Monday, August 1, 2016

NBC Olympics selects Microsoft Azure for Cloud Encoding/Hosting

NBC Olympics will be using Microsoft Azure to provide cloud encoding and hosting with video workflows of the upcoming Olympic games in Rio.

NBCOlympics.com plans to post a record 4,500 hours of online conten from the Olympics.

This is the second Games for which NBC Olympics has chosen Microsoft Azure to assist with live and on-demand multiplatform streaming coverage. With the proliferation of connected devices, viewers this year will tune into NBC Olympics’ programming from connected TVs, tablets, smartphones, PCs and more. NBC Olympics is making it easy for viewers to access news, highlights and programming wherever they are via the NBC Sports app available free on Android, iOS, Roku, Amazon, Windows 10 tablets, Xbox, Windows Phone, PC and Mac.

“We always strive to deliver more content in real time to more channels and devices around the world,” said Scott Guthrie, executive vice president of the Cloud and Enterprise Group at Microsoft. “During the Sochi Olympic Games, NBC Olympics had more than 1 million concurrent live viewers watching a collective average of 600,000 hours of coverage per day. We are planning for even greater viewing numbers for Rio, and are excited to power the experience again using Microsoft Azure.”

“The Rio Olympics have nearly three times as many events per day as the Sochi Games,” said Rick Cordella, senior vice president and general manager, Digital Media, NBC Sports Group. “With the Azure cloud platform, Microsoft is partnering with us to deliver the secure, scalable cloud we depend on to bring the Games to millions of viewers on whichever device they prefer, via end-to-end live streaming entirely in the cloud.”

http://news.microsoft.com/



IBM Develops Bio Lab-on-Chip Technology

IBM is developing a new lab-on-a-chip technology that separates biological particles down to 20 nanometers (nm) in diameter, a scale that gives access to important particles such as DNA, viruses and exosomes. IBM said the technology offer potential to diagnose diseases before patients experience any physical symptoms and when the outcome from treatment is most positive. Until now, the smallest bioparticle that could be separated by size with on-chip technologies was about 50 times or larger.

“The ability to sort and enrich biomarkers at the nanoscale in chip-based technologies opens the door to understanding diseases such as cancer as well as viruses like the flu or Zika,” said Gustavo Stolovitzky, Program Director of Translational Systems Biology and Nanobiotechnology at IBM Research. “This extra amount of time could allow physicians to make more informed decisions and when the prognosis for treatment options is most positive.”

https://www-03.ibm.com/press/us/en/pressrelease/50275.wss

Equinix Buys Paris Data Center from Digital Realty

Equinix completed its acquisition of Digital Realty's operating business in St. Denis, Paris, including its real estate and data center facility, for EUR €189,750,000 (approximately USD $211 million).

The site currently houses Equinix's PA2 and PA3 International Business Exchange (IBX®) data centers.


Equinix said purchasing the St. Denis facility adds approximately 1,000 cabinets of sold capacity to the 5,000 cabinets Equinix has already sold in PA2 and PA3, plus expansion space for a further 1,000 cabinets in the existing buildings to support customer growth. The acquired facility is a dense interconnection site housing a core node of the Equinix Internet Exchange, one of the leading traffic exchanges in France.

Equinix's seven Paris data centers currently serve more than 575 companies.

http://www.equinix.com

Frontier Posts Q2 Revenue of $2.68 Billion

Frontier Communications reported Q2 revenue of $2,608 million, including contributions from the fully integrated assets Frontier acquired from Verizon in California, Texas, and Florida (CTF).

“We are very pleased with the performance of our newly acquired assets and our achievement of annualized cost synergies of $1 billion in the second quarter. We now expect annual cost synergies related to the acquisition of $1.25 billion, up from our original estimate of $700 million,” said Dan McCarthy, Frontier President and Chief Executive Officer.

