Thursday, July 27, 2023

Broadcom releases Trident 4-X7 Ethernet switch ASIC

Broadcom announced shipment of its new Trident 4-X7 Ethernet switch ASIC— a 4.0 Terabits/second fully programmable switch designed for enterprise data center ToR (Top of Rack) boxes.

The Trident 4-X7 offers native support for 400G connectivity to the next-generation spine/fabric technologies, while cutting power per 100G port by more than half versus the current generation solution. The programmable switching chip also offers hardware features for analytics, diagnostics and telemetry for automating data center operations.  The chip also supports Enterprise SONiC and SAI. The chip is implemented in 7nm process technology.

“Broadcom has made huge investments in addressing the needs of our cloud customers,” said Ram Velaga, senior vice president and general manager, Core Switching Group, Broadcom. “We are also uniquely positioned to bring all of these cloud technologies into enterprise data centers. Enterprise customers can now take advantage of the same capabilities and innovations.”

Key features of the new BCM56690 series include:

  • Cost- and power-optimized for next-generation data center and campus networks, supporting 50G ToRs (48x50G + 8x200G, or 48x50G + 4x400G) with a compiler-programmable architecture
  • Enterprise-grade feature set with a high degree of feature concurrency
  • Architecture scalability for bandwidth requirements throughout the enterprise network: SKUs available up to 4.0Tbps, all supported with the same NOS and hardware code base
  • Industry-leading fully shared packet buffer and database sizes
  • Extensive, programmable in-band telemetry including support for IFA 2.0 (In-band Flow Analyzer version 2)
  • A wide variety of load-balancing and congestion management features including Dynamic Load Balancing, Dynamic Group Multipathing, Resilient Hashing, Latency-Based ECN marking, and Elephant Flow detection and re-prioritization
  • Broadview Gen 4 integrated network instrumentation feature set and software suite, providing full visibility to network operators into packet flow behavior, traffic management state, and switch internal performance
  • Four GHz-class processors on-chip enabling powerful out-of-band (streaming) telemetry and a variety of Broadcom-provided embedded applications
  • Robust connectivity using up to 160 instances of the industry’s best performing, longest-reach 50G PAM-4 integrated SerDes core, enabling a wide variety of optical and direct attached copper (DAC) links

AWS Local Zone opens in Phoenix - 34th worldwide

Amazon activated a new AWS Local Zone in Phoenix, Arizona, making a select set of EC2 instance types, EBS volume types, and other AWS services available with single-digit millisecond when accessed locally.

The first AWS Local Zone opened in Los Angeles in 2019.

AWS now operates Local Zones in 16 other parts of the United States and another 17 around the world, 34 in all. 

The company says it is planning to build 19 more Local Zones outside of the U.S.  Popular use cases include real-time gaming, hybrid migrations, content creation for media & entertainment, live video streaming, engineering simulations, and AR/VR at the edge. 

Intel sees significant growth ahead across the AI continuum

Intel reported Q2 revenue of $12.9 billion, down 15% year over year (YoY).

The results beat expectations on gross margin and EPS. Intel also raised guidance for the remaining part of the year. GAAP gross margin was 39.1%

“Our Q2 results exceeded the high end of our guidance as we continue to execute on our strategic priorities, including building momentum with our foundry business and delivering on our product and process roadmaps," said Pat Gelsinger, Intel CEO. "We are also well-positioned to capitalize on the significant growth across the AI continuum by championing an open ecosystem and silicon solutions that optimize performance, cost and security to democratize AI from cloud to enterprise, edge and client.”

David Zinsner, Intel CFO, said, “Strong execution, including progress towards our $3 billion in cost savings in 2023, contributed to the upside in the quarter. We remain focused on operational efficiencies and our Smart Capital strategy to support sustainable growth and financial discipline as we improve our margins and cash generation and drive shareholder value.”

Some highlights

  • Data Center and AI (DCAI) group revenues were lower on higher unit costs driven by factory utilization and product mix
  • Network and Edge Group (NEX) revenue s were lower on edge and telco demand softness and elevated network inventories
  • Intel remains on track to meet its goal of achieving five nodes in four years. 
  • IFS announced that Boeing and Northrop Grumman have committed to joining the U.S. Department of Defense’s RAMP-C program, led by Intel. The program is intended to assure domestic access to next-generation semiconductors by establishing and demonstrating a U.S.-based foundry ecosystem to develop and fabricate chips on Intel 18A.
  • DCAI announced the general availability of cloud instances of its 4th Gen Intel Xeon® Scalable processors by Google Cloud. 
  • In CCG, Intel continued to see strong demand for its 13th Gen Intel Core™ processor family, with more than 300 designs expected from OEM partners this year. It also announced a collaboration with Microsoft to drive the development of AI on personal computing, and previewed AI-enabled capabilities of Intel’s upcoming Meteor Lake client PC processors at Microsoft’s Build 2023 conference. In addition, Intel introduced the Intel® Arc™ Pro A60 and Pro A60M as new members of the Intel Arc Pro A-series professional range of graphics processing units (GPUs).
  • For NEX, Intel, Ericsson and HPE successfully demonstrated the industry’s first vRAN solution running on the 4th Gen Intel Xeon Scalable processor with Intel vRAN Boost.
  • Mobileye continued to generate strong profitability in the second quarter and demonstrated traction with its advanced product portfolio by announcing a SuperVision eyes-on, hands-off design win with Porsche and a mobility-as-a-service collaboration with Volkswagen Group that will soon begin testing.
  • The company has 122,200 employees at the end of the quarter compared to 128,200 a year earlier. 

