-over-year
  • Data Center Group revenue of $3.9 billion, up 5 percent sequentially and up 10 percent year-over-year
  • Internet of Things Group revenue of $559 million, up 5 percent sequentially and up 4 percent year-over-year
  • Software and services operating segments revenue of $534 million, flat sequentially and down 3 percent year-over-year

At the end of Q2, Intel had 107,000 employees worldwide, flat compared to the previous quarter.

ConnectHome Initiative to Provide High-Speed Broadband to Low Income Housing

President Obama announced the ConnectHome initiative to provide high-speed broadband to low-income housing communities.

The pilot program, which is launching in twenty-seven cities and in one tribal nation, will initially reach over 275,000 low-income households – and nearly 200,000 children.

Some highlights of ConnectHome:

  • In Google Fiber markets (including the ConnectHome cities of Atlanta, Durham, Kansas City, and Nashville), Google Fiber will offer $0 monthly home Internet service to residents in select public housing authority properties and will partner with community organizations on computer labs and digital literacy programming to bridge the digital divide, especially for families with K-12 students.
  • In select communities of Choctaw Tribal Nation, Cherokee Communications, Pine Telephone, Suddenlink Communications, and Vyve Broadband will work together to ensure that over 425 of Choctaw’s public housing residents have access to low-cost, high-speed internet.
  • In Seattle, and across its coverage footprint, CenturyLink will make broadband service available to HUD households, via its Internet Basics program, for $9.95 per month for the first year and $14.95 per month for the next four years.
  • In Macon, Meriden, Baton Rouge, and New Orleans, Cox Communications will offer home Internet service for $9.95 per month to eligible K-12 families residing in public housing authorities.As part of its existing ConnectED commitment, Sprint will work with HUD and the ConnectHome program to make its free wireless broadband Internet access service program available to eligible K-12 students living in public housing. This builds upon the free mobile broadband service previously committed to low-income students by AT&T and Verizon, for ConnectED.
  • Best Buy will offer HUD residents in select ConnectHome demonstration project cities, including Choctaw Tribal Nation, the computer training and technical support needed to maximize the academic and economic impact of broadband access. Best Buy will also offer afterschool technical training, for free, to students participating in ConnectHome at Best Buy Teen Centers in Atlanta, Los Angeles, New York City, San Antonio, and Washington, DC.
  • The James M. Cox Foundation, a Cox Communications-affiliated Foundation, will make 1,500 discounted tablets, pre-loaded with educational software, available for $30 to students and their families participating in ConnectHome, in Macon.
  • GitHub will provide $250,000 to support devices and digital literacy training to HUD residents in ConnectHome cities.
  • College Board, in partnership with Khan Academy, will offer students and families in HUD housing in all ConnectHome communities free, online SAT practice resources, and contribute $200,000 over three years to fund digital literacy and personalized college readiness and planning training in Cleveland, Los Angeles, New York, San Antonio, Washington, DC and the Choctaw Nation of Oklahoma.
  • 80/20 Foundation will provide $100,000 to fund digital literacy training in San Antonio.

IIJ Picks VMware vCloud for NFV

Internet Initiative Japan Inc. (IIJ) has selected the VMware vCloud for NFV platform to support a new Network Functions Virtualization (NFV) virtual CPE (vCPE) service.

The new vCPE “IIJ Omnibus Service,” due to launch in September 2015 will include its proprietary SEIL series of high-performance routers and VPN gateway services to business customers. By moving to a virtualized CPE deployment model, IIJ will be able to transform the economics of the company’s CPE-based services while attaining the agility to adapt quickly to new service opportunities and integrate with their broad digital services portfolio.

IIJ currently uses physical appliances deployed on site to provide its value-added services, including Internet access, outsourcing, and systems integration for all network usage requirements.

VMware vCloud for NFV is an integrated Network Functions Virtualization (NFV) platform that combines VMware’s production-proven virtualized compute, networking, storage and management solutions with integrated support for OpenStack. The platform currently offers support for more than 40 different virtual network functions (VNFs) from more than 30 vendors.

“IIJ and VMware have been longstanding partners, having first collaborated on the successful IIJ GIO Virtual Platform VW Series based on VMware vSphere,” said Kiyoshi Ishida, Executive Managing Officer, Product Division Director, IIJ. “When IIJ decided to extend its virtualized platform to support network functions, we saw VMware’s production-proven technologies and professional service capabilities as the most reliable and fastest route to market.”
“IIJ has fully embraced NFV in a way that will allow sustained differentiation in a highly competitive market,” said Shekar Ayyar, corporate senior vice president, Strategy and Corporate Development, and General Manager, Telco NFV Group, VMware. “They are creating a single horizontal platform that will not only allow the onboarding of their own new VNF today, but provide choice to IIJ for the addition of best in class VNFs from external vendors and developers as service needs evolve.”

ACG Report Presents Business Case for NFV Now

A new study, conducted by industry research firm ACG and sponsored by Affirmed Networks and VMware, presents the business case for why Mobile Network Operators (MNOs) should accelerate their move to a NFV-based architecture.

The report makes a five-year cost comparison between MNOs with traditional and virtualized network architectures.  Some key findings:

  • MNOs that transitioned to an NFV-based platform began saving money in the first year and realize an investment payback in three years;
  • Adopting a virtualized Evolved Packet Core (EPC) solution, reduced capex by 69% and opex by 67% on average; and
  • Mobile operators were able to deploy a virtualized network much more quickly (in as little as six months) than they were with traditional networks (15 months on average) resulting in quicker time to market and time to revenue.

“In order to increase both network capacity and performance, and also accelerate service creation, MNOs have the option of staying with traditional architectures or moving to a virtualized approach,” said Ray Mota, President, ACG Research.  “While we are seeing that many operators intend to move toward a virtualized approach, what we saw as a result of this research were the severe negative consequences that delaying that migration can have on their bottom line.”

Dell'Oro: RAN Infrastructure Market to Shrink by $11B between 2015-19

The RAN market is expected to decline at a CAGR of -2% between 2015 and 2019, while the cumulative RAN market during the five-year forecast period is expected to be $11 B lower than the comparative five-year period (2010 through 2014), according to a new report by Dell'Oro Group.

Some highlights:

  • Total LTE  market—macro and small cell—expected to double between 2013 and 2019
  • Total Small Cell market—including distributed radio systems—expected to grow more than ten-fold between 2014 and 2019.
  • About the Report 

"It is of some concern that we are still five years away from the first commercial 5G networks and worldwide LTE POP coverage is nearly 50 percent, whereas 3G coverage was less than 15 percent ten years ago, five years before the first 4G deployments materialized.  Nevertheless, we remain optimistic about the continued positive impact of LTE.  We believe that the long multi-band, multi-carrier, multi-layer, multi-feature, multi-application LTE roadmap will ensure steady LTE investments, even after the initial 4G peak coverage phase, to ensure a smooth transition toward VoLTE, LTE-A, and eventually 5G," said Stefan Pongratz, RAN analyst at Dell'Oro Group.

"The depth of the LTE roadmap will stimulate strong recurring upgrade/capacity business and even so if the total market does not generate significant topline growth, there should be room to improve margins as capacity and upgrades constitute a greater portion of total revenues," continued Pongratz.