Thursday, July 25, 2019

Intel posts strong Q2 results, shipments to Huawei have resumed

Intel reported second-quarter revenue of $16.5 billion, down 3% year-over-year (YoY), but exceeding its financial guidance issued in April.  GAAP EPS was $0.92, a decline of 12 percent YoY; non-GAAP EPS was $1.06, up 2 percent.

“Second quarter results exceeded our expectations on both revenue and earnings, as the growth of data and compute-intensive applications are driving customer demand for higher performance products in both our PC-centric and data-centric businesses,” said Bob Swan, Intel CEO. “Based on our outperformance in the quarter, we’re raising our full-year guidance. Intel’s ambitions are as big as ever, our collection of assets is unrivaled, and our transformation continues.”

Some highlights:
  • The PC-centric business (CCG) was up 1 percent in the second quarter due to a strong mix of Intel's higher performance products, strength in the commercial segment, and customers buying ahead of possible tariff impacts. New, 10nm-based 10th Gen Intel Core processors (code-named "Ice Lake") are now shipping, and expected to be in volume systems on retail shelves this 2019 holiday selling season.
  • Collectively, Intel's data-centric businesses declined 7 percent YoY in the second quarter. In the Data Center Group (DCG), the communications service provider segment grew 3 percent while the cloud segment declined 1 percent and enterprise and government revenue declined 31 percent.  The Internet of Things Group (IOTG) achieved record revenue, up 12 percent YoY (23 percent excluding Wind River) on broad strength and increased demand for higher performance processors. 
  • Mobileye achieved second-quarter revenue of $201 million, up 16 percent YoY on continued customer momentum. 
  • Intel's memory business (NSG) was down 13 percent YoY in a challenging pricing environment. Intel's Programmable Solutions Group (PSG) revenue was down 5 percent YoY in the second quarter.

Some notes from the conference call:
  • Cloud customers are absorbing resources that were put in place over the past year. Intel expects demand from this sector to pick up in the second half of the year
  • Government spending was weak, particularly in China.
  • Trade uncertainty is driving pull-ins from 2H
  • Intel suspended shipment of products to "certain customers" that were added to the U.S. government entity list, but was able to resume shipments. The financial impact for the quarter was limited.
  • Further tightening of export restrictions could impact future results
  • 10nm FPGAs will be shipping in 2H19
  • Optane is gaining momentum
  • Snowridge silicon for 5G basestations will be in production early next year
  • The acquisition of Barefoot Networks was completed this week.
  • There are now 2 fab facilities on 10nm and 7nm is on track for 2021





Apple to acquire Intel's modem business for $1 billion

Apple agreed to acquire the majority of Intel’s smartphone modem business for $1 billion. The deal includes intellectual property, equipment, leases and approximately 2,200 Intel employees.

Combining the acquired patents for current and future wireless technology with Apple’s existing portfolio, Apple will hold over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation. Intel will retain the option to develop modems for non-smartphone applications, such as PCs, internet of things devices and autonomous vehicles.

“This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created,” said Intel CEO Bob Swan. “We have long respected Apple and we’re confident they provide the right environment for this talented team and these important assets moving forward. We’re looking forward to putting our full effort into 5G where it most closely aligns with the needs of our global customer base, including network operators, telecommunications equipment manufacturers and cloud service providers.”

“We’ve worked with Intel for many years and know this team shares Apple’s passion for designing technologies that deliver the world’s best experiences for our users,” said Johny Srouji, Apple’s senior vice president of Hardware Technologies. “Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they’ll thrive in Apple’s creative and dynamic environment. They, together with our significant acquisition of innovative IP, will help expedite our development on future products and allow Apple to further differentiate moving forward.”

Apple and Qualcomm reach global settlement

Apple and Qualcomm agreed to settle all pending litigation worldwide and announced a multiyear chipset supply deal.

Under the agreement, Apple will pay royalties to Qualcomm for six years, including a two-year option to extend. Apple will also make a one-time payment to Qualcomm. Financial terms were not specified.

