Friday, July 21, 2017

Huawei unveils FastReach solution

Huawei, at its recent User Group Meeting held in Xi'an, China, released the new FastReach solution, designed to enable operators to quickly and cost-effectively build and launch broadband networks and improve return on investment.

Huawei's FastReach solution is designed to help operators build broadband networks more quickly and is claimed to reduce site deployment costs by up to 70%. In addition, operators can establish operational environments faster to improve the installation rates of home broadband users, and thereby accelerate ROI.

Overall, the new Huawei solution is designed to speed network construction to help improve FTTx economics leveraging advanced engineering, by enabling infrastructure synergy, and offering enhanced O&M tools.

Huawei's model for rapid broadband network construction encompasses:

1.         Implementing deployment synergy across broadband networks and power facilities and enabling fast fibre routing.

2.         Deploying mini OLTs and wireless base stations within the same cabinet or at the same site to allow operators to reuse infrastructure resources on live networks.

3.         Performing acceptance processes via smartphone apps and without the need for meters to help ensure intelligent, automated and rapid acceptance for optical distribution networks (ODNs), and thus further improve network construction and deployment efficiency.
Huawei's FastReach solution features three core components: mini operations support system (OSS), a number provisioning map, and an app for integrated installation and O&M. These components are designed to enable operators to quickly develop broadband service operations, perform targeted development of broadband users, and improve installation rates. Huawei noted that a lightweight, mini OSS for number provisioning can be deployed in as little as three months.

Additionally, number provisioning maps provide network resource information in different dimensions, including for global position, regional position and building dimensions, allowing operators to create service packages and strategies based on the bandwidth resources available.

The smartphone app for integrated installation, maintenance and operation enables mobility for staff, so that installation and maintenance personnel can promote service packages to users during installation and maintenance tasks.

Describing the new offering, Guo Dazheng, GM of Huawei's network SingleOSS domain, said, "The biggest obstacle hindering the development of emerging markets is excessively low broadband ROI… Huawei believes that by supporting fast network construction and operation, the FastReach solution can help operators develop the broadband user base rapidly and increase installation rates…".

BTL picks Huawei Marine SEUL cable in Belize

Huawei Marine and Belize Telemedia (BTL), the main telecoms operator in the country, announced the delivery of BTL's Strategic Evolution Underwater Link (SEUL) project, bringing optical submarine cable connectivity to San Pedro, Ambergris Caye, the largest island of Belize.

Spanning over 23 km from the Belize mainland to the Caye, the new optical link will support the delivery of high speed broadband to the island.

A joint project by Belize Telemedia and Huawei Marine, the new cable system represents a key milestone in BTL's previously announced four-year $100 million investment program to transform and modernise the country's mobile and landline infrastructure. With the installation of the submarine cable, BTL will be able to offer its DigiNet Broadband product, with speeds of up to 100 Mbit/s, to customers on the island of Ambergris Caye.

BTL noted that in June of this year its CEO Rochus Schreiber met with Daniel Guerrero, the mayor of San Pedro Town, to discuss the coordination of efforts for future fibre installation works and the forthcoming DigiNet service offers. BTL expects to begin offering residents and businesses on the island faster, more reliable and affordable fibre-based broadband from August 2017.

BTL is the leading telecoms provider in Belize, offering mobile (via the DigiCell brand), landline and broadband services to the residential and commercial markets, with full reach throughout the country. The company is owned 63% by the government of Belize, with the remaining shares held by domestic institutional investors and individuals.

Regarding the project, BTL CEO Rochus Schreiber, commented, "The SEUL project is an important element of BTL's transformative Network Evolution Plan, and its delivery permits high-speed network connection between Belize and the island of Ambergris Caye, which will significantly enhance the prospects for economic development on the Caye… and eventually throughout the country".

Australia's nbn selects ADTRAN

ADTRAN announced the signing of a supply agreement covering software, hardware and services with nbn, the company building the national wholesale broadband network in Australia, to support the expansion of high-speed broadband access to the citizens across Australia.

ADTRAN noted that a number of key milestones have been completed, and that as part of this work with nbn it has successfully completed a GPON network interoperability proof-of-concept program. In addition, ADTRAN IT specialists have been working in a collaborative development process with the nbn IT team to implement standards-based, multi-vendor DPU management solution utilising an open microservices architecture.

ADTRAN's Software-Defined Access (SD-Access) solutions combine web-scale technology with open-source platforms and are designed to facilitate innovation in multi-technology, multi-vendor environments. SD-Access releases control and management functions from the underlying network elements, enabling a more flexible and agile services delivery framework. This flexibility leverages an open microservices architecture that helps network operations and IT development teams work together.

nbn is building a new and upgraded wholesale broadband network to provide communities across Australia with access to fast broadband service from retail service providers. The company is aiming to connect 8 million homes and businesses by 2020. nbn recently announced that one-in-two Australians were able to connect to the nbn network, with more than 5.7 million homes and businesses able to order a service from their retail provider as it continued to add up to 100,000 new properties to its footprint each week.

Commenting on the agreement, nbn's chief network deployment officer Kathrine Dyer said, "The rollout of the nbn network is one of the most complex and ambitious telecoms projects to be undertaken… nbn is working with ADTRAN on bringing the network into reality, including working together on its fibre-to-the-kerb/curb (FTTK/C) network that is set to serve more than one million homes and businesses by 2020".

