Monday, October 30, 2017

JUPITER transpacific cable to carry 400G wavelengths

JUPITER, a new large-capacity, low-latency subsea cable between Japan and the United States has received the backing of SoftBank, Facebook, Amazon, PLDT and PCCW Global.

The JUPITER cable system. which will have a total length of 14,000 km, will have two landing points in Japan — the Shima Landing Station in Mie Prefecture and the Maruyama Landing Station in Chiba Prefecture — as well as a U.S. landing station in Los Angeles, California, as well as a landing station at Daet in the Philippines.

JUPITER will feature a state-of-the-art submersible ROADM employing WSS (wavelength selective switch) for a gridless and flexible bandwidth configuration. The cable system will also be designed to support 400 Gbps wavelengths. The initial design capacity is 60 Tbps.

NTT Com said its Asia Submarine-cable Express (ASE), Asia Pacific Gateway (APG) and Pacific Crossing-1 (PC-1) cables will connect with JUPITER to provide a redundant three-route structure linking major cities in Asia, Japan and United States. NTT Com is also planning direct connections from the cable landing stations in Japan to data centers in Tokyo and Osaka.

JUPITER is expected to come online in early 2020.

CyrusOne sees strong demand in Q3 for data center services

CyrusOne reported strong demand in Q3 for its collocation data centers. Revenue in Q3 was $175 million, up 22% over a year earlier. There was a net loss of $55 million, primarily due to $54 million impairment charge for a facility in Connecticut.

Some highlights for the quarter:

  • Leased 15 megawatts (MW) and 151,000 colocation square feet (CSF) in the third quarter, totaling $27 million in annualized GAAP revenue
  • Backlog of $37 million in annualized GAAP revenue as of the end of the third quarter, representing more than $290 million in total contract value
  • Added five Fortune 1000 companies as new customers in the third quarter, increasing the total number of Fortune 1000 customers to 195 as of the end of the quarter
  • Company record construction with completion of eight projects totaling 555,000 CSF and 76 MW to add inventory across key markets, including Phoenix, Northern Virginia, Chicago, Dallas and San Antonio
  • Closed the previously announced acquisition of 66 acres of land in Allen, Texas, with an option to acquire an additional 24 acres of adjacent land, to support growth in the Dallas market
  • Subsequent to the end of the quarter, signed a commercial agreement with and made $100 million investment in GDS Holdings Limited (“GDS”), a leading data center provider in China, creating cross-selling opportunities and expanding our global presence.

“We had an outstanding quarter in virtually all aspects of our business, including high growth rates across our key financial metrics, continued strong bookings, and a record level of capacity brought online, which positions us well to meet the demand in our late-stage sales funnel across our top markets,” said Gary Wojtaszek, president and chief executive officer of CyrusOne.

PacketFabric extends Network-as-a-Service with AEConnect transatlantic cable

PacketFabric, which offers a highly scalable, SDN-powered network-as-a-service platform, will use the America-Europe Connect (“AEConnect”) subsea cable system to provision secure, low-latency transatlantic capacity and extend its reach to Europe.

PacketFabric enables dynamic, real-time connectivity services between major carrier-neutral colocation facilities at terabit-scale.

Aqua Comms’ AEConnect submarine cable system links New York to Ireland with diverse backhaul fibre to additional Points of Presence (PoPs) in the U.S., Ireland and U.K.

As part of the strategic partnership, Aqua Comms also utilizes the PacketFabric platform to extend the reach of its service footprint across the U.S.  PacketFabric’s scalable network facilitates coast-to-coast connectivity between more than 150 premier colocation facilities across 17 U.S. markets.


Orange sees another quarter of growth in France

Citing its second consecutive quarter of growth in France, Orange reported Q3 revenue of 10.274 billion euros, up 0.9% on a comparable basis compared to last year and in line with the first half (+1.1%). Adjusted EBITDA for the Group grew 2.1% in the third quarter of 2017 on a comparable basis, in line with the first half (+2.2%).

Stéphane Richard, Chairman and CEO of the Orange Group, commented: “This quarter demonstrates very good momentum at Orange, supported more than ever by investment in customer experience and our networks. We attracted nearly half a million mobile contract customers and 321,000 fibre customers in France and the Europe segment in the past three months. Despite new roaming regulation in Europe, we delivered revenue growth for the ninth consecutive quarter and adjusted EBITDA growth of 2.1%. Excluding regulatory changes, adjusted EBITDA rose 4.4%. "

Highlights for Q3 2017:

  • Orange France had a particularly strong third quarter in mobile, with 320,000 net additions – its best performance since 2008. 
  • Orange France is continuing to grow in fibre broadband and now reaches more than 1.8 million customers. 
  • Interconnection revenue with operators in other European countries (visitor roaming) grew but was offset by the end of roaming charges for customers traveling in Europe. 
  • Orange Europe continued to record sustained growth, driven by Spain and Central European countries. 
  • Revenue in the Africa & Middle East segment confirmed a return to solid growth, 
  • Revenue in the Enterprise segment fell 0.5% on a comparable basis. In the first nine months of 2017, revenues were 30.550 billion euros, up 1.0% (+317 million euros) on a comparable basis.
  • The Group’s capital expenditure for the first nine months of the year was 4.873 billion euros, in line with the 2017 forecast of 7.2 billion euros. 
  • CAPEX increased by 2.8% compared to the first nine months of 2016 on a comparable basis. 
  • CAPEX from telecom activities (4.836 billion euros) rose 2.0% and the ratio of CAPEX from telecom activities to revenues was 15.8%. 
  • Investments in fibre and in very high-speed mobile (4G and 4G+) rose 14.2% compared with the first nine months of 2016.

T-Mobile connects with Project Loon in Puerto Rico

T-Mobile has recovered more than 80% of its original pre-storm outdoor signal in Puerto Rico. In a blog post, Neville Ray, T-Mobile's CTO, said the carrier has done everything possible to restore service following Hurricane Maria. Damage was extensive to the backhaul network, the cell sites and of course to the electrical grid, which still remains out for much of the island.

T-Mobile in Puerto Rico is now serving a live signal via the experimental Project Loon balloon, which enables LTE access with limited data and texting to customers in hard to reach areas.


Saturday, October 28, 2017

China Mobile marks 20th anniversary, now at 877 million subscribers

China Mobile marked the 20th anniversary since its debut as a publicly listed company with a first generatio, analogue mobile network. The company first began trading on the main board of the Hong Kong HKEX on 23 October 1997.

As of 30 September 2017, China Mobile was serving 877,708,000 mobile lines, including 621,757,000 4G subscribers. The number of net new mobile customers for 2017 has now surpassed 28 million.

The number of fixed broadband lines grew to 103.425,000, topping the 100 million milestone for the first time during September. The number or net new fixed line broadband customers has surpassed 25 million for 2017 so far.

QTS plans mega data center campus in Ashburn

QTS Realty Trust has kicked off development a mega data center campus in Ashburn, Virginia. Phase 1 of its multi-tenant development, representing approximately four megawatts of critical sellable capacity, is expected to come online by mid-2018.

This year, QTS acquired 52 acres of land in Ashburn, Virginia in two parcels for a total purchase price of $53 million.  The first parcel, representing 24 acres and a $17 million purchase price, closed during the third quarter of 2017. The second parcel, representing 28 acres and a $36 million purchase price, closed subsequent to the end of the third quarter of 2017. The combined site is located adjacent to QTS’ existing Vault campus in Dulles, Virginia.

QTS said it has pre-leased 2.2 megawatts, representing over 50 percent of Phase 1 development capacity, to a global health insurance provider. Discussions with several other potential customers are ongoing.

“We are excited to have additional sellable capacity in a strategic QTS market to expand our ecosystem of more than 130 customers currently supported within our Northern Virginia footprint,” said Chad Williams, Chairman and CEO – QTS. “Our fully-integrated 3C platform, combined with mega data center scale, position QTS to take advantage of increasing hybrid IT requirements, particularly from hyperscale companies.”

QTS is also actively planning expansions in Arizona and Oregon. During Q3, QTS acquired 84 acres of land in Phoenix, Arizona for a purchase price of $25 million and located approximately four miles from its existing data center in the city. This month, QTS also acquired 92 acres of land in Hillsboro, Oregon for a purchase price of $26 million.

Aerohive adds NFV-appliance for branch offices

Aerohive Networks introduce a software-defined, cloud networking platform that uses a network-function-virtualized (NFV) appliance to extend a corporate network to remote workers and branch offices.

Any Aerohive access point can operate as a tunnel terminator for the Aerohive VPN solution.

With this launch, Aerohive is now offering a cloud managed Virtual Gateway Appliance (VG-VA) that can handle over a thousand IPsec tunnels and can be installed in any VMware-virtualized environment.

Aerohive said its VG-VA also provides additional functions on top of extending VPN capabilities, including centralizing authentication and GRE tunneling support to offer additional scalability in an extensible form factor.

Australia's NBN to deploy G.fast in 2018

Australia’s broadband network, NBN, confirmed plans to deploy G.fast beginning next year.

G.fast becomes another access technology in NBN's "multi-Technology toolkit." G.fast technology will be supplied by the company's three existing fixed-broadband suppliers Nokia, ADTRAN and Netcomm Wireless.

G.fast can take broadband speeds past the current 100Mbps levels delivered by VDSL technology to deliver speeds of up to 1Gbps over copper lines by using higher frequencies of either 106MHz or 212MHz – compared to just 17MHz on VDSL.

JB Rousselot, Chief Strategy Officer, nbn said "adding G.fast to the toolkit for the FTTC and FTTB networks will allow us to deliver ultra-fast services faster and more cost effectively than if we had to deliver them on a full Fibre-to-the-Premises connection."

MACOM divests AppliedMicro’s Compute Business

MACOM reached an agreement to sell the Compute business it acquired in its AppliedMicro acquisition earlier this year to Project Denver Holdings LLC , a new company backed by The Carlyle Group. Financial terms were not disclosed, but MACOM said it will hold a minority equity ownership interest in the new company.

“After a thorough review process, we are very excited about the sale of the Compute business and the opportunity it provides for both the employees of that business and our shareholders,” said John Croteau, MACOM’s President and Chief Executive Officer. “The Carlyle Group is one of the world’s largest and most successful global investment firms, with over $170 billion in assets under management. I believe NewCo’s exceptional leadership team and Carlyle’s backing combines the necessary elements to make the business a long-term success, and through a minority equity ownership MACOM is positioned to participate in the company’s long-term value creation.”









  • In January 2017, MACOM Technology Solutions Holdings acquired Applied Micro Circuits Corporation (AppliedMicro") for approximately $8.36 per share, consisting of $3.25 in cash and 0.1089 MACOM shares per share of AppliedMicro. The deal was valued at approximately $770 million on the day it was announced..

    MACOM said it made the acquisition to accelerate its growth in optical technologies for Cloud Service Providers and Enterprise Network customers.
  • MACOM and AppliedMicro's pro forma combined TTM revenue was approximately $709 million including AppliedMicro's Compute business, or approximately $644 million excluding the Compute business
AppliedMicro's Connectivity business is highly complementary to MACOM's product portfolio, through the addition of market-leading OTN framers, MACsec Ethernet networking components, and the industry's leading single-lambda PAM4 platform.


  • In March 2017, the company announced the sampling of its third generation 16-nanometer FinFET Server-on-a-Chip (SoC) solution, X-Gene 3.  The device is an ARMv8-A compatible processor that matches comparable x86 processors in CPU throughput, per-thread performance, and power efficiency while offering advantages in memory bandwidth and total cost of ownership. It features 32 ARMv8-A 64-bit cores operating at speeds up to 3.0 GHz, eight DDR4-2667 memory channels with ECC and RAS supporting up to 16 DIMMs and addressing up to 1TB of memory and 42 PCIe Gen 3 lanes with eight controllers. The processor is expected to have a performance that is up to six times that of the currently shipping X-Gene family of products.

Tunisie Telecom deploys ADTRAN's outside DSLAMs

Incumbent operator Tunisie Telecom (TT) is deploying ADTRAN's sealed outside plant (OSP) DSLAMs, which feature unique Discrete Multi-Tone (DMT) capabilities to deliver next-generation copper-based broadband services to locations where laying fiber is cost-prohibitive and/or electrical power sources are unreliable or unavailable.

In trials conducted with TT, ADTRAN said its 1148VX OSP DSLAM delivered broadband rates in excess of 90Mb/s on loops of several hundred meters.

In extreme cases, where customers on loops exceeding 2 km in length were historically without service, the 1148VX OSP DSLAM is able to deliver reliable 20 Mb/s services and higher. ADTRAN also demonstrated the ability to reliably remote power its 1148VX OSP DSLAM through existing copper pairs from a central location several kilometers away.

Tunisia Telecom is also planning on bonding up to 8 existing twisted pairs of copper as data uplink plus remote power to expedite time to market and minimize cost of fiber uplink. The 1148VX is fiber-ready and will accept fiber uplink when fiber becomes available.

“By harnessing next-generation access technology in innovative and sustainable ways, TT can transform communities and boost local economic growth among residential and business subscribers,” said Werner Heinrich, director broadband solutions at ADTRAN. “Having already deployed over 130,000 of these nodes in some of the world’s harshest climates, ADTRAN is the market-leading choice for accelerating affordable broadband service deployment in these environments.”

Friday, October 27, 2017

A10 posts Q3 revenue of $61m, up 12% yoy

A10 Networks reported Q3 revenue of $61.4 million, up 12% compared with $55.1 million for the same period last year. There was a GAAP net loss of $2.7 million, or $0.04 per basic share.

“We delivered a strong third quarter and are pleased with the team’s execution. Revenue exceeded our initial and revised guidance and increased 12% year-over-year to reach $61.4 million. Our top-line performance was driven by solid demand and the team’s improved execution as we began to see the initial progress from some of the recent changes we implemented in the quarter,” said Lee Chen, president and chief executive officer of A10 Networks.

On the earning conference call, A10 executives disclosed that during Q3 the company secured large win with a mobile provider in the U.S., where it continued to expand its
footprint and replaced the incumbent ADC vendor with its ThunderADC and ThunderSSLi solutions. In total, this customer contributed 14 percent of Q3 revenue.

Third quarter product revenue grew 12 percent year-over-year to 39.4 million dollars, representing 64 percent of total revenue. Third quarter service revenue was 22.0 million dollars, or 36 percent of total revenue.

Cypress sees gains from IoT

Cypress Semiconductor posted Q3 revenue of $604.6 million, up from $593.8 million a year earlier. Net income was $11 million, or $0.03 EPS, compared to a net loss of $23 million a year earlier. Margin was 41.8%.

“We continue to strengthen our position as the Internet of Things (IoT) leader with our state-of-the-art IoT connectivity solutions, flexible microcontrollers and high-performance memories,” said Hassane El-Khoury, Cypress president and chief executive officer.

“After a strong second quarter, we continued to deliver record revenue with strength across our key markets,” El-Khoury continued. “These results demonstrate we are delivering on our Cypress 3.0 strategy of selling embedded solutions into markets growing faster than the overall semiconductor industry. Our customers are relying on us for more bill-of-material coverage, with approximately 80% of our revenue generated by customers buying more than one product family across connectivity, microcontrollers and memory.”
  • During the quarter, Cypress introduced a 28nm, ultra-low power Wi-Fi and Bluetooth combo solution for wearables, smart home products and portable audio applications. The new device cuts power consumption up to 70 percent in receive mode and up to 80 percent in sleep mode when compared to current solutions.



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.