Sunday, October 28, 2018

IBM bets $34 billion on Red Hat as its pathway to multi-cloud

IBM agreed to acquire all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total enterprise value of approximately $34 billion.

IBM and Red Hat said that as a combined company tthey will be strongly positioned to address the migration of all businesses to multi-cloud environments in an open and secure way. They estimate that 80% of business workloads have yet to move to the cloud. The merger will draw on their shared leadership in key technologies, such as Linux, containers, Kubernetes, multi-cloud management, and cloud management and automation

IBM  was an early supporter of Linux, collaborating with Red Hat to help develop and grow enterprise-grade Linux and more recently to bring enterprise Kubernetes and hybrid cloud solutions to customers.

IBM said it will remain committed to Red Hat’s open governance, open source contributions, participation in the open source community and development model, and fostering its widespread developer ecosystem. It also promises to build and enhance Red Hat partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba and more, in addition to the IBM Cloud.

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer. “IBM will become the world’s #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.

“Open source is the default choice for modern IT solutions, and I’m incredibly proud of the role Red Hat has played in making that a reality in the enterprise,” said Jim Whitehurst, President and CEO, Red Hat. “Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation.”

https://www.redhat.com

Red Hat continues to grow at double digit clip - up 14% in Q2

Red Hat reported revenue of $823 million, up 14% in USD year-over-year, for its second quarter of fiscal year 2019 ended August 31, 2018. GAAP operating income for the quarter was $135 million. Non-GAAP operating income for the second quarter was $197 million, up 3% year-over-year. For the second quarter, GAAP operating margin was 16.4% and non-GAAP operating margin was 23.9%.

“Our second quarter results were consistent with our guidance and we drove 20% growth in total backlog to $3.3 billion,” said Eric Shander, Executive Vice President and Chief Financial Officer for Red Hat. “

  • Subscription revenue from Infrastructure-related offerings for the quarter was $527 million, an increase of 8% in USD year-over-year, or 8% measured in constant currency. 
  • Subscription revenue from Application Development-related and other emerging technology offerings for the quarter was $196 million, an increase of 31% in USD year-over-year, or 31% measured in constant currency.

Red Hat OpenStack Platform 13 containerizes all OpenStack services

Red Hat OpenStack Platform 13, the newest version of Red Hat’s cloud Infrastructure-as-a-Service (IaaS) solution provides the capability to containerize all OpenStack services, including networking and storage, for the first time in a Red Hat OpenStack offering.

Some key features of Red Hat OpenStack Platform 13:

  • Red Hat Ceph Storage for massively scalable, integrated storage, which enables organizations to more quickly provision hundreds of virtual machines from a single snapshot and build a fully-supported storage solution.
  • Red Hat OpenShift Container Platform helps Red Hat OpenStack Platform 13 serve as an extensible platform for cloud-native workloads, providing a single architecture that brings the power of Linux containers on Kubernetes orchestration to scalable OpenStack infrastructure.
  • Fast Forward upgrades -- gives customers the option to stay on a faster upgrade path and receive new features from the upstream community every six months, or remain on a supported release for a longer period of time. 
  • Integration of security related projects such as OpenStack Barbican, providing tenant level lifecycle management of secrets, such as passwords, security certificates and keys. With the introduction of Barbican, encryption related use cases are now available, such as Cinder encrypted volume support, Glance image signing and Swift object encryption. 
  • Increased TLS coverage for internal communication flows for services such as VNC, OpenDaylight and Redis. The introduction of these features can enable customers to better comply with security standards such as FedRAMP, SecNumCloud, and other industry specific risk management frameworks.

IBM to adopt Red Hat OpenShift Container Platform for all its software

IBM will extend its private cloud platforms (IBM Cloud Private and IBM Cloud Private for Data) and its middleware offerings to Red Hat OpenShift Container Platform as Red Hat Certified Containers.
The agreement builds on IBM’s recent move to re-engineer its entire software portfolio with containers, including WebSphere, MQ Series and Db2.

The companies said there is growing consensus that container technologies are the best way to move applications across multiple IT footprints, from existing data centers to the public cloud and vice versa.

Under their agreement, enterprise customers will be able to more easily adopt a hybrid cloud strategy with IBM Cloud Private and Red Hat OpenShift serving as the common foundation. This will enable the IBM Cloud Private container platform to provide a single view of all enterprise data.