Intel abandons 5G smartphone modem business

Intel will exit the 5G smartphone modem business. The company said it will continue to meet current customer commitments for its existing 4G smartphone modem product line, but does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020.


“We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” said Intel CEO Bob Swan. “5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world.”


Intel outlines its 5G radio modem portfolio

Intel outlined its product roadmap for 5G silicon. First up is Intel XMM 8000 series, a family of 5G new radio (5G NR) multi-mode commercial modems, and the Intel XMM 7660 LTE modem.

Highlights of Intel’s wireless roadmap:

  • Intel XMM 8000 series: will operate in both sub-6 GHz and millimeter wave global spectrum bands. Intel is aiming to enable a range of devices to connect to 5G, including PC, phones, fixed wireless consumer premise equipment (CPE) and vehicles.
  • Intel XMM 8060: will offer multi-mode support for the full 5G non-standalone and standalone NR, as well as various 2G, 3G (including CDMA) and 4G legacy modes. It is expected to ship in commercial customer devices in mid-2019. Intel is targetting broad deployment of 5G networks in 2020.
  • Intel XMM 7660: Intel’s latest LTE modem delivers Cat-19 capabilities, supports speeds up to 1.6 Gbps, and features advanced multiple-input and multiple-output (MIMO), carrier aggregation and a broad range of band support. It will ship in commercial devices in 2019.
Intel also announced it has successfully completed a full end-to-end 5G call based on its early 5G silicon over the 28GHz band. Intel says it is participating in dozens of 5G trials around the world.

Intel Mobile Communications Group Integrates Infineon Wireless

Intel acquired Infineon Technologies' Wireless Solutions (WLS) business. The deal expands Intel's current Wi-Fi and 4G WiMAX portfolio to include Infineon's 3G capabilities. Intel said the acquisition also accelerates its entry into LTE.

WLS is a leading provider of cellular platforms to top-tier global phone makers, and is part of Intel's strategy to accelerate always-connected computing platforms that span a variety of device and market segments, including laptops, cars, smart phones, tablets and smart TVs.

"As computing spreads across a range of connected devices, including new categories being created almost daily, we must be ready to support the next billion devices across multiple networks with smart, secure and seamless computing experiences," said Dadi Perlmutter, Intel executive vice president and co-general manager of the Intel Architecture Group. "The acquisition brings to Intel a world-class wireless portfolio and a proven track record in cellular communications, combined with our existing strength in computing positions us well for future growth."

The new wireless business will now be called Intel Mobile Communications (IMC) and will operate as a standalone business entity within Intel's Architecture Group to enable continuity of existing customer sales, projects and support, including ARM-based products.

T-Mobile US reports a solid Q2 - its best quarter in 3 years

T-Mobile US reported accelerated customer growth in Q2 2019 along with improved financials. The company described the quarter as its strongest performance in the past three years and said it on track to capture more than two-thirds of industry growth in the U.S. market.

T-Mobile ended Q2 2019 with 83.1 million total customers.

Accelerated Customer Growth
  • 1.8 million total net additions in Q2 2019, up 11% YoY
  • 1.1 million branded postpaid net additions in Q2 2019, up 9% YoY, expected to be best in the industry
  • 710,000 branded postpaid phone net additions in Q2 2019, up 3% YoY, expected to be best in the industry
  • 131,000 branded prepaid net additions in Q2 2019, up 44% YoY
  • All-time record-low branded postpaid phone churn of 0.78% in Q2 2019, down 17 bps YoY
Record Q2 Financial Performance (all percentages year-over-year)
  • Record Service revenues of $8.4 billion, up 6% in Q2 2019 with Branded postpaid service revenues up 9%
  • Record Q2 Total revenues of $11.0 billion, up 4% in Q2 2019
  • Record Q2 Net income of $939 million, up 20% in Q2 2019
  • Record Q2 Diluted earnings per share (“EPS”) of $1.09, up 18% in Q2 2019
  • Record Adjusted EBITDA(1) of $3.5 billion, up 7% in Q2 2019
  • Record Q2 Net cash provided by operating activities of $2.1 billion, up 70% in Q2 2019
  • Record Q2 Free Cash Flow(1) of $1.2 billion, up 51% in Q2 2019
Network rollout
  • On track to launch the first nationwide 5G network available next year; 99% of Americans now covered with 4G LTE
  • Aggressive deployment of 600 MHz using 5G-ready equipment; 4G LTE on 600 MHz now covering 156 million people and 1.2 million square miles
  • 5G millimeter wave (mmWave) network introduced in 6 cities including New York and Los Angeles
  • Successful participation in mmWave auctions; average nationwide mmWave spectrum position more than quadrupled

https://investor.t-mobile.com/investors/financial-performance/quarterly-results/default.aspx

