Tuesday, November 6, 2018

MEF18: SD-WAN as a driver for digital transformation

MEF18 featured a lot of hot topics, especially network automation, SDN, NFV, and SD-WAN, says Roopa Honnachari, Industry Director, Business Communication Services & Cloud Services, Frost & Sullivan.

MEF's work in standardizing SD-WAN service specification, as well as its MEF 3.0 framework for orchestrated services, is helping to drive the digital transformation of enterprise customers.


IDC: 5G network infrastructure market to grow at 118% CAGR

The worldwide 5G network infrastructure market is expected to grow from approximately $528 million in 2018 to $26 billion in 2022, according to IDC's inaugural forecast for this market segment, and representing a compound annual growth rate (CAGR) of 118%.

The 5G network infrastructure market includes 5G RAN, 5G NG core, NFVI, routing and optical backhaul.

IDC expects 5G RAN to be the largest market sub-segment through the forecast period, in line with prior mobile generations.

In addition to 5G NR and 5G NG core, procurement patterns indicate communications service providers (SPs) will need to invest in adjacent domains, including backhaul and NFVI, to support the continued push to cloud-native, software-led architectures.

"Early 5G adopters are laying the groundwork for long-term success by investing in 5G RAN, NFVI, optical underlays, and next-generation routers and switches. Many are also in the process of experimenting with the 5G NG core. The long-term benefit of making these investments now will be when the standards-compliant SA 5G core is combined with a fully virtualized, cloud-ready RAN in the early 2020s. This development will enable many communications SPs to expand their value proposition and offer customized services across a diverse set of enterprise verticals through the use of network slicing," says Patrick Filkins, senior research analyst, IoT and Mobile Network Infrastructure.

The report, Worldwide 5G Network Infrastructure Forecast, 2018-2022 (IDC #US44392218), presents IDC's inaugural forecast for the 5G network infrastructure market. Revenue is forecast for both the 5G RAN and 5G NG Core segments and each of the three related sub-segments (NFVI, Routing Backhaul, and Optical Backhaul). The report also provides a market overview, including drivers and challenges for communications service providers and advice for technology suppliers.

AWS launches AMD EPYC cloud instances at lower cost

Amazon Web Services (AWS) began offering cloud instances based on AMD EPYC processors.

The new general purpose (M5 and T3) and memory-optimized (R5) instance types with AMD EPYC processors that are 10% less expensive than the current M5, T3, and R5 instances.

AWS said the AMD-based instances provide additional options for customers who are looking to achieve cost savings on their Amazon EC2 compute environment for a variety of workloads, such as microservices, low-latency interactive applications, small and medium databases, virtual desktops, development and test environments, code repositories, and business applications.


NTT Com looks to data center construction and management

NTT Communications will establish a new NTT Global Data Centers Preparatory Corporation as the first step in creating a wholly owned subsidiary to comprehensively handle data center construction, asset management and wholesale services for NTT Group companies on a global basis.

NTT Global Data Centers Preparatory Corporation will respond to rapidly growing demands for data centers across countries worldwide and further strengthen data center-related business within the group. NTT Com will launch the preparatory company by the end of this December. Going forward, the envisioned data center “investment company” is expected to begin constructing data centers from April 2019. In particular, the preparatory company will integrate the NTT Group’s special expertise in data center-related real estate and finance, creating a new data center business structure for faster decision-making and more efficient investment in data center construction.

NTT Com also stated that it plans to accelerate its investment in data center business, especially in the U.S., Europe and APAC including Japan.

Eurofiber deploys ADVA FSP 150 for flexible business services

Eurofiber, which operates an extensive fiber network across The Netherlands and Belgium, is deploying the ADVA FSP 150 as the customer premise equipment of its new flexible business services.

The ADVA FSP 150 provides a single platform for MEF-certified Layer 2 and 3 services and easily scales from 1GbE to 10GbE. With zero touch provisioning, the device is simple to deploy and its comprehensive assurance services offer unparalleled support for SLA management.