Dell'Oro estimates cumulative $6bn 5G RAN market to '21

Dell'Oro Group finds in its latest Mobile RAN 5-year Forecast Report that while overall RAN market conditions are expected to remain challenging in the near-term, growing adoption of LTE small cells and 5G macro technologies will drive a return to market growth towards the end of the forecast period, and predicts that cumulative 5G RAN investment will exceed $6 billion by 2021.

Further highlights from Dell'Oro's mobile RAN forecast report include:

1.         LTE and 5G small cell RAN revenue is expected to increase 4-fold over the forecast period to 2021.

2.         Millimetre-wave technology is expected to account for less than 5% of the overall 5G equipment market by 2021.

3.         Almost half of 5G RAN market revenue will feature C-RAN and cloud-RAN architectures by 2021.

Dell'Oro notes that cumulative revenue for the total RAN market between 2017 and 2021 looks set to experience the weakest five-year period since it began tracking the market in 2000.

Regarding the report, Stefan Pongratz, senior director at Dell'Oro Group, said:

"A stronger focus than initially envisioned on the sub-3 and -6 GHz 5G macro layers, coupled with a robust outlook for LTE small cells, form the basis for a more optimistic view of the overall RAN market in the outer part of the forecast".

"Although the IoT impact on the RAN market remains highly uncertain, the demand for enhanced mobile broadband is expected to remain robust, resulting in strong 5G macro uptake in the advanced mobile broadband markets, with China, Japan, Korea, and North America accounting for more than 90% of the 5G market by (2021)".

Equinix appoints Charles Meyers as president, strategy, services & innovation

Equinix, the global interconnection and data centre company, has announced the appointment of Charles Meyers to the newly created role of president of Strategy, Services and Innovation, effective August 1st, responsible for leading the strategic business teams supporting the company's next phase of growth as it focuses on addressing the changing needs of customers and partners.

Encompassed within the new Strategy, Services and Innovation unit are the office of the CTO, business development, product management and product engineering. The unit also includes new business teams that are being formed to position Equinix for the future by: optimising the company's position as a strategic enabler of cloud services; identifying key growth areas that align to its long-term strategy; and evaluating and translating key market, competitive and technology trends into actionable business requirements.

Equinix noted that as the leader of the new Strategy, Services and Innovation group, Mr. Meyers, who currently serves as COO, will shift his focus from the core operations of the business to ensuring that Equinix keeps pace with the changing customer requirements in an increasingly 'cloud-first' world. He will also focus on identifying key growth areas and applying expertise and resources to addressing these opportunities while aligning them with the company's long-term strategy. He will report to CEO Steve Smith.

Charles Meyers joined Equinix in 2010 as president of the Americas region; in 2013, he was promoted to the role of COO, where he has overseen global sales, marketing, operations and client services activities. In this role, Mr. Meyers has played a key role in enhancing Equinix's operating disciplines globally, identifying and driving best practices, and delivering a more consistent global experience for customers.

6WIND and ALAXALA expand 10-year partnership

6WIND, a supplier of high-performance networking software, announced that Japan-based ALAXALA, a networking company delivering switching and routing technologies and a joint venture between Hitachi and NEC, has expanded the existing 10-year partnership to increase performance for ALAXALA's carrier grade switch and router products.

6WIND noted that over the past decade ALAXALA has based its networking equipment on 6WIND's 6WINDGate packet processing software. 6WINDGate is designed to meet the feature, performance and capacity requirements of ALAXALA switches and routers that support the operations of carriers/ISPs and provide core functions in the backbone networks of large enterprise and public systems.

To enhance packet processing capacity and performance across its next-generation of telecom networking solutions, ALAXALA is expanding its partnership with 6WIND to encompass support for new generation multi-core network processors and additional software modules. In addition to 6WIND's software, ALAXALA is able to leverage 6WIND's network software design skills, software development capabilities and licensed support.

Under the extended partnership, ALAXALA gains access to the following 6WIND software and capabilities including: networking performance acceleration and portability; accelerated Layer 2 to 4 networking stacks for application performance and portability across hardware platforms; and scalable software that supports a full range of products to facilitate ease-of-use.

* 6WIND recently announced that its Turbo IPsec network software could be combined with the new Intel Processor Scalable family and Xeon Platinum 8170 processors to meet the demands of data centre and managed network operators seeking to address performance-oriented applications.

6WIND Turbo IPsec is a high-performance, ready-to-use IPsecurity VPN software designed to be deployed in bare metal environments or as a virtual machine on COTS (commercial-off-the-shelf) servers.

Thursday, July 20, 2017

MEF launches initiative to define and orchestrate SD-WAN services

The MEF announced it is extending its work to standardise SD-WAN managed services, and is defining SD-WAN service terminology, components and implementations in the context of its LSO (Lifecycle Service Orchestration) Reference Architecture and Framework (MEF 55).

The MEF initiative is intended to ensure the consistency of performance, policy and security of SD-WAN services orchestrated across multiple provider networks leveraging open LSO APIs.

Key MEF SD-WAN initiatives and deliverables

SD-WAN service implementations

  • MEF's established OpenCS (Open Connectivity Services) SD-WAN Project is currently focused on delivering use cases and business requirements to ensure that open standard LSO APIs can enable orchestration of SD-WAN managed services across multi-provider, multi-vendor implementations. The MEF community has agreed on the first six SD-WAN managed services use cases.
  • The OpenCS SD-WAN project will also deliver a set of LSO APIs designed to enable consistent SD-WAN assurance, application performance and security policies, to include telemetry data feeding back into LSO analytic platforms for various AI automated use cases.
  • The OpenCS SD-WAN project is led by Riverbed and VeloCloud Networks, with contributions from Amartus, Cox, Fujitsu Network Communications, GBI, Huawei, and Nokia/Nuage. Silver Peak and Versa Networks have joined as MEF members to contribute to the SD-WAN work.
SD-WAN market education

  • MEF recently created the SD-WAN Market Education Project to explain its position on SD-WAN and how it aligns with other initiatives related to orchestrated Layer 1-7 services enabled by LSO APIs. As part of this program, it has released the white paper 'Understanding SD-WAN Managed Services: Service Components, MEF LSO Reference Architecture, and Use Cases'.