AWS hits Q2 revenue of $8.4B, up 37%

Amazon reported Q2 2019 revenue of $8.381 billion for AWS, up 37% over the same period last year. Operating income for quarter was $2.121 billion. Operating margin was 26.2%. AWS is now on a $33 billion run rate.

https://ir.aboutamazon.com/quarterly-results

Historical growth rate for AWS

2019 Q1 - 41%
2018 Q4 - 45%
2018 Q3 - 46%
2018 Q2 - 49%
2018 Q1 - 49%
2017 Q4 - 45%

Nokia sales rise in Q2 as company cites risks in China

Citing growing 5G demand and growth in four of its six global regions, Nokia reported net sales in Q2 2019 were EUR 5.7bn compared to EUR 5.3bn in Q2 2018. On a constant currency basis, net sales increased 5%. Reported diluted EPS in Q2 2019 was negative EUR 0.03, compared to negative EUR 0.05 in Q2 2018.

Rajeev Suro, President and CEO of Nokia, states: "In the quarter, we saw good year-on-year growth, meaningful improvements in profitability, robust progress in our strategic expansion areas of Software and Enterprise and excellent momentum in our IP Routing business. We also continued to enhance our position in 5G, and now have 45 commercial 5G deals and 9 live networks.  Risks remain in the year, including execution demands in the second half, trade-related uncertainty and challenges in the China market. Given these risks, we will continue to focus on tight operational discipline, delivering on our EUR 700 million cost-savings program, improving working capital management and advancing the implementation of our strategy."

Nokia also noted that "Some customers are reassessing their vendors in light of security concerns, creating near-term pressure to invest in order to secure long-term benefits."

https://www.nokia.com/about-us/news/releases/2019/07/25/nokia-corporation-financial-report-for-q2-and-half-year-2019/

Juniper posts revenue of $1.102 billion, down 8% yoy

Juniper Networks reported Q2 2019 revenue of $1.102 billion, a decrease of 8% year-over-year, and an increase of 10% sequentially. GAAP operating margin was 7.5%, a decrease from 13.3% in the second quarter of 2018, and an increase from 4.3% in the first quarter of 2019. Non-GAAP operating margin was 15.8%, a decrease from 18.5% in the second quarter of 2018, and an increase from 11.2% in the first quarter of 2019. GAAP net income was $46.2 million, a decrease of 60% year-over-year, and an increase of 49% sequentially, resulting in diluted earnings per share of $0.13. Non-GAAP net income was $139.5 million, a decrease of 18% year-over-year, and an increase of 50% sequentially, resulting in non-GAAP diluted earnings per share of $0.40.

“We experienced encouraging trends during the June quarter, as we saw sequential revenue growth across industry verticals and technologies,” said Rami Rahim, chief executive officer, Juniper Networks. “We are making progress with our sales transformation efforts which, along with our strong pipeline of opportunities, is providing confidence in our ability to not only deliver sequential revenue growth through the remainder of the year, but also a return to year-over-year growth during the December quarter.”

Some highlights

  • Revenue by vertical
  • all verticals grew sequentially, as expected. 
  • Cloud was up 28%, 
  • Enterprise grew 8% but decreased 6% yoy, although bookings increased double-digits year-over-year.
  • Service Provider increased 3% sequentially but was down 15% yoy.

