Tuesday, October 25, 2022

Microsoft: Lower margins for Azure primarily due to energy costs

 Microsoft reported Q3 revenue of $50.1 billion up 11% (up 16% in constant currency) compared to last year. Net income was $17.6 billion, a drop of 14% (down 8% in constant currency).

“In a world facing increasing headwinds, digital technology is the ultimate tailwind,” said Satya Nadella, chairman and chief executive officer of Microsoft. “In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way."

 “This quarter Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year. We continue to see healthy demand across our commercial businesses including another quarter of solid bookings as we deliver compelling value for customers,” said Amy Hood, executive vice president and chief financial officer of Microsoft. 


  • Revenue in Productivity and Business Processes was $16.5 billion and increased 9% (up 15% in constant currency), with the following business highlights:
  • Office Commercial products and cloud services revenue increased 7% (up 13% in constant currency) driven by Office 365 Commercial revenue growth of 11% (up 17% in constant currency)
  • Office Consumer products and cloud services revenue increased 7% (up 11% in constant currency) and Microsoft 365 Consumer subscribers grew to 61.3 million
  • LinkedIn revenue increased 17% (up 21% in constant currency)
  • Dynamics products and cloud services revenue increased 15% (up 22% in constant currency) driven by Dynamics 365 revenue growth of 24% (up 32% in constant currency)

Revenue in Intelligent Cloud was $20.3 billion and increased 20% (up 26% in constant currency), with the following business highlights:

  • Server products and cloud services revenue increased 22% (up 28% in constant currency) driven by Azure and other cloud services revenue growth of 35% (up 42% in constant currency)

Revenue in More Personal Computing was $13.3 billion and decreased slightly (up 3% in constant currency), with the following business highlights:

  • Windows OEM revenue decreased 15%
  • Windows Commercial products and cloud services revenue increased 8% (up 15% in constant currency)
  • Xbox content and services revenue decreased 3% (up 1% in constant currency)
  • Search and news advertising revenue excluding traffic acquisition costs increased 16% (up 21% in constant currency)
  • Devices revenue increased 2% (up 8% in constant currency)

Google Cloud hits Q3 revenue of $6.9b, loss of $499m

For the third quarter, Alphabet reported consolidated revenues of $69.1 billion, up 6% or up 11% in constant currency. The total cost of revenues was $31.2 billion, up 13%, primarily driven by other cost of revenues, which was $19.3 billion, up 20%. The biggest cost factor was data centers and other operations, followed by hardware costs.

In its Q3 financial results, Google Cloud saw continued momentum with Q3 revenue of $6.9 billion, compared with $5.0 billion a year earlier. Google Cloud had an operating loss of $699 million. 

"The long-term trends that are driving cloud adoption continue to play an even stronger role during uncertain macroeconomic times."

The company also cited continue momentum for Google Cloud in terms of new features, with more than 100 new products and expanded relationships with Toyota, Prudential plc, Coinbase and AppLovin.

In terms of CAPEX, Google continues to make significant investments in technical infrastructure with servers as the largest component.


Juniper's Q3 sales rise 19% yoy, strong 400G momentum

Juniper Networks reported Q3 2022 net revenues of $1,414.6 million, an increase of 19% year-over-year and an increase of 11% sequentially. Non-GAAP net income was $190.8 million, an increase of 26% year-over-year, and an increase of 40% sequentially, resulting in non-GAAP diluted net income per share of $0.58.

“We delivered record revenue results during the September quarter. Product sales grew 25% year-over-year and we saw double-digit year-over-year growth across all customer verticals and all customer solutions,” said Juniper’s CEO, Rami Rahim. “Our teams are executing extremely well. Based on our current demand, our strong backlog and the actions we’ve taken to procure more supply, we expect to deliver continued revenue strength in Q4, and sustained growth in 2023 and beyond.”


TIP forms Open Fixed Access Networks group

The Telecom Infra Project (TIP) Fixed Broadband Project Group has established an Open Fixed Access Networks sub-group to collaboration between major industry players including  Telefonica, TIM and Vodafone.

The new Open Fixed Access Networks sub-group will focus on improving interoperability and diversity in the access network, accelerating innovation through modernisation of operations and deployment architectures, and boosting capacity in the last mile through transition from GPON to XGS-PON.

The group have already released the Open Fixed Access Networks Use Case Document, which describes:

  • The objectives and motivations for this new area of work
  • The most common deployment models adopted by operators today
  • The core characteristics of solutions that can be deployed to address these objectives

Bruno Cornaglia, Fixed Access Senior Manager at Vodafone said: “In Vodafone, we see that openness and disaggregation are key principles that allow us to build the flexible and agile network we need to support our evolving customer needs. Our work in this area complements similar work elsewhere in the network, for example with OOPT and OpenRAN, and we’re excited that this project will help realize these same benefits in the fixed access network.”


Padtec offers remote management of telecom sites

Padtec introduced Smart Site, a new cloud-based service for the remote and real-time management of network environments (sites) of operators and internet providers (ISPs) distributed throughout the different regions of Brazil. Padtec plans to expand the offering worldwide.

The Smart Site platform has features that centralize the service provider’s operation, allowing complete management of their sites, wherever they are – telemetry data are read by sensors and commands are sent remotely to installed actuators on each monitored site. An important differential of Padtec’s new service is the possibility of using systems (software) and equipment already installed in customers’ environments, without the need for new investments.

For a monthly fee, the operator or provider can remotely monitor and control security systems – with presence sensors, cameras and access control – and energy, temperature and humidity (internal and external) and also operate the air conditioning systems of their sites. All this in a single web environment, which also brings, among other features, the map service with the location of all monitored sites.

“With this service, Padtec starts to offer its customers a complete and effective tool to deal with the complexities inherent to the management of network environments, minimizing the risks of continuity of critical operations”, explains Carlos Raimar, Padtec’s CEO. “Remote management, through automation resources and functionalities that simplify the monitoring and control routine of distributed sites, often in very distant regions, brings efficiency and productivity gains”, he adds.


FiBrasil partners with Padtec on Network Operations Center

FiBrasil, a Brazilian operator of neutral networks, has formed a partnership with Padtec focused on managing the operation of its communication networks in Brazil. The services include monitoring and technical support through Padtec’s Network Operations Center (NOC).Located at its headquarters in Campinas, in the interior of São Paulo, Padtec’s NOC offers remote network monitoring and support services, available 24 hours a day, 7 days a week. Services...

Vodafone to test Samsung's Open RAN equipment

Vodafone plans to conduct a commercial pilot of 5G Open Radio Access Network (RAN) at mobile sites across two rural areas in Germany – its largest European market – starting in early 2023. This follow successful field tests earlier this year in Plauen, Germany.

Vodafone’s Open RAN pilot, using software and radio equipment from Samsung, will take place in the German states of South East Bavaria and North East Lower Saxony and marks the beginning of a wider roll-out within Germany over the next two to three years. It is a key stage in Vodafone’s plan to equip 30 per cent of all its European sites with Open RAN by 2030.

Vodafone notes that it will be testing Open RAN technology based on specs from the Open RAN MoU group. These specifications define an architecture for the use of secure, open and interoperable multi-vendor equipment and have been adopted by industry-body Telecom Infra Project (TIP) as the blueprint of choice for building Open RAN at scale in Europe.

Santiago Tenorio, Director of Network Architecture for Vodafone, said: “This will be the first Open RAN system in Germany that not only uses open interfaces but is built on both hardware and software from multiple vendors that is fully interchangeable and interoperable based on the choice of the operator. It brings timely resilience to the supply chain, allowing us to work with a greater number and more diverse pool of suppliers. Greater competition also encourages innovation, leading to a better mobile experience for our customers.”


MaxLinear posts Q3 sales of $286m, up 24% yoy

 MaxLinear reported Q3 net revenue of $285.7 million, up 2% sequentially and up 24% year-over-year. GAAP gross margin was 58.6%, compared to 58.7% in the prior quarter, and 56.5% in the year-ago quarter. Non-GAAP income from operations was 34% of revenue, compared to 32% in the prior quarter, and 29% in the year-ago quarter. Non-GAAP diluted earnings per share was $1.05, compared to diluted earnings per share of $1.11 in the prior quarter, and diluted earnings per share of $0.75 in the year-ago quarter.