A critical launch for Intelsat's EPIC NG satellites – Part 1

After two scrubbed launch attempts, SpaceX successfully launched the heavy Intelsat 35e EPIC Next Generation satellite to geosynchronous orbit aboard a Falcon 9 rocket from NASA's Kennedy Space Center in Florida. SpaceX, which did not attempt to land the first stage of the Falcon 9 rocket onto a drone ship due to the mission requirements, has now completed ten launches this year and three in the past 13 days.

For Intelsat, the successful launch is especially good news. With over $14 billion in debt and a market capitalisation of under $400 million (its shares are currently trading in the $3 range) Intelsat is racing to migrate customers off an aging fleet of legacy satellites and onto its EPIC NG satellites. After the launch, Stephen Spengler, CEO of Intelsat, stated that the successful launch of Intelsat 35e was a major milestone in its business plan for 2017, furthering the footprint and resilience of Intelsat's EPIC NG infrastructure.

These new satellites are the future of Intelsat, at least that is the plan now that a previously announced plan to merge with OneWeb, a hot new venture backed by Softbank, the Virgin Group, Airbus, Cocacola, Qualcomm and others, was unexpectedly dropped last month. OneWeb aims to transform space communications with hundreds of low-earth orbit (LEO) satellites. Merging with Intelsat would bring the possibility of combining LEO and GEO satellite constellations. The deal was also expected to bring in much needed cash to Intelsat, which for now really needs its EPIC NG satellites to meet or exceed its technical and economic expectations.

Intelsat EPIC Next Generation

The newly-launched Intelsat 35e satellite is the fourth of seven planned EPIC NG high throughput satellites. Intelsat 29e, launched in January 2016 from French Guiana aboard an Ariane 5 launch vehicle, brings high throughput capacity in both C- and Ku-band over the Americas and North Atlantic Ocean region.

Intelsat 32e

Intelsat 32e, launched February 2017 from French Guiana aboard an Ariane 5 launch vehicle, while part of the EPIC fleet, is operated by Intelsat on behalf of SKY Brasil.

Intelsat 33e

Intelsat 33e, launched in August 2016 from French Guiana aboard an Ariane 5 launch vehicle, brings high throughput capacity in both C- and Ku-band to the Africa, Europe, Middle East and Asia regions from 60°E. Customers include maritime broadband providers GEE, Speedcast and Marlink; in-flight providers Gogo and Panasonic Avionics, a Pakistan ISP called SuperNet, Telkom South Africa, Orange Cameroon, IP Planet, Vodacom, Djibouti Telecom and Africell RDC SPRL, Russian network service providers Romantis and RuSat and several TV and radio broadcasting companies, including Television and Radio Broadcasting of Armenia and MultiChoice of South Africa.

Intelsat 35e

Intelsat 35e will cover the Americas, Europe and sub-Sahara Africa from the 34.5° west longitude. It carries a unique payload of C-band wide- and spot-beams for applications including wireless backhaul, enterprise and mobility services. A customised high power wide beam will be used for DTH service delivery by Canal+, with additional confirmed customers including Orange, INWI, Tele Greenland, Sonatel, Marlink, Speedcast, ETECSA and eProcess.

Intelsat 37e

Intelsat 37e is scheduled for launch in August 2017 from French Guuiana aboard an Arianne 5 launch vehicle. Its orbital location has not yet been listed.

Two additional satellites in the EPIC NG line have been mentioned but so far the company has not reported a production contract, a launch partner contract or even a timeline for when these might enter service.

Intelsat first unveiled its EpicNG platform in 2012. It is based on a new approach to satellite and network architecture utilising multiple frequency bands, wide beams, spot beams and frequency reuse technology. Epic NG is the company's next generation of satellites, promising higher throughputs and lower cost per bit. It will be a complementary overlay to the company's existing constellation of satellites and global IntelsatONE terrestrial network.

Intelsat’s Epic NG satellites were designed and manufactured by Boeing on the Boeing 702MP satellite bus, a platform that weighs up to 6,100 kg (13,400 lb) and supports power outputs from 3 to 18 kW. Compatible launch rockets for the Boeing 702MP include the Atlas V, Ariane 5, Delta IV, Falcon 9, Proton and Sea Launch systems, although for the EPIC program Intelsat has contracted with Ariane Space and SpaceX. The EPIC satellites have a design life of 15 years, so the current generation of Intelsat satellites could remain in commercial service until the early 2030s if they have not been superseded by other platforms.

Company profile and its legacy fleet

Intelsat was founded in 1964 as an inter-government organisation for managing the new field of space communications. Its first satellite went into service over the north Atlantic a year later. In July 2001, Intelsat became a private company. In 2005, it was acquired for $3.1 billion by four private equity firms: Madison Dearborn Partners, Apax Partners, Permira and Apollo Global Management. In 2006, Intelsat acquired PanAmSat, then the largest satellite carrier of TV channels, in a deal valued at $4.3 billion. In 2013, Intelsat was relisted as a public company and its shares are traded on the NYSE under the symbol 'I'. Intelsat maintains its headquarters in Luxembourg and an administrative office in Tysons Corner, Virginia.

