Cisco: IP Traffic to Triple from 2014-2019

Driven by mobile access, increased demand for video services, and M2M communications, IP traffic will triple between 2014 and 2019, when it will reach a record 2 zettabytes, according to the 10th annual Cisco Visual Networking Index (VNI) Forecast.  This equates to a compound annual growth rate (CAGR) of 23 percent and marks the first global CAGR increase in consecutive VNI forecasts in nearly a decade (e.g., last year’s projected CAGR for 2013 – 2018 was 21 percent).

Cisco predicts that global IP traffic will reach 168 exabytes per month by 2019, up from 59.9 exabytes per month in 2014. Some highlights of the report::

• In 2014, there were 2.8 billion Internet users, or 39 percent of the world’s population of 7.2 billion. By 2019, there will be about 3.9 billion Internet users, or 51 percent of the world’s projected population of 7.6 billion
• In 2019, there will be 24 billion networked devices/connections.
• There will be 3.2 networked devices/connections per capita by 2019, up from 2 per capita in 2014.
• Globally, the average fixed broadband speed will increase two-fold from 20.3 Mbps in 2014 to 42.5 Mbps in 2019. 
• Busy-hour (or the busiest 60‑minute period in a day) Internet traffic increased 34 percent in 2014, compared with 26 percent growth in average traffic. 
• Busy-hour Internet traffic will increase by a factor of 3.4 between 2014 and 2019, while average Internet traffic will increase 2.8-fold. 
• Busy-hour Internet traffic will reach 1.7 petabits per second (Pbps) by 2019. 
• Content delivery networks will carry over half of Internet traffic by 2019. Globally, Sixty-two percent of all Internet traffic will cross content delivery networks by 2019 globally, up from 39 percent in 2014.
IP video will account for 80 percent of all IP traffic by 2019, up from 67 percent in 2014. 
• By 2019, more than 14 percent of monthly IP traffic will derive from cellular connections, and 53 percent of monthly IP traffic will come from Wi-Fi connections globally, making differentiated and monetizable mobile strategies more important for all service providers.
• Wi-Fi and mobile connected devices will generate 67 percent of IP traffic by 2019 – Wi-Fi: 53 percent and cellular: 14 percent – compared with fixed traffic, which will account for 33 percent of overall traffic.
• In 2014, fixed traffic accounted for 54 percent of IP traffic, while Wi-Fi accounted for 42 percent and cellular 4 percent.
• Connected Health consumer segment will represent the fastest M2M connections growth at 8.6-fold (54 percent CAGR) from 2014 to 2019.
• By 2019, the highest traffic-generating countries will be the U.S. (45.7 exabytes/month) and China (21.9 exabytes/month).
• By 2019, HD and ultra HD Internet video will make up 63 percent of Internet video traffic.

“It took 32 years – from 1984 to 2016 – to generate the first zettabyte of IP traffic annually. However, as this year’s Visual Networking Index forecasts, it will take only three additional years to reach the next zettabyte milestone when there will be more than 2 zettabytes of IP Traffic annually by 2019. As consumers, businesses and societies alike head towards the Digital Era with the Internet of Everything gaining momentum, VNI is even more relevant now in its 10th year than it was in its first. For our customers and the industry ecosystem as whole, we look forward to continuing to report on these trends, the challenges they bring, and the immense opportunities ahead,” stated Doug Webster, Vice President of Service Provider Products and Solutions Marketing, Cisco.

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Fortinet to Acquire Meru Networks for $44 Million

Fortinet agreed to acquire Meru Networks for approximately $44 million in cash ($1.63 per Meru share).

Meru, which was founded in 2002 and completed its initial public offering in 2010, specializes in enterprise 802.11ac Wi-Fi solutions based on an open-standards-based architecture that is designed to enable unified management of wired and wireless networks. Its end-to-end application QoS enables enforceable service-level agreements. The company is based in Sunnyvale, California, and has more than 300 employees worldwide. For the full year ended December, 2014, Meru reported revenue of $90.9 million.  Meru’s portfolio includes:

• Access points that deliver wireless connectivity to support data, voice, and video applications with superior performance, low latency and reliability.
• Controllers to optimize wireless traffic across access points and client devices meeting mission-critical enterprise demands for wireless connectivity.
• SDN enabled Wi-Fi system software that seamlessly manages and secures wired and wireless LANs, as well as efficiently provisions Wi-Fi enabled end-user devices.
• Cloud and virtual wireless controllers and appliances that provide unprecedented choice and flexibility in deploying and scaling wireless infrastructure, whether through a data center or private cloud environment.