5G Americas details 3GPP Release 14, 15, 16

5G Americas, which is an industry trade association, published a 271-page whitepaper detailing the extensive standards work by 3GPP in the development of 5G wireless technology.

Some highlights of Wireless Technology Evolution: Transition from 4G to 5G

3GPP Release 14, which was frozen by mid-2017, produced LTE-Advanced Pro features. It also focused on the study items towards 5G mobile wireless technology and architecture including Cellular Vehicle to Everything (C-V2X) communications.

3GPP Release 15, the first phase of normative specifications for 5G, provided specifications for a wider range of spectrum bands, from below 6 GHz to millimeter (mm) Wave bands up to 100 GHz enabled by a New Radio (NR) access technology.  3GPP Rel-15 Non-Standalone 5G New Radio (NSA 5G NR) specifications were completed in December 2017. The 5G NSA specifications have an LTE anchor for the control plane communications with a 5G NR cell to boost user data. The Rel-15 Standalone 5G NR specification will work without any reliance on LTE and those specifications were completed in June 2018 along with specifications of the new core network. The new core network specified in Rel-15 will provide interaction with the Evolved Packet Core (EPC) 4G system with orchestration, virtualization, a clearly separate control and user plane, and signaling architecture. Network slicing and Service Level Agreement (SLA) for groups of devices of new vertical industries and services will be provided for by the 5G core specification.

3GPP Release 16 definition of work study items was completed on schedule in July 2018. Release 16, described as phase 2 of 5G, will primarily address any outstanding issues in Rel-15, expansion of 5G NR based on C-V2X capabilities, Industrial Internet of Things (IoT), enhancements to Ultra-Reliable Low Latency Communication (URLLC), and 5G in operation in unlicensed spectrum and above 52.6 GHz. 5G efficiency improvements in Rel-16 will include enhancements to 5G Self-Organizing Networks (SON) and Big Data capabilities, MIMO enhancements, improved power consumption, support for device capabilities exchange, and a study of support for non-orthogonal multiple-access (NOMA). The Release 16 standards will be completed before the end of 2019 to target the ITU IMT-2020 submission.

Michael Recchione, Principle Engineer, Mobility CTO Group, Cisco and leader of the 5G Americas working group, explained, "We are looking upon a newly defined era in mobile technology. 3GPP Release 15 marks the start of that new 5G era, the new horizon technology enablers for the Internet of Things, autonomous vehicles and ultra-reliable low latency communications that will enable connectivity previously unimaginable."

The full 271-page whitepaper is here:
http://www.5gamericas.org/files/8015/4024/0611/3GPP_Rel_14-16_10.22-final_for_upload.pdf

AT&T previews NETGEAR Nighthawk 5G Mobile Hotspot over mmWave

AT&T took another step toward 5G with completion of the first millimeter wave mobile 5G browsing session.

The test used NETGEAR Nighthawk 5G Mobile Hotspot and was occurred in Waco, Texas over network infrastructure from Ericsson. This is the first standards-based mobile 5G device in the world able to access a live millimeter wave 5G network.

“This proves we are well on our way to the promise of mobile 5G for consumers,” stated David Christopher, president, AT&T Mobility and Entertainment.

AT&T plans to launch 5G in at least 12 cities this year and 19 cities in early 2019.

http://att.com/5Gnews

Broadcom confirms mass production of 12.8 Tbps Tomahawk 3 Switch

Broadcom's StrataXGS Tomahawk 3 switch series is now in mass production.

The Tomahawk 3 series supports high-density, line-rate 400GbE, 200GbE, 100GbE, and 50GbE interconnect for massive scale-out of software-defined cloud data centers. The Tomahawk 3 switch series features multiple devices at 12.8Tbps, 8.0 Tbps, and 6.4 Tbps based on the industry’s most performant 50G PAM4 / 25G NRZ SerDes technology. All devices in the series have completed extensive functional, performance, and reliability testing and have been qualified for volume production.

“We are delighted and humbled by the widespread adoption of Tomahawk 3 based switching solutions in cloud infrastructure,” said Ram Velaga, senior vice president and general manager, Switch Products at Broadcom. “Our engineering team has executed to the demands of the largest cloud operators globally, including the most rigorous system and network-level qualification requirements – both in our labs and in customer testbeds. Network operators are able to immediately deploy Tomahawk 3 based fabrics, at scale, and with confidence.”


