Monday, August 27, 2018

Nokia secures EUR 500 million loan for 5G research

The European Investment Bank (EIB) will provide an EUR 500 million loan to Nokia for supporting its ongoing 5G research program.

The EIB loan is supported by the European Fund for Strategic Investments (EFSI), a key element of the Investment Plan for Europe, also known as the Juncker Plan.

EIB Vice-President Alexander Stubb, responsible for lending in Northern Europe, said: "5G is happening fast, faster than most people even expected. It's anticipated that it will enable entirely new business cases, while dramatically enhancing existing wireless applications. I think bringing 5G to the market will definitely improve people's lives, as the motto for the EIB's 60th anniversary states."

Nokia CFO Kristian Pullola said: "We are pleased to land this financing commitment from the EIB, who shares our view of the revolutionary nature of 5G - and the realisation that this revolution is already underway. This financing bolsters our 5G research efforts and continues the broader momentum we have already seen this year in terms of customer wins and development firsts, supporting our relentless drive to be a true leader in 5G - end-to-end."

Global Foundries hits the pause button on 7nm FiFET

GLOBALFOUNDRIES announced a strategic shift away from 7nm process technology and toward "clients in high-growth markets."

Specifically, GF's 7nm FinFET program is on hold indefinitely and the company will shift development resources to make its 14/12nm FinFET platform more relevant, with a focus on new features such RF, embedded memory, and low power.

The company announced a workforce reduction in conjunction with this move, although a number of top technologists will be redeployed on 14/12nm FinFET derivatives and other differentiated offerings.

GF also announced plans to establish its ASIC business as a wholly-owned subsidiary, independent from the foundry business.

Tom Caulfield, GF's CEO, stated “Demand for semiconductors has never been higher, and clients are asking us to play an ever-increasing role in enabling tomorrow’s technology innovations. The vast majority of today’s fabless customers are looking to get more value out of each technology generation to leverage the substantial investments required to design into each technology node. Essentially, these nodes are transitioning to design platforms serving multiple waves of applications, giving each node greater longevity. This industry dynamic has resulted in fewer fabless clients designing into the outer limits of Moore’s Law. We are shifting our resources and focus by doubling down on our investments in differentiated technologies across our entire portfolio that are most relevant to our clients in growing market segments.”

https://www.globalfoundries.com

AMD transfers 7nm production to TSMC

AMD, which is "betting big" on the 7nm process node, confirmed that it will focus the breadth of its upcoming 7nm product portfolio on TSMC’s fabrication facilities.  AMD said it makes sense to align its 7nm development closely with each of its foundry partner’s investments. It will continue to work with Global Foundries with their 14nm and 12nm technologies at their New York fab, which supports the ongoing ramp of AMD Ryzen, AMD Radeon and AMD EPYC processors.

AMD said it has already taped out multiple 7nm products at TSMC, including its first 7nm GPU planned to launch later this year and its first 7nm server CPU, which is expected to launch in 2019.

https://community.amd.com/community/amd-corporate/blog/2018/08/27/expanding-our-high-performance-leadership-with-focused-7nm-development


AT&T Fiber hits 2 million business customer location milestone

AT&T announced a milestone for its expanding national fiber footprint: more than 450,000 U.S. business buildings lit with, enabling high-speed fiber connections to more than 2 million U.S. business customer locations. AT&T is bringing fiber to about 1,000 more business buildings per month. Nationwide, more than 8 million business customer locations are on or within 1,000 feet of AT&T fiber.


TE SubCom to provide secondary NOC for Hawaiki transpacific cable

Hawaiki Submarine Cable has selected TE SubCom to provide backup Network Operations Center (B-NOC) services for its transpacific cable systems. The B-NOC will operate from TE SubCom’s Eatontown, NJ, USA headquarters.

SubCom said its NOC solutions are vendor-neutral and offer global, 24x7x365 monitoring coverage with both high-level and regional visibility into network status.

The Hawaiki Cable System is a 15,000km fiber optic cable connecting Sydney, Australia; Mangawhai Heads, New Zealand; Tafuna, American Samoa; Kapolei, Hawaii, USA; and Pacific City, Oregon, USA. Stubbed branching units have been installed to facilitate future connections into New Caledonia, Fiji, and Tonga.

The Hawaiki system uses TE SubCom's optical add/drop multiplexing (OADM) nodes allows for additional landings in the Pacific region to be added as needed. Hawaiki will provide 43 Tbps of new capacity in the Pacific region. The system was built at a cost of US$300 million. Anchor customers on the new cable include Amazon Web Services, Vodafone, American Samoa Telecommunications Authority (ASTCA) and Research and Education Advanced Network New Zealand (REANNZ).

OVH appoints Michel Paulin as CEO

OVH Group, the largest European hosting provider, appointed Michel Paulin as its new CEO, replacing founder Octave Klaba, who will continue to serve as chairman.

Paulin previously served as CEO of Neuf Cegetel, for which he led the IPO, M├ęditel (now Orange Maroc) and SFR.

OVH said Paulin's nomination comes as the company embarks on a new “Smart Cloud” strategic plan, which aims to consolidate OVH’s role as an alternative leader in Cloud.

Octave Klaba commented: “With the benefit of his experience and his leadership, Michel Paulin will help us to accelerate the implementation of our new strategic plan - with him as CEO and myself as Chairman of the Board. I am convinced that his personal qualities, combined with the strong corporate culture of our teams, will ensure the group’s development.”

NEC invests in Tascent for its iris biometric system

NEC announced an equity investment in Tascent, a start-up based in Los Gatos, California, that offers a biometric identification based on iris scanning.

Tascent's technologies include optical control technology to remotely capture an accurate, high-quality iris image at high speed, and a user interface (UI) technology that smoothly guides users in support of capturing accurate biometric information. The technology is embedded in security systems used at airports, government agencies and enterprises. The company was founded in 2015.

NEC said its investment and partnership will enable the two companies to jointly enhance the capacity of iris recognition, using Tascent’s optical control and UI technologies and NEC’s advanced biometric engines, and create a next generation iris authentication offering for the public safety market.

Sunday, August 26, 2018

Google's Super PON could be a game changer

Google is working on a "Super PON" architecture that could improve the economics of fiber-to-the-home deployments, said Claudio DeSanti, Architect at Google Fiber, speaking last week at ADTRAN's Broadband Business Solutions event in Huntsville, Alabama.

Google's foray into last mile fiber access networks dates back to 2010 when it announced plans to challenge the incumbent telcos and MSOs in the U.S. with a Google-branded and delivered gigabit broadband and TV service. Google Access picked Kansas City for its first deployment and opened a public comment process to identify future rollout locations. Nearly 1,100 communities across the country expressed interest in participating in the Google project and nearly 200,000 individuals submitted comments.

DeSanti presented the timeline that eventually took Google Access to 11 cities

Then, in October 2016, the Google Fiber project officially hit the pause button. Craig Barratt, who was CEO of Access, stepped down. The said it would continue rolling out in the cities in it was already present, but that is was pausing operations and laying off workers in many cities where it had once anticipated deploying an FTTH network. Google said its effort had spurred AT&T and others to get serious about FTTH, while holding out the possibility of reentering the market if and when new technology options became available.


De Santi said the major lessons learned from this undertaking were that building infrastructure is complex, especially the lengthy permitting process that varies from city to city, and that last mile construction and outside plant costs represent the bulk of spending, mostly because of labor. Google found aerial FTTH to be prohibitively expensive due to policy restrictions of pole sharing with utility companies.

Regarding future rollouts, DeSanti said Google is now taking a more practical perspective on running the business for profit and sustainability.

In February 2018, Dinesh (Dinni) Jain ws been appointed CEO of Access, the new name for the Google Fiber and Webpass business. Jain most recently served as Chief Operating Officer of Time Warner Cable.

DeSanti said the Super-PON architecture that his team is developing could be a game changer for several reasons. First, it targets a 50 km reach from the Central Office to the subscriber, rather than the 20km target of the current technology. The longer reach is achieved with amplification. This means a larger serving area per CO, and few COs needed to cover a whole city. For a mid-sized U.S. metropolitan area, the current PON architecture requires Google to operate 16 COs. The Super PON might need as few as 3 COs to do the same job. These CO could also be CDN distribution points. No active equipment is deployed outside the CO. It operates over a passive ODN.

Second, the Super PON targets up to 1,024 subscribers, up significantly from the maximum 64-subscriber split available on its current technology. With Super PON, DWDM is used to multiplex multiple channels over a single feeder fiber. DeSanti said few fibers would be needed to support the same number of customers, enabling the deployment of small cables (12-48 fiber cables versus 432-fiber cables). The advantage of smaller cables is that micro-trenching techniques can be used, cutting the time and cost of deployment. Repairs to a fiber cut could also be handled much faster for a 24-fiber cable (under 2 hours) versus 8-hours to repair a 432-fiber cable.

DeSanti noted that Super PON standardization began in January 2018 with a presentation at the New Ethernet Applications group of IEEE 802.3. Last month, IEEE 802.3 approved the formation of a Super PON Study Group. In parallel, Super PON has also been presented to both ITU-T and FSAN, possibly as an NG-PON2 extension. Google has a pre-standard implementation deployed in the field.

An open question is whether Super PON economics leads Google to unpause its Access ambitions.

Crehan: Adoption of High-Speed Ethernet server networking is accelerating

Deployments of high-speed Ethernet adapter and controller shipments are significantly increasing and posted almost 50 percent year-over-year growth for the second quarter in a row, according to the most recent Server-Class Adapter & LAN-on-Motherboard
(LOM) Report from Crehan Research Inc.

The Crehan report finds that every high-speed Ethernet technology – 10GbE, 25GbE, 40GbE, 50GbE and 100GbE – individually posted year-over-year year growth in excess of 30 percent for the second calendar quarter of 2018, and all speeds except 50GbE posted record quarterly shipments.

“In addition to the resurgence of server shipment growth, as well as more networking per server, the network adapter and controller market is in the midst of numerous concurrent upgrades,” said Seamus Crehan, president of Crehan Research. “For example, the hyper-scale cloud segment was a major driver of the 2Q18 exponential growth in 25GbE adapters, while the enterprise segment was a major driver of the continued strong growth in 10GbE. Meanwhile, the telco segment was a strong contributor to the quarter’s strength in both 40GbE and 100GbE.”

Other noteworthy results from Crehan’s Server-Class Adapter & LAN-on-Motherboard (LOM) report
include:

  • Vendor-built 25GbE shipments almost tripled in 2Q18, approaching a three-million port annualized run-rate.
  • 40GbE continued to show surprisingly strong growth despite the recent arrival, and now material volumes, of 25GbE, 50GbE and 100GbE.
  • 10GbE remains the largest high-speed Ethernet growth contributor in absolute volume, comprising over half of all the 2Q18 shipment increase. Within 10GbE, 10GBASE-T saw the strongest growth rate, with an almost 80% year-over-year increase in shipments.
  • Intel remained the market share leader for 10GbE as well as for total high-speed Ethernet adapter and controller shipments, accounting for over 60% of total 2Q18 volumes. 
  • In network adapter and controller speeds above 10GbE, Mellanox accounted for more than 70% of ports shipped. This combined segment of 25GbE, 40GbE, 50GbE and 100GbE saw shipments more than double year-over-year in 2Q18.
“The strong increase in customer deployments of high-speed Ethernet adapters is putting enormous pressure on the switches connecting servers to the data center network, which is driving a need for higher capacity switches," Crehan said. "We expect to see strong adoption of higher capacity data center Ethernet switches to meet this swell of demand.”

www.crehanresearch.com

VMware Cloud on AWS expands its geographic reach

VMware Cloud on AWS is now available in Amazon Web Services’ (AWS) Asia-Pacific (Sydney) region.

VMware Cloud on AWS is an on-demand service that reduces the cost and effort associated with migrating applications to the cloud by delivering infrastructure and operations that are consistent with those deployed within customer data centers.

“VMware Cloud on AWS is now available across multiple regions globally including the U.S., Europe, and now Asia-Pacific, and we’ve increased the rate at which we deliver innovative capabilities and powerful solutions for our customers,” said Mark Lohmeyer, senior vice president and general manager, Cloud Platform Business Unit, VMware. “VMware Cloud on AWS provides a fast and cost-effective way to migrate mission-critical applications, or even entire data centers, to the cloud. And once in the cloud, we provide the industry-leading Software-Defined Data Center capabilities of VMware, coupled with the elasticity, breadth, and depth of AWS infrastructure and services, making it the ideal platform for modern applications.”

“Customers have been asking us to bring VMware Cloud on AWS to Asia Pacific, and we are pleased to be doing that today,” said Sandy Carter, vice president, EC2 Windows Enterprise Workloads, Amazon Web Services.

The latest VMware Cloud on AWS updates include:

  • 50 percent lower entry-level price and new minimum configuration: VMware will reduce the entry price for VMware Cloud on AWS by 50 percent and offer a smaller 3-host minimum SDDC configuration as a starting point for production workloads. For a limited time, VMware will offer the 3-Host SDDC environment for the cost of a 2-Host configuration.
  • License optimization for enterprise applications (Oracle/Microsoft): With new custom CPU core count capabilities, customers will be able to specify just the number of CPU cores they need, reducing the cost of running mission-critical applications that are licensed per CPU core. With VM-Host Affinity customers will be able to pin workloads to a specific host group to support licensing requirements.
  • Instant Data Center evacuation with live migration of 1000’s of VMs: Customers will be able to live migrate thousands of VMs with zero downtime and schedule exactly when to cut over to the new cloud environment with VMware NSX Hybrid Connect (previously known as VMware Hybrid Cloud Extension) powered by vMotion and vSphere Replication. VMware is offering a free migration cost assessment with VMware Cost Insight as part of the core service to assist with cloud migration planning.
  • New high-capacity storage option, backed by Amazon Elastic Block Store (Amazon EBS): Customers will be able to independently scale compute and storage resource requirements and reduce costs for storage-capacity demanding workloads with new clusters for storage-dense environments. These clusters deliver scalable storage capabilities with VMware vSAN utilizing Amazon Elastic Block Storage and run on new Amazon Elastic Compute Cloud (Amazon EC2) R5.metal instances. Amazon EC2 R5.metal instances are based on 2.5 GHz Intel Platinum 8000 series (Skylake-SP) processors. Each host has two sockets, 48 cores, 96 hyper-threads, 768 GB RAM, and 25 Gbps network bandwidth.
  • Application-centric security with VMware NSX: Customers will gain granular control over east-west traffic between workloads running in VMware Cloud on AWS through micro-segmentation provided by NSX. Security policies can be defined based on workload attributes (e.g., VM names, OS versions) and user-defined tags, are dynamically enforced at the VM-level, and follow workloads wherever they are moved.
  • NSX/AWS Direct Connect integration for simplified, high-performance connectivity: This new integration will make it easier for customers to connect across hybrid cloud environments and improve network performance. Integration between NSX and AWS Direct Connect will enable private and consistent connectivity between VMware workloads running on VMware Cloud on AWS and those running on-premises. This integration will also accelerate migration to cloud and enable multi-tier hybrid applications.
  • Optimized cost/performance with autoscaling: Elastic DRS allows users to automate VMware Cloud on AWS cluster scaling. Elastic DRS enables automated scaling up or scaling down of hosts and rebalancing of clusters, based on the needs of the applications and the policies the customer defines.
  • Real-Time log management included at no additional cost: VMware has added VMware Log Intelligence to the core VMware Cloud on AWS service, providing customers with access to VMware Cloud on AWS audit logs for increased security and compliance at no additional cost.

“VMware Cloud on AWS” Brings New Private/Public Model

Amazon Web Services and VMware announced a strategic alliance to drive hybrid cloud services for enterprise customers.

Under the alliance, "VMware Cloud on AWS" will be the primary public cloud solution delivered, sold, and supported by VMware; AWS will be VMware’s primary public cloud infrastructure partner; and VMware will be AWS’s primary private cloud partner in new strategic alliance. The service, which will be sold by VMware beginning in mid-2017, will run on next-generation, elastic, bare metal AWS infrastructure.

The companies said their jointly engineered "VMware Cloud on AWS" solution will enable customers to run applications across VMware vSphere-based private, public, and hybrid cloud environments. This will allow  VMware customers to use their existing VMware software and tools to leverage AWS’s global footprint and breadth of services, including storage, databases, analytics, etc.

Times of India: Mobile networks recover quickly from Kerala flood

Service has been restored to almost all telecom tower following the worst flooding in the Indian state of Kerala in nearly a century.

According to the Times of India, the calamity disrupted service at 22,217 base stations out of a total 85,900 base stations in the state. A full 98% have now been restored, although 400 remain on diesel backup power. The article also notes that 190 optical fiber cables were damaged in the flood, and 168 of these have been restored.

Kerala received heavy monsoon rains this year. On August 8th, with dams filled to capacity, a further 310 mm (12 in) of rainfall. As a result, 35 of the state's 42 dams were opened or overflowed, resulting in widespread flooding.

https://timesofindia.indiatimes.com/city/thiruvananthapuram/connectivity-restored-in-98-telecom-towers/articleshow/65554659.cms

Comcast's Internet Essentials reaches 6 million low-income households

Over the past year, Comcast connected more than two million people to its Internet Essentials program, which provides broadband access for low-income families.  The program now serves more than six million low-income Americans, making it the largest such program in the country.

Comcast also announced it will significantly expand eligibility – for the eleventh time in seven years – to low-income veterans, nearly one million of whom live within the Comcast footprint.

According to the United States Census Bureau’s 2016 American Community Survey, about a third of low-income veterans do not have Internet service at home, and only about 60 percent own a computer.

“This program has had an enormous impact on millions of families and children who now have high-speed Internet at home, many for the first time in their lives,” said David L. Cohen, Senior Executive Vice President and Chief Diversity Officer. “We’re excited to extend that same opportunity to more than one million, low-income veterans. Veterans have stood up for our country; now it’s time for us to stand up for them by providing access to life-changing digital tools and resources.”

http://www.internetessentials.com

Saturday, August 25, 2018

Huawei Marine to supply subsea cable for Mexico's Baja California

Huawei Marine has begun marine survey work on behalf of Megacable, a Mexican cable operator, for a subsea cable connecting Baja California to the mainland across the Sea of Cortez.

The Topolobambo – La Paz submarine cable system will provide more stable and low-latency communication for La Paz, Mexico’s second largest tourist destination.

The companies noted that the Baja California peninsula is currently served by aerial optical cables across the terrestrial route to the mainland, and that the current infrastructure is prone to frequent failures of the aerial cable.

“With the La Paz project Huawei Marine’s technology and service capabilities are once again recognized by customers in Latin America,” said Zhaofeng Chen, Planning Design Director of Huawei Marine. “The terrain and environment in the Gulf and Peninsula region is complex and places high requirements on the design and construction of the submarine cable. Huawei Marine’s rich experience in working on difficult projects around the world will ensure the Topolobambo – La Paz project will be completed smoothly."

AT&T tests LTE-connected drones for medical deliveries

AT&T is testing LTE-connected drones for delivering temperature-sensitive medicines.

AT&T participated in a field trial in Puerto Rico with Merck and Softbox, which developed a thermal-insulated packaging system called "Skypod" that integrates AT&T's Internet of Things (IoT) technology.

Softbox, based in the UK, provides specialist temperature control packaging to the pharmaceutical industry.

"Merck is pleased to collaborate on this innovative new model for delivering medicines to patients in areas affected by natural disasters," said Brenda Colatrella, executive director, Corporate Responsibility at Merck. "We're proud of our long history of expanding access to our medicines and vaccines and collaborating to provide humanitarian assistance. The drone test flights give us hope that we will be able to provide a reliable supply of our medicines for disaster."

The AT&T Global SIM and AT&T Control Center connect and manage the Skypod's sensor data transmission. The web and mobile app reporting dashboard uses the AT&T Asset Management Operations Center.

The drone is also connected to the AT&T network, providing a communications path for flight plan and telemetry data between the drone and ground control system.

Last year, AT&T deployed the helicopter Flying COW (Cell on Wings, cell site on a drone) in Puerto Rico following Hurricane Maria. It was the first time a drone had been used to connect residents with their mobile phone services after a disaster.

"With the 2018 hurricane season upon us, we are thinking about the devastation caused by Hurricane Maria last year. This trial is a fantastic example of 'IoT for Good,' showcasing that it's possible for connected medical drones to deliver vital medicines to people in times of disaster," said AT&T Region President for Europe, the Middle East and Africa, John Vladimir Slamecka.

ZAIN Iraq picks Ericsson for RAN upgrade

Zain Iraq selected Ericsson to upgrade a number of its legacy sites with Ericsson Radio System.

Under the contract, Ericsson will provide higher capacity and improve network performance.

Ali Al Zahid, Zain Iraq Chief Executive Officer, says “Zain is committed to bringing the latest technology and cutting-edge services to its customers.  Upgrading current networks with the latest technology to cater for increasing traffic volumes and enhanced customer experience is a key priority. It also reflects our commitment to providing the mobile community in Iraq with the highest quality of service available.

Rafiah Ibrahim, Head of Ericsson Market Area Middle East and Africa, says: “I am glad that we continue a good cooperation with our long-term partner Zain.  This new contract will accelerate Zain’s digital journey and build its digital infrastructure with the introduction of new services and virtual functions.  This will enable Zain to deliver the best possible user experience in two major cities in Iraq and meet the data demands of tomorrow in a timely manner."

Friday, August 24, 2018

Broadcom gains HSR approval for CA Technologies acquisition

Broadcom announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired with respect to the proposed acquisition of CA Technologies (NASDAQ: CA).

Expiration of the waiting period under the HSR Act satisfies one of the conditions to the closing of the pending transaction, which was announced on July 11, 2018.

Broadcom believes it will be able to complete the merger in the fourth calendar quarter of 2018.

Broadcom to acquire CA Technologies for $18.9 billion

Broadcom agreed to acquire CA Technologies (NASDAQ: CA) for $44.50 per share in cash, representing an enterprise value of $18.9 billion -- a premium of approximately 20% to the closing price of CA common stock on July 11, 2018.

CA, which was founded by Charles Wang and Russell Artzt in 1976 and formerly known as Computer Associates,  is one of the world's leading providers of information technology (IT) management software and solutions. The company is based in New York City and is primarily known for its B2B mainframe, distributed computing, and enterprise software.

Broadcom notes that CA benefits from predictable and recurring revenues with the average duration of bookings exceeding three years.

Hock Tan, President and Chief Executive Officer of Broadcom, said, "This transaction represents an important building block as we create one of the world's leading infrastructure technology companies. With its sizeable installed base of customers, CA is uniquely positioned across the growing and fragmented infrastructure software market, and its mainframe and enterprise software franchises will add to our portfolio of mission critical technology businesses. We intend to continue to strengthen these franchises to meet the growing demand for infrastructure software solutions."

Thursday, August 23, 2018

Vertical Systems: Mid-Year 2018 U.S. Carrier Ethernet LEADERBOARD

Vertical Systems Group released its Mid-year 2018 U.S. Carrier Ethernet LEADERBOARD listing the top seven carriers, in rank order based on retail port share, as follows: CenturyLink, AT&T, Verizon, Spectrum Enterprise, Comcast, Windstream and Cox.

To qualify for the LEADERBOARD, providers must have four percent (4%) or more of the U.S. Ethernet services market. Shares are measured by the number of customer ports in service as tracked by Vertical Systems Group, with input from surveys of Ethernet providers.

"After a flurry of M&A activity during the past two years, the Ethernet marketplace stabilized during the first half of 2018," said Rick Malone, principal of Vertical Systems Group. "U.S. port growth was more than 6 percent for the period, with accelerating deployments of multi-gigabit speed services. Most providers experienced acute price compression across all data rates, partially offsetting the revenue typically generated from higher speed services. All providers are grappling with longer sales cycles due to SD-WAN, however the impact on the U.S. Ethernet base has been negligible to date."

Other providers selling Ethernet services in the U.S. are segmented into two tiers as measured by port share. The first or Challenge Tier includes providers with between 1% and 4% share of the U.S. retail Ethernet market. For Mid-Year 2018, the following companies attained a position in the Challenge Tier (in alphabetical order): Altice USA, Cogent, Frontier, GTT, Sprint and Zayo.

Dell'Oro: ZTE ban impacted Q2 Optical transport equipment market

The Optical Transport network equipment market declined in 2Q18 due to the ZTE ban, according to a recently published report from Dell’Oro Group

As a result of the ZTE ban, revenue from China declined 13 percent year-over-year.

“The optical transport network equipment market year-over-year decline in 2Q18 was entirely due to fewer sales into China,” said Jimmy Yu, Vice President at Dell’Oro Group. “Demand outside of China continued to improve, which is a great sign for the overall market health.  Now that the ZTE ban has been lifted, we think optical revenue from China will increase substantially in the second half of the year,” added Yu.

Additional highlights from the 2Q18 Optical Transport Quarterly Report:

  • Huawei held the highest Optical Transport market share in the quarter followed by Ciena and Nokia.
  • Demand for interconnecting data centers (DCI) with WDM links maintained a high growth rate. We estimate DCI grew nearly 40 percent year-over-year, driven by both U.S. and Chinese based internet content providers.
  • Deployment of 200 Gbps coherent wavelengths was exceptionally strong in the quarter. Due to the tidal shift towards wavelength speeds higher than 100 Gbps, we predict 200 Gbps shipments will be two-times higher in 2018, and revenue contribution from 100 Gbps shipments will slow further.

Dell'Oro: SD-WAN market to grow at 35% CAGR for next 5 years

Dell’Oro Group is predicting that the sales of Software Defined Wide Area Network (SD-WAN) technologies will grow at a compounded annual growth rate of 35 percent over the next five years. A new Dell'Oro report forecasts the sales of SD-WAN software to grow at almost double the rate of hardware.

“The SD-WAN software components are the key differentiators of vendors’ offerings, and we expect controller and virtualized network functions software revenue to account for the large majority of the market size,” said Shin Umeda, Vice President at Dell’Oro Group. “Over time, software innovation will drive the SD-WAN market while hardware will increasingly be commoditized,” added Umeda.

Dell’Oro Group’s Advanced Research: SD-WAN Report forecast is based on a bottoms-up methodology and includes details of the hardware and software components required for full SD-WAN implementation separated into enterprise and telecom market segments.

This new advanced research report also forecasts the SD-WAN market by the type of customer deployments.

  • Sales of SD-WAN solutions to Enterprises will account for the largest portion of the market over the next five years.
  • Service Provider SD-WAN deployments for the purposes of managed services will grow at an average annual rate over 40 percent over the next five years.

IDC: NFVI revenues to hit $5.6 billion in 2022

Worldwide NVFI revenues were just $564 million in 2017 but will grow at a compound annual growth rate of 58.1% over the 2017-2022 forecast period, reaching $5.6 billion in 2022, according to a new study from IDC.

In defining NFVI, IDC relies on ETSI's proposed architecture to identify five segments: software-defined compute, networking, storage, management, and orchestration. IDC expects the orchestration segment will be the fastest growing, driven by the need to orchestrate network services dynamically across an increasingly complex smorgasbord of network functions – both physical and virtual – potentially across several vertical domains. Software-defined networking is also likely to grow significantly, driven by the growing need to programmatically manage network flows in response to a dynamic market and an application/use case environment – both within the telco cloud datacenter and across telco cloud deployments to manage services flows.

From a domain perspective, wireless infrastructure is the largest contributor to the NFVI forecast today and will continue to be the largest contributor throughout the forecast, followed by routing. 5G will be a big driver of wireless infrastructure NFVI growth, while the move to virtual routing in edge and access use cases will enable routing NFVI growth to outperform the overall market.

"Communications service providers globally recognize the need to digitally transform their network infrastructure and build more customer-centric business models. Embracing software-defined networking principles and deploying network functions in virtualized form factors are a strategic necessity not only for carriers as they invest in their future but also for vendors supplying those solutions to the market," said Rajesh Ghai, research director, Carrier Network Infrastructure research at IDC. "NFVI is the foundation on which this vision rests and this forecast is IDC's first effort to size this strategically important segment of carrier network infrastructure."