ADVA said its intelligent, multi-layer demarcation and aggregation technology enables Eurofiber to respond to rapidly growing demand from enterprises across the Netherlands and Belgium for high-bandwidth, cost-effective SLA-based Carrier Ethernet connectivity.

“Our FSP 150 enables Eurofiber to meet ever-increasing demand for cloud services while also optimizing its infrastructure to support diverse network technologies. Now it can instantly increase bandwidth as soon as customers require it and address the emerging need for multi-layer networking,” commented Ed Zalmstra, sales director, Netherlands, ADVA. "Our FSP 150 delivers the flexibility to quickly transition from 1Gbit/s to 10Gbit/s Ethernet services without requiring extra space and power consumption. Having all that functionality in one compact platform is a real advantage. We’re proud that Eurofiber selected us for this project. It highlights the value not only of our innovation but also our people. To be chosen once again to take Eurofiber’s business services to the next stage shows their continuing faith in our experience and commitment to quality, as well as the strength of the relationship between our teams.”

ADVA’s partner Netways Europe also provided valuable support with the new solution.


Broadcom completes acquisition of CA Technologies

Broadcom completed its previously announced acquisition of CA Technologies (NASDAQ: CA).

CA will operate as a wholly owned subsidiary of Broadcom.

"Today, we are pleased to complete this transaction, which strengthens Broadcom's position as a leading provider of semiconductor and infrastructure software solutions and enables us to better serve our customers," said Hock Tan, President and Chief Executive Officer of Broadcom. "Broadcom has a track record of successfully integrating and growing the businesses we acquire. We believe this transaction will enable us to offer customers a leading portfolio of best-in-class solutions across a diverse set of technologies. We intend to invest in and grow the CA business to further enhance its capabilities in mission-critical infrastructure software solutions."

Broadcom to acquire CA Technologies for $18.9 billion

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

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

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

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

"We are excited to have reached this definitive agreement with Broadcom," said Mike Gregoire, CA Technologies Chief Executive Officer. "This combination aligns our expertise in software with Broadcom's leadership in the semiconductor industry. The benefits of this agreement extend to our shareholders who will receive a significant and immediate premium for their shares, as well as our employees who will join an organization that shares our values of innovation, collaboration and engineering excellence. We look forward to completing the transaction and ensuring a smooth transition."

Broadcom sells its Veracode business for $950 million

Thoma Bravo, a leading private equity investment firm, will acquire Veracode, the leading provider in next-generation application security testing (AST), from Broadcom for $950 million in cash.

Veracode's SaaS platform and integrated solutions help security teams and software developers find and fix security-related defects at all points in the software development lifecycle. Veracode serves more than 2,000 customers across a wide range of industries, including nearly one-third of the Fortune 100, and more than 20 of Forbes' 100 Most Valuable Brands.

"Software security is one of the most consequential issues facing companies as they look to compete in the digital economy. We are proud that our SaaS security platform combines multiple application security testing solutions, helping our customers around the world secure the software powering their companies and enabling them to focus on their core business objectives," said Sam King, current Senior Vice President and General Manager of Veracode, who will become the CEO of Veracode following the close of the transaction. "Partnering with Thoma Bravo, a proven security software investor, is expected to extend our market reach and further fuel our innovation so that we can offer the broadest software security platform and empower us to accelerate growth — all to allow us to transform the way companies achieve their software security goals."

Thoma Bravo noted its extensive experience investing in the cybersecurity software sector. It has completed more than 30 total acquisitions of enterprise security companies to date, including SailPoint (NASDAQ: SAIL), Barracuda Networks, LogRhythm, Bomgar, BlueCoat Systems, SonicWall and Entrust.