Revenue by technology

  • Routing decreased 15% year-over-year to $416 million. This represents growth of 11% sequentially. 
  • Switching decreased 15% year-over-year to $216 million. This represents growth of 22% sequentially. 
  • Security increased 2% year-over-year to $81 million.  This represents growth of 20% sequentially. 
  • Services business increased 2% year-over-year and 1% sequentially.
  • Software revenue continued to grow year-over-year and was greater than 10 percent of total revenue.

Of the top 10 customers for the quarter, four were Cloud, five were Service Provider, and one was an Enterprise. There was one customer that accounted for greater than 10% of total revenue, from the Cloud vertical.

Dell'Oro: Growth forecast for 10 Gbps EPON and XGS-PON

Global PON equipment market revenue is forecast to reach $7.3 B by 2023, according to a new report from Dell'Oro Group.

The growth will be driven by spending on new 10 Gbps EPON and XGS-PON deployments, and on maximizing existing 2.5 Gbps GPON networks.

“Fiber deployments continue to expand around the world, thanks to increased competition and an improved funding environment for both public and private networks,” noted Jeff Heynen, Research Director at Dell’Oro Group. “Today’s XGS-PON trials are quickly moving to production deployments, positioning operators to compete with cable DOCSIS 3.1 networks,” continued Heynen.

Additional highlights from the Broadband Access 5-Year Forecast Report:

  • Broadband Access market projected to increase at a 4 percent compounded annual growth rate (CAGR) over the forecast period.
  • Spending on cable infrastructure will only reach $1.6 B by 2023, as cable operators slow their Converged Cable Access Platform (CCAP) purchases while focusing on their Distributed Access Architecture (DAA) deployments.
  • VDSL Profile 35b and Gfast will offset some, but not all of the revenue loss from declining ADSL and VDSL port shipments. Some major Gfast deployments are already seeing signs of shrinking, as operators increase their investments in fiber.

https://www.delloro.com/news/global-pon-equipment-market-revenue-forecast-to-reach-7-3-b-by-2023/

MaxLinear sees progress with 400G PAM4 DSP SoC

MaxLinear reported Q2 2019 net revenue of $82.5 million, down 3% sequentially, and down 19% year-on-year. GAAP gross margin was 53.4%, compared to 53.3% in the prior quarter, and 55.5% in the year-ago quarter. Non-GAAP net income was $16.0 million, compared to $13.5 million in the prior quarter, and $23.7 million in the year-ago quarter.

"We continued to execute on our new 14nm CMOS 4x4 Quad RF transceiver system-on-chip solution for the 5G wireless infrastructure market. These efforts addressing the 5G market continue to be exciting due to the additional content that we are growing on a per-system basis and increasing confidence in realizing revenues in the coming year. Also, our 400 gigabit PAM4 DSP SoC with integrated laser drivers and companion quad-TIA system solution is progressing extremely well with continued traction in the hyperscale data center market,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

The company expects revenue in the third quarter 2019 to be approximately $77 million to $83 million. Due to continued restrictions and lack of clarity from the U.S. Government on the ability to ship product to Huawei, related revenues are excluded from our guidance until further direction is given.

http://investors.maxlinear.com

MaxLinear cites momentum with its PAM4 DSP for 400G modules

Delta, a global supplier of power and thermal management solutions, has selected MaxLinear’s Telluride PAM4 DSP to develop its next-generation 400G-DR4 optical module. Delta’s proprietary single mode TOSA/ROSA design and package technology can be extended to DR4 single lambda optical modules.

MaxLinear’s MxL935xx Telluride family of SoCs are key components in the development of high-speed mega-scale data centers based on 100Gbps single lambda optical interconnects. The MxL935xx Telluride family of chips are the world’s first DSP SoCs with integrated electro-absorption modulated laser (EA-EML) drivers for 100/400Gbps optical interconnects and breakout mode clocking support for 400Gbps DR4 optical modules. The MxL93542 400G PAM4 DSP allows companies like Delta to develop a 400Gbps optical interconnect module in a compact form factor for intra-datacenter applications with a transmission distance up to 2 kilometers.

