Monday, November 7, 2016

Zayo Acquires Silicon Valley Data Center for $12.8 Million

Zayo has acquired a data center in Santa Clara, California - its first in Silicon Valley - for $12.8 million. Zayo has 1,500 route miles of fiber in the SF Bay Area.

The facility, located at 5101 Lafayette Street, includes 26,900 total square feet and three megawatts (MW) of critical power. The location is adjacent to the recently completed Levi’s Stadium and connects to multiple data centers in Silicon Valley via Zayo-owned fiber assets. The facility also includes high-efficiency power and cooling infrastructure, seismic reinforcement to “1.5” and proximity to Zayo’s long haul dark fiber routes between San Francisco and Los Angeles. The acquisition will contribute over $1 million in incremental annualized adjusted EBITDA.

“We have long targeted Northern California as an expansion opportunity for our zColo data center business. The quality and high-power density of this facility is perfectly matched to the requirements of our leading-edge, Bay Area customers,” said Chris Morley, COO at Zayo.

http://www.zayo.com


Windstream to Acquire Earthlink for $1.1 Billion

Windstream will acquire Earthlink in an all-stock transaction valued at approximately $1.1 billion, including debt. Upon closing of the transaction, Windstream shareholders will own approximately 51 percent and EarthLink shareholders will own approximately 49 percent of the combined company.

The combined company will have increased scale and scope giving it the ability to leverage best practices across a broader platform, and offer customers expanded products, services and enhanced enterprise solutions. The combination

The merger will result in an extensive national footprint spanning approximately 145,000 fiber route miles and provide advanced network connectivity, managed services, voice, internet and other value-added services. The deal brings together Windstream’s scale in the Enterprise segment and EarthLink’s newly-launched SD-WAN service.

“The combination with EarthLink further advances Windstream’s strategy by creating a stronger, more competitive business to serve our customers while increasing free cash flow and reducing leverage,” said Tony Thomas, president and chief executive officer at Windstream. “With this transaction, we are combining two highly complementary organizations with closely aligned operating strategies and business unit structures. We look forward to working with the talented EarthLink team to create significant benefits and drive value for all of our stakeholders.”

The companies cited approximately $900 million from synergies, plus tax benefits, including more than $125 million in annual operating and capital expense synergies that are expected to be fully realized within 36 months of closing.

http://www.windstream.com
http://www.earthlink.com

  • Windstream is based in Little Rock, Arkansas. The company was founded in 2000 as Valor Telecom through through the takeover of Verizon's GTE' southwest assets. It adopted the Windstream name in 2006 with the acquisition of Alltell's landline business.
  • Earthlink was founded in 1994 and is based in Atlanta, Georgia.





Noviflow Scales Up its OpenFlow Switching

NoviFlow, a start-up based in Montreal, released a new version of OpenFlow 1.3/1.4/1.5 switching software aimed at large-scale networks.
Key new features of NoviWare supporting large-scale deployment introduced in release 400.1 include:

  • OpenFlow queues and up to one million meters for use with QoS mechanisms
  • Dynamic provisioning of ports in LAG
  • Plug-and-Play deployment support for large installations:
    - Switch IP address default set via DHCP
  • - gRPC for remote automated provisioning
  • OpenFlow Experimenter-based extensions:
    - VLAN payload matching
    - Symmetric Hash of Fields

400.1 NoviWare fully supports the OpenFlow 1.3 standard and 1.4, including all actions, instructions and match fields, as well as key features of OpenFlow 1.5, such as Copy-Fields action.

"Since the founding of NoviFlow in 2012 as a spin-out from UQAM, our goal has always been to design and deliver SDN solutions that leverage Network Processors to offer both unsurpassed programmability and wire-speed performance, a major innovation in networking equipment. Today, the inherent advantage of this approach has been proven in the field via deployments of our products at a host of major network operators and cloud operators, resulting in ever-increasing demand for our solutions.”

NoviFlow’s products are being used as switches, WAN IP/MPLS routers, network appliances and other high-performance forwarding planes.

http://noviflow.com/products/noviware/


Dolan Family Ventures Sets Sights on Tech Start-ups

Dolan Family Ventures, a new investment company founded by Kristin and James L. Dolan, announced that it is seeking investment opportunities in data, analytics and technology-based businesses.