Intelsat currently has a fleet of approximately 50 in-service satellites, 8 teleports and the IntelsatOne terrestrial network. The in-service satellites cover 99% of the world's populated regions, including market access in approximately 200 countries and territories.

How much traffic is carried over this network?

At an investor event at the end of April 2017, Intelsat disclosed that its fleet is currently carrying over 5,600 video channels, including approximately 900 high definition channels. System utilization is listed at 78% of total available capacity of approximately 2,050 station-kept units (36 MHz). (NB: this station-kept transponder count does not include Intelsat EPIC NG capacity).

Financial profile

For Q1 2017, Intelsat reported total revenue of $538.5 million and net loss of $34.6 million. EBITDA amounted to $398.1 million and adjusted EBITDA was $409.8 million, or 76% of revenue for the three months ended March 31, 2017. The Q1 revenue total represented a 3% decline compared to $553 million in the first quarter of 2016. Net loss attributable to Intelsat was $35 million for the three months ended March 31, 2017, compared to net income of $15 million in the prior year period. Intelsat said the net loss reflects lower revenues, an increase in interest expense and greater depreciation related to the satellites placed into service over the course of 2016.

At the same investor event on April 27, 2017, Intelsat affirmed its full-year 2017 guidance, saying its revenue is projected to be in a range of $2.180 to $2.225 billion. Full-year 2017 adjusted EBITDA is expected in a range of $1.655 to $1.700 billion. Recently, Intelsat disclosed that the U.S. government has contracted capacity on both Intelsat 29e and 33e, representing a total capacity of approximately 180 MHz.

In April 2017, Liquid Telecom signed a new, multi-year agreement for dedicated services on Intelsat 33e including a ground networking solution based upon technology developed under the European Space Agency-funded Project Indigo. The new Intelsat Epic NG services will expand Liquid Telecom's coverage and network capabilities across the Democratic Republic of Congo, Kenya, Malawi, South Africa, Tanzania, Uganda, Zambia and Zimbabwe, where demand has grown for VSAT technology to deliver connectivity to underserved remote or rural areas.

(Part 2 will discuss the abandoned OneWeb transaction and other key trends in satellite networking.)

ZTE expects H1 revenue of RMB 54.01bn, up 13.1% YoY

ZTE has announced preliminary financial results for the first half ended June 30, 2017, as follows:

1.  Operating revenue for the first half of 2017 of RMB 54.01 billion (approximately $8.00 billion), up 13.1% compared with RMB 47.76 billion in first half of 2016.

2.  Operating profit for the first half of RMB 3.29 billion, up 564.8% compared with RMB 495 million in first half of 2016.

3.  Net profit attributable to shareholders of RMB 2.29 billion (approximately $339 million), up 29.8% compared with profit of RMB 1.77 billion in first half of 2016.

ZTE noted that in carrier networks it experienced growth in both operating revenue and gross profit for wireless communications and fixed-line and bearer systems as domestic carriers in China continued to invest in transmission and access systems for 4G projects. In the consumer business, it achieved growth in operating revenue and gross profit for handset products supported by overseas market development.

Dell'Oro forecasts microwave transmission market of $3.8bn by '21

According to the latest Microwave Transmission & Mobile Backhaul 5-year Forecast Report from Dell'Oro Group, the microwave transmission and mobile backhaul markets will continue to contract for another two years before returning to growth in 2019.

Dell'Oro expects that from 2019 market growth will be driven by the increasing use of outdoor small cells and the ramp of large-scale 5G mobile radio deployments.

Further highlights from Dell'Oro's microwave transmission and mobile backhaul forecast report include:

1.  Due to the demands of small cell deployments and the capacity requirements of 5G mobile radios fibre and copper will account for a higher share of the market for backhaul links in the future.

2.  The overall market for small cell backhaul equipment utilising fibre, copper or wireless technologies is forecast to reach $1.6 billion by 2021.

3.  The microwave transmission market is projected to total $3.8 billion by 2021, with mobile backhaul constituting approximately 70% of this revenue.

Regarding the report, Jimmy Yu, VP at Dell'Oro Group, commented, "It will likely continue to be a difficult environment for mobile backhaul equipment sales for the next two years… however, I see light at the end of the tunnel, and if (this forecast is) correct and the mobile backhaul market resumes growth in 2019, I believe that market revenue can rise to at least $5.5 billion by 2021".

Microsemi integrates Ethernet MAC to deliver FPGA 10 GBE

Microsemi, a provider of advanced semiconductor solutions, and Tamba Networks, a developer of connectivity intellectual property (IP) cores, have announced a collaboration through which they will incorporate Tamba Networks' Ethernet media access controller (MAC) into Microsemi's latest cost-optimised, mid-range PolarFire FPGA to offer a low power FPGA-based 10 Gigabit Ethernet solution.

Tamba Networks' Ethernet MAC is claimed to occupy half the area and to deliver twice the speed of competing Ethernet MACs, and can therefore offer Microsemi customers a lower cost solution based on its compact size combined with the security and advanced capabilities of PolarFire FPGAs.

As part of the collaboration with Tamba Networks, Microsemi has adopted the company's Interlaken and 10/40 Gigabit Ethernet MAC soft cores as key building blocks to evaluate and enhance PolarFire FPGAs' fabric architecture, with 10 and 40 Gbit/s datapaths running at 160 MHz and 320 MHz.