Molex has demonstrated MaxLinear’s “Telluride” (MxL935xx) pulse-amplitude-modulation (PAM4) digital signal processing (DSP) systems-on-chip (SoCs) for next generation 400G-DR4 and 100G-DR optical modules. Molex’s data center connectivity products include QSFP-DD, QSFP28, SFP-DD and 100G Lambda. Molex support for the Open19 Initiative with the Molex Impel Customized Data Cable solution aims to establish a new open standard for data center servers by delivering a flexible, scalable and secure platform.

ColorChip, a global leader in photonic integrated transceivers, has selected MaxLinear’s Telluride (MxL935xx) pulse-amplitude-modulation (PAM4) digital signal processing (DSP) systems-on-chip (SoCs) for their next generation 400G-DR4 and 100G-DR1 optical modules. The new optical modules join ColorChip’s multi-generational optical engine platforms, based on proprietary SystemOnGlass™ technology. ColorChip’s multi-generational optical engine platform has been refined over several generations of transceivers. Its PAM4 100G and 400G optical interconnects based on MaxLinear’s Telluride family are expected to be commercially available later this year.

Wednesday, July 24, 2019

AT&T says its 5G rollout is on track

AT&T reported Q2 2019 consolidated revenues of $45.0 billion and adjusted EPS of $0.89 compared to $0.91 in the year-ago quarter. The company raised its free cash flow guidance to $28 billion range and reaffirmed its financial guidance for the rest of the year.

Declines in revenues from legacy wireline services, Vrio, domestic video and wireless equipment were more than offset by the addition of WarnerMedia and growth in domestic wireless services, strategic and managed business services, IP broadband and Xandr.

Net debt has been reduced by $18 billion over the past 12 months and now stands at about $150 billion.

AT&T says it is on track for nationwide 5G coverage by mid-2020.

“We’re halfway through the year and on track to deliver on all our 2019 priorities,” said Randall Stephenson, AT&T chairman and CEO. “We continue to pay down debt and are more confident than ever that we’ll meet our yearend deleveraging goal, and we’ll take a look at buying back stock.  Our FirstNet build is not only running ahead of schedule – it’s become a driver of our wireless network leadership in speed, reliability and network performance. It also sets us up to have nationwide commercially available 5G coverage in the first half of 2020."


Highlights:


  • In Mobility, service revenues were up 2.4%. There were 355,000 phone net adds, including 144,000 postpaid smartphone net adds and 72,000 postpaid phone net adds. There were 341,000 prepaid net adds of which 283,000 were phones.
  • For the Entertainment Group, there was a 2.6% operating income growth with solid video and broadband ARPU gains. AT&T now has 21.6 million premium TV subscribers, with a 778,000 net loss during the quarter. There are now 1.3 million DIRECTV NOW subscribers, with a 168,000 net loss in Q2.  AT&T TV, company’s new thin client video service, is expected to begin trials in the third quarter.
  • IP broadband revenue growth was 6.5% with 318,000 AT&T Fiber gains. AT&T now has nearly 14 million customer locations passed with fiber, and 22 million when business locations are included.

https://investors.att.com/

ADVA hits new benchmarks for bandwidth/reach on terrestrial long-haul

ADVA announced new benchmarks for bandwidth and reach on terrestrial long-haul using its FSP 3000 TeraFlex platform.

The new records were achieved in a commercial long-haul terrestrial network originally built for 100Gbit/s services. ADVA’s partners included the Poznan Supercomputing and Networking Center (PSNC), EENet of HITSA and Tele2 Estonia.

Using an optical spectrum-as-a-service approach, the terminal achieved 200Gbit/s per wavelength transmission over a distance of 5,738km with 2.5bit/symbol, and 500Gbit/s over 1,016km with 5bit/symbol modulation. Record-breaking results also included 300Gbit/s per wavelength transmission over 3,751km with 3bit/symbol, and 400Gbit/s per wavelength across 1,792km with 4.5bit/symbol modulation. Feasibility of 800Gbit/s transmission over 1,016km in a single 125GHz spectral slice was also demonstrated.

ADVA said one of the keys to achieving this performance is the ability of the FSP 3000 TeraFlex to utilize network telemetry and fractional QAM to maximize reach and capacity through the automated configuration of modulation format and baud rate.