T-Mobile US reports service revenues of $15.7B, up 3%, raises guidance slightly

T-Mobile US reported Q2 service revenues of $15.7 billion, up 3% year-over-year, and Postpaid service revenues of $12.1 billion, up 5% year-over-year. Net income was $2.2 billion and diluted earnings per share was $1.86 , up $1.95 year-over-year.

In addition, the company raised its guidance for Core Adjusted EBITDA, which is now expected to be between $28.9 billion and $29.2 billion, an increase from prior guidance of $28.8 billion to $29.2 billion.

“If you were wondering how T-Mobile would perform if growth in our category moderated, I think you’ll find the answer in our latest results — including our best Q2 postpaid phone net adds in eight years, the lowest postpaid phone churn in the industry for the first-time ever, and industry-leading financial growth,” said Mike Sievert, CEO of T-Mobile. “We’ve set audacious goals and delivered a durable and differentiated plan that is working just as we said it would. And now, fueled by our unique growth opportunities, the momentum of our latest Un-carrier moves, and an unquenchable desire to be the very best at delivering for customers, we are the one to watch — with no plans to slow down.”

Some highlights:

  • Postpaid net account additions of 299 thousand decreased 81 thousand year-over-year, reflecting continued industry-leading share of net account additions in an environment of moderating industry growth and fewer High Speed Internet only net account additions.
  • Postpaid net customer additions of 1.6 million decreased 95 thousand year-over-year.
  • Postpaid phone net customer additions of 760 thousand increased 37 thousand year-over-year, driven by an increase in postpaid phone gross additions and churn improvement. Postpaid phone churn of 0.77% improved 3 bps year-over-year.
  • Prepaid net customer additions of 124 thousand decreased 22 thousand year-over-year, and Prepaid churn was 2.62%.
  • High Speed Internet net customer additions of 509 thousand decreased 51 thousand year-over-year. T-Mobile ended the quarter with 3.7 million High Speed Internet customers.
  • Total net customer additions of 1.7 million decreased 117 thousand year-over-year. The total customer count increased to a record high of 116.6 million.

Meta trims CAPEX plans

In its quarterly financial report Meta disclosed plans to lower capital expenditures for full-year 2023 to be in the range of $27-30 billion, lowered from a prior estimate of $30-33 billion. 

The company said the reduced forecast is due to both cost savings, particularly on non-AI servers, as well as shifts in capital expenditures into 2024 from delays in projects and equipment deliveries rather than a reduction in overall investment plans. 

Meta also said it expects higher infrastructure-related costs next year, higher depreciation expenses, and higher operating costs from running a larger infrastructure footprint.

Juniper posts sales of $1.43B, better than expected results

 Juniper Networks reported quarterly net revenues of $1,430.1 million, an increase of 13% year-over-year and an increase of 4% sequentially. Non-GAAP operating margin was 16.9%, an increase from 13.9% in the second quarter of 2022, and an increase from 14.8% in the first quarter of 2023. Non-GAAP net income was $189.0 million, an increase of 39% year-over-year, and an increase of 21% sequentially, resulting in non-GAAP diluted net income per share of $0.58.

“We delivered better than expected results during the June quarter as our teams continued to execute well and we benefited from improved supply,” said Juniper’s CEO, Rami Rahim. “We were particularly encouraged by the momentum we experienced in our Enterprise business, which not only had a record quarter, but also represented both our largest and fastest growing vertical for a third consecutive quarter. Our Mist AI platform continues to win in the market, driving record revenue for our wireless, wired switching and SD-WAN offerings, along with a record number of full-stack wins, in the Q2 period. While we are currently facing some near-term order weakness from our Cloud and to a lesser degree our Service Provider customers, we remain confident in our ability to deliver long-term growth based on continued Enterprise momentum and our expectations for an eventual recovery in our Cloud business.”

“We delivered another quarter of improved profitability in Q2, as non-GAAP gross and operating margin both exceeded the mid-point of our guidance, which enabled us to achieve non-GAAP EPS toward the high-end of our outlook,” said Juniper’s CFO, Ken Miller. “While we expect revenue to be challenged over the next few quarters, we remain committed to delivering greater than 100 basis points of non-GAAP operating margin expansion in 2023.”

Global Telco AI Alliance gets underway

A new Global Telco AI Alliance backed by SK Telecom, Deutsche Telekom, e& and Singtel aims to transform the existing telco business and create new business opportunities with AI services.

Under a Memorandum of Understanding (MOU) signed in Seoul, the four carriers agreed to jointly develop a Telco AI Platform to serve as the core foundation for new AI services, including those designed to improve the existing telco services, digital assistants, and super apps that offer a wide range of services.  The four telcos also plan to support each other in operating AI services and apps in their respective markets and cooperate to build an ecosystem. 

"In order to make the most of the possibilities of generative AI for our customers and our industry, we want to develop industry-specific applications in the Global Telco AI Alliance. I am particularly pleased that this alliance also stands for bridging the gap between Europe and Asia and that we are jointly pursuing an open-vendor approach. Depending on the application, we can use the best technology. The founding of this alliance is an important milestone for our industry,” said Claudia Nemat, Board Member Technology and Innovation at Deutsche Telekom.