The Tamba Networks cores are designed to offer low gate count and latency along with flexibility. When combined with Microsemi's low power fabric and transceiver, the 10 Gigabit Ethernet soft core enables a 10 Gbit/s datapath that is claimed to offer 50% lower power consumption. Microsemi noted that the device is also available as a direct core from its IP library.

Microsemi stated that Tamba Networks was involved in the development of the PolarFire transceiver physical coding sublayer (PCS), providing the 64b66b/64b67b encoding modules used for Ethernet and Interlaken, and also helped modify the 64b66b encoder to operate with deterministic latency, providing support for common public radio interface (CPRI) options 7b, 8 and 9.

Microsemi's PolarFire FPGAs also target applications in the communications market, including access network, network edge, metro (1 to 40 Gbit/s), mobile infrastructure, wireless backhaul, smart optical modules and video broadcasting.

Microsemi noted that its PolarFire FPGAs are particularly suited to the access network infrastructure applications, where OEMs wish to deliver more bandwidth to customers while reducing costs.

ADVA's Q2 Revenue Declines 8.3% YoY, Outlook is Trimmed

ADVA Optical Networking reported Q2 2017 revenue of  EUR 144.2 million, down 8.3% YoY compared to EUR 157.2 million for the same period last year. Pro forma operating income in Q2 2017 stood at EUR 9.2 million or 6.4% of revenues, up from EUR 6.6 million or 4.7% of revenues in Q1 2017. This number represents a EUR 5.0 million YoY increase (Q2 2016: EUR 4.2 million) and is also within previously announced guidance.

"These are exciting and turbulent times for our industry," said Brian Protiva, CEO, ADVA Optical Networking. "It's a time of incredible contrasts. On one side, cloud and mobility continue to be mega growth drivers driving demand for more bandwidth. On the other hand, our industry continues to face pricing pressure and fierce competition creating the need for further consolidation. Our bid to acquire MRV Communications will enable us to expand our customer footprint, expand our market leadership in Ethernet access devices and expand our portfolio of packet optical solutions. The combined product portfolio will be supported by our continued commitment to operational excellence providing our customers with response times that are unmatched in the industry. Our world-class engineering team, the agility of our organization and our customer focus give us a solid foundation for further growth and profitability."

"Our revenues are currently developing in a non-uniform way," commented Uli Dopfer, CFO, ADVA Optical Networking. "With the FSP 3000 CloudConnect(TM), we are attracting new customers from different regions and customer segments. However, the current demand from one of our top customers in the ICP segment is still weak and we have not yet been able to design in our FSP 3000 CloudConnect(TM). As a result, the revenue outlook for the remainder of the fiscal year is subdued. Only via a fast and efficient integration of MRV Communications will we be able to stabilize revenues close to last year's level. Owing to the weakened revenue development and the expected takeover of MRV Communications, we will be revising our cost structures and cut back on operating costs."

For Q3 2017, ADVA Optical Networking said it now expects revenues to range between EUR 120 million and EUR 130 million and anticipates a pro forma operating income of between 2% and 5% of revenues.

ADTRAN reports Q2 revenue of $184.67m, up 13.5% yr/yr

ADTRAN reported financial results for the second quarter ended June 30, 2017 as follows:

1.  Revenue for the second quarter of 2017 of $184.67 million, up 8.4% compared to $170.28 million in the first quarter and up 13.5% from $162.70 million for the second quarter of 2016.

2.  Gross profit for the second quarter of $84.63 million, up 14.8% compared to $73.71 million in the first quarter and up 7.2% from $78.95 million for the second quarter of 2016.

3.  R&D expenditure for the second quarter of $33.50 million, up 4.9% compared to $31.92 million in the first quarter and up 7.1% from $31.28 million for the second quarter of 2016.

4.  SG&A expenditure for the second quarter of $34.68 million, down 0.3% compared to $34.77 million in the first quarter and up 1.8% from $32.87 million for the second quarter of 2016.

5.  Total operating expenditure for the second quarter of $68.18 million, up 2.2% compared to $66.68 million in the first quarter and up 6.3% from $64.14 million for the second quarter of 2016.

6.  Net income for the second quarter of 2016 of $12.40 million, compared to net income of $6.65 million in the first quarter and net income of $10.23 million for the second quarter of 2016.
7.  Cash, cash equivalents and short-term investments as of June 30, 2017 of $136.13 million, versus $125.02 million as at March 31, 2017 and $123.08 million as at December 31, 2016.

Additional results and notes

ADTRAN reported Network Solutions revenue in the second quarter 2017 of $155.54 million, versus $143.60 million in the first quarter, and Services & Support revenue of $29.13 million, compared with $26.68 million in the first quarter. Access and Aggregation revenue totalled $138.64 million, versus $120.14 million in the first quarter.

For the second quarter, ADTRAN reported domestic revenue of $146.71 million, versus $119.26 million in the first quarter, with international revenue of $37.96 million, compared with $51.02 million in the first quarter.

Nuage Cites Momentum in SD-WAN Adoption

TELUS is using Nuage Networks' SD-WAN solution to power its newly launched Network as a Service (NaaS), which enables Canadian businesses to virtually build, manage and cloud-optimize their networks. TELUS NaaS enables cloud-optimization for business applications through improved network performance and customizable policies that ensure mission-critical traffic, like VoIP, is prioritized over other types of traffic. TELUS said its service can reduce network deployment time by up to 80 percent and that it provides full line of sight to network performance data.