“As we move forward, we are continuing to focus on executing our strategy for growth, including upgrading our broadband speed capabilities, expanding our new Vantage video service to an increasing portion of our footprint, and implementing our successful commercial distribution capabilities in Frontier’s new markets. We will remain focused on increasing our broadband and video penetration, and improving our efficiency. Our priorities continue to be driving strong free cash flow and continuing our disciplined capital allocation policy, which together underpin our very attractive, sustainable dividend, and industry-leading dividend payout ratio. We also are very well-positioned to achieve our plan to reduce leverage over time,” McCarthy said.

Financial Highlights for the Second Quarter 2016:

  • Revenue of $2,608 million
  • Operating income of $311 million, operating income margin of 11.9%
  • Net loss of $80 million, or ($0.07) per share
  • Adjusted EBITDA(2) of $1,032 million, adjusted EBITDA margin of 39.6%
  • Net cash provided from operating activities of $693 million
  • Adjusted Free Cash Flow(3) of $250 million

https://frontier.com/

KYOCERA to Acquire Melles Griot KK for Optical Components

Kyocera agreed to acquire all shares in Melles Griot KK — a Japan-based manufacturer specializing in optical components which is currently a subsidiary of U.S.-based IDEX Corporation.

Kyocera Optec Co. specializes in optical components for the automotive market as well as for the factory automation (FA) and medical markets.

Melles Griot KK possesses development and manufacturing technology for large caliber lenses and high precision lenses used in FA devices. The Kyocera Group aims to strengthen its product lineup and expand its optical component business by maximizing synergies between the companies.

http://global.kyocera.com/

Sunday, July 31, 2016

CORD: Telcos Look to Adopt the Cloud Architecture

The CORD Project (Central Office Re-architected as a Datacenter) is moving rapidly beyond the proof-of-concept and gaining support of major telcos and cloud providers such as AT&T, China Unicom, Google, Telefonica and Verizon, said Guru Parulkar, speaking at the inaugural CORD Summit, which was held 29-July-2016 at the Google campus in Silicon Valley.  CORD, which originated at ON.Lab, is now managed under The Linux Foundation.

The sold-out CORD Summit attracted about 200 participants from a diverse array of companies, ranging from silicon providers, system vendors, software developers, cloud companies and global carriers.

Some highlights:

  • CORD has just released its first open reference implementation built on SDN, NFV, Cloud and open source platforms such as ONOS, Trellis, OpenStack, Docker and XOS.
  • CORD will leverage merchant silicon, white boxes servers, bare metal switches and open source software platforms.
  • XOS is the Everything-as-a-Service paradigm featuring service composition, multi-tenant services, and services with scalability and high availability;

  • ONOS is the SDN OS for service providers also developed at ON.Lab. It targets scalability, performance, high availability, abstractions for apps and devices
  • Trellis is open source SDN fabric on bare metal, combined with virtual network overlay, unified control of underlay and overlay and many applications;
  • CORD is not only servers/switches but also network access boxes, including FTTH, LTE, etc.
  • the CORD project is divided into the following domains: Mobile, Residential, and Enterprise.
  • CORD introduces an SDN-enabled central office fabric with multiple levels of resiliency.
  • CORD is using OpenStack and Docker to support a micro-services approach
  • Google's Craig Barrett noted that his company has made considerable investments in SDN and NFV, and that it has huge network access project underway, such as Google Fiber in a growing number of U.S. cities, Wi-Fi/mobile access services, and even the futuristic Google Loon balloon Internet project. In India, Google's project with RailTel is already delivering Internet service to train commuters using a Wi-Fi + subscriber management system running in a cloud, not a traditional central office.
  • AT&T's Al Blackburn spoke about this company's commitment to open source projects, including CORD and its ECOMP
  • Newly announced CORD collaborators include Broadband Forum, Lime Micro (open source Software Defined Radio products), NTT East, Quortus and Telefonica. The five new collaborator companies also joined the ONOS Project
  • Last week, CORD announced Google, Radisys and Samsung Electronics Co. as new members. Original backers include AT&T, China Unicom, Google, NTT Communications, SK Telecom, and Verizon, vendors Ciena, Cisco, Fujitsu, Intel, NEC, Nokia, etc.
“The CORD community continues to quickly grow and attract a diverse range of collaborators eager to work with us,” said Guru Parulkar, executive director of ON.Lab and board member of the CORD Project. “We are united in our focus on developing and building CORD into a mainstream solution for service providers as quickly as possible. Besides our existing service provider partners, more than 20 active collaborators and many other global service providers have also expressed interest in wanting to use CORD.”