Qualcomm advances its LTE-V2X in China

Qualcomm Technologies is expanding its efforts with China’s growing ecosystem of leading automakers and suppliers to commercialize LTE Vehicle-to-Everything (LTE-V2X) direct communication technology based on 3GPP Release 14 specifications.

LTE-V2X, which is also known as C-V2X, is designed to support improved automotive safety, traffic efficiency, and automated driving using high performance and reliable real-time direct communication between vehicles, as well as with roadside infrastructure, and is on an evolution path supporting additional functionality as part of 5G New Radio (5G NR).

Qualcomm Technologies is working alongside automakers including Audi China, BAIC, ChangAn, Geely and Great Wall and others, as well as China SAE ITS software stack providers Genvict, Nebula Link and Savari, Inc., to host China’s first large-scale multi-interoperability live demonstrations of LTE-V2X during the SAE China Congress Exhibition (SAECCE) event in Shanghai. 

Collectively, the seven V2V and V2I use cases that will be demonstrated include: Optimal Speed Advisory, Lane Change Alert / Blind Spot Alert, Emergency Brake Warning, Forward Collision Warning, Emergency Vehicle Warning, Intersection Collision Warning, and Slippery Road Alert.

LTE-V2X PC5-based direct communication operates in the 5.9 GHz spectrum that the China government recently designated for LTE-V2X ITS applications and works independently of cellular operator network involvement. Through these demonstrations, China is well-positioned to demonstrate leadership in LTE-V2X with commercial readiness for RSUs, onboard units and vehicle integration in 2019.

In addition, Qualcomm Technologies is working with Datang Telecom Group, a subsidiary of China Information and Communication Technologies Group Corp (CICT), to accelerate commercial deployment for LTE-V2X (also known as C-V2X across the globe) direct communication technology and applications based on 3GPP Release 14 specifications.

The companies are collaborating on demonstrations at the SAE China Congress Exhibition (SAECCE) event held this week in Shanghai.  The demos showcase Vehicle-to-Everything (V2X) and Vehicle-to-Infrastructure (V2I) use cases.

In August, Qualcomm Technologies and Datang announced they had successfully completed the world’s first chipset interoperability test utilizing the Qualcomm 9150 C-V2X chipset solution and CICT’s LTE-V2X module, the DMD31.

“The administrative regulation on using 5905-5925 MHz for direct communication among connected vehicles was announced on October 21 and marks the accelerated development of the intelligent, connected car industry,” said Dr. Yingmin Wang, chief engineer of Datang Telecom Group, a subsidiary of China Information and Communications Technology Group Corporation. “As an industry leader of Internet of Vehicles communications, Datang looks forward in continuing to work with Qualcomm Technologies to ensure the successful commercial deployment of V2X technologies domestically and globally, as well as further drive the evolution of LTE-V2X technology to 5G.”

Twilio hits Q3 sales of $168.9 million, up 68% yoy

Twilio reported total revenue of $168.9 million for the third quarter of 2018, up 68% from the third quarter of 2017 and 14% sequentially from the second quarter of 2018. GAAP net loss per share attributable to common stockholders of $0.28 based on 98.0 million weighted average shares outstanding in the third quarter of 2018, compared with GAAP net loss per share attributable to common stockholders of $0.25 based on 92.2 million weighted average shares outstanding in the third quarter of 2017.

“We’re thrilled to report yet another strong quarter for revenue growth, product innovation, and customer success in Q3,” said Jeff Lawson, Twilio’s Co-Founder and Chief Executive Officer. “There are several key issues on the minds of many companies today – creating seamless omni-channel experiences, ensuring enterprise compliance, and utilizing Artificial Intelligence and bots to create better customer experiences. At our SIGNAL conference in October, we were proud to announce products aimed at helping our customers solve these pressing challenges.”

