Thursday, October 26, 2017

AWS continues 42% yoy growth pace

Amazon Web Services continues to grow at a 42% year-over-year pace.

In its Q3 2017 financial report, Amazon disclosed that AWS sales for Q3 2017 amounted to $4.584 billion.

During the quarter, AWS launched per-second billing in all regions for Linux-based EC2 instances, Elastic Graphical Processing Units (GPU), Elastic Block Store (EBS) Volumes, AWS Batch, and Elastic Map Reduce (EMR). Customers using these services will now be billed in one-second (versus one-hour) increments. AWS also introduced a free service that provides a single location for customers to track the status of migrations across their application portfolio. The company also revealed plans for a new infrastructure region in the Middle East in 2019. Currently, AWS provides 44 Availability Zones across 16 infrastructure regions worldwide, with another 14 Availability Zones across five AWS Regions in China, France, Hong Kong, Sweden, and a second GovCloud Region in the U.S. expected to come online by the end of 2018.


Elliott Management to privatize Gigamon in $1.6 billion deal

Elliott Management, a private investment firm known for shareholder activism, will acquire Gigamon for $38.50 per share in cash, for a total value of approximately $1.6 billion, making Gigamon a privately-held company. Elliott Management and its affiliates currently hold a 7.0% equity voting stake in Gigamon.

Under the deal, Gigamon shareholders will receive $38.50 in cash for each share of Gigamon common stock held.

"We are pleased to announce this transaction, which delivers immediate cash value to our shareholders upon closing at a premium to our unaffected stock price," said Paul Hooper, Chief Executive Officer of Gigamon. "The Gigamon Board, with the assistance of independent financial and legal advisors, conducted a thorough review of options to enhance shareholder value and unanimously concluded that entering into this agreement with Elliott represents the best way to maximize value."

"As the leading provider of visibility solutions that enable enterprises to guard against network and data breaches, Gigamon has a strong track record of innovation and delivering customer value that makes it a compelling investment," said Jesse Cohn, Partner at Elliott. "In partnership with Evergreen Coast Capital, our private equity affiliate, this is a landmark transaction in our long history of investing in leading enterprise technology businesses."


Gigamon's recent revenue trends
         2017                        2016
Q3    $79.2 million          $83.5 million
Q2    $69.1 million          $75.1 million
Q1    $69.6 million          $66.9 million

Nokia posts Q3 sales of EUR 5.5b, a 7% slide yoy

Driven by strength in its patent licensing business and improve efficiency in its Networks division, but offset by some challenges in its Mobile Networks business, Nokia reported Q3 2017 net sales of EUR 5.5 billion, a 7% year-on-year decrease (4% decrease on a constant currency basis) compared to a year earlier.

Gross margin for Q3 was 42.7% (40.0% in Q3 2016), and non-IFRS operating margin ws 12.1% (9.3% in Q3 2016), driven by Nokia Technologies and resilience in Nokia's Networks business.

Nokia's Networks business

  • 9% year-on-year net sales decrease (6% decrease on a constant currency basis) in Q3 2017, primarily due to Ultra Broadband Networks, reflecting challenges related to market conditions and certain projects in Mobile Networks, primarily in North America and Greater China.
  • In Q3 2017, on a constant currency basis, the year-on-year net sales performance in IP Networks and Applications and Global Services improved, when compared to the year-on-year performance in Q2 2017. On a constant currency basis, year-on-year net sales grew by 2% in both Global Services and IP Routing.
  • Gross margin was 38.6% supported by continued operational discipline. Operating margin of 6.9% reflected weak results in Ultra Broadband Networks, which was partially offset by improved year-on-year performance in Global Services and IP Networks and Applications.

Nokia Technologies

  • 37% year-on-year net sales increase and 73% year-on-year operating profit increase in Q3 2017, primarily related to a settled arbitration in the third quarter 2017. 
  • Approximately EUR 180 million of the net sales were non-recurring in nature and related to catch-up net sales for prior periods. 
  • approximately doubled recurring license revenue from EUR 578 million in 2014.


Rajeev Suri, Nokia's President and CEO, stated: "Despite the progress we made in the quarter, we experienced some challenges in our Mobile Networks business and see a continued decline in our primary addressable market in 2018. That decline, which we estimate to be in the range of 2% to 5%, is the result of the multiple technology transitions underway; robust competition in China; and near-term headwinds from potential operator consolidation in a handful of countries."

Intel sees record revenue for data center, IoT and memory

Intel reported Q3 revenue og $16.1 billion and record operating income and record earnings per share (EPS), driven by strong data-centric growth, expanding operating margins and gains on the sale of equity investments. The company cited record revenues for its data center, Internet of Things and memory businesses. Gross margin for Q3 was 62.3%, down from 63.3% a year earlier.

"We executed well in the third quarter with strong results across the business, and we’re on track to a record year,”said Brian Krzanich, Intel CEO. “I’m excited about our progress and our future. Intel’s product line-up is the strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more.”

For its Data Center Group, sales to Cloud/Communication Service Provides now accounts for 60% of revenue, up from 35% in 2013.



How will Brexit impact the data center business in Ireland?



Leo Clancy, Head of Technology, Consumer & Business Services at IDA Ireland visits Silicon Valley to talk about data centers, IoT and the impending impact of Brexit on Ireland.

https://youtu.be/ShSwE69Pz3Y



ADVA's Q3 revenues decline to EUR 111.2 Mill

Citing a drop in revenues from two major customers during the acquisition process of MRV Communications, ADVA Optical Networking reported a drop in revenues in Q3 2017 to EUR 111.2 million, down from EUR 144.2 in Q2 2017, and down 30.3% year-on-year (YoY) (Q3 2016: EUR 159.5 million). The figure was within the adjusted guidance announced on August 28, 2017.

Pro forma operating income in Q3 2017 stood at EUR -0.8 million or -0.7% of revenues, down from EUR 9.2 million or 6.4% of revenues in Q2 2017. This number is also within the adjusted guidance.

ADVA recorded one-time restructuring costs of EUR 8.4 million due to the integration of MRV and the related restructuring measures, as well as the consolidation of the product portfolios.

Regional revenues during Q3
Americas - 60%
EMEA - 33%
Asia-Pacific - 7%

"Q3, 2017 was one of the most challenging quarters in our company's history," commented Brian Protiva, CEO of ADVA Optical Networking. "We had to lower our guidance within a financial quarterly period for the first time since Q2, 2008. Nevertheless, the integration of MRV Communications is progressing very well. We have implemented much of the planned restructuring measures, updated our roadmaps and aligned our product portfolios, development teams and sales focus. All this provides us with a solid basis for a return to growth and profitability in 2018."

DragonWave acquired by Transform-X

DragonWave, which a global supplier of packet microwave radio systems for mobile and access networks and which is bases in Ottawa, Canada, has been acquired by Transform-X, a private equity firm based in Tucson, Arizona.  Financial terms were not disclosed.

DragonWave’s carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirement. The principal application of DragonWave’s portfolio is wireless network backhaul, including for small cell networks. The new company will operate under the name of DragonWave-X.

In addition, DragonWave announced the appointment of Hans B. Amell as the company’s new Chief Executive Officer. Amell’s background includes leading major transformations in Global Industry leading companies such as Unisys, Dun and Bradstreet, AlliedSignal/Honeywell and Ericsson. He started his career as a management consultant at McKinsey.

"The DragonWave-X acquisition is a crucial part of Transform-X's strategic goal to acquire and integrate best-in-class 5G+ communications technologies, manufacturers and service companies that will compete and excel in the market for 5G+, small cell densification and RAN solutions to modern data demands." said Dan Hodges, Transform-X CEO.


Wednesday, October 25, 2017

Cisco and Google Partner on New Hybrid Cloud Solution

Cisco and Google Cloud have formed a partnership to deliver a hybrid cloud solutions that enables applications and services to be deployed, managed and secured across on-premises environments and Google Cloud Platform. The pilot implementations are expected to be launched early next year, with commercial rollout later in 2018.

The main idea is to deliver a consistent Kubernetes environment for both on-premises Cisco Private Cloud Infrastructure and Google’s managed Kubernetes service, Google Container Engine.

The companies said their open hybrid cloud offering will provide enterprises with a way to run, secure and monitor workloads, thus enabling them to optimize their existing investments, plan their cloud migration at their own pace and avoid vendor lock in.

Cisco and Google Cloud hybrid solution highlights:


  • Orchestration and Management – Policy-based Kubernetes orchestration and lifecycle management of resources, applications and services across hybrid environments
  • Networking – Extend network policy and configurations to multiple on-premises and cloud environments
  • Security – Extend Security policy and monitor applications behavior
  • Visibility and Control – Real-time network and application performance monitoring and automation
  • Cloud-ready Infrastructure – Hyperconverged platform supporting existing application and cloud-native Kubernetes environments
  • Service Management with Istio – Open-source solution provides a uniform way to connect, secure, manage and monitor microservices
  • API Management – Google's Apigee enterprise-class API management enables legacy workloads running on premises to connect to the cloud through APIs
  • Developer Ready – Cisco's DevNet Developer Center provides tools and resources for cloud and enterprise developers to code in hybrid environments
  • Support – Joint coordinated technical support for the solution

"Our partnership with Google gives our customers the very best cloud has to offer— agility and scale, coupled with enterprise-class security and support," said Chuck Robbins, chief executive officer, Cisco. "We share a common vision of a hybrid cloud world that delivers the speed of innovation in an open and secure environment to bring the right solutions to our customers."

"This joint solution from Google and Cisco facilitates an easy and incremental approach to tapping the benefits of the Cloud. This is what we hear customers asking for," said Diane Greene, CEO, Google Cloud.

AWS launches NVIDIA Tesla V100 GPUs instances

Amazon Web Services began offering P3 instances, the next generation of Amazon Elastic Compute Cloud (Amazon EC2) GPU instances for compute-intensive applications that require massive parallel floating point performance, including machine learning, computational fluid dynamics, computational finance, seismic analysis, molecular modeling, genomics, and autonomous vehicle systems. The instances are based on NVIDIA Tesla V100 GPUs.

AWS said the new P3 instances allow customers to build and deploy advanced applications with up to 14 times better performance than previous-generation Amazon EC2 GPU compute instances, and reduce training of machine learning applications from days to hours.

P3 instances can combine up to eight NVIDIA Tesla V100 GPUs to provide up to one petaflop of mixed-precision, 125 teraflops of single-precision, and 62 teraflops of double-precision floating point performance. A 300 GB/s second-generation NVIDIA NVLink interconnect enables high-speed, low-latency GPU-to-GPU communication. P3 instances also feature up to 64 vCPUs based on custom Intel Xeon E5 (Broadwell) processors, 488 GB of DRAM, and 25 Gbps of dedicated aggregate network bandwidth using the Elastic Network Adapter (ENA).

“When we launched our P2 instances last year, we couldn’t believe how quickly people adopted them,” said Matt Garman, Vice President of Amazon EC2. “Most of the machine learning in the cloud today is done on P2 instances, yet customers continue to be hungry for more powerful instances. By offering up to 14 times better performance than P2 instances, P3 instances will significantly reduce the time involved in training machine learning models, providing agility for developers to experiment, and optimizing machine learning without requiring large investments in on-premises GPU clusters. In addition, high performance computing applications will benefit from up to 2.7 times improvement in double-precision floating point performance.”

Sprint's revenue declines but income rises as it gains subscribers

Driven by lower wireless and wireline service revenue, partially offset by higher equipment revenue, Sprint reported net operating revenues of $7.9 billion for the quarter declined $320 million year-over-year and declined $230 million sequentially.  Sprint reported operating income of $601 million and its highest fiscal second quarter adjusted EBITDA in 10 years at $2.7 billion.

Some highlights:

  • The company had 378,000 net additions in the current quarter compared with 599,000 in the year ago period and 61,000 net additions in the prior quarter.
  • Sprint ended the quarter with just over 54.0 million connections, including 31.7 million postpaid, 8.7 million prepaid, and 13.6 million wholesale and affiliate connections.
  • The company has had nearly 1.4 million net additions over the last four quarters.
  • Postpaid net additions were 168,000 during the quarter compared to net additions of 344,000 in the year-ago period and net losses of 39,000 in the prior quarter. 
  • Tablet and other device net losses of 111,000 in the quarter compared to 3,000 in the year-ago period and 127,000 in the prior quarter. 

“Sprint was able to deliver net additions in both its postpaid phone and prepaid business for the third consecutive quarter,” said Sprint CEO Marcelo Claure. “I’m even more proud that the team was able to deliver this customer growth while continuing to attack the cost structure, improve the network, and maintain positive adjusted free cash flow.”



Ixia issues warning on Reaper IoT botnet

Ixia warned that new botnet known as “Reaper” is gaining traction and attacking IoT devices, especially routers, using publicly disclosed vulnerabilities which have not yet been patched on these devices. There is concern that a new wave of DDoS or other attacks could follow.

Ixia's Application Threat Intelligence (ATI) Research Center began tracking “Reaper” during the first week of October.

Last year, an IoT botnet known as “Mirai” created havoc for enterprise cyber business through DDoS attacks utilizing bots made up of IoT devices.

Ixia has applied the Reaper’s IoT router compromises to its ATI service for the company’s BreakingPoint and ThreatARMOR solutions.

“Ixia suggests that any IoT device with public Internet facing connectivity be patched with the latest updates and be closely monitored,” stated Steve McGregory, Senior Director of Application Threat Intelligence at Ixia. “Network visibility is the ability to know what is in your network and what it is doing, and it is a key tenet to being prepared to defend and proactively mitigate weaknesses in your network.”


Intel ships Stratix 10 FPGA with ARM Cortex-A53

Intel has begun shipping a high-end FPGA family with an integrated quad-core ARM Cortex-A53. 

The ARM-based Intel Stratix 10 FPGA, which packs more than 1 million logic elements (MLE) with an integrated ARM processor, could serve multiple application categories, such as 5G wireless communication, software defined radios, secure computing for military applications, network function virtualization (NFV), and data center acceleration.

For NFV, Intel said its new FPGA can handle the high-speed data path while the integrated processors enable low latency transactions needed to manage flow tables for control plane processing. With hardware acceleration, Intel Stratix 10 SX FPGAs provide a heterogeneous computing environment to create optimized, low latency accelerators.

“With Stratix 10 SX, Intel reaffirms its ‘all in’ commitment to SoC FPGA devices combining integrated, flexible ARM cores with high-performance Intel Stratix® 10 FPGAs,” said Reynette Au, vice president of marketing, Intel Programmable Solutions Group. “We now provide a wide set of options for customer needing processors and FPGAs, with device offerings across the low-end, mid-range and now, high-end FPGA families, to enable their system designs.”

Skybox Security raises $150 million

Skybox Security, a privately-held company based in San Jose, California, raised $150 million in venture funding for its cybersecurity management software.

The Skybox Security Suite combines attack vector analytics and advanced threat intelligence to continuously analyze vulnerabilities in a customer's environment and correlate them with exploits in the wild. Skybox extends across complex networks, including those in physical, virtual, cloud and operational technology (OT) environments.

Skybox says it has a compound annual growth rate (CAGR) of 46 percent and positive cash flow (2014 ­– 2016).

The new funding includes $100 million from the CVC Capital Partners’ Growth Fund (CVC Growth) and $50 million from Pantheon.

Skybox was founded in 2002. The company is headed by Gidi Cohen.


F5 posts sales of $538m, rising services revenue

F5 Networks posted revenue of $538.0 million for its fourth quarter of fiscal 2017, up 2.4% from $525.3 million in the fourth quarter of fiscal 2016. For fiscal year 2017, revenue was $2.1 billion, up 4.8% from $2.0 billion last year. GAAP net income for the fourth quarter of fiscal 2017 was $135.7 million, or $2.14 per diluted share, compared to $108.9 million, or $1.64 per diluted share in the fourth quarter of fiscal 2016

“We finished fiscal 2017 on a solid note, delivering record fourth quarter and annual revenue and earnings,” said François Locoh-Donou, F5 President and Chief Executive Officer. “We are excited by the meaningful role we are playing in helping customers solve the complexity of deploying applications across on-premise and multi-cloud environments.


Mellanox Posts Q3 sales of $225.7 million - flat yoy

Mellanox Technologies reported Q3 2017 revenue of $225.7 million, up 0.7 percent compared to $224.2 million in the third quarter of 2016. GAAP gross margins were 65.7 percent, compared to 65.1 percent in the third quarter of 2016. GAAP net income was $3.4 million, compared to $12.0 million in the third quarter of 2016.

“We are pleased to achieve a record revenue quarter and resume our growth. Our third quarter Ethernet revenues achieved double digit sequential growth, driven by increasing deployments of our 25 gigabit per second and above products, which demonstrates our leadership position in these markets,” said Eyal Waldman, President and CEO of Mellanox Technologies. “During the third quarter, InfiniBand revenues declined seven percent sequentially mainly due to a large Department of Energy CORAL deployment in the second quarter. On a year-over-year basis, our InfiniBand high-performance computing and artificial intelligence revenues increased by double digit percentages."

Telefónica Colombia deploys Coriant Groove G30

Telefónica Colombia is deploying the Coriant Groove G30 muxponder DCI platform to deliver high-performance 100G interconnect solutions to large enterprises and web-scale Internet operators,

In addition to the recent deployment of the Groove G30 platform, the Coriant metro to long haul packet optical transport solution for Telefónica Colombia includes the latest features of the Coriant hiT 7300 Multi-Haul Transport Platform and the Coriant mTera Universal Transport Platform.

“We are pleased to support one of the most technically advanced networks in the region that is optimized to serve the needs of Telefónica Columbia’s customers today and into the future,” said Uwe Fischer, Executive Vice President, R&D and PLM, and Chief Technology Officer, Coriant.

Molex opens Silicon Valley Technology Center

Molex, a subsidiary of Koch Industries, has opened a technology center in Fremont, California. The facility will be one of the main innovation hubs for Molex Optical Solutions business and home to sales and customer development teams serving all of Molex customers in the region. 

The 108,000-sq. ft. building features over 50 miles of Molex Optical and Copper Cable Assembly Solutions, patch panels, adapter panels, modular office electronics and wire management tools. Advanced building capabilities include an intelligent, low-voltage Molex Transcend Network Connected Lighting System using a Power over Ethernet (PoE) LED lighting network to enable energy savings through sensor feedback.

Tuesday, October 24, 2017

OPNFV Project advances its Euphrates release

The OPNFV Project released its fifth software platform for facilitating the development and evolution of Network Functions Virtualization (NFV) components.

"With this initial integration of Kubernetes with the existing stack of open source network components, Euphrates enables NFV to make significant advances in the journey towards cloud native,” said Heather Kirksey, director, OPNFV. “Combined with a focus on XCI and modern DevOps practices, more efficient infrastructure, and enhanced operations capabilities, we’re witnessing the powerful culmination of three years’ worth of collaboration across a broad swath of open source communities, come to life.”

Key enhancements available in OPNFV Euphrates include:

  • Architecture - Euphrates brings Kubernetes and container integration with multiple components of the end-to-end stack, as well as the ability to deploy containerized OpenStack via Kolla, which provides production-ready containers and deployment tools for operating OpenStack clouds. These enhancements enable easier management of the infrastructure, support of cloud-native network applications in NFV, and lighter weight control plane capabilities as service providers prepare for edge architectures to support 5G and IOT.
  • Integration - access to the latest upstream code. Building on the continuous integration/continuous deployment (CI/CD) pipeline integration work in Danube, Euphrates introduced the implementation of the XCI integrated CI/CD pipeline amongst OPNFV, OpenStack, OpenDaylight, and FD.io. Instead of waiting for an official stable release, the OPNFV CI pipeline integrates the latest upstream code from these upstream projects in order to more quickly resolve bugs and validate features. This reduces the time it takes for feedback on a new feature or bug-fix from months to days, greatly increasing the pace of innovation. XCI also enables multi-distribution support and fosters closer developer relationships.
  • New carrier-grade features - integration of the new Calipso project proved operational visibility into complex virtual networks. When combined with telemetry enhancements in existing Barometer and Doctor projects, users have access to a powerful service assurance framework. Euphrates also includes performance improvements on the Arm architecture, and in Layer 3 performance with FD.io. Euphrates also brings security and user management capabilities with Moon, continued improvement in Service Function Chaining (SFC), FD.io, and new EVPN features. Euphrates also integrates the OVN network virtualization project along with the most recent versions of other upstream projects to provide additional choice in networking control options.
  • Enhanced testing and integration - includes an extensive set of tools to test the NFV cloud, VNFs, and complete network services. New projects—including Sample VNF, which provides testing of the VIM/NFVI layer with applications approximating real-life application workloads; and NFVBench, which provides an end-to-end dataplane benchmarking framework—have been introduced. Additionally, existing test projects have continued to evolve with new features, capabilities, and test cases.


AT&T revenues decline in Q3

AT&T recorded Q3 revenues of $39.7 billion, down from $40.9 billion in the year-ago quarter, primarily due to declines in legacy wireline services and consumer mobility. Net income totaled $3.0 billion, or $0.49 per diluted share, compared with $3.3 billion, or $0.54 per diluted share, in the year-ago quarter.

AT&T estimates it lost $100 million in sales due to hurricanes and earthquakes in the third quarter.

“We continued to operate our business efficiently in the quarter. At a time of transformation in our wireless and video businesses, as well as investment in growth opportunities, we’re able to maintain our full-year guidance. Wireless margins and phone churn continue to run at record levels, our fiber deployment is helping drive broadband growth and DIRECTV NOW had another strong quarter. We’re also pleased with our FirstNet progress. Already 27 states and territories have opted in, and we’re working closely with them as we prepare to deploy the FirstNet network,” stated Randall Stephenson, AT&T Inc. chairman and CEO.

Some Q3 highlights:


  • Expanding operating income margin of 30.5% with best-ever EBITDA margins of 42.0% and wireless service margin of 50.4%
  • Best-ever third-quarter postpaid phone churn of 0.84%, showing the success of video and wireless bundling strategy
  • Continued growth of postpaid smartphone base -3.0 million total wireless net adds
  • Nearly 700,000 Mexico net adds
  • 125,000 IP broadband net adds; 29,000 total broadband net adds
  • More than 6 million customer locations passed with fiber
  • Nearly 300,000 DIRECTV NOW net adds helped offset traditional TV subscriber decline. There are now 800,00 DIRECTV NOW subscribers
  • There are now 25 million total TV subscribers, down by 90,000 for the quarter
  • International revenues up 11.7% with continued strong revenue growth in Mexico
  • the Time Warner deal is expected to close by year end
  • in SDN, 45% of networking functions are now virtualized.

Juniper posts Q3 revenue of $1,257.8 million, trims outlook

Citing ongoing large deployment timing delays by some major customers, Juniper Networks reported Q3 expected net revenues of $1,257.8 million, a decrease of 2% year-over-year and 4% sequentially. GAAP net income was $174.4 million, an increase of 1% year-over-year and a decrease of 3% sequentially, resulting in diluted earnings per share of $0.46. Juniper's GAAP operating margin was 19.4%, a decrease from 19.5% in the third quarter of 2016, and a decrease from 19.7% in the second quarter of 2017.

Juniper also trimmed its Q4 forecast, saying it now expects Q4 revenues to be approximately $1,230 million, plus or minus $30 million.

"While we are disappointed in our third quarter revenue results which were impacted by timing of switching deployments, we have made significant progress on executing on our cloud strategy," said Rami Rahim, chief executive officer, Juniper Networks. "We believe our deliberate and intentional strategy of focusing on cloud-oriented architectures and solutions has resulted in a strong footprint and a compelling product pipeline. We are excited about the opportunity we have in front of us."