http://www.opencord.org

Broadband Forum and ON.Lab collaborate on CORD

The Broadband Forum agreed to collaborate with Open Networking Laboratory (ON.Lab) on the development of future broadband requirements and standards in close collaboration with open source projects in areas such as SDN, NFV, Cloud, and the CORD project.

Broadband Forum CEO Robin Mersh said: “Working with ON.Lab on CORD has been a very fruitful exercise and we’re pleased to formalize the arrangement with this MOU. The CORD project is an important example of the vast amount of work being done in this area and collaborating with projects like this one will be key for the Broadband Forum as we look to work more closely with open source projects to help our members feel the business benefits of SDN, NFV, Cloud and other new technologies.”

ON.Lab Executive Director Guru Parulkar said: “The Cloud CO as a concept is going to be a vital part of our work going forward and with it, operators will be able to quickly and efficiently deliver new technologies into the central office. With the help of the Broadband Forum, ON.Lab will continue to meet the challenges of re-imagining the telco CO as concepts and use cases emerge.”

http://www.broadband-forum.org
http://onlab.us

Intel Puts its Rack Scale Design into Open Source

Intel announced the release of its Intel Rack Scale Architecture into open source code.

Intel describes its design as an industry-standard framework for disaggregating and dynamically managing compute, storage, and network resources for more efficient utilization of data center assets. The aim is to provice dynamic management of compute, memory, PCIe, and storage resources and the pooling of those resources for more efficient use of data center assets.

The architecture was discussed at last year's Intel Developer Forum (IDF 2015).

Intel Rack Scale Design is based upon and use the Redfish industry standard from DMTFOpens in a new window for modern and secure management of scalable platform hardware in the modern data center.

http://itpeernetwork.intel.com/intel-rack-scale-design-now-ready-open-source-development/

SES Posts 1H16 Revenue of EUR 956.8 million, down 4.2%

SES S.A. reported revenue of EUR 956.8 million, down 4.2% as reported (-4.8% at constant FX), for the first six months of 2016. EBITDA came in at EUR 699.8 million, down 5.4% as reported (-5.8% at constant FX and same scope).

“SES’s first half results were in line with management’s expectations, while the appeal of SES’s differentiated and holistic solutions to major customers has continued to deliver substantial contract backlog and validates SES’s capability-driven strategy," stated Karim Michel Sabbagh, President and CEO.

A few operational highlights from the financial statement:


  • HDTV channels up 12.1% (YOY) to 2,442 channels, improving HD penetration from 30.4% to 32.7%
  • Of the 7,463 total TV channels broadcast by SES’s global fleet (30 June 2015: 7,164), 32.7% are broadcast in HD (30 June 2015: 30.4%). This represents a growth in HDTV channels of 12.1% (YOY) to 2,442 HDTV channels. 
  • At 30 June 2016, 60% of SES’s total TV channels are broadcast in MPEG-4 (30 June 2015: 54%).
  • At 30 June 2016, SES now broadcasts 16 commercial UHD TV channels (30 June 2015: none), including all regional variations. In January 2016, SES and Vivicast Media unveiled UHD-1 for audiences of North American cable operators and telcos. Then, in May 2016, SES announced an agreement for the world’s first Ultra HD sports channel, Viasat Ultra HD. 
  • SES now supports a total of 57 global government customers. In January 2016, SES secured a new contract with the Kativik Regional Government, in Canada, to provide satellite services across the northern Quebec region. The contract, which began on 30 June 2016, includes 12 transponders on SES-2 to deliver critical C-band communications capabilities. The service will triple the bandwidth currently available across the region.
  • As at 30 June 2016, the SES fleet had 1,550 available transponders (30 June 2015: 1,518 available transponders). The movement in available capacity includes the entry in commercial service of SES-9 (+53 incremental transponders) on 1 June 2016. This was partly offset by the ARSAT migration (-16 transponders) and reduction in available capacity on NSS-6 (-5 transponders) as a result of power degradation.


http://www.ses.com/

Saturday, July 30, 2016

Netflix Suffers Outage a Day After Amazon Prime

On Saturday, 30-July-2016, Netflix appeared to suffer a widespread outage affecting customer in many regions and lasting several hours.