Fortinet said the acquisition is synergistic with its secure wireless vision and enterprise growth focus, enabling it to address the $5B global enterprise Wi-Fi market with integrated and intelligent secure wireless solutions. Fortinet’s FortiAP secure wireless access points and FortiWiFi integrated security appliances for enterprise branch offices and small businesses have been among the fastest growing products in the company’s “advanced technologies” portfolio. The addition of Meru’s intelligent Wi-Fi solutions to the Fortinet portfolio extends the delivery of a secure, uninterrupted user experience – anytime anywhere – providing peak performance in environments requiring high capacity load and a high-density of wireless users, such as enterprise, education, healthcare, and hospitality.

“The acquisition of Meru Networks maps to our overall security vision of combining strong network security with ubiquitous connectivity,” said Ken Xie, founder, chairman and CEO of Fortinet. “We expect this to accelerate our innovation through the delivery of new solutions and services to help enterprises of all sizes deploy, manage and secure wired and wireless networks in a mobile era. We believe the extension of our market-leading end-to-end security platform will increase our growth opportunities and benefit our customers and partners globally.”

http://www.fortinet.com/press_releases/2015/fortinet-announces-agreement-to-acquire-meru-networks.html

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Aruba Adds 802.11ac Wave 2 APs with MU-MIMO

Aruba Networks (now part of HP) introduced an 802.11ac Wave 2 access point (AP) with dynamic multi-user multiple input/multiple output (MU-MIMO) grouping, significantly boosting network capacity. The new Aruba 30 series AP integrates a BLE Beacon that can help manage battery-powered Aruba Beacons from the cloud for firmware updates, battery life monitoring, and configuration changes.

Aruba also highlighted innovations in its patented ClientMatch technology, which originally solved the “sticky client” problem. The new enhanced Aruba ClientMatch incorporates intelligent awareness for Wave 2 MU-MIMO clients, automatically steering and grouping MU-MIMO devices together on Aruba 320 series APs. This allows the 320 series to transmit data to multiple Wave 2-enabled devices simultaneously, increasing overall network capacity.

“To accelerate the adoption of 802.11ac Wave 2 solutions, Qualcomm Atheros is working with networking leaders, like Aruba, to manufacture next generation Wi-Fi equipment,” said Irvind Ghai, vice president, Product Management, Qualcomm Atheros, Inc., a subsidiary of Qualcomm Incorporated. “Aruba has taken an innovative approach to maximizing Wave 2 performance with its enhanced ClientMatch dynamic MU-MIMO grouping. This technology is designed to automatically identify MU-MIMO-capable mobile devices and steer them to the closest Wave 2-capable access point to provide enterprise-grade performance and capacity.”

The Aruba 320 series APs will be available in calendar third quarter 2015. 320 series AP prices start at U.S. list $1,395. Enhanced ClientMatch is also available in June as part of the new ArubaOS 6.4.4 software enhancement.

http://www.arubanetworks.com

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IEEE Study Suggests Multiple NG-EPON Specs

The IEEE released a Feasibility Assessment for the Next Generation of EPON based on the input of the wide industry ecosystem, including operators, system integrators, chip vendors, optics suppliers and others. Input was collected on the desired features and options for a next generation of EPON, operating at aggregate data rates above 10 Gigabit per second and minimizing the footprint and power consumption in optical access networks.

To address the diversity of market requirements, the referenced communication suggests consideration of multiple NG-EPON solutions, including a multi-wavelength 40G solution with an evolutionary path to 100G and single-wavelength solutions supporting the data rates of 25G symmetric or 25G downstream/10G upstream.

“The new PHYs need to consider the coexistence with the deployed EPON technologies and reuse functions and components of 10G-EPON to the extent possible,” states the IEEE 802.3 communication.