Nuage said the deployment with TELUS is indicative of a larger trend worldwide as enterprises recognize that their WAN services and architectures require significant transformation to take advantage of multicloud services. Some of its recently announced SD-WAN wins include BT, China Telecom, Exponential, NTT Data, Telefonica, Telia Finland, AscoTLC and My Republic.

Nuage capabilities include:

  • Automated end-to-end enterprise service delivery between datacenters and branch offices while offering seamless connections to public cloud services.
  • Value-added services by deploying third-party Virtual Network Functions (VNFs) at enterprise branch locations on top of open, virtualized "branch-in-the box" platforms.
  • A network analytics and performance monitoring solution (Virtualized Service Assurance Platform, or VSAP ) and software-defined security (Virtualized Security Services, or VSS ) that provides industry-leading insight and remediation capabilities.

"Nuage Networks has become a leader in helping service providers deliver fully automated and self-service SD-WAN solutions to enterprise customers who are looking to connect their users quickly and securely to applications in private and public clouds. Our platform is present in the world's largest carrier-grade networks and is being deployed as a complete overlay that can serve as a natural extension of customers' existing L2 and L3 MPLS VPN and other WAN service offerings to remote sites. We are the only vendor that offers a single SDN automation platform for the datacenter, WAN and public cloud - providing operational simplification, agility and significant cost savings across the multiple cloud-based services currently offered by these providers," stated Sunil Khandekar, Nuage Networks CEO and founder.

SDN Market Update: Sunil Khandekar, Nuage Networks

What is resonating in the market today for software-defined networking (SDN) and SD-WAN technologies? Sunil Khandekar, founder and CEO of Nuage Networks, says it is the ability to connect users everywhere with applications anywhere, whether they are in public or private clouds. Real deployments are becoming the new normal.

See video:

i3 Broadband selects Huawei for residential broadband in Illinois

Huawei announced that i3 Broadband, a regional provider of fibre-based Internet services, has selected the company to enhance its deployment of services to residential homes and multi-dwelling units (MDUs) in the Champaign-Urbana and the greater Peoria areas of Illinois.

Huawei's scalable, end-to-end broadband solutions will enable i3 Broadband to expand its service offering to existing users, as well as help it to save time and reduce costs when installing connections to new MDU customers.

i3 Broadband noted that, driven by an increase in multifamily residential building construction, as well as growing customer demand for faster broadband speeds, it is experiencing increasing demand from MDU customers. To address this need, i3 Broadband has partnered with Huawei for the supply of GPON, NG-PON and D-CCAP technologies that can support gigabit services to MDUs.

Huawei stated that a key factor in its selection by i3 Broadband was its ability to offer cost-effective, future-proof solutions, which are designed to support software upgrades and eliminate the need to install new equipment.

* Recently, i3 Broadband announced plans to commence network construction in multiple neighbourhoods as part of a multi-year, multi-million dollar investment to extend the fibre network throughout Champaign-Urbana, Illinois. i3 Broadband is deploying FTTH infrastructure to deliver gigabit broadband, video and voice services to customers in the area.

* i3 Broadband is the local commercial partner that is working with the UC2B not-for-profit board to extend fibre connectivity to homes and businesses. The network expansion was to extend the initial UC2B fibre backbone build carried out from 2010 to 2013 that was supported by $26 million in federal and state grants and in-kind contributions from the cities of Champaign and Urbana and the University of Illinois.

Wednesday, July 19, 2017

Tintri offers Lego-like Enterprise Cloud Amidst Fierce Competition

Tintri, a networking start-up from Silicon Valley, made its initial public offering (IPO) on June 30,2017 and its shares are now trading on NASDAQ under the symbol 'TNTR'. The IPO raised approximately $60 million for the Mountain View, California-based company – a lukewarm Wall Street response considering earlier speculation that the shares might debut in the range of $10.50 to $12.50. Many expected the IPO to occur at the start of last week and at the higher price range. It was not clear why the IPO was delayed by a few days, but the lower price must have caused consternation for early investors and employees. Post IPO, Tintri, which means 'lightning' in the Irish language, currently has a market capitalisation value of about $225 million.

Tintri was founded in 2008 by Kieran Hearty, who had previously led engineering at VMware, and Mark Grittier, who had previously worked on software engineering at Sun Microsystems. The first products were introduced nearly 3 years later in March 2011. In August 2015, Tintri raised a $125 million Series F funding round led by Silver Lake Craftwork and included existing investors Insight Venture Partners, Light speed Ventures, Menlo Ventures and NEA. In December 2016, Charles Giancarlo, the former CTO of Cisco Systems, joined the Tintri board.

Tintri prides itself of having developed an enterprise cloud platform with a 'Lego-like' design that allows for every storage action at the individual virtual machine level. The value proposition is simple: scale the enterprise cloud from terabytes of storage to multiple petabytes as efficiently as possible. The Tintri CONNECT web services architecture use the 'Lego' building-block approach predicated on REST APIs and VM and container level abstraction. The frameworks runs applications on resource pools that span VMware, Citrix,Microsoft and OpenStack. This supports a DevOps model, where resource can be spun up or torn down on-demand, including via automated bots or modern interfaces such as Slack or Amazon's Alexa. To deliver this, Tintri's platform integrates cloud management software, web services and a range of all-flash storage systems.