On Twitter, Netflix said the issue appeared to be limited to web browsers.

The outage one day after Amazon experienced a widespread outage with its Amazon Prime video service.


Friday, July 29, 2016

Amazon Prime Video Suffers Widespread Outage

Amazon Prime Video, which is the company's consumer video streaming service, suffered a widespread outage across the United States lasting several hours during peak viewing times on Friday evening.

As tracked by downdetector.com, the outage appeared to be extensive.


Netrality Buys St. Louis Carrier Hotels from Digital Realty

Netrality Properties has acquire two fiber-rich, network-dense carrier hotels in St. Louis, Missouri: 210 N. Tucker, a 400,000-square-foot building, and 900 Walnut, a 100,000-square-foot building.  Additionally, the company has acquired a colocation business located within 210 N. Tucker from 365 Data Centers. Financial terms were not disclosed.

Netrality said these buildings are the most critical core interconnection sites in St. Louis, serving as a gateway to long haul fiber in the region.  Each facility offers carrier-neutral, building-owned and managed Meet-Me Rooms (MMRs).  210 N. Tucker and 900 Walnut offer customers access to over 43+ and 45+ network operators, respectively.

Netrality intends to integrate the operations of the two buildings along with the 365 Data Centers business under common management.

“The acquisition of this portfolio enhances Netrality’s growing national footprint,” said Gerald M. Marshall, Netrality’s President and Chief Executive Officer.  “St. Louis is a key interconnection point for carriers, service providers and enterprise customers in the region.  It was a pleasure working with Mike Darragh and the entire Digital Realty team on this transaction, and we look forward to building on their tremendous legacy in St. Louis.”

http://www.netralityproperties.com

Red Hat Enhances Lifecycle Mgt Tool for Clouds and Containers

Red Hat released an updated version of its systems lifecycle management tool (Red Hat Satellite 6.2) for physical, virtual, and private and public cloud environments. In this release, Red Hat introduces remote execution and extends capabilities for container management and security.

Red Hat Satellite 6.2 offers several new features, including:

  • Container host provisioning, supporting and managing Red Hat’s lightweight container operating system, Red Hat Enterprise Linux Atomic Host. Red Hat Satellite supports enterprises who are migrating to a lightweight container architecture, enabling them to run Red Hat Enterprise Linux Atomic Hosts as a compute resource and directly deploy containers to Red Hat Enterprise Linux Atomic Host. In addition, Red Hat Satellite now supports the Open Container Initiative format and registries.
  • Remote execution, enabling users to take multiple actions against a group of systems while automating workflows. With these new capabilities, users can reboot a system after a patch install, or conduct rolling upgrades across hundreds of systems with the same ease and consistency as updating a single system. New scheduling features and dashboards enhance interaction with systems under Red Hat Satellite management, bringing increased efficiency to its provisioning and discovery processes.
  • Support for disconnected environments. Red Hat Satellite 6.2 provides the ability to synchronize and export content from one Red Hat Satellite server to another, a new feature designed for workloads that may require systems management solutions to run disconnected from the Internet for security purposes.
  • Expanded capsule management. The Red Hat Satellite Capsule Server, which provides federated services especially helpful for scaling, can now provide deeper insight into the health of the capsule, including service run statues from the centralized Red Hat Satellite console. 
  • More flexible provisioning via new discovery enhancements in Red Hat Satellite, helping to simplify the process of building systems and enable end users to more efficiently provision systems in secured environments where DHCP (Dynamic Host Configuration Protocol) and PXE (Preboot Execution Environment) may not be available.
  • Enhanced migration services via the ability to import existing hosts running on any version of Red Hat Satellite 5 or 6 thanks to new feature scripts and automation capabilities. This bootstrap script automates the process of registering systems to Satellite, reducing the steps needed to add existing systems to Red Hat Satellite.
http://www.redhat.com

CoreSite Appoints Paul Szurek as CEO, Succeeding Tom Ray

CoreSite Realty announced the appointment of Paul Szurek as President and CEO, effective September 10, 2016, replacing Tom Ray, who is retiring.

