Sunday, September 26, 2021

Huawei's Meng Wanzhou resolves legal case brought by U.S.

Wanzhou Meng, Chief Financial Officer of Huawei Technologies, reached an agreement with the United States Attorney’s Office for the Eastern District of New York, the Counterintelligence and Export Control Section of the Justice Department’s National Security Division (CES), and the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division (MLARS). As a result, the U.S. Department of Justice withdrew its request to the Ministry of Justice of Canada that Meng be extradited to the United States. This clears the way for her to return to China after having been under house arrest in Vancouver since December 2018.

Meng pleaded not guilty to fraud charges but agreed to a four-page statement of facts regarding the case.

At the Supreme Court of British Columbia, Associated Chief Justice Heather Holmes released Meng from all bail conditions set by the Canadian justice system.

Hours after Meng was freed, Prime Minister Justin Trudeau of Canada announced that Michael Kovrig and Michael Spavor had likewise been released from detention in China and were on their way back to Canada.

The United States Attorney’s Office for the Eastern District of New York and the U.S. Department of Justice issued the following statements:

“In entering into the deferred prosecution agreement, Meng has taken responsibility for her principal role in perpetrating a scheme to defraud a global financial institution,” stated Acting U.S. Attorney Boeckmann.  “Her admissions in the statement of facts confirm that, while acting as the Chief Financial Officer for Huawei, Meng made multiple material misrepresentations to a senior executive of a financial institution regarding Huawei’s business operations in Iran in an effort to preserve Huawei’s banking relationship with the financial institution.  The truth about Huawei’s business in Iran, which Meng concealed, would have been important to the financial institution’s decision to continue its banking relationship with Huawei.  Meng’s admissions confirm the crux of the government’s allegations in the prosecution of this financial fraud—that Meng and her fellow Huawei employees engaged in a concerted effort to deceive global financial institutions, the U.S. government, and the public about Huawei’s activities in Iran.” 

Some notes according to court filings, and as agreed to by Meng in the DPA’s statement of facts as recorded by the United States Attorney’s Office for the Eastern District of New York:

"Between 2010 and 2014, Huawei controlled Skycom’s business operations in Iran, and Skycom was owned by an entity controlled by Huawei.  All significant Skycom business decisions were made by Huawei.  Moreover, Skycom’s country manager—the head of the business—was a Huawei employee.  Individuals employed by Skycom believed they worked for Huawei. 

In December 2012 and January 2013, various news organizations, including Reuters, reported that Skycom offered to sell “embargoed” equipment from a U.S. computer equipment manufacturer in Iran in potential violation of U.S. export controls law, and that Huawei had close ties with Skycom.  

In 2013, when questioned by financial institutions in Hong Kong, Huawei employees, including Meng, asserted that Skycom was just a local business partner of Huawei in Iran and that Skycom had not conducted Iran-related transactions using its accounts at the financial institutions. Meng also told the financial institution that Huawei “operates in Iran in strict compliance with applicable laws, regulations and sanctions” and that “there has been no violation of export control regulations” by “Huawei or any third party Huawei works with.”  

Between 2010 and 2014, Huawei caused Skycom to conduct approximately $100 million worth of U.S.-dollar transactions through Financial Institution 1 that cleared through the United States, at least some of which supported its work in Iran in violation of U.S. law, including $7.5 million for Iran-based contractors from the U.K. staffing company to do work in Iran.

For its part, Huawei has yet to comment on the agreement.

Dell'Oro: Cloud data center capex on a 20% growth pace

Cloud data center capex is forecast for over 20 percent growth year-over-year in the next four quarters, according to a new report from Dell'Oro Group. However, Enterprise spending, while showing signs of recovery, is expected to be hampered in the near-term by the on-going supply chain constraints.

“The Cloud service providers’ digestion cycle has persisted longer than predicted due to the continued market uncertainty,” said Baron Fung, Research Director at Dell’Oro Group. “We anticipate another Cloud expansion cycle to commence starting in the second half of this year, with the service providers increasing their deployment of the latest generation of servers based on the Intel Ice Lake and AMD EPYC Milan x86 processors. While the on-going supply chain issues may hinder investments, the Enterprise, rather than the Cloud is likely to be impacted,” explained Fung.

Additional highlights from the 2Q 2021 Data Center Capex Quarterly Report:

  • Worldwide data center capex forecast to grow 9 percent in 2021.
  • Network infrastructure spending is projected to outgrow IT infrastructure spending this year.
  • Google and Microsoft to lead all Cloud service providers in data center capex in the next four quarters, collectively launching services in 13 new regions.

Separately, Dell'Oro Group announced the launch of its new Data Center Physical Infrastructure research program. The first report will be released in November 2021.

“We are in the midst of extensive digital transformation, accelerated by the global pandemic, where the limits of power and cooling infrastructure are being tested,” said Lucas Beran, Principal Analyst with Dell’Oro Group. “This is leading to technology transformation related to data center power systems, thermal management, and software monitoring to drive sustainable data centers of the future. I look forward to quantifying and forecasting these market developments with timely, accurate, and detailed analysis,” continued Beran.

Video: 3 Key SD-WAN Trends for Enterprise Networking

SD-WAN is about delivering a real, unified, automation simplification to the enterprises for all their networking needs. In this video, Sunil Khandekar, General Manager/Founder of Nuage Networks from Nokia, shares three SD-WAN trends for enterprise networking that they are actively participating in.

Download the SD-WAN & SASE Report (Updated for 2021) here:

Dell’Oro: SASE to to hit double-digit billion-dollar revenue by 2025

SASE is expected to hit double-digit billion-dollar revenue by 2025, according to an updated report from Dell'Oro Group.

“As enterprises pivot towards becoming cloud-first and mobile-friendly, they are running into the structural deficiencies of the hub-and-spoke model and need alternatives,” said Mauricio Sanchez, Director at Dell’Oro Group. “The need for more agility, better scalability, and ubiquitous security has driven the vendor community to respond with the convergence of software-defined WAN (SD-WAN) and secure web gateway (SWG) solutions into a new architecture under the SASE umbrella. As a result, enterprises’ interest in SASE is skyrocketing.”

Additional highlights from the SASE advanced research report:

  • The number of SASE technology vendors has grown from a handful to 35.
  • Over the past year, communications service providers have rapidly embraced SASE due to many technology vendor choices, the ease and low risk of deployment, and new revenue potential.
  • Two major SASE implementations types exist in the market, unified and disaggregated. Unified type consists of single-vendor, tightly integrated SASE platforms. Disaggregated type is a multi-vendor or multi-product implementation with less integration than unified. Unified type will grow faster than disaggregated, but not surpass it by total revenue through 2025.

Japan's Keio University carries 53 Gbps over plastic optical fiber

Researchers at Keio University developed a plastic optical fiber (POF) capable of carrying 53 Gbps error-free.

A part of this research result was published in the international academic journal " Optics Letters " (August 1, 2021). Details of the results of this research will be announced at the International Conference on Plastic Optical Fibers (POF2021) to be held in November 2021.

NTT DATA collaborates with Mavenir on ORAN

NTT DATA and Mavenir Systems agreed to collaborate globally to provide products, solutions, systems and integration services for 5G networks based on cloud native, open architecture-based systems, including Open RAN to drive openness and virtualization in 5G networks. 

The two companies will combine various IT and telecommunication services, including integration services provided by NTT DATA worldwide, with Mavenir's Open Virtualized RAN (vRAN) solutions and Converged Packet Core to support the adoption of Open vRAN by telecommunications carriers and the realization of Digital Transformation by enterprises and telecom operators using 5G. NTT DATA and Mavenir will provide network services with the added value that open and virtualized 5G networks can bring. In particular, the two companies will prioritize and work closely together on pioneering projects to drive open architecture-based approaches in enabling bigger and broader ecosystems to unlock the true potential of 5G networks.

To date, NTT DATA and Mavenir have realized one of the first cloud-native 5G standalone (SA) campus networks at "Ensō – The Space for Creators" in Germany. 

NTT DOCOMO's Open RAN Ecosystem has also selected NTT DATA as a system integrator and Mavenir as a RAN software provider and is working to realize Open vRAN in telecom operators. Through these efforts, the two companies have enhanced the feasibility of their collaboration.