A key ingredient is a virtualisation-aware file system that allows an organisation to view, manage and analyse application performance and quality of service. In a sense, it enables a private version of a public cloud. Use cases include server virtualisation, virtual desktop infrastructure, or VDI, disaster recovery and data protection, and development operations, or DevOps. Tintri says it has an advantage because innovation in storage has lagged and lacked granular level operation at the VM and container level. Marquee customers include AMD, F5 Networks, GE, NEC, NTT, MillerCoors and Time Warner.

Key metrics on Tintri:

The company has more than 575 employees, over 1,300 customers, including 21 of the Fortune 100, 9 of the 16 largest U.S. federal government agencies and multiple cloud service provider customers. In 2015, it had revenue of $49.8 million, a net loss of $69.7 million, and gross margin of 56%; for 2016, revenue was $86.0 million, net loss $101.0 million and gross margin 63%; for 2017 its revenue was $125.1 million, net loss $105.8 million and gross margin of $65%. Accumulated deficit as of January 31, 2017 was $338.7 million.

A wide field of competitors

In enterprise networking, it is safe to say that every vendor has been moving toward cloud or hybrid cloud solutions for some time. For Tintri, though it may have been early to foresee the need for enterprises to rapidly scale their storage in a cloud-friendly way, there is now strong competition from both the larger, multinational vendors and a wave of nimble competitors from both the software and storage fields. Key competitors include the following.


Nutanix offers hyperconverged appliances combining compute, storage and networking. This is a different approach to software-defined storage that appeals in many similar use cases. For a size comparison with Tintri, Nutanix recently reported Q1 2017 revenue of $191.8 million, up 67% year-over-year.

Dell EMC

Dell EMC, which can be considered the king of storage and file management, with the newly combined company pulling together the full picture of hybrid enterprise cloud IT, including security.


NetApp has been delivering enterprise storage and file management solutions since 1992. In December 2016, NetApp agreed to acquire SolidFire for $870 million in cash, significantly more than the current market capitalisation of Trintri. SolidFire specialised in all-flash storage systems for next-generation data centres. Its distributed, self-healing, webscale architecture also promise seamless scalability, white box economics, and radically simple management. This enables customers to accelerate third platform use cases and webscale economics. SolidFire was recognised as an active leader in the cloud community with extensive integrated storage management capabilities with OpenStack, VMware, and other cloud frameworks.


In May 2017, Hewlett Packard Enterprise agreed to acquire Nimble Storage, a supplier of predictive all-flash and hybrid-flash storage solutions, for $12.50 per share in cash, representing a net cash purchase price at closing of $1.0 billion. In addition to the purchase price, HPE also agreed to assume or pay out Nimble's $200 million in unvested equity awards. Nimble offers midrange flash storage solutions featuring an intelligent, predictive analytics engine that assesses performance issues across the full data path, from apps to the array.  In addition, Nimble has recently introduced multi-cloud storage services that combine the best of on-premises and public cloud storage capabilities for hybrid IT deployments. Nimble, which is based in San Jose, California, was founded in 2007 and has approximately 1,300 employees worldwide. The company delivered revenue of $402 million in its most recent fiscal year, up 25 percent year over year.

Hitachi Data Systems

HDS, which traces its roots back to Itel, an early player in the mainframe market, is also based in Silicon Valley. The company offers increasingly sophisticated file management technologies.


In 2015, IBM announced plans to invest $1 billion over the next five years to develop next-generation technologies for software-defined storage. IBM intends to focus this investment on R&D of new cloud storage software, object storage and open standard technologies including OpenStack. The IBM Spectrum Storage portfolio, which already incorporates more than 700 patents held by the company, will be directed toward helping enterprises transform to a hybrid cloud.


In 2013, VMware acquired Virsto Software, a start-up offering software for optimising storage performance and utilization in virtual environments. Virsto, which was founded in 2007 and was based in Sunnyvale, California, developed a storage hypervisor that 'does for storage what the server hypervisor did for servers'.

Pure Storage

Last month, Pure Storage, which is known for its all-flash arrays, unveiled its vision for multi-cloud data management. This system also promises support for VMware VVOLs, Microsoft ODX, Docker Persistent Containers, native data protection integration with public cloud providers, and pre-validated FlashStack.

BT Openreach seeks support for large-scale roll-out of full fibre

BT unit Openreach has called for greater industry and political collaboration to support the construction of a large-scale, full-fibre broadband network that could help strengthen UK competitiveness and its position as a leading digital economy in the G20 group of countries.

Openreach provides phone and broadband infrastructure to around 30 million UK homes and businesses via more than 580 communications provider customers, and has launched a consultation with retail providers and is engaging with government and the regulator Ofcom to identify locations with widespread demand for a large-scale, full fibre, or FTTP, network capable of delivering more reliable service and gigabit speeds.

Openreach will also assess the potential market benefits of implementing such a major infrastructure deployment and seek support for the key enablers required to make a commercial investment case viable.

The enablers that Openreach believes are necessary to drive larger scale FTTP deployment include:

1.  Greater collaboration, including new investment, risk and cost sharing models.

2. Agreement on how the mass migration of customers onto the new platform can be achieved.

3. Reducing logistical barriers, for example improved planning and traffic management processes.

4. Agreement on the right method for sharing the costs of FTTP investment.

5.  A new legal and regulatory environment that will encourage investment.

Openreach noted that, drawing on BT's R&D teams at its labs in Martlesham Heath in Suffolk, it recently became the first company to demonstrate 100 Gbit/s speeds utilising its existing FTTP infrastructure, illustrating the potential to meet future consumer and business bandwidth demands.