Szurek has been CoreSite’s lead independent director since September 2010. He has been Chief Financial Officer of Biltmore Farms, LLC, a residential and commercial real estate development and operating company, since 2003. Prior to joining Biltmore Farms, LLC, Mr. Szurek served as Chief Financial Officer of Security Capital Group Incorporated, a publicly traded real estate investment, development and operating company with extensive REIT engagement.

 “It has been a privilege to have served CoreSite over the past 15 years. We have a strong team in place, and now is the right time for new leadership to continue to build upon what we have assembled. I am humbled by what the team has accomplished, and honored to have worked alongside such talented and committed professionals. I look forward to supporting a seamless transition with Paul and am confident in leaving the Company in his hands and under his capable leadership, along with the deep bench of talent we have built over the years,” stated Tom Ray.

http://www.coresite.com

Thursday, July 28, 2016

Riverbed to Acquire Aternity for End User Experience Monitoring

Riverbed Technology agreed to acquire Aternity, a provider of End User Experience (EUE) and application performance monitoring solutions.

Aternity helps enterprises see the entire user experience for any application running on any device, providing a user-centric, application performance experience vantage point.  Aternity said it currently monitors more than 1.7 million mobile, virtual and desktop workforce endpoints.  The company is based in Westborough, MA.

Riverbed said the acquisition of the privately-held company will expand its SteelCentral performance monitoring solutions with an end user experience offering, and provide Riverbed customers and partners with an end-to-end visibility solution– spanning network, application and end user experience performance management.

“Aternity is another exciting and strategic acquisition for Riverbed. Their innovative end user experience monitoring offering perfectly complements and extends our SteelCentral solutions,” said Jerry M. Kennelly, Riverbed Chairman and Chief Executive Officer. “With the increased use of mobile devices, virtual desktop environments and the cloud, the ability to manage end user experience has become more important and complex for IT organizations. With this acquisition, Riverbed and our partners are now uniquely positioned to provide CIOs and businesses with a complete view across networks, applications and end users, all in one solution.”

The acquisition also follows Riverbed’s acquisition of leading SD-WAN provider Ocedo in January 2016, which enabled Riverbed to get to market faster with application-defined SD-WAN (software-defined wide area network) solution SteelConnect in April. Additionally, Riverbed offers a comprehensive Application Performance Platform that delivers end-to-end visibility, optimization and control.

http://www.riverbed.com/solutions/end-user-experience-monitoring.html

AWS Grew 58% YoY in Q2, Reaching $2.9 Billion in Sales

In its Q2 financial report, Amazon revealed that revenue for Amazon Web Services (AWS) reached $2.886 billion, up 58% year over year.  The division posted operating income of $718 million.

Some Q2 highlights for AWS:

  • Amazon Web Services (AWS) announced that Salesforce selected AWS as its preferred public cloud infrastructure provider. For the first time, Salesforce will expand use of AWS to Salesforce’s core services — including Sales Cloud, Service Cloud, App Cloud, Community Cloud, Analytics Cloud and more — for the company’s planned international infrastructure expansion.
  • AWS announced the industry’s first fully-managed, cloud-based file system, Amazon Elastic File System (Amazon EFS). Amazon EFS is a new service that makes it easy to set up and scale file storage in the AWS Cloud, allowing customers to create petabyte scale file systems with gigabytes of throughput that are accessible to multiple Amazon EC2 instances and can support thousands of concurrent client connections with consistent performance.
  • AWS launched its Asia Pacific (Mumbai) Region, the sixth AWS Region in Asia Pacific. With this launch, AWS provides 35 Availability Zones across 13 technology infrastructure regions globally.
  • AWS announced the availability of X1 instances, a new Memory Optimized instance for Amazon EC2. X1 instances have 2 TB of memory — the most memory available in any cloud instance offered today by any cloud provider. Powered by the latest Intel processors and certified by SAP, X1 instances are ideal for running in-memory databases like SAP HANA, big data processing engines like Apache Spark or Presto, and high performance computing (HPC) workloads.
  • AWS also announced that SAP business-critical applications are gaining momentum on AWS as customers including GE Oil & Gas, Kellogg’s, Brooks Brothers, Ferrara Candy Company, GPT Group, Hoya Corporation, Lionsgate, Macmillan Publishers India, RWE Czech Republic, and Bart & Associates Inc., are running SAP on AWS.
  • AWS achieved the new FedRAMP High compliance certification, giving U.S. government agencies the ability to use the AWS Cloud for highly sensitive applications and workloads like patient records, financial data, and law enforcement data.

http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=2189731

Google Races Forward with 21% YoY Revenue Growth

Alphabet Inc. posted Q2 revenue of $21.5 billion, up 21% over the same period last year. GAAP income came in at $5.968 billion, ahead of market expectations.

"Our terrific second quarter results, with 21% revenue growth year on year, and 25% on a constant currency basis reflect the successful investments we've made over many years in rapidly expanding areas such as mobile and video. We continue to invest responsibly in support of our many compelling opportunities,” said Ruth Porat, CFO of Alphabet.

During Q2, CAPEX was $2.123 billion, down from $2.515 billion for Q2 2015.

The company now has 66,575 employees.

https://www.youtube.com/watch?v=EVpWjo023cE

Oracle to Acquire NetSuite for Enterprise Resource Planning

Oracle agreed to acquire NetSuite (NYSE: N), for $109.00 per share in cash, or approximately $9.3 billion.

NetSuite provides a suite of cloud-based financials / Enterprise Resource Planning (ERP) and omnichannel commerce software that runs the business of more than 30,000 companies, organizations, and subsidiaries in more than 100 countries. NetSuite (originally NetLedger) was founded in 1998 by Evan Goldberg and is based in San Mateo, California.

“We expect this acquisition to be immediately accretive to Oracle’s earnings on a non-GAAP basis in the first full fiscal year after closing,” said Safra Catz, Chief Executive Officer, Oracle.

“NetSuite has been working for 18 years to develop a single system for running a business in the cloud,” said Evan Goldberg, Founder, Chief Technology Officer and Chairman, NetSuite. “This combination is a winner for NetSuite’s customers, employees and partners.”

“NetSuite will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries,” said Zach Nelson, Chief Executive Officer, NetSuite. “We are excited to join Oracle and accelerate our pace of innovation.”

The evaluation and negotiation of the transaction was led by a Special Committee of Oracle’s Board of Directors consisting solely of independent directors. The Special Committee unanimously approved the transaction on behalf of Oracle and its Board of Directors.

http://www.oracle.com/netsuite

A10 Networks Hits Revenue of $57 Million, up 20% YoY

A10 Networks reported record Q2 2016 revenue of $57.1 million, up 20 percent year-over-year. On a GAAP basis, A10 Networks reported a net loss for the second quarter 2016 of $4.9 million, or $0.08 per share, compared with a net loss of $10.0 million, or $0.16 per share, in the second quarter of 2015.

