NTT Demos High-Accuracy Optical Fiber Monitoring

NTT demonstrated a new optical fiber monitoring technology that significantly advances the development of all-photonics networks. This technology allows for the visualization of end-to-end fiber-optic links without the need for dedicated measuring equipment, providing an efficient and accurate method to monitor and maintain optical networks. 

In a joint experiment with Duke University and NEC Laboratories America, NTT achieved the world’s first high-accuracy demonstration in a North American field-deployed environment simulating a commercial network.

The core of this technology, Digital Longitudinal Monitoring (DLM), uses advanced digital signal processing to visualize the optical signal power distribution along fiber-optic links in just a few minutes. This breakthrough enables network operators to diagnose and maintain optical connections more rapidly and accurately, reducing the time and cost associated with traditional methods. Additionally, the technology’s ability to extend monitoring capabilities in four dimensions—including time, frequency, and polarization—enhances its potential to detect and address network anomalies.

The demonstration marks a significant step towards the realization of digital twins in optical networks, a concept where virtual replicas of physical networks are used to predict performance and preemptively address issues. This technology is expected to play a crucial role in the ongoing development of NTT’s IOWN (Innovative Optical and Wireless Network) All-Photonics Network (APN), furthering the goal of creating a high-capacity, low-latency communication infrastructure.

• Technology: Digital Longitudinal Monitoring (DLM)
• Demonstration: Successful field test in North America
• Capabilities: Visualization of optical signal power in multiple dimensions
• Application: Enhances monitoring and maintenance of optical networks, supports the development of digital twins

Full details are here:

https://group.ntt/en/newsrelease/2024/08/20/240820a.html

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Open Compute Project: Green Concrete for Data Centers

The Open Compute Project Foundation (OCP) has announced a partnership with major data center companies, including Amazon Web Services (AWS), Google, Meta, and Microsoft, to trial the use of low-embodied carbon concrete, or “green concrete,” in data center construction. This collaborative effort, conducted through Wiss, Janney, Elstner Associates, Inc. (WJE), aims to significantly reduce greenhouse gas emissions from concrete production, a key contributor to carbon footprints in the construction industry. The trial’s objective is to achieve more than a 50% reduction in emissions per cubic yard of concrete used.

The project involves testing various concrete mixtures that incorporate supplementary cementitious materials and alternative cements to reduce carbon impact. The trial has already demonstrated promising results, with the lowest carbon mixture achieving a substantial reduction in emissions. The findings from this initiative will be documented in a whitepaper and made available to the public to encourage wider adoption of these sustainable practices in the construction industry.

• Initiative: Trial of low-embodied carbon concrete in data center construction.
• Partners: AWS, Google, Meta, Microsoft, and WJE.
• Objective: Reduce greenhouse gas emissions by over 50% in concrete production.
• Outcome: Results to be shared in a public whitepaper.

“This demonstration will provide valuable insights into the performance and viability of low-embodied carbon concrete, paving the way for its widespread adoption throughout the industry,” said George Tchaparian, CEO of the Open Compute Project Foundation.

“Concrete materials and their use are changing as the construction industry trends towards an increased focus on sustainability and use of low-embodied carbon materials,” explained WJE Principal Thomas Van Dam. “With the introduction and advancement of new concrete technologies, we are helping our clients navigate these industry changes. Through our extensive experience and robust laboratory and field-testing capabilities, we are uniquely positioned to solve problems and serve clients with trusted information to inform their decisions and achieve their objectives in light of the realities of these evolving construction materials and practices,” stated Thomas Van Dam, Ph.D., P.E., FACI, Principal, Wiss, Janney, Elstner Associates, Inc.