The trial also highlighted how a disaggregated open line system (OLS) approach can enhance network flexibility and leverage the most value from existing optical infrastructure.

“Our terminal technology is now redefining terrestrial long-haul data transport. Just as we proved in trials with DCI and metro networks, the software-defined transmission of our FSP 3000 TeraFlex™ is the ultimate response to soaring bandwidth needs,” said Jörg-Peter Elbers, SVP, advanced technology, ADVA. “With its programmable signal shaping and ultra-flexible modulation capabilities, our unique solution balances distance and capacity for maximum spectrum utilization and optimal performance over any reach. This gives communication service providers the power to massively increase bandwidth without the expense of a major upgrade. This demo also shows how an open coherent optical layer removes all restrictions, even when interconnecting across multiple countries. And, with our FSP 3000 TeraFlex deployed as part of a disaggregated OLS solution, it delivers complete agility for best cost efficiency.”

https://www.advaoptical.com/en/newsroom/press-releases/20190724-adva-fsp-3000-teraflex-breaks-multiple-industry-records-in-live-network-trial

Equinix boosts its private cloud network onramp to AWS

Equinix is participating in the launch of the new AWS Direct Connect Service Delivery Program, which allows Equinix customers to use Hosted Connections with 1G, 2G, 5G and 10G capacities on Equinix Cloud Exchange Fabric (ECX Fabric). The enhanced capabilities ensure lower latency and higher bandwidth capacities for hybrid cloud architectures on Platform Equinix.

Equinix said the availability of new 1G, 2G, 5G and 10G capacities allows its customers using ECX Fabric to connect to a range of AWS services via AWS Direct Connect locations in the same metro where the customer's infrastructure is located. For other workloads requiring low latency, higher bandwidth and data sovereignty adherence, Equinix customers can use the new higher capacities on ECX Fabric to access all AWS services via AWS Direct Connect locations in metros different from where the customer's infrastructure is located.

"By offering Dedicated Connections, and Hosted Connections with new 1G up to 10G speeds on ECX Fabric, we are enhancing private cloud connectivity for enterprises to help them accelerate their hybrid cloud transformations," said Kaushik Joshi, Global Managing Director, Strategic Alliances, Equinix.

ECI debuts 5G cell site router

ECI introduced its "1022" cell site router, the first of the company’s end-to-end portfolio tailored for 5G.

The 1022 cell site router combines high capacity in a small form factor. It offers MPLS, network slicing, class C and D synch capabilities and open NetConf/Yang interfaces.

ECI said the 1022 represents the next evolution of its Neptune product line, inheriting its multiservice, Elastic MPLS capabilities that allow customers to support current, future and legacy services on a single platform. Its front access, extended temperature range make it equally at home at a cell site or operating as an access device for a substation.

“As carriers prepare for the step change that 5G demands, we understand that the transition to a fully compliant 5G transport network can be both complex and CapEx heavy. That is why our solutions easily traverse the divide between current and future. We want customers to know that ECI is here to help them adjust their infrastructure effortlessly and cost-effectively,” said Jimmy Mizrahi, ECI’s EVP and Head of Global Portfolio. “The 1022 marries form and function with its unique capabilities for easy migration, future-proof multiservice, and network slicing while ensuring carrier-grade redundancy and service assurance. Class C and D synch capabilities mean stringent
timing control, and open interfaces ensure it can be deployed in any network, brownfield or green. This is the first of our 5G dedicated products and solutions to be launched. The rest will follow in the coming months.”

https://www.ecitele.com/5g

CoreSite posts Q2 data center revenue of $142.9m, up4.7%

CoreSite reported Q2 operating revenues of $142.9 million, an increase of 4.7% year over year and 2.9% sequentially. The company delivered net income of $0.53 per common diluted share, a decrease of $0.04 year over year and $0.01 sequentially.

“We continued to execute on our 2019 imperatives to accelerate growth in 2020 and beyond,” said Paul Szurek, CoreSite’s President and Chief Executive Officer. “We completed projects in our property development pipeline, delivering nearly 100,000 square feet of data center capacity, and began construction for our new ground-up purpose-built data center in Los Angeles. "

Some Q2 highlights:

  • Commenced 140 new and expansion leases for 65,193 net rentable square feet (“NRSF”), representing $10.2 million of annualized GAAP rent, for an average rate of $176 per square foot
  • Signed 135 new and expansion leases for 142,824 NRSF and $27.3 million of annualized GAAP rent, for an average rate of $191 per square foot
  • Renewed 328 leases for 121,809 NRSF and $24.1 million of annualized GAAP rent, for an average rate of $198 per square foot, reflecting 2.6% cash rent growth, 7.4% GAAP rent growth and 2.4% churn
  • On April 12th, closed SV9 land purchase in Santa Clara, Clara, California, that is suitable for a data center facility of at least 200,000 NRSF. Pre-construction activity is underway.


Mellanox posts record revenue of $310.3m, up 16% yoy

Mellanox Technologies reported record revenue of $310.3 million in the second quarter, an increase of 15.6 percent, compared to $268.5 million in the second quarter of 2018. GAAP gross margins were 64.5 percent, compared to 61.4 percent in the second quarter of 2018. Non-GAAP net income amounted to $83.9 million in the second quarter, compared to $66.6 million in the second quarter of 2018.

“Mellanox delivered record revenue in Q2, achieving 2 percent sequential growth and 16 percent year-over-year growth. We continue to demonstrate leadership with our Ethernet adapter solutions for data rates of 25 gigabit per second and above. The growth in our Ethernet business reflects strong demand from our cloud customers as well as expanding channel sales. We are pleased that we’ve begun shipping 200 gigabit per second Ethernet adapters, switches, and cables to our data center customers, and expect this to be a future revenue growth driver,” said Eyal Waldman, president and CEO of Mellanox Technologies.

“We continue to see strong demand for our InfiniBand products across the high performance computing, artificial intelligence, cloud, and storage market segments, driven by our highest throughput 200 gigabit HDR InfiniBand solutions. InfiniBand accelerates six of the top ten supercomputers in the world today, including the top three. We are proud that multiple HDR InfiniBand systems have entered the TOP500 supercomputers list, led by the Frontera TACC system, which is the fastest TOP500 supercomputer built in 2019 and premiered at #5 on the list.”

“We are pleased with our financial performance this quarter and the adoption of our latest 25, 50, and 100Gb/s Ethernet and 200Gb/s HDR InfiniBand products,” continued Waldman. “We expect to maintain and grow our leadership in these segments as we expand our footprint for both adapters and switches in the data center.”


  • On March 11, 2019, NVIDIA agreed to acquire all the issued and outstanding common shares of Mellanox for $125 per share in cash. The acquisition is pending.

IDC: SD-WAN market to hit $5.25 billion by 2023

The SD-WAN infrastructure market will grow at a 30.8% compound annual growth rate (CAGR) from 2018 to 2023 to reach $5.25 billion, according to IDC's SD-WAN Infrastructure Forecast.

The SD-WAN infrastructure market to be highly competitive, according to IDC, with sales increasing by 64.9% in 2018 to $1.37 billion.

IDC finds that Cisco holds the largest share of the SD-WAN infrastructure market, fueled by its extensive routing portfolio that is used in SD-WAN deployments, as well as its Meraki portfolio and its SD-WAN management platform powered by technology it acquired from Viptela in August 2017. VMware, with its SD-WAN service powered by VeloCloud (which VMware acquired in December 2017), holds the second-largest market share in the SD-WAN infrastructure market, followed by Silver Peak, Nokia-Nuage, and Riverbed.

"SD-WAN continues to be one of the fastest-growing segments of the network infrastructure market, driven by a variety of factors. First, traditional enterprise WANs are increasingly not meeting the needs of today's modern digital businesses, especially as it relates to supporting SaaS apps and multi- and hybrid-cloud usage. Second, enterprises are interested in easier management of multiple connection types across their WAN to improve application performance and end-user experience," said Rohit Mehra, vice president, Network Infrastructure. "Combined with the rapid embrace of SD-WAN by leading communications service providers globally, these trends continue to drive deployments of SD-WAN, providing enterprises with dynamic management of hybrid WAN connections and the ability to guarantee high levels of quality of service on a per-application basis."

IDC's Market Share and Market Forecast reports focus specifically on the SD-WAN infrastructure market, which includes both hardware and software used in SD-WAN deployments. IDC defines SD-WAN as a dynamic, policy-enabled hybrid WAN that uses at least two or more connection methods (such as MPLS, broadband internet, 3G/4G, etc.) and includes a centralized application-based policy controller that provides intelligent path selection, along with an optional forwarder for routing capability. The SD-WAN infrastructure Market Share and Forecast reports do not include managed services related to SD-WAN, such as setup or operational support, nor do they include connectivity costs.

The IDC SD-WAN Infrastructure Forecast provides an outlook for this market across major regions for the period extending to 2023, including historical numbers through 2017 and forecast numbers from 2019 to 2023. It also provides regional geographic segmentation of the SD-WAN infrastructure market, including market sizes and CAGRs for each major region (North America, EMEA, APJ, Latin America).

https://www.idc.com/getdoc.jsp?containerId=prUS45380319

LinkedIn to transition its workloads into Azure

LinkedIn, which is a business subsidiary of Microsoft, will migrate away from private data centers into the Azure public cloud.

The strategic shift was confirmed on the LinkedIn Engineering blog in a posting by Mohak Shroff.

LinkedIn currently serves 645million users and the company boasts that someone is hired due to their LinkedIn profile every eight seconds.

https://engineering.linkedin.com/blog/2019/building-next-infra

T-Mobile activates LTE over 60,000 square miles of the Gulf of Mexico

T-Mobile has activated LTE coverage over 60,000 square miles of the Gulf of Mexico. The rollout leverages T-Mobile’s 600 MHz and RigNet’s 700 MHz spectrum Gulf of Mexico digital microwave infrastructure mounted on oil rigs. T-Mobile used 5G-ready equipment to light up LTE in the Gulf.

“We’re putting an end to the pain that businesses and consumers in the Gulf have felt for years with limited connectivity – and in some cases, none at all,” said Neville Ray, Chief Technology Officer at T-Mobile. “We already cover 99% of Americans with an advanced LTE network, and we cover places no one else does – like the soldiers, families and civilians at Naval Station Guantanamo Bay in Cuba. Now, T-Mobile has you covered, even in the Gulf, and of course…we won’t stop!”

HPE to invest $500m in India over 5 years

Hewlett Packard Enterprise will invest $500 million in India over the next five years in an effort to grow its operations, manufacturing and employee base in the country, increase its R&D and services exports, as well as invest in technology initiatives to drive positive change for local Indian communities.

Specifically, HPE plans to increase its workforce in India by 20% over the next three to five years. In particular, HPE will hire new engineering talent with expertise in areas of critical importance to customers such as AI and networking. HPE will also begin construction of a high-tech extension to its Mahadevapura Campus in Bengaluru that will be able to house more than 10,000 employees, as well as state-of-the-art R&D facilities. When complete, the 1.3-million-square-foot campus will feature a state-of-the-art workplace, powered by HPE technologies, designed to enhance the employee, customer, and partner experience and foster a culture of innovation. The campus will support a broad range of functions including R&D, engineering services, finance, and sales.

“The Modi 2.0 administration’s vision of a $5 trillion economy is impressive and fitting for a country with this level of energy and opportunity,” said Antonio Neri, President and CEO of HPE and a member of the US-India CEO Forum. “India is one of the largest and fastest-growing economies in the world, and our investments will further develop the country as a critical market for HPE’s global business, as well as benefit our customers, partners, employees and the citizens of India.”

"It is a matter of great assurance that a global giant like Hewlett Packard Enterprise is making big investments in India both in manufacturing as well as research and development,” said Mr. Ravi Shankar Prasad, Union Minister for Law & Justice, Communication and Electronics & Information Technology. “This shows the rising confidence of global investors in India's rapidly growing electronics manufacturing sector and the success of Digital India."

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