Said Marek Hajduczenia, chair of the IEEE 802.3 Industry Connections NG-EPON Ad Hoc and network architect with Bright House Networks: “The IEEE 802.3 Industry Connections NG-EPON Ad Hoc was launched to explore the market potential and technology options for an NG-EPON operating at data rates beyond 10G. The expectation is that information contained within the published communication will help with development of a future Call for Interest for NG-EPON and, afterwards, a new standard within the IEEE 802.3 Ethernet Working Group.”

http://www.ieee.org

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Palo Alto Networks Acquires CirroSecure for SaaS Security

Palo Alto Networks has acquired CirroSecure, a Silicon Valley-based company with a solution for extending security into sanctioned, Software as a Service (SaaS) applications, like Box, Dropbox, GitHub, Google, Yammer, or Salesforce. Financial terms were not disclosed.

The CirroSecure technology offers a highly differentiated approach to securing these applications by providing visibility across all user, folder, and file activity while applying deep analytics into day-to-day usage to quickly determine if any policy or data security violations have occurred.

Palo Alto Networks said the addition of the CirroSecure technology to its Enterprise Security Platform provides additional security for SaaS applications, which often store some of an organization's most sensitive data. Palo Alto Networks expects the CirroSecure technology to be available in the second half of 2015 as a new subscription-based service.

https://www.paloaltonetworks.com/company/press/2015/palo-alto-networks-acquires-cirrosecure.html

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Palo Alto Networks Posts Sales of $234.2 million, up 55% YoY

Palo Alto Networks reported record revenue for its fiscal third quarter 2015 of $234.2 million, up 55% compared with $150.7 million for the fiscal third quarter 2014. GAAP net loss for the fiscal third quarter 2015 was $45.9 million, or $0.56 per diluted share, compared with GAAP net loss of $146.6 million, or $1.96 per diluted share, for the fiscal third quarter 2014.

"We reported record revenue in the fiscal third quarter 2015 as we continue to expand market share with growth rates that significantly outpace the market. Our ongoing success is due to our natively integrated and highly automated enterprise security platform that delivers prevention capabilities at every step in the cyber-attack lifecycle," said Mark McLaughlin, president and chief executive officer of Palo Alto Networks.

Steffan Tomlinson, chief financial officer of Palo Alto Networks, commented, "Year-over-year revenue growth of 55 percent was driven by new customer acquisition and expansion in existing accounts, resulting in substantial growth across all three components of our business: product, recurring subscription and support. At the same time we continued to realize the leverage inherent in our ramping hybrid-SaaS model, delivering sequential and year-over-year expansion of non-GAAP operating margin, non-GAAP earnings per share, and cash flow from operations."

http//www.paloaltonetworks.com

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Cisco Training Adds IoT and Cloud Certification

New Cisco Certified Network Associate (CCNA) and Cisco Certified Network Professional (CCNP) certifications are being added to Cisco's training program. The curricula focuses on the ability to connect the unconnected, automate and orchestrate services, and provide the infrastructure to enable real-time data analytics in a pervasive manner.

The new IoT-focused CCNA Industrial certification is a lab-based training and certification offering that is part of the CCNA Industrial Education curriculum. It is targeted at plant administrators, control engineers and IT/Network engineers working in manufacturing.

The new Cloud certification program will help enable professionals to build private and hybrid cloud-based Infrastructure-as-a-Service (IaaS) solutions, allowing IT to enable and control Enterprise-wide cloud deployments in a consistent, centralized manner.

http://www.cisco.com

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Nokia to Acquire Eden Rock for SON

Nokia Networks has agreed to acquire Eden Rock Communications, a developer of multivendor, Self Organizing Network (SON) solutions. Financial terms were not disclosed.

Eden Rock’s Eden-NET is a centralized, multivendor, SON solution for GSM, UMTS and LTE networks. It provides an open framework with a Software Development Kit (SDK) that accelerates the creation, customization and deployment of custom SON Modules. Additionally, Eden Rock offers its rich toolbox of off-the-shelf SON Modules, which have been proven at-scale across diverse networks globally. The company has 26 issued and 70+ pending patents.