"Amazon is committed to building a sustainable business for our customers and the planet in our journey to reach net-zero carbon emissions ten years ahead of the Paris Agreement. Traditional cement used in concrete is a large source of carbon emissions, but these projects show cement substitutes can be used to lower emissions without compromising the construction and durability of concrete. In 2023, we built 36 data centers with lower-carbon concrete, and we'll continue working across our supply chain to drive its adoption," stated Chris Walker, Amazon Web Services (AWS) Director of Sustainability.

https://www.opencompute.org/blog/leading-data-center-companies-partner-with-open-compute-project-foundation-and-wje-to-trial-green-concrete

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Dell’Oro: Spending on Service Provider Routers Pulled Back Sharply in Q2

 

Spending on Service Provider Routers declined sharply in the second quarter of 2024, resulting in a 33 percent year-over-year decline in router equipment revenue, according to a new report from Dell'Oro Group.

“The Service Provider Router market contracted for a fourth consecutive quarter due to customers pulling back on spending to lower equipment inventory,” said Jimmy Yu, Vice President at Dell’Oro Group. “The drop in quarterly revenue was one of the worst we have seen in this market for over a decade. The only silver lining to this quarter’s results is that we believe the inventory correction is nearly complete,” added Yu. 

Additional highlights from the 2Q 2024 Service Provider Router and Switch Report:

• Breaking with historical seasonality where market revenue increases in the second calendar quarter over the first quarter, the Service Provider Router market declined quarter-over-quarter in 2Q 2024. The last time such an event occurred was in 2002.
• Among the service provider router technology segments, the steepest decline this quarter was in Core Router. Core Router revenue declined over 50 percent year-over-year.
• For the first half of the year, the top three vendors by revenue share were Cisco, Huawei, and Nokia. The only vendors in this market to gain more than one percentage point of revenue share compared to last year were Nokia and Huawei.

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Dell’Oro: Mobile Core Network Market Drops 15% in Q2

The 2Q 2024 Mobile Core Network (MCN) market cratered 15 percent year-over-year (Y/Y), marking a historic low point in growth, according to Dell'Oro Group. 

The 5G MCN market growth stalled for the first time, declining 8 percent Y/Y in 2Q 2024.

 “We have entered unchartered territory, indicating that economic headwinds have a firm grip on the market. It also strongly suggests that Mobile Network Operators (MNOs) have excess capacity to meet subscriber growth numbers,” stated Dave Bolan, Research Director at Dell’Oro Group. “The China region dramatically impacted the MCN market’s lower Y/Y growth rate for the quarter. The Europe, Middle East, and Africa (EMEA) and North American regions were also depressed but not nearly as low as China. Only the Asia Pacific region, excluding China, had a positive Y/Y growth rate. 

“The 5G MCN market was another driver for the market with new 5G SA networks being implemented. Unfortunately, the market has slowed to the point that 2Q 2024 was the first quarter of the 5G era, with a negative growth rate Y/Y. To date, there are about 58 MNOs that have launched commercial 5G SA eMMB networks. In 2022 there were 21 new 5G SA networks; in 2023, 13; and in the first half of 2024, three. As a result, we estimate that the MCN market will decline 11 percent Y/Y in 2024,” added Bolan.

 Additional highlights from the 2Q 2024 Mobile Core Network and Multi-Access Edge Computing Report include:

• The remaining markets declined: the 4G MCN market (-29 percent Y/Y) and the VoLTE/VoNR market (-7 percent Y/Y) in 2Q 2024.
• As expected, the primary Chinese vendors (ZTE and Huawei) had the lowest MCN growth rates in 2Q 2024, followed by Nokia and Ericsson. These top four vendors accounted for more than 85 percent of the market.
• Vendor rankings remained the same for 2Q 2024: Huawei, Ericsson, Nokia, and ZTE.

http://www.delloro.com

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xMEMS Launches Ultra-Thin Micro-Cooling Chip for Mobiles

xMEMS Labs, a start-up based in Santa Clara, California, introduced ots XMC-2400 µCooling chip, an active micro-cooling solution designed for ultramobile devices and AI applications. 

The all-silicon chip, which measures 1 millimeter in thickness, offers active, fan-based cooling for smartphones, tablets, and other compact devices. The XMC-2400 is notable for its compact size—96% smaller and lighter than traditional active-cooling alternatives—while being capable of moving significant volumes of air to maintain optimal device temperatures.