DFV will be led by Kristin Dolan, who is a founder and the Managing Partner. Ms. Dolan most recently served as Chief Operating Officer of Cablevision Systems Corporation, leading all aspects of the company’s cable operations, overseeing thousands of employees, including the company’s entire customer and field service workforce. Among other responsibilities, she oversaw Cablevision Media Sales, the company’s advertising sales division.

http://www.dfv.tv/

  • Cablevision was founded in the 1960s by Charles Dolan. Cablevision was acquired by Altice in June 2016 for $17.7 billion.

Telia Carrier Expands Backbone to Zagreb

Telia Carrier has activatd a new point of presence (PoP) in Zagreb, Croatia, now providing wholesale IP transit and Ethernet services for carriers, content and cloud providers.

Telia Carrier said the new PoP allows it to expand the reach of its top-two ranked global IP backbone, AS1299, to Croatia and adjacent countries.

"Telia Carrier is dedicated to delivering a responsive, connected experience to address the continued demand in the Eastern European market," said Jerzy Wilisowski, director of sales, Europe at Telia Carrier. "By moving into Zagreb, in addition to existing PoPs in Budapest and Vienna, Telia Carrier strengthens its presence in a high growth IP transit market in Croatia, and improves the customer experience for those using online gaming and content services provided in the region."

http://teliacarrier.com

Sunday, November 6, 2016

CenturyLink to sell 57 Data Centers for $2.15 Billion

CenturyLink agreed to sell its data centers and colocation business to funds advised by BC Partners, in a consortium including Medina Capital Advisors and Longview Asset Management, for $2.15 billion in cash. The data center portfolio includes approximately 195 megawatts of power across 2.6 million square feet of raised floor capacity. CenturyLink to retain hosting and cloud assets supporting network-first and hybrid-IT strategy

CenturyLink said it plans to use the net proceeds from this sale to partly fund its acquisition of Level 3 Communications announced on October 31, 2016. CenturyLink also noted that it will continue to offer colocation services as part of its product portfolio through its commercial relationships to be entered into at closing with the BC Partners/Medina-led consortium.

"After conducting a thorough review process, we are pleased to have reached an agreement with BC Partners," said Glen F. Post III, chief executive officer and president of CenturyLink. "We believe this transaction will benefit customers, employees and investors. Both CenturyLink and BC Partners have a strong customer focus and are committed to ensuring a seamless transition of the customers and their colocation environments."

Justin Bateman, a managing partner at BC Partners, said, "We are excited to be acquiring CenturyLink's portfolio of data center assets. CenturyLink has built and maintained an impressive global footprint of colocation data centers that is unparalleled for a portfolio of assets of this size. Led by Manny Medina and his management team at Medina Capital, these data centers will become part of a new, global secure infrastructure platform that will meet the growing and changing needs of customers today and for the future. We thank Glen Post and the entire team at CenturyLink for their partnership, and we look forward to working together to offer all the data centers' existing customers, as well as new customers, unrivaled datacenter and colocation services."

http://www.centurylink.com
http://www.medinacapital.com

CenturyLink to Acquire Level 3 for $34 Billion


CenturyLink agreed to acquire Level 3 Communications in a cash and stock transaction valued at approximately $34 billion, including the assumption of debt. The deal combines CenturyLink's larger enterprise customer base with Level 3's global network footprint. The companies said this scale will enable further investment in the reach and speeds of its broadband infrastructure for small businesses and consumers. After close, CenturyLink's Glen Post...


BC Partners and Medina Capital Add Analytics to New JV

BC Partners and Medina Capital agreed to acquire Brainspace Corporation, a privately-held machine learning and analytics company based in Addison, Texas.

Brainspace will become part of the new joint venture global cybersecurity company providing software, services and infrastructure. The joint venture includes a portfolio of 57 data centers to be acquired from CenturyLink, along with the acquisition of Medina Capital's portfolio of security and data analytics companies.