“In the third quarter, we demonstrated strong execution with revenue up 2% sequentially and up 24% year-over-year. In particular, both Wi-Fi and ethernet delivered substantial sequential and year-over-year growth, while gateway access and wireless infrastructure contributed to solid year-over-year growth. Our connectivity category more than doubled year-over-year, driven by our differentiated Wi-Fi6 feature set, and we continue to be on a firm trajectory to deliver at least $200 million of Wi-Fi revenue in 2023. Our quarterly results included strong cash flow from operations of approximately $62 million and non-GAAP gross margin of 62.0%. We are looking forward to our pending merger with Silicon Motion, and are excited for the future growth opportunities of our comprehensive product portfolio,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

DustPhotonics and MaxLinear demo silicon photonics + integrated lasers

DustPhotonics and MaxLinear demonstrated a silicon photonics chipset with integrated lasers directly driven from a DSP without the use of any external driver chip.The MaxLinear Keystone DSP (Digital Signal Processor) and DustPhotonics Carmel Silicon Photonics chip were shown together to support direct-drive operation, which reduces the overall cost and power dissipation of optical transceivers for data communication. Potential applications include...

MaxLinear to acquire Silicon Motion for NAND flash controllers

MaxLinear agreed to acquire Silicon Motion in a cash and stock transaction that values the combined company at $8 billion in enterprise value.Silicon Motion, which was founded in 1997 in Taipei, Taiwan, specializes in NAND flash controller integrated circuits for solid-state storage devices. The company claims that more NAND flash components, including current and up-coming generations of 3D flash produced by Intel, Kioxia, Micron, Samsung, SK Hynix,...

Google Cloud region opens in Tel-Aviv

Google Cloud region in in Tel Aviv (me-west1) is open.   

Last year, Google Cloud was selected by the Israeli government to provide cloud services to government ministries.


Rambus delivers PCIe 6.0 subsystem supporting CXL

Rambus released its PCI Express (PCIe) 6.0 Interface Subsystem comprised of PHY and controller IP. 

The Rambus PCIe 6.0 Interface Subsystem delivers data rates of up to 64 Gigatransfers per second (GT/s) and has been fully optimized to meet the needs of advanced heterogenous computing architectures. Within the subsystem, the PCIe controller features an Integrity and Data Encryption (IDE) engine dedicated to protecting the PCIe links and the valuable data transferred over them. On the PHY side, full support for CXL 3.0 is available to enable chip-level solutions for cache-coherent memory sharing, expansion and pooling.

Key features of the Rambus PCIe 6.0 Interface Subsystem include:

  • Supports PCIe 6.0 specification including 64 GT/s data rate and PAM4 signaling
  • Implements low-latency Forward Error Correction (FEC) for link robustness
  • Supports fixed-sized FLITs that enable high-bandwidth efficiency
  • Backward compatible to PCIe 5.0, 4.0 and 3.0/3.1
  • State-of-the-art security with an IDE engine (controller)
  • Supports CXL 3.0 for new use models that optimize memory resources (PHY)

“The rapid advancement of AI/ML and data-intensive workloads is driving the continued evolution of data center architectures requiring ever higher levels of performance,” said Scott Houghton, general manager of Interface IP at Rambus. “The Rambus PCIe 6.0 Interface Subsystem supports the performance requirements of next-generation data centers with premier latency, power, area and security.”

Virgin Australia picks Intelsat for Inflight Wi-Fi

Intelsat has been selected to provide high-speed in-flight Wi-Fi to Virgin Australia’s fleet of existing 737NG aircraft and future-delivery 737MAX aircraft.

The 2Ku antennas that facilitate the IFC system will be installed gradually over 18 months on more than half of the airline’s fleet starting mid-December 2023.

The service will be complimentary for the airline’s Business Class guests and Beyond and Velocity Platinum members. For all other guests, Wi-Fi access will be available for a nominal fee.

“We’re going to deliver a streaming-quality, always-on, reliable inflight internet product onboard Virginia Australia’s fleet of 737 aircraft,” said Dave Bijur, SVP of Intelsat Commercial Aviation. “We’re adding 737MAX aircraft for the first time with Virgin Australia, and they’ve made a technology decision that expands our relationship and will delight their guests.”