The new device is based on xMEMS’ piezoMEMS technology, which also powers their widely adopted micro speakers. The XMC-2400 chip is expected to be sampled to customers in early 2025, with demonstrations scheduled for September 2024. The new µCooling solution promises to redefine thermal management in mobile devices, making it an essential component for the next generation of high-performance, AI-driven devices.

• Product: XMC-2400 µCooling chip
• Size: 1 mm thick, 9.26 x 7.6 x 1.08 mm overall dimensions
• Capabilities: Active micro-cooling for mobile devices, AI applications
• Availability: Sampling begins Q1 2025

“Our revolutionary µCooling ‘fan-on-a-chip’ design comes at a critical time in mobile computing,” said Joseph Jiang, CEO and Co-Founder of xMEMS.

https://xmems.com/

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Highway 9 Networks Launches Mobile Cloud Alliance Program for Private 5G

Highway 9 Networks, a start-up based in Santa Clara, California, has introduced its Mobile Cloud Alliance Program, an initiative designed to help enterprises rapidly deploy private 5G networks. The program brings together leading vendors to create a unified, cloud-native mobile environment that supports ubiquitous connectivity, AI, and automation. This ecosystem enables enterprises to integrate and manage their existing mobile and network infrastructure more efficiently, addressing the complexities of working with multiple vendors. The Mobile Cloud Alliance aims to streamline network operations, enhance security, and reduce overall costs for businesses by offering a consolidated platform for private 5G deployment.

The launch partners for the program include major industry players like Arista, AWS, Fortinet, and Intel, among others. These collaborations ensure that enterprises have access to reliable, high-performance mobile connectivity that supports modern enterprise needs such as AI-driven automation and Industry 4.0. Highway 9 Networks plans to expand the alliance continuously, adding more partners and enhancing the program’s capabilities to better serve its customers.

• Program: Mobile Cloud Alliance Program
• Purpose: Simplify enterprise-grade private 5G deployment
• Launch Partners: Arista, AWS, Fortinet, Intel, and more
• Focus: Integration of mobile networks, IT infrastructure, cellular providers, and cloud services

 “Providing ubiquitous, secure, and high-performance mobile connectivity requires seamless integration and interoperability within enterprise networks,” said Allwyn Sequeira, founder and CEO, Highway 9 Networks.

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Lumen Taps Blue Planet for Network Inventory Transformation

Lumen Technologies has selected Blue Planet, a division of Ciena, to drive its network inventory transformation initiative. This partnership will enable Lumen to consolidate its legacy inventory systems, digitize its network assets, and enhance its service delivery processes. By deploying Blue Planet Inventory (BPI), Lumen aims to improve operational efficiency, streamline customer experiences, and support new solutions such as Network-as-a-Service and the Private Connectivity Fabric. The transformation also includes the creation of a digital twin of Lumen’s network, allowing for advanced planning and faster issue resolution.

• Technology Partner: Blue Planet (Ciena)
• Objective: Network inventory consolidation and digitization
• Benefits: Improved operational efficiency, enhanced service delivery, creation of a digital twin for advanced network management

“Lumen is building the foundation for a scalable, adaptable digital network, boldly leading the way towards driving powerful digital experiences for its customers. Blue Planet is helping Lumen to take control of its transformation with data it can trust, to provide greater alignment across IT and network operations,” said Joe Cumello, Senior Vice President and General Manager, Blue Planet.

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LightRiver Appoints John Hayduk to Board of Directors

LightRiver appointed John Hayduk to its Board of Directors. 

Hayduk most recently served as President and COO of Tata Communications. 

LightRiver, which is a portfolio company of Grain Management, offers solutions for automating multi-vendor, software-controlled and open DWDM, MPLS, IPoDWDM and Carrier Ethernet networks.

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NTT DOCOMO Tests D-Wave's Quantum to Optimize Mobile Traffic

NTT DOCOMO has implemented quantum optimization from D-Wave Quantum Inc. that has significantly improved mobile network performance. 