"In today's globally-connected, cloud-enabled world, there is a huge challenge and untapped value in being able to surface insights, answers, and threats in unstructured data. With exponential increases in the volume, velocity, and complexity of data, the challenge seems almost insurmountable," said Dave Copps, Chief Executive Officer at Brainspace. "Our products directly address this need through augmented intelligence. Brainspace Discovery 5 utilizes interactive data visualization as a sort of lingua franca connecting people with machine learning and radically improving their productivity. This new venture further validates our mission at Brainspace. With a global footprint of world-class data centers and cybersecurity expertise, Brainspace will be empowered to deliver machine learning, powerful user experiences, and next-generation investigative tools to an even larger number of enterprises and government agencies."

http://www.medinacapital.com/press-releases/bc-partners-jv

Sprint and Google First to Support Universal Profile for Advanced Messaging

Sprint has become first to partner with Google to deploy the GSMA’s Universal Profile for Advanced Messaging. Sprint’s service is available via the Messenger app for Android devices developed by Google to subscribers using Android. In 2017, all new Android devices from Sprint will come pre-loaded with Messenger for Android.

The goal of Universal Profile for Advanced Messaging is to provide users with a common, consistent and globally interoperable service that includes features such as group chat, hi-res photo sharing and read receipts.

The GSMA said the profile has gained the backing of 58 global operators, OEMs and OS providers.

“We are delighted that Sprint has become the first operator to roll out the Universal Profile to their subscribers and hope that this will encourage other markets across the world to follow their lead,” said Alex Sinclair, Chief Technology Officer, GSMA. “A single, open and common universal profile will help to drive the global adoption of RCS services, and make it easier for consumers to enjoy rich, consistent and interoperable messaging experiences regardless of device or network.”

http://www.gsma.com/network2020/universal-profile

Mellanox Pursues Open Source Path for its NPUs

Mellanox Technologies is launching an open source software initiative to enable advanced open networking platforms such as routers, load balancers, and firewalls based on its network processors.

The company is releasing an open SDK for its most advanced network processor unit (NPU), the NPS-400, which delivers programmable packet processing at 600 million packets per seconds..  The Mellanox OpenNPU is made available under either GPL or BSD license. The SDK for the NPS-400 packet processor includes open source driver software, APIs, control and data path libraries, and complete toolchain to program the NPS-400 network processor. In addition, the kit also provides reference applications for switching, routing and IPSec processing. The Accelerated Linux Virtual server (LVS) is provided as an example of how the OpenNPU can be used to provide significant hardware acceleration to the Linux kernel networking stack.

“The market for networking devices is undergoing a major paradigm shift, moving away from closed proprietary OEM network equipment and migrating towards open platforms that are both flexible and configurable,” said Dror Goldenberg, vice president software architecture, Mellanox Technologies. “We are in full support of this movement as evidenced by our initiative to open source the entire suite of Mellanox software for our NPS family of network processors.”

http://www.mellanox.com/page/press_release_item?id=1808

Mellanox Samples its High-end Network Processor

Mellanox Technologies has begun sampling its next generation, NPS-400 network processor, which is capable of performing advanced deep packet processing for security and telecommunications applications at over 800 Gbps.


The NPS features programmable CPU cores that are highly optimized for packet processing and leverage deep packet processing and applications experience, a traffic manager, hardware accelerators for security and DPI (Deep Packet Inspection) tailored for efficiency and performance, on-chip search engines including TCAM with scaling through algorithmic extension to external low-cost low-power DRAM memory and a multitude of network interfaces providing an aggregated bandwidth of 800-Gigabits per second including 10-, 40- and 100-Gigabit Ethernet, Interlaken and PCI Express interfaces. It offers C‑based programming, a standard toolset, support of the Linux operating system, large code space, and a run-to-completion or pipeline programming style. Mellanox supplies a library of source code for a variety of applications.

ZTE plans to use the NPS-400 for its new line cards design for carrier-grade router platforms.

“We are pleased that the NPS network processing unit is now available and shipping to communication technology leaders such as ZTE,” said Marc Sultzbaugh, senior vice president, Mellanox Technologies. “Through the acquisition of EZchip we’ve gained tremendous expertise and advanced network processing capabilities. The NPS is a sixth generation network processor and has evolved to provide unmatched performance and flexibility that meets the needs of the most advanced data center and communications customers.”

http://www.mellanox.com


  • Last month, Mellanox completed its acquisition of EZchip at a total purchase price of approximately $811 million (approximately $606 million net of cash).