  • Enterprise revenue of $32.0 million, increased 16 percent year-over-year
  • Product revenue of $38.8 million, up 16 percent year-over-year
  • Cash and marketable securities increased to $113.7 million, up from $96.2 million at June 30, 2015

“We delivered record revenue as our high-end security and cloud-ready Thunder solutions continued to drive growth,” said Lee Chen, president and chief executive officer of A10 Networks. “We also significantly improved our bottom-line results and we believe we are on track to meet our financial goals for the year. In addition to our strong performance in the quarter, we took a strategic step to accelerate the A10 Harmony vision and expand our addressable market with the acquisition of Appcito. Appcito is a cloud-native subscription service that maximizes the agility and improves the visibility and security of enterprise applications deployed in the cloud. Appcito fits into our vision to become the most comprehensive secure application services company in the industry and helps customers become more secure and agile as they bridge traditional and cloud application environments.”

http://www.a10networks.com


Video: A10 Networks at a Glance

You may not have heard of A10 Networks since it is one of the best kept secrets in the industry, but the company is a major supplier of networking equipment to the video gaming industry, the financial industry, and even for some of the largest casinos in Las Vegas.

Gunter Reiss, VP of Strategic Alliances, A10 Networks, provides a two-minute overview of the 12-year old, Silicon Valley-based company, which has grown to roughly 5,000 customers worldwide. A10 Networks is known for its feature-rich, high-scalable, high-performance, application delivery controller that can be used for carrier-grade NAT, DDoS mitigation, SSL decryption visibility and as a converged firewall.

See video: https://youtu.be/EOtr45E43Mg




Sprint Renews Portion of Managed Services Contract with Ericsson

Ericsson and Sprint announced a renewal of portions of the companies' 2009 managed services contract, which reaches its full term in September 2016. Financial terms were not disclosed and the companies did not reveal how large a portion of the contract has been renewed.

The companies did say that Ericsson will continue to be a key business partner for Sprint, providing some multi-vendor services that support the ongoing operations, development and transformation of Sprint's networks. Overall Network Service Assurance management of the network will be performed by Sprint.

Roger O'Hargan, Head of Network Services, Ericsson North America, says: "We are very proud of the work Ericsson has done to help Sprint achieve its business objectives over the past seven years. We look forward to continuing our partnership and helping Sprint deliver enhanced operational performance and achieve the cost advantages that can come through our managed services offerings."

Dr. John Saw, Sprint Chief Technology Officer, says: "Sprint's network is performing at best-ever levels, and we are proud of the progress we have made with Ericsson over the last seven years. Ericsson remains a valued strategic partner in supporting the Sprint network. As with any long-term managed services agreement, it is crucial that the relationship is regularly reviewed and adjustments made when necessary so that business strategies remain aligned."

http://www.ericsson.com
http://www.sprint.com

Sprint Awards 7-Year Network Mgt Deal to Ericsson

Sprint awarded a seven-year network management outsourcing contract to Ericsson covering its CDMA, iDEN and wireline networks. Sprint said the deal enables it to focus on delivering a superior customer experience, innovative services and popular new devices while letting Ericsson handle the day-to-day operations of its network. Key points of the deal include:

  • Sprint retains full ownership and control of its network assets, and solely owns network strategy and investment decisions.

  • Customers will continue to work directly with Sprint employees as their primary contact, as Sprint retains full control of the customer experience, customer technical support and services review.

  • Sprint retains technology and vendor selections.

  • Ericsson assumes responsibility for the day-to-day services, provisioning and maintenance for the Sprint-owned CDMA, iDEN and wireline networks.
  • Ericsson will optimize Sprint's multi-vendor inventory of assets such as spare parts and transmission equipment, and provide processes and tools for managing the national network platforms and operational support systems.
  • The transferred employees will become part of Ericsson Services Inc., a wholly-owned Ericsson subsidiary based in Overland Park, KS, a move that retains jobs in the United States. No force reductions are currently contemplated as a result of this agreement.
The agreement, with an option for renewal, will result in payments for services valued at between $4.5 billion and $5 billion (USD) over the seven-year term of the contract. The transaction calls for about 6,000 Sprint employees to begin performing their network functions as Ericsson employees sometime in the 3rd quarter.

A new entity called Ericsson Services Inc. will be established in Overland Park, KS.

Sprint said it also foresees cost savings, better inventory management and increased network efficiencies from the deal. The cost savings will be reinvested in the network for better coverage. Expected cost savings were not specified in the announcement.
http://www.ericsson.com
http://www.sprint.com