Peter Patomella, Vice President, CEM and OSS, Nokia Networks, said: “The size of the optimization and SON market is expected to exceed 5 billion Euros globally by 2018. With our combination of capabilities, we will effectively address a key customer pain point: efficient optimization of heterogeneous networks in a multivendor environment. By combining our products, we will accelerate the delivery of a compelling solution that offers powerful automated network optimization capabilities that achieve best-in-class performance and customer experience.”

Charles Immendorf, CEO, Eden Rock, said: “A massive appetite exists among operators for a proven SON solution with disruptive technologies, open framework and carrier-class capabilities. Via this acquisition, Nokia Networks brings complementary SON functionality, a renowned reputation for wireless excellence and an ascending market presence to Eden-NET. We welcome the opportunity to work with Nokia and together aim to establish an insurmountable lead within the global SON space.”

As a part of this acquisition process, Eden Rock will spin-off a new company with its spectrum sharing solutions, technology and patents.

http://www.nokia.com
http://www.edenrockcomm.com

• Eden Rock is based in Bothell, Washington.

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Dell'Oro: WDM Sales Drive Optical Transport Equipment Market in Q1

The Optical Transport equipment market reached $2.8 billion in the first quarter of 2015, according to a new report from Dell'Oro Group. WDM equipment sales accounted for the majority of the optical market's growth. In the quarter, the total WDM market, which comprises 76 percent of the optical market's revenue, grew five percent year-over-year.

"One of the main drivers for WDM equipment demand is the interconnection of data centers, which are on the rise as users increase their consumption of content such as video," said Jimmy Yu, Vice President of Optical Transport research at Dell'Oro Group. "Of greater interest in the optical market is the changing customer type, as more of these data center interconnects (DCI) are purchased directly by the enterprise rather than as a service from an operator. We believe approximately 12 percent of WDM revenues in the first quarter were generated from data center interconnection, purchased directly by enterprise customers," added Mr. Yu.

http://www.delloro.com

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365 Data Centers and SFMIX to Expand Internet Exchange into San Jose

365 Data Centers and the San Francisco Metropolitan Internet Exchange (SFMIX) announced a partnership to expand the Internet exchange into 365's colocation facility in San Jose, California (534 Stockton Avenue).

SFMIX is a non-profit organization that offers core IX fabric locations within the San Francisco Bay Area, and its exchanges are only placed within carrier-neutral data centers to facilitate more carrier choice, service options and high-speed connections.

"SFMIX is proud to be the only non-profit Internet Exchange in the Bay Area market and we're excited to continue our dramatic growth within 365's Silicon Valley facility," said Matt Peterson, co-founder of SFMIX. "The carrier-neutral meet-me room, redundant power systems, and extensive compliance certifications make 365's San Jose location an ideal peering location for networks of all types."

365 Data Centers recently launched a similar venture at its carrier-neutral facility in Nashville, Tenn., the NashIX, creating Nashville's first IX to lower latency and eliminate the need for costly long haul transport to regional exchange hubs.

"The Bay Area is a mature Internet exchange market that has been dominated by just a few IXs, resulting in higher prices for interconnection," said Keao Caindec, Chief Commercial Officer, 365 Data Centers. "Linking networks, data centers and content together to deliver improved performance and lower costs for our clients and their customers is a big win for the Bay Area."

http://365datacenters.com/
http://sfmix.org/

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ECI Announces ElastiCLOUD DCI Solution

ECI announced its ElastiCLOUD data center interconnect solution.

The company said its platform will support more than 25T on a single fiber, offer low power consumption at less than 85W/100G,  and offer a mix of packet and optical interfaces in the same platform with extremely high density. ElastiCLOUD also support ECI’s LightApps SDN applications for dynamic bandwidth allocation, service scheduling and network automation.

“Data traffic continues to grow exponentially. In fact, according to industry reports, the amount of data traveling between data centers is expected to quadruple between 2013 and 2018. Clearly the cloud connectivity infrastructure, as we know it today, must evolve.  This is the main reason why ElastiCLOUD is a key addition to the ECI family of solutions. It is also extremely important as it supports ECI’s current focus on the US market, which is home to many cloud service providers and data center operators,” said Mr. Andreas Hegers, Head of Marketing at ECI.

http://www.ecitele.com

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