Comcast Adds Netflix to its X1 Platform

Comcast will begin delivering the Netflix service over its X1 platform. Netflix content will be fully integrated into Xfinity On Demand, enabling X1 customers to watch past and current seasons of shows.

“We are excited to add Netflix to X1 and give our customers access to all the content they love in a way that has never been done before,” said Neil Smit, Chief Executive Officer, Comcast Cable. “Netflix has been a terrific partner, and our incredible teams of engineers and designers have come together to create an experience that is not only seamless and intuitive, but also lets viewers search and watch tens of thousands of movies, shows, specials and documentaries with the sound of their voice."

“The Netflix integration into the X1 platform means our mutual customers will no longer need to change inputs or juggle remotes,” said Reed Hastings, Netflix Co-Founder and Chief Executive Officer. “Now they can seamlessly move between the Netflix app and their cable service, enjoying all the TV shows and movies they love without hassle.”

http://www.comcast.com

Friday, November 4, 2016

CoreOS Introduces Operators for Kubernetes

CoreOS announced "Operators" - a new capability for making applications easier to run and update on Kubernetes.

An Operator is application-specific software that extends the Kubernetes API to create, configure, and manage instances of complex stateful applications on behalf of a Kubernetes user. Like the built-in Kubernetes API resources, it doesn't manage just a single instance of the application, but multiple instances across the entire cluster.

“An Operator makes managing complex software on top of Kubernetes easy," said Brandon Philips, CTO of CoreOS. "It is for all of those apps that aren't simple to horizontally scale. The big idea is that by installing an operator into your cluster you will get powerful new capabilities like being able to on-demand deploy new distributed databases or monitoring services declaratively with simple commands. This is another step forward in making distributed systems easy to install, run and update.“

https://coreos.com/press/coreos-introduces-operators.html
https://coreos.com/blog/introducing-operators.html

Coriant Supplices DCI for SwissIX

SwissIX Internet Exchange, the largest Internet exchange point in Switzerland, has deployed the Coriant Groove G30 DCI Platform.

“This upgrade represents an important milestone in the SwissIX 2020 infrastructure project as we future-proof our network for the surging bandwidth demands of our peers,” said Ulf Kieber, President, SwissIX Internet Exchange. “The best-in-class Groove solution not only gives us tremendous efficiencies in terms of power and space, but also enables us to expand end-user connectivity to 100G while laying the foundation for core network scalability to 200G and beyond.”

http://www.swissix.ch
http://www.coriant.com

Rivada Disqualified from Mexico's Red Compartida Project

Rivada Networks has been disqualified from the bidding for Mexico’s landmark Red Compartida project, is an initiated by the Mexican government to build a wholesale LTE network operated on 90 MHz of spectrum in the 700 MHz band.

In a press statement, Rivada said it "has complied with every requirement put before us by the Mexican government, despite the fact that the government repeatedly moved the goalposts on bidders in the final weeks and months."

http://www.rivada.com


Thursday, November 3, 2016

Gigamon Enhances FlowVUE Feature with Overlapping Flow Samples

Gigamon introduced a subscriber-based IP sampling paradigm which helps service providers turn big data into manageable data providing greater visibility and insight.

The new capabilities in Gigamon’s FlowVUE application enable users to send overlapping flow samples to multiple analytic tools at the same time.

Gigamon said that by expanding tool rail depth of analysis, operators can gain a multi-dimensional understanding of subscriber behavior and deeper traffic insight for improved and actionable intelligence.

FlowVUE also increases tool performance by scaling the traffic to fit the attached tool processing throughput capacity as the network traffic volumes shift during high and low peak times. Service providers gain new operational efficiencies by avoiding the unnecessary traffic and tool dimensioning of over- and under-subscription across a wide set of tools. The optimized throughput processing allows operators to dimension their tool rail for a specific percentage of the typical busy hour and apply cost savings elsewhere on their network.