Broadcom intros first full-duplex G.fast

Broadcom introduced the first full-duplex modem implementation based on G.fast.

Broadcom said the innovation builds on the advantages of G.fast for high-density residential environments. Full-duplex utilizes the entire frequency spectrum of G.fast simultaneously in both the downstream and upstream communication paths, effectively doubling the simplex capacity of G.fast. Depending on the nature of an operator’s copper plant, this will result in either a doubling of the peak bandwidth, or the maximum distance from the distribution point to the customer premise, as compared with the existing G.fast standard.

Broadcom’s full-duplex implementation is available today on the production-released BCM65400 device family. 

Broadcom is working with the next-generation G.mgfast initiative within the ITU to bring a fully-standardized full-duplex solution to the broadband market, pending completion and ratification of the new standard.

“We are excited to pioneer another innovative copper solution, one that effectively doubles the performance of current G.fast,” said Greg Fischer, senior vice president and general manager, Broadband Carrier Access, Broadcom. “Full-duplex technology will provide telecom operators with yet another option to leverage the investment in their existing copper networks, with a competitive, minimal capex multi-gigabit broadband service for many years to come.”

Samsung demos 5G in India

Samsung will participate in India’s first large-scale 5G trial, scheduled to take place in the first quarter of 2019, in collaboration with the Department of Telecommunications (DoT).

Samsung is showcasing 5G at this week's India Mobile Congress 2018 in New Delhi. Demos include 5G home broadband services, Smart Cities and Smart Agriculture. Samsung’s 5G Skyship, which was developed in partnership with Korea Telecom, will be flying over the exhibition center to demonstrate first response use cases.

Samsung notes that it built the world’s largest greenfield and the most advanced 4G LTE networks nationwide by partnering with Reliance Jio, covering 99% of the Indian population, equivalent to 1.3 billion people.

Nokia begins manufacturing 5G radios in Chennai

Nokia has started manufacturing 5G New Radios (NR) based on the 3GPP 5G New Radio Release 15 standard at its state-of-the-art plant in Chennai.

Nokia's Chennai facility, which is one of the largest telecom equipment manufacturing plant in the country, recently reached the 4 million unit annual production milestone of 2G, 3G and 4G units. It serves both domestic as well as global customers, shipping to over 100 countries.

Sanjay Malik, senior vice president and head of the India Market, at Nokia, said, "This is another big leap towards the 'Make in India' vision as our factory continues to contribute to the Indian economy and the country's growing profile as a manufacturing and engineering hub. Nokia was the first to leverage the skills and capabilities in India and start manufacturing telecom networks equipments in the country in 2008, and developthe local supply chain for various components. We are now pioneering 5G manufacturing in the country, making India and the world ready for 5G."

BSNL picks Nokia for Smart Pole project

Bharat Sanchar Nigam Limited (BSNL) selected Nokia to supply, install, commission and maintain the Smart Telecom Poles across India in all of BSNL's telecom circles.

The project envisions a transformation of India's cities through intelligent infrastructure.

Under the contract, Nokia will also integrate the poles with smart LED lighting systems, CCTV cameras, digital billboards and environmental sensors that provide strong revenue generation potential for the operator.

Huawei launches Intel Select Solution in NFVI

Huawei, which has deployed more than 380 NFVI projects, launched an Intel Select Solution in NFVI.

Intel Select Solutions for network functions virtualization infrastructure (NFVI) are workload-optimized network solutions designed to simplify the process of selecting and deploying the hardware and software needed for network workloads and applications.

Dan Rodriguez, vice president of Communications Infrastructure Division, Data Center Group, Intel said: "Intel® Select Solutions provide optimized, pre-integrated, and fully verified reference designs so that users can simplify and accelerate adoption and deployment of trusted solutions. Huawei's FusionSphere for NFVI solution enables end users to efficiently implement virtualized network functions and application deployment, achieving flexibility, reliability, performance and ease of maintenance at optimal cost while extracting the maximum benefit from the Intel® Xeon® Scalable platforms."

Thursday, October 25, 2018

AWS grew at 46% clip in Q3

Amazon Web Services (AWS) generated $6.679 billion in revenue in Q3 2018, up 46% compared to a year ago. The business unit achieved operating income of $2.077 billion for the quarter, up 77% compared to year ago.