Key Metrics and Recent Business Highlights

  • 61,153 Active Customer Accounts as of September 30, 2018, compared to 46,489 Active Customer Accounts as of September 30, 2017.
  • Dollar-Based Net Expansion Rate was 145% for the third quarter of 2018, compared to 122% for the third quarter of 2017.
  • Signed a definitive agreement to acquire SendGrid, the leading email API platform, to further our vision of creating the world’s leading cloud communications platform spanning voice, messaging, video - and coming soon - email.
  • Acquired long-time partner, Ytica, to accelerate the Twlio Flex roadmap by adding highly customizable contact center reporting, speech analytics, and workforce optimization (WFO) software.
  • Announced the general availability of Twilio Flex, the first fully programmable cloud contact center platform that allows enterprises to build a customized experience that supports their business needs.
  • Launched Twilio , a new API that enables developers to easily process payments securely over the phone via automated Interactive Voice Response (IVR) interactions or in contact center environments.
  • Received Payment Card Industry Data Security Standard (PCI DSS) Level 1 certification for our Programmable Voice product, enabling our customers to use our platform to process payments securely without having to maintain PCI compliance themselves.
  • Announced Twilio Autopilot, a fully programmable, conversational AI platform for building customer bots, IVRs, and home assistant apps that can deliver omni-channel self-service capabilities to customers at scale.
  • Extended our partnership with T-Mobile by creating a new developer platform for the T-Mobile Narrowband IoT (NB-IoT) network, a new network technology for the Internet of Things (IoT) that has the potential to open up a substantial market for new categories of lower cost, battery efficient internet-connected devices that don’t exist today.
  • Launched the Twilio Super-SIM, expanding our efforts to provide global connectivity through a single API for our growing list of IoT customers by adding relationships with The Three Group, Singtel, and Telefonica.
  • Celebrated the five-year anniversary of Twilio.org by setting a new 10-year goal to have social impact organizations around the world using the Twilio platform to help 1 billion people every year.

Infinera reports Q3 revenue of $200.4 million

Infinera reported Q3 2018 GAAP revenue of $200.4 million compared to $208.2 million in the second quarter of 2018 and $192.6 million in the third quarter of 2017. GAAP gross margin for the quarter was 35.0% compared to 40.5% in the second quarter of 2018 and 35.2% in the third quarter of 2017. GAAP net loss for the quarter was $(32.6) million, or $(0.21) per share, compared to a net loss of $(21.9) million, or $(0.14) per share, in the second quarter of 2018, and net loss of $(37.2) million, or $(0.25) per share, in the third quarter of 2017. Non-GAAP net loss for the quarter was $(6.7) million, or $(0.04) per share, compared to a net loss of $(1.3) million, or $(0.01) per share, in the second quarter of 2018, and net loss of $(17.0) million, or $(0.11) per share, in the third quarter of 2017.

“In the third quarter we delivered financial results within our guidance ranges and now, with our acquisition of Coriant closed, are executing on our integration plan with intensity,” said Tom Fallon, Infinera CEO. “We remain committed to achieving substantial cost synergies, scaling our business by delivering compelling solutions to our extensive customer base of leading Tier-1s and ICPs, and driving vertical integration of our optical engine across our expanded end-to-end portfolio. While we have experienced a spending pause from certain customers as they evaluate the combined company, I believe this is temporary and that we will grow over the course of 2019. Newly armed with a breadth of significant customers and formidable scale, we are positioned to increasingly leverage our vertical integration advantage to drive profitability and a differentiated business model.”

Toshiba Memory targets deep learning processing

Toshiba Memory Corporation has developed a high-speed and high-energy-efficiency algorithm and hardware architecture for deep learning processing with less degradations of recognition accuracy. The company is developing a new processor for deep learning implemented on an FPGA.

In addition, Toshiba Memory is working on a new hardware architecture, called bit-parallel method, which is suitable for MAC operations with different bit precision. This method divides each various bit precision into a bit one by one and can execute 1-bit operation in numerous MAC units in parallel. It significantly improves utilization efficiency of the MAC units in the processor compared to conventional MAC architectures that execute in series.