“For the first time, service providers can experience higher levels of subscriber-aware visibility and intelligence to make real-time decisions and improved customer experiences,” said Andy Huckridge, director of service provider solutions at Gigamon. “By centralizing and correlating previously siloed data samples with Gigamon’s FlowVUE, service providers can now offer expanded services to their high-value subscribers, create new revenue streams, de-risk new technology rollouts and gain an operational advantage in the process.”

htttp://www.gigamon.com

See 1 Minute video: https://youtu.be/9BXVMfGM7SA



Ericsson Lands Big Managed Services Contract with Turkcell

Turkcell has selected Ericsson to manage and operate its mobile and fiber optic fixed network, which includes microwave links and covers all technologies from 2G to 4G/LTE. Ericsson is now Turkcell's exclusive managed services partner in the Marmara region, which includes Istanbul. The deal extends a long-term partnership between the two companies. Financial terms were not disclosed.

Ericsson said it will also introduce tools, processes and refined ways of working to improve performance, predictability, and quality of services as part of the deal.

Gediz Sezgin, Senior Vice President of Network Technologies at Turkcell says: "Our ongoing strategic cooperation with Ericsson extends beyond our requirements as a mobile network operator. At Turkcell, we continue to invest in both our current network and future technologies. We feel that our ideologies regarding the future of ICT are aligned with Ericsson. We see this cooperation as a milestone in order to reach common goals."

http://www.ericsson.com

Arista Hits Q3 Revenue of $290.3 million, up 33.4% YoY

Arista Networks reported Q3 revenue of $290.3 million, an increase of 8.0% compared to the second quarter of 2016, and an increase of 33.4% from the third quarter of 2015. GAAP gross margin came in at 64.2%, compared to GAAP gross margin of 63.8% in the second quarter of 2016 and 65.2% in the third quarter of 2015. GAAP net income was $51.3 million, or $0.69 per diluted share, compared to GAAP net income of $28.7 million, or $0.39 per diluted share, in the third quarter of 2015.

"I am pleased with our record Q3 2016 earnings and our cumulative shipments of 10 million cloud networking ports,” stated Jayshree Ullal, Arista President and CEO. “These milestones highlight Arista's customer enthusiasm for our new 7000 series products and the inevitable shift from legacy to cloud networking.”

http://investors.arista.com/

Rackspace Completes Privitization

Rackspace is now a private company.  It was acquired by affiliates of funds managed by affiliates of Apollo for $32.00 per share in cash. In connection with the transaction, funds managed by Searchlight Capital Partners, L.P. also made a strategic equity investment in the acquired company. Rackspace's common stock will no longer be listed for trading on the New York Stock Exchange.

"We are excited to begin this new chapter for Rackspace as a private company," said Taylor Rhodes, president and CEO of Rackspace. "I would like to thank our Rackers around the world who, throughout this process, have remained focused on serving our customers. Every day they deliver expertise and Fanatical Support for the world's leading clouds. We look forward to working with Apollo as we manage Rackspace for long-term growth and expand our early leadership of the managed cloud market. We believe that the best years for Rackspace are yet to come."

http://www.rackspace.com

Rackspace to go Private in $4.3 Billion Buyout

Rackspace (NYSE: RAX) announced plans to go private in a buyout led by funds managed by affiliates of Apollo Global Management.

Under the deal, Rackspace will be acquired for $32.00 per share in cash, representing a premium of 38% compared to Rackspace's unaffected closing stock price on August 3, 2016, the last trading day prior to news reports speculating about a potential transaction. In connection with the transaction, funds managed by Searchlight Capital Partners will make a strategic equity investment in the acquired company. The transaction has a total value of $4.3 billion, which includes the assumption of $43 million of net cash.

Taylor Rhodes, president and CEO of Rackspace, said, "We are presented with a significant opportunity today as mainstream companies move their computing out of corporate data centers and into multi-cloud models. Apollo and its partners take a patient, value-oriented approach to their funds' investments, and value Rackspace's strategy and unique culture. This is an exciting transaction for Rackspace and we look forward to working closely together."

Goldman, Sachs & Co. is acting as financial advisor to Rackspace and Wilson Sonsini Goodrich & Rosati, Professional Corporation is acting as its legal advisor.

http://www.rackspace.com

  • Rackspace, which was founded in 1998 in San Antonio, provides businesses with expertise and exceptional customer service for the world's leading cloud platforms, including AWS, Microsoft, and OpenStack (the open-source cloud platform that Rackspace co-founded in 2010, along with NASA). Rackspace has been publicly traded on the New York Stock Exchange since 2008. The company reported 2015 revenue of $2.0 billion.
  • Rackspace collaborated with NASA to develop OpenStack in 2010.

Private Equity Firm Acquires Lattice Semi for $1.3 Billion - FPGAs

Canyon Bridge Capital Partners agreed to acquire all outstanding shares of Lattice Semiconductor Corporation (NASDAQ:LSCC) for approximately $1.3 billion inclusive of Lattice’s net debt, or $8.30 per share in cash. This represents a 30% premium to Lattice’s last trade price on November 2, 2016, the last trading day prior to announcement.

Lattice supplies low power FPGA, video ASSP, 60 GHz millimeter wave, and IP products to the consumer, communications, industrial, computing, and automotive markets worldwide. The company is based in Portland, Oregon.

Darin G. Billerbeck, President and Chief Executive Officer of Lattice, commented, “We are pleased to announce the transaction today with Canyon Bridge, which will unlock tremendous value for shareholders. This transaction is the culmination of an extensive review process with our Board, financial and legal advisers, and it delivers certain and immediate cash value to shareholders while reducing our execution risk. We are excited to leverage Canyon Bridge’s resources and market connections as we enhance our focus on executing our long-term strategic plan of continued innovation. Importantly, we will operate as a standalone subsidiary after the acquisition and do not expect any changes in our operations or our unwavering commitment to continued innovation for our customers.”

Ray Bingham, Founding Partner, Canyon Bridge, noted, “Lattice’s low-power FPGA franchise, along with its video connectivity and wireless solutions, make it a compelling, strategic investment. We expect the Company will continue to leverage its existing customer relationships with major OEMs globally, while further broadening the role of its technology solutions and accelerating its strategic plans.”

http://ir.latticesemi.com/

NeoPhotonics Hits Recrod Revenue of $103M, up 24% YoT

NeoPhotonics, which supplies advanced hybrid photonic integrated optoelectronic modules and subsystems, posted record Q3 revenue of $103.3 million, up $19.8 million, or 23.6%, from the third quarter of 2015, and up $4.2 million, or 4.2%, from the prior quarter. Gross margin was 26.6%, down from 28.4% in the third quarter of 2015, and down from 27.8% in the prior quarter.

“In our third quarter NeoPhotonics delivered solid results with revenue of $103.3 million. High Speed 100G and above products again increased to a record 67% of revenue with unprecedented demand for our 100G and beyond products, which we are seeing as a sustaining mid-term trend,” stated Tim Jenks, President and CEO of NeoPhotonics. “Demand for leading edge high speed products plays directly into our core competencies, making us optimistic about our growth prospects going forward,” concluded Mr. Jenks.

http://www.neophotonics.com

Marvell Cuts 900 Jobs in Restructuring

Marvell Technology Group announced restructuring actions intended to refocus its research and development (R&D), increase operational efficiency and improve profitability. The company will discontinue specific R&D programs, streamline engineering processes, and consolidate R&D sites.

The restructuring, which will eliminate approximately 900 positions worldwide by the end of October 2017, will lower annual operating expenses from a current annualized run rate of $1.08 billion to the $820-840 million range. In addition, Marvell said it plans to divest non-strategic businesses with approximately $60 million in operating expenses and $100 million in revenue, based on a first half of fiscal 2017 annualized run rate.

Matt Murphy, Marvell's President and Chief Executive Officer, explained, "The single biggest factor limiting the potential of the Cloud and utilization of billions of connected devices is the bandwidth of today's technology. By focusing on our strengths in storing, moving, and accessing data at high speeds, Marvell is well-positioned to enable the technology of tomorrow."

http://www.marvell.com/company/news/pressDetail.do?releaseID=8676