The annualized run rate is now above $26 billion.

Operating margin for AWS was 31%, while capital leases for data centers were up 9% yoy.

AWS Highlights for Q3
  • AWS will open an infrastructure region in South Africa in the first half of 2020. The new AWS Africa (Cape Town) Region will consist of three Availability Zones. 
  • Currently, AWS provides 55 Availability Zones across 19 infrastructure regions worldwide, with another 12 Availability Zones across four AWS Regions in Bahrain, Hong Kong SAR, Sweden, and a second GovCloud Region in the U.S. expected to come online in the coming months.
  • New customer commitments and major migrations during the quarter: DoorDash is all-in on AWS; Hubspot and Samsung Heavy Industries selected AWS as their Preferred Public Cloud Provider; and Yelp moved its master database from its own data center to AWS, completing its migration to the AWS cloud.
  • AWS announced a multi-year, global agreement to build a new multi-billion dollar DXC to deliver IT migration, application transformation, and business innovation to global Fortune 1000 clients. 
  • AWS announced the general availability of new High Memory instances for Amazon Elastic Compute Cloud (Amazon EC2) for large in-memory databases, including production deployments of SAP HANA.
  • AWS announced the general availability of T3 instances, the next generation of burstable general-purpose instances for Amazon EC2.
  • AWS announced general availability of a high frequency instance (z1d) for Amazon EC2, as well as the next generation of memory optimized instances (R5), and memory optimized instances with local storage (R5d). 
  • AWS announced the general availability of Amazon Aurora Serverless, a new deployment option for Amazon Aurora that automatically starts, scales, and shuts down database capacity with per-second billing for applications with less predictable usage patterns. 
  • AWS announced Amazon Relational Database Service (Amazon RDS) on VMware. 


Digital Realty reports continued growth data center leasing

Digital Realty reported revenues of $769 million for Q3 2018, a 2% increase from the previous quarter and a 26% increase from the same quarter last year. Net income was $90 million, and net income available to common stockholders of $67 million, or $0.33 per diluted share, compared to $0.32 per diluted share in the previous quarter and ($0.02) per diluted share in the same quarter last year.

“We continue to execute our core business strategy focused on high-value customer deployments, which favor direct interconnection to networks and cloud on-ramps. We are expanding our customer ecosystem and benefiting from strong organic growth,” said Paul Szurek, CoreSite’s Chief Executive Officer. “Our core retail colocation business continued its consistent leasing performance at good pricing, acquiring valuable new logos and expanding with key strategic customers and we made good progress on construction and development activities which will strengthen our scale leasing to edge deployments over the next eighteen months.”

"In the third quarter, we signed total bookings expected to generate $69 million of annualized GAAP rental revenue, including an $8 million contribution from interconnection," said Chief Executive Officer A. William Stein.  "This represents the second-highest bookings in the company's history, close on the heels of our record in the prior quarter.  We also announced our entry into the rapidly growing Brazilian market, and we took proactive steps to secure our supply chain and further strengthen our balance sheet.  We look forward to building on this momentum in the months ahead, setting the stage for sustainable growth into 2019 and beyond."

Key metrics:

  • Digital Realty has 198 data centers worldwide
  • Digital Realty closed on the sale of 360 Spear Street, a 155,000 square foot data center in San Francisco, for $92 million.  The facility was 39% leased and was expected to generate cash net operating income of approximately $2 million in 2018, representing a nominal exit cap rate of 1.9%.  The sale generated net proceeds of $91 million, and Digital Realty recognized a gain on the sale of approximately $27 million in the third quarter of 2018.
  • Digital Realty acquired three separate sites in Manassas, Virginia, Sterling, Virginia and Sydney, Australia, totaling 51.5 acres for a combined investment of $40 million, or approximately $773,000 per acre.  The three sites are expected to support the development of approximately 138 megawatts of critical power.  Digital Realty also entered into an agreement to acquire 424 acres of undeveloped land in Loudoun County, Virginia for a purchase price of $236.5 million, or approximately $558,000 per acre.  
  • Digital Realty entered into a definitive agreement to acquire Ascenty, the leading data center provider in Brazil, from private equity firm Great Hill Partners in a transaction valued at approximately $1.8 billion. 
  • Digital Realty had approximately $9.2 billion of total debt outstanding as of September 30, 2018, comprised of $9.1 billion of unsecured debt and approximately $0.1 billion of secured debt. 



CoreSite says monthly recurring revenue per data center cabinet increased 7.0% yoy

CoreSite Realty reported total operating revenues of $139.2 million for Q3 2018, a 13.1% increase year over year. Third-quarter net income per diluted share was $0.52, a 13.0% increase year over year.

“We continue to execute our core business strategy focused on high-value customer deployments, which favor direct interconnection to networks and cloud on-ramps. We are expanding our customer ecosystem and benefiting from strong organic growth,” said Paul Szurek, CoreSite’s Chief Executive Officer. “Our core retail colocation business continued its consistent leasing performance at good pricing, acquiring valuable new logos and expanding with key strategic customers and we made good progress on construction and development activities which will strengthen our scale leasing to edge deployments over the next eighteen months.”

Q3 Highlights for CoreSite's data center business

  • Data center lease commencements totaled 36,576 NRSF at a weighted average GAAP rental rate of $160 per NRSF, which represents $5.9 million of annualized GAAP rent.
  • Renewed leases with annualized GAAP rent of $16.2 million, with rent growth of 3.2% on a cash basis and 5.8% on a GAAP basis, and recorded rental churn of 2.5% in the third quarter
  • Executed 120 new and expansion data center leases for 31,330 NRSF, representing $6.1 million of net annualized GAAP rent at an average rate of $193 per square foot
  • CoreSite’s renewal leases signed in the third quarter totaled $16.2 million in annualized GAAP rent, comprised of 97,682 NRSF at a weighted-average GAAP rental rate of $166 per NRSF, a 3.2% increase in rent on a cash basis and a 5.8% increase on a GAAP basis. The third-quarter rental churn rate was 2.5%.
  • As a result of renewals and growth in interconnection and power revenues, monthly recurring revenue per cabinet equivalent increased 7.0% over the prior-year period.
  • As of September 30, 2018, CoreSite had a total of 160,591 square feet of turn-key data center capacity under construction and had spent $100.7 million of the estimated $281.8 million required to complete the projects.

Nokia announces cost cutting, job losses and corporate realignment

Nokia announced a corporate realignment and cost cutting program aimed at refocusing its efforts on high-performance, end-to-end networks, expansion into new enterprise segments, building a standalone software business, and generating significant licensing revenues.

Specifically, Nokia aims to reduce of its annualized operating expenses and production overheads by EUR 700m by the end of 2020 compared to the end of 2018, of which EUR 500m is expected from operating expenses.

Cost savings will come from automation; process and tool simplification; significant reductions in central support functions; prioritization of R&D programs; a sharp reduction of R&D in legacy products; efficiency from further application of a common software foundation and innovative software development techniques; the consolidation of selected cross-company activities; and further reductions in real estate and other overhead costs.

Nokia said the cost cutting will entail a net reduction of employees globally but did not disclose the size of the expected cuts.

"Nokia has made considerable progress in executing on its strategy, with excellent momentum in providing high-performance end-to-end networks, targeting new enterprise segments and creating a standalone software business," said Rajeev Suri, President and CEO. "Our early progress in 5G is extremely strong, we continue to increase our investment in this critical technology, and our win rate for new deals suggests that we are in a very good competitive position."

"With the successful Alcatel-Lucent integration and cost-saving program soon to be behind us, we are taking steps to accelerate the execution of our strategy and sharpen our customer focus. We will also redouble our efforts to ensure that Nokia's disciplined operating model remains a source of competitive advantage for us, and that we maintain our position as the industry leader in cost management, productivity and efficiency. We noted earlier this year that we would need to take further cost actions in order to deliver on our 2020 guidance. Today, we are quantifying those actions and raising the certainty that we can meet those commitments," Suri said.

Highlights of the plan include:

  • Creating a new Enterprise Business Group that consolidates a range of existing, fast-growing activities into one focused organization reporting directly to the President and CEO.  
  • Accelerating Nokia's strong momentum in 5G by sharpening the focus of the Mobile Networks Business Group to be on mobile radio products.
  • Strengthening Nokia's capability to deliver industry-leading, fully-integrated and tested Cloud Core solutions by aligning both resources and accountability to the Nokia Software Business Group.
  • Kathrin Buvac, who is currently Chief Strategy Officer for Nokia, has been nominated as President of Enterprise. 

Intel's data-centric revenue grew 22 percent

Intel reported record third-quarter revenue of $19.2 billion, up 19 percent YoY.

“Stronger than expected customer demand across our PC and data-centric businesses continued in the third quarter. This drove record revenue and another raise to our full-year outlook, which is now up more than six billion dollars from our January expectations. We are thrilled that in a highly competitive market, customers continue to choose Intel,” said Bob Swan, Intel CFO and Interim CEO. “In the fourth quarter, we remain focused on the challenge of supplying the incredible market demand for Intel products to support our customers' growth. We expect 2018 will be another record year for Intel, and our transformation positions us to win share in an expanded $300 billion1 total addressable market.”

Highlights:

  • The PC-centric business (CCG) delivered record revenue, up 16 percent. 
  • The data-centric businesses grew 22 percent YoY led by 26 percent growth in the Data Center Group (DCG). DCG achieved record quarterly revenue driven by strong demand from cloud and communications service providers investing to meet the explosive demand for data and to improve the performance of data-intensive workloads like artificial intelligence. In Q3, DCG shipped the first Intel Optane™ DC Persistent Memory for revenue, and Intel® Xeon® Scalable set 95 new performance world records2 as adoption continued.
  • The Internet of Things Group (IOTG) also achieved record revenue. Excluding Wind River, which Intel divested in the second quarter, IOTG revenue was up 19 percent YoY on broad business strength. Record revenue in Intel's memory business (NSG) was up 21 percent YoY.
  • Intel's Programmable Solutions Group (PSG) revenue grew 6 percent YoY with continued strength in the data center and strong organic growth. PSG expanded its product line with the acquisition of eASIC and the introduction of the new Intel® Programmable Acceleration Card (PAC) with Intel® Stratix 10 SX FPGA.
  • Mobileye also achieved record quarterly revenue of $191 million, up approximately 50 percent YoY3 as customer momentum continued. Mobileye won 8 new design at major US and global automakers in Q3, bringing its year-to-date design win total to 20.

Nokia posts net sales of EUR 5.5 billion, up 1%

Nokia reported net sales of EUR 5.5 billion for Q3 2018, compared to EUR 5.5 billion in Q3 2017. On a constant currency basis, reported net sales grew by 1% year on year. Nokia achieved year-on-year growth across all five of its Networks business groups, as well as in Nokia Technologies.

Reported diluted EPS in Q3 2018 was negative EUR 0.02, compared to negative EUR 0.03 in Q3 2017, primarily driven by lower restructuring and impairment charges, partially offset by the absence of non-recurring catch-up licensing net sales, which benefitted the year-ago period, our gross profit performance and income taxes.

"Nokia's third-quarter results validate our earlier view that conditions would improve in the second half of 2018. This was particularly evident in our excellent momentum in orders, growth across all five of our Networks business groups, and improved profitability compared to the first half of the year. Despite some risks related to short-term delays in project timing and product deliveries, we remain on track to deliver on our full-year guidance," stated Rajeev Suri, Nokia's President and CEO.

Regarding its Networks business, Nokia said its order backlog was strong at the end of Q3 2018, and that it continues to expect commercial 5G network deployments to begin near the end of 2018.

Nokia Technologies posted a 19% year-on-year growth in recurring licensing net sales. A decrease in net sales on a year-on-year basis was primarily due to the absence of approximately EUR 180 million of non-recurring catch-up licensing net sales, which benefitted the year-ago period.


Nokia and Samsung extend patent license agreement

Nokia and Samsung extended their patent license agreement, which would otherwise have expired at the end of 2018.

Under the agreement, Samsung will make payments to Nokia for a multi-year period beginning 1 January 2019 onwards. The terms of the agreement remain confidential between the parties.

"Samsung is a leader in the smartphone industry and has been a Nokia licensee for many years," said Maria Varsellona, Nokia Chief Legal Officer and President of Nokia Technologies. "We are pleased to have reached agreement to extend our license. This agreement demonstrates the strength of our patent portfolio and our leadership in R&D and licensing for cellular standards including 5G."

ZTE jumps right back to profitability

Jumping right back after nearly getting shut down as a result of the U.S. export ban, ZTE Corporation reported net profit of RMB 564 million for the third quarter.

ZTE reported operating revenue of RMB 19.3 billion, and its R&D investment reached RMB 3.47 billion, covering 17.9% of the quarter’s revenue, a year-on-year increase of 6.7%, compared with 11.2% of the same period last year.

Operating revenue of the first nine months ended 30 September 2018 reached  RMB 58.8 billion, and net profit attributable to holders of ordinary shares of the listed company amounted to RMB -7.26 billion.

The company said it strengthened its cost control, and reduced its sales and management expenses on a year-on-year basis.

ZTE also published its Preliminary Announcement of 2018 Annual Results, estimating that net profit attributable to holders of ordinary shares of the listed company for the year of 2018 amounted from RMB -7.2 billion to RMB -6.2 billion.

ADVA reports fourth quarter in a row with sequential growth

ADVA Optical Networking reported Q3 2018 revenue of EUR 126.2 million, up 2% from EUR 123.8 million in Q2 2018 and increased by 13.5% from EUR 111.2 million in the same year-ago period. Revenues for Q3 2018 were within the guidance forecast the company provided on July 19, 2018 of between EUR 123 million and EUR 133 million.

Net income for Q3 2018 was EUR 3.9 million, down from EUR 4.6 million in Q2 2018 and significantly improved in comparison to the same year-ago period net loss of EUR 14.0 million.

“Q3 2018 was the company’s fourth quarter in a row with sequential growth,” said Uli Dopfer, CFO, ADVA. “In addition to our top line momentum, our solid profitability confirms that we are on the right track to further scale our business. Our forecast for the current fourth quarter points to further sequential growth as well as a year-over-year increase compared to Q4 2017. The positive order intake and the overall healthy demand from numerous important customers provide a solid backdrop for us for the remaining fiscal year and beyond.”

https://www.advaoptical.com/en/about-us/investors/investor-presentations

USEI picks Ciena for 100G national backbone

US Electrodynamics (USEI), a satellite and telecommunications company headquartered that operates teleports in both Brewster, Washington and Vernon Valley, New Jersey, selected Ciena’s packet networking portfolio to upgrade its network to a 100G backbone.

USEI, which supports a variety of customers across the broadcast, aviation, maritime and government sectors, will uprade its current national 10G network by building its own dedicated terrestrial network, bringing capacity closer to the network edge and enabling its customers to scale bandwidth in near real-time providing enhanced service levels.

The project will use Ciena’s 5170 Service Aggregation Switch.

“This USEI network upgrade to support 100G is central to our ability in staying ahead of today’s customer requirements while in parallel, building a network that supports the latest advantages of data science and data transport utilizing machine learning and deep learning to enable a better future of the highest speed networks, from very small to very big,” stated Jim Veeder, Chief Executive Officer and USEI Owner.

Mellanox hits record revenue of $279.2 million, up 24%

Mellanox Technologies reported record revenue of $279.2 million for Q3 2018, an increase of 23.7 percent, compared to $225.7 million in the third quarter of 2017. GAAP gross margins of 65.8 percent in the third quarter, compared to 65.7 percent in the third quarter of 2017. GAAP net income was $37.1 million in the third quarter, compared to $3.4 million in the third quarter of 2017.  Non-GAAP net income was $71.4 million in the third quarter, compared to $36.6 million in the third quarter of 2017.

“Mellanox continues to execute and gain momentum in the markets we participate in. We reported another record quarter in Q3, delivering 24% revenue growth and 90% non-GAAP operating income growth year-over-year. This resulted in a non-GAAP operating margin of 26.2%," said Eyal Waldman, President and CEO of Mellanox Technologies. "Our strong results reflect the differentiated and superior product technologies that Mellanox has to offer for data center infrastructure.”

“The innovations built into our high-speed Ethernet adapters, switches and cables are fueling demand for our Ethernet products. Leading hyperscale, cloud, enterprise data center and artificial intelligence customers continue to choose Mellanox to maximize the efficiency and utilization of their compute and storage investments. This has resulted in further market share gains across our high-speed Ethernet products and 59% year-over-year revenue growth in our Ethernet business."

Mellanox also announed that it has shipped more than 2.1 million Ethernet adapters during the first nine months of 2018.

The company said this milestone signals that high-performance Ethernet technology (25G and faster) has moved beyond the Super 7 cloud and web titans. The adoption of high-performance Ethernet technology has spread to enterprise data centers globally, including the next wave of cloud, telco/service providers, financial services and more.