Monday, October 29, 2018

Telia Carrier tests 600G wavelengths with Infinera

Telia Carrier achieved real-time transmission of 600 Gbps wavelengths in its live production network from Palo Alto to San Francisco using Infinera’s FlexILS flexible grid open line system.

Infinera said this milestone was achieved with the latest generation of the Infinera Infinite Capacity Engine, ICE5, demonstrating its continued rapid cadence in the development of vertically integrated optical engines with industry-leading optical performance and economics.

The ICE5 600G technology, including 64 QAM (quadrature amplitude modulation) and 69 gigabaud operation, also sets the foundation for the next generation, ICE6, which is on track to deliver 800G. Infinera plans to deliver commercial products capable of 600G per wavelength in early 2019.

“We are pleased to partner with Infinera to yet again demonstrate industry-leading innovation,” said Mattias Fridström, Chief Evangelist at Telia Carrier. “Working together, our companies have a strong history of optical performance leadership, stretching back to the world’s first terabit super-channel trial almost seven years ago. Infinera’s 600G technology can be readily deployed across our existing FlexILS networks, helping us to increase fiber capacity while satisfying our customers’ growing capacity requirements.”

“Infinera continues to deliver optical engine innovation on a rapid cadence,” said Parthi Kandappan, Chief Technical Officer at Infinera. “Our ICE4 optical engines are delivering industry-leading performance in deployed networks from metro data center interconnect to subsea, and this 600G trial  showcases the next step function in ICE performance, leading toward 800G wavelengths and beyond in the future.”

Fujitsu unveils MicroApplications Practice for network operators

Fujitsu Network Communications is launching a MicroApplications Practice to help network operators transform their software approach, allowing faster and more cost-effective solutions for networking challenges.

The idea is to help network operators to evolve from monolithic software stacks to container-based, modular pieces of code based on microservices architecture.

This agile approach allows flexible, automated applications to be developed for specific functions and deployed quickly, reducing time to market and increasing scalability across the cloud on a global level, while using fewer hardware resources for greater cost-efficiency. Fujitsu said its MicroApplications Practice leverages the benefits of microservices architecture with a collaborative approach for developing applications tailored to a provider’s unique needs. In some cases, a single microservice is sufficient to address a particular need. For other circumstances, a more robust MicroApplication is required.

Key Elements:

Microservices — Fujitsu microservices are standalone, container-based, single-function software modules designed to speed development cycles to meet today’s networking challenges. Each service is developed, tested and scaled independently to optimize its performance.

MicroApplications — MicroApplications are pre-packaged microservices, bundled with workflow automation and application programming interface (API) integration tailored to a customer’s ecosystem. Fujitsu MicroApplications also include a user interface to address the functions required to administer the solution. 

Warrior Framework — Fujitsu’s open-source automation framework enables the flexible development and deployment of MicroApplications. In addition to a basic framework for administration and configuration of applications, it includes an extensive library of pre-developed scripts to speed development, as well as a robust set of networking protocol support.

Network Services — Fujitsu offers a full suite of services for MicroApplications, including design and build, multivendor integration, deployment, and maintenance and support, using a consultative approach to develop the use cases and define the requirements. After deployment, Fujitsu provides software configuration and lifecycle management services as well as technical support and NOC services.

"Through the power of collaboration and advanced, open-source digital technologies, Fujitsu delivers the most effective MicroApplications solutions for each unique customer challenge," said Rod Naphan, chief technology officer at Fujitsu Network Communications, Inc. "Our MicroApplications Practice provides network operators a simplified path to more efficient network operations and increased service agility."

NTT improves GPS Time Synchronization

NTT and FURUNO ELECTRIC CO. have developed a receiver for GPS and other global navigation satellite systems (GNSS) that significantly improves time-synchronization accuracy in areas with severe reception conditions such as among buildings and in mountainous areas.

NTT said its new satellite signal selection algorithm and a time synchronization GNSS receiver from FURUNO makes it possible to use multi-path satellite signals (reflected or diffracted from buildings and other structures), which previously inhibited accuracy of time synchronization. In a real multi-path reception test environment, time error was reduced to approximately 1/5 of earlier values. This is a remarkable result in that it promises to enable time synchronization accuracy close to that obtained in open-sky reception environments with no obstructions, even in environments previously considered poor and unsuitable for accurate time synchronization, such as among buildings or in mountainous areas.