Through a pilot project using D-Wave’s annealing quantum computing technology, DOCOMO successfully reduced congestion at base stations by decreasing paging signals during peak usage by 15%. This enhancement allows more terminals to connect during high call volumes, potentially reducing the need for additional infrastructure investment as network demands grow.

The pilot, conducted in specific regions of Japan, demonstrated the efficiency of quantum computing compared to classical methods. D-Wave’s hybrid quantum solver completed complex optimization tasks in just 40 seconds, compared to 27 hours required by traditional solvers. Based on these results, DOCOMO plans to deploy the quantum solution across its Japanese branch offices and explore further applications of quantum optimization in other business areas.

• NTT DOCOMO and D-Wave’s quantum optimization reduced network signal congestion by 15%.
• The quantum solution completed tasks significantly faster than traditional methods, improving network efficiency.
• DOCOMO plans to deploy the technology across Japan and explore further applications in other sectors.

“With D-Wave’s hybrid quantum technology, we aim to set a new standard in the telecommunications industry for operational performance,” said Takatoshi Okagawa, director of research and development strategy at NTT DOCOMO.

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Juniper Unveils AI-Native Acceleration Blueprint

 Juniper Networks unveiled a Blueprint for AI-Native Acceleration designed to streamline and accelerate the adoption of its AI-Native Networking Platform. The initiative includes a suite of new training courses, trial offers, flexible purchasing options, and innovative support services to help enterprises realize the benefits of AI-driven networking. By leveraging this blueprint, Juniper aims to reduce deployment times by up to nine times, enabling faster time-to-value for customers across campus, branch, data center, and wide-area networking (WAN) environments.

The AI-Native Networking Platform from Juniper is engineered to utilize AIOps for optimized network performance. The company cites benefits such as up to 85% reduction in operational expenses (OPEX) and up to 90% fewer network trouble tickets. The Blueprint for AI-Native Acceleration provides a structured approach for enterprises to learn, try, buy, design, deploy, and operate Juniper’s solutions for AI-driven networking.

• Juniper Networks introduces a Blueprint for AI-Native Acceleration to facilitate faster adoption of AI-driven networking.

• The initiative includes free training courses, trial offers, and flexible purchasing options for enterprises.

• The AI-Native Networking Platform promises significant reductions in OPEX and network trouble tickets.

• New AI Care Services and Juniper Validated Designs (JVDs) are part of the support framework.

“Our innovative, proven, and dynamic solutions are the centerpiece that enables the successful enterprise adoption of AI-Native Networking. Juniper’s new Blueprint for AI-Native Acceleration perfectly complements our industry-leading portfolio with a package to guide CIOs and their teams through the journey,” said Jeff Aaron, GVP Product Marketing, Juniper Networks.

Check out our #AI in Networking report and more videos here: https://ngi.fyi/ainetwork24yt

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Mitsubishi Electric Samples 200Gbps PIN-PD Chip for 800 Gbps and 1.6Tbps

Mitsubishi Electric will begin shipping samples in October of its new 200Gbps PIN-photodiode (PD) chip for use in next-generation optical transceivers to support 800Gbps and 1.6Tbps.

The addition of the new receiver chip to Mitsubishi Electric's optical device lineup will enable existing devices capable of transmitting at 800Gbps/1.6Tbps to newly receive optical data at these same speeds, thereby expanding the communication capacity of optical transceivers, including for high-speed, high-capacity communication in data centers.

The upcoming introduction of the 200Gbps PIN-PD chip for optical reception follows Mitsubishi Electric's launch of a mass-produced chip for optical transmission, the 200Gbps (112Gbaud four-level pulse-amplitude modulation [PAM4]) electro-absorption modulator laser diode (EML), in April this year. 

The newly announced PD chip was developed by minimizing the photoelectric conversion area within a chip structure that integrates backside illumination* and a convex lens.

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ESMC Breaks Ground on €10 Billion Semiconductor Fab in Dresden

ESMC, a joint venture between TSMC, Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V., has officially begun the initial phase of land preparation for its first semiconductor fab in Dresden, Germany. The groundbreaking ceremony, held on August 20, 2024, marked a significant milestone in the establishment of the EU’s first FinFET-capable pure-play foundry. The event was attended by prominent figures including European Commission President Ursula von der Leyen and German Chancellor Olaf Scholz.