Openreach stated that it is currently working towards making ultra-fast speeds of more than 100 Mbit/s available to 12 million UK homes and businesses by the end of 2020 employing a mixture of technologies. However, it is also interested in exploring the conditions that could allow it to invest in more full-fibre infrastructure.

Over the last decade, Openreach noted that it has invested more than GBP 11 billion in its network and currently manages more than 158 million km of cable extending from Scotland to Cornwall and from Wales to the east coast.

Commenting on the initiative, Clive Selley, chief executive of Openreach, said, "With the right conditions I believe Openreach could make FTTP available to as many as 10 million homes and businesses by the mid-2020s, but it needs to understand if there is sufficient demand to justify the roll-out and support for the enablers needed to build a viable business case… that includes removing barriers to investment and incentivising those… prepared to take a commercial risk".

Deutsche Telekom tests ADTRAN 212 MHz, cDTA

ADTRAN, a provider of next-generation open networking solutions, announced the commencement of lab testing of the latest developments for the standard, 212 MHz and coordinated dynamic time allocation (cDTA), in partnership with Germany-based global telco Deutsche Telekom (DT), serving around 165 million mobile customers, 28,5 million fixed-network lines and 18,5 million broadband lines.

ADTRAN stated that DT is currently evaluating these ultra-broadband technologies using fibre-to-the-building (FTTB) deployment models that allow the use of existing cable infrastructure within the home. This can support the rapid deployment of ultra-fast and gigabit broadband services with less disruption. The low cost per-subscriber connection will also support the European Commission's Gigabit Society objectives.

ADTRAN noted that it has demonstrated the new 212 MHz standard, which doubles the usable spectrum and can enable service providers to deliver gigabit rates over a single copper pair, thereby enabling fibre-like service to the customer premise. The company added that unlike with cable systems, the bandwidth of is dedicated and available for each customer.

The tests, leveraging what ADTRAN claims is the first commercially available 212 MHz DPU, also demonstrated the second phase of DTA. cDTA, which extends the existing iDTA feature to improve upstream performance by a claimed four to five-fold by dynamically balancing upstream and downstream capacity to match residential traffic patterns in real-time. The cDTA feature can also be applied to existing phone wiring to address most residential and commercial premises scenarios.

* In May, ADTRAN announced that it was conducting public demonstration of the ITU-T's latest advances, 212 MHz and coordinated dynamic time allocation (cDTA), at the Summit 2017 in Paris.

* At the Summit, ADTRAN demonstrated its new 212 MHz standard, which doubles the usable spectrum and enables the delivery of gigabit rates over a single copper pair. The company noted that it had also extended its reverse power feature set to the new solution to simplify sourcing of local power.

Stockholm Internet eXchange upgrades with Coriant Groove G30 platform

Coriant announced that it has partnered with Stockholm Internet eXchange (STHIX), a neutral Internet Exchange focused on delivering IXP services to enhance the scalability, flexibility and efficiency of STHIX's metro network to support increasing traffic demands of its end-user ISP customers and over 100 connected networks.

Following the recent deployment of the Coriant Groove G30 Network Disaggregation Platform, STHIX is able to quickly scale capacity to meet the increasingly short demand cycles of its customers.

The Coriant Groove G30 solution is an advanced 1 RU modular open transport solution targeting cloud, data centre and IXP networks that can be configured as a muxponder terminal solution and as an Open Line System (OLS) optical layer solution. Designed for interconnectivity applications, the disaggregated Groove G30 delivers high density together with flexibility and low power consumption.

Coriant stated that the Groove G30 metro deployment for STHIX utilises 200 Gbit/s coherent optical transmission and supports a range of end-user services, including 100 Gbit/s client-side services that can be deployed quickly and cost-efficiently. The optical transport solution enables STHIX to enhance its peering platform, which is currently distributed across Stockholm's six major data centres and Gothenburg's main data centre. The platform is due to be extended to main data centres in Copenhagen this summer.

Stockholm Internet eXchange aims to provide reliable high speed interconnectivity between Internet service providers in Scandinavia, specifically Stockholm, Gothenburg and Copenhagen. STHIX is a neutral, independent that provides members with interconnection ports at speeds from 100 Mbit/s up to single or multiple 100 Gbit/s ports

Juniper appoints Bikash Koley, formerly with Google, as CTO

Juniper Networks has named Bikash Koley as chief technology officer (CTO), reporting to chief executive officer Rami Rahim, with responsibility for charting Juniper's technology strategy and leading and executing several of the company's critical technology innovations, including Contrail and AppFormix.

Mr. Koley, who is expected to join Juniper in August 2017, has extensive experience in both IP and optical domains and in designing and operating large scale networks.

Mr. Koley is currently serving as a distinguished engineer and the head of network architecture, engineering and planning at Google. He is an expert in the areas of software-defined networking (SDN), packet and optical network integration, warehouse-scale computing and large-scale data centre interconnection.

While with Google, Bikash Koley designed, built and operated Google's production network infrastructure, spanning data centre, backbone(s), optical and the content edge. His team also oversaw the company's SDN evolution, network technology strategy and networking research and innovation, enabling ubiquitous programmability and high reliability.

Prior to Google, Mr. Koley served as the CTO of Qstreams Networks, a company he co-founded. He also spent a number of years with Ciena in a range of technical roles related to the development of DWDM and Ethernet technologies.

Mr. Koley has published numerous research papers and has been awarded 18 patents related to networking technologies. He holds a Bachelors in Technology for Electronics and Communications Engineering from Indian Institute of Technology, Kharagpur, India, and MS and PhD degrees in Electrical and Computer Engineering from the University of Maryland at College Park.