FURUNO plans to begin sales of their new GF-88 series time synchronization GNSS receivers incorporating this new technology in April of 2019. Potential applications include  4G/5G mobile base stations, financial trading, power grids, and data centers.

http://www.ntt.co.jp/news2018/1810e/181023a.html

Trend Micro and NTT DOCOMO collaborate on 5G security

Trend Micro announced a partnership with NTT DOCOMO to develop a new solution for the demands of the 5G era built upon the recently announced Trend Micro Virtual Network Function Suite (VNFS) on NTT DOCOMO’s “docomo 5G open cloud.”

Specifically, this solution works together when the Trend Micro VNFS executes on “docomo 5G open cloud.” Then the security threats hidden in traffic of various services executed on the cloud are visualized, detected, and ultimately blocked by Trend Micro. This provides a secure 5G environment to users and protects against IoT devices that don’t incorporate additional security.

The “docomo 5G open cloud” is a 5G technology verification environment provided to business partners for the purpose of creating a new solution in the 5G era. Trend Micro VNFS is the network security solution that implements network security functions on virtualized environments such as NFV and cloud, and can dynamically apply the necessary security functions for each IoT device.

Fujitsu and Ericsson enter 5G partnership

Fujitsu and Ericsson announced a partnership to deliver end-to-end 5G network solutions and related services initially in Japan and later expanding globally.

The two companies said they will join forces to develop this based on their combined portfolios – spanning radio access and core network – for the dynamic 5G market in Japan, connecting communications service providers to the global 5G ecosystem.

Tango Matsumoto, Executive Vice President, Head of Network Business Group at Fujitsu, says: "Through this partnership with Ericsson, we will provide flexible 5G network systems that are open and standard compliant, and will leverage our expertise in wireless technologies and network integration to a wide range of customers in and outside of Japan. From mobile broadband, expected to be the first widespread use case of 5G, to the Internet of Things (IoT) and beyond, this partnership holds out the promise of exciting new business opportunities."

Fredrik Jejdling, Executive Vice President and Head of Business Area Networks at Ericsson says: “Our global expertise in 5G combined with our understanding of the local market puts us in an excellent position to support the introduction of 5G in Japan. By working closely with operators and partners, we are creating solutions that will bring successful use cases and applications to the market. With Fujitsu we get an excellent partner to accelerate this development.”

Accedian intros service analytics

Accedian introduced its service analytics solution, SkyLIGHT DataHUB IQ, for providing network and IT operations teams a single, unified view of how their network is behaving and how subscribers are experiencing the network, enabling the prioritization of the most severe customer-impacting issues for immediate resolution.

Accedian said its software can provide full stack views into service availability and performance—in real time and in context. DataHUB IQ combines and correlates highly granular active and passive monitoring metrics from the SkyLIGHT portfolio with network data from other vendors and sources. Machine learning capabilities are used to detect anomalies from baseline performance, to provide insight into network behavior and issues, and to predict future network issues before they occur. This real-time, contextual insight can be used to automate the performance of virtual and hybrid networks, particularly for closed-loop automation and self-healing networks.

DataHUB IQ provides a unified view of the behavior and performance of a network, the services running on it, and the quality customers are truly experiencing. It ensures that network and IT operations teams save time and costs to obtain performance insight, to reduce resources consumed by multiple reporting tools, and to increase the effectiveness of closed-loop automation and self-healing.

“The move towards cloud networks and architectures puts immense strain on those tasked with managing their performance,” said Patrick Ostiguy, Founder, President and CEO of Accedian. “SkyLIGHT DataHUB IQ provides a ‘single pane of glass’ through which network and IT operations can troubleshoot network and service problems, using machine learning to identify, predict and prevent issues soon to occur. SkyLIGHT DataHUB IQ will dramatically alter the economics of network and service management going forward.”

Accedian and Colt will take part in a live demonstration of the platform during the Service Assurance Proof of Concept showcase at MEF18. The demonstration will show how SkyLIGHT DataHUB IQ leverages machine learning and artificial intelligence to detect service issues and then dynamically adjust MEF 3.0 service parameters in a closed-loop system—across domains, between vendors, and using open APIs aligned with MEF LSO standards.

http://www.accedian.com/datahubiq

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.