The new facility is expected to produce 40,000 300mm wafers per month using TSMC’s advanced 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technologies. This €10 billion investment, supported by the European Union and the German government, will not only enhance Europe’s semiconductor manufacturing capabilities but also create around 2,000 high-tech jobs and stimulate numerous indirect jobs across the EU supply chain. The fab will be built with a focus on sustainability, aiming for energy-efficient construction and LEED certification.

Key Points:

• ESMC, a joint venture by TSMC, Bosch, Infineon, and NXP, breaks ground on a semiconductor fab in Dresden, Germany.
• The facility will produce 40,000 300mm wafers per month using advanced FinFET technology.
• The project represents a €10 billion investment with significant support from the EU and German government.
• The new fab is expected to create 2,000 direct jobs and numerous indirect jobs in the EU.
• Established in 2023, European Semiconductor Manufacturing Company (ESMC) is a joint venture between TSMC, Bosch, Infineon and NXP to establish an advanced semiconductor fab in Dresden, Saxony, Germany.
• ESMC will be the first and so far, only pure play foundry to establish a sustainable mass production with FinFET capability on EU soil.
• Construction of the first ESMC fab is set to begin by the end of 2024.
• The joint venture is 70% owned by TSMC, with Bosch, Infineon, and NXP each holding 10% equity stake.
• ESMC will initially focus on 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology.
• It will develop technology variants with a special focus on innovative differentiating technologies like automotive applications, embedded flash, RRAM, MRAM, Radio
• Frequency (RF) and other non-volatile memories.

ESMC will operate the fab according to TSMC’s foundry business model, ensuringopenness to customers beyond partners Bosch, Infineon and NXP.

“Together with our partners, Bosch, Infineon, and NXP, we are building our Dresden facility to meet the semiconductor needs of the rapidly growing European automotive and industrial sectors,” said TSMC Chairman & CEO C.C. Wei.

“The construction of another semiconductor manufacturing facility in Dresden by ESMC constitutes a major success for the region,” said Infineon Technologies AG CEO Jochen Hanebeck.

“Today marks a historic milestone for the German and European microelectronics industry,” said NXP President and CEO Kurt Sievers.

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Zayo Expands Middle-Mile in Dallas with $28M ARPA Funding

 Zayo has secured $27.8 million in funding from the American Rescue Plan Act (ARPA) to expand its middle-mile network infrastructure across Dallas County, Texas. This project aims to bridge the digital divide by providing reliable and affordable internet access to approximately 24,000 households that currently lack home internet. The investment will enhance the region’s digital infrastructure, enabling local internet service providers (ISPs) to extend high-speed connectivity to underserved areas, fostering economic growth and innovation.

 

The project involves the construction and upgrade of over 60 miles of middle-mile fiber network across Dallas County, focusing on up to 10 priority zip codes identified through a needs assessment. Additionally, Zayo is partnering with Texas-based nonprofit Compudopt to provide technology access and education to under-resourced youth. Zayo’s $150,000 investment will fund the distribution of 300 laptops with two years of tech support and warranties, benefiting approximately 1,500 individuals in Dallas County.

• Zayo receives $27.8 million from ARPA to expand middle-mile fiber infrastructure in Dallas County.

• The project will improve internet access for around 24,000 households lacking connectivity.

• Over 60 miles of new and upgraded fiber network will be built across Dallas County.

• Zayo partners with Compudopt to distribute 300 laptops and provide digital literacy education.

• The initiative aims to support economic growth and digital equity in underserved communities.

“Zayo’s work with Dallas County is a game-changer for local communities, particularly those currently without access to reliable internet. By enabling local ISPs to provide competitive services, we’re not only making internet connectivity more accessible and affordable for Dallas County residents but also opening doors for local communities to take advantage of enhanced broadband access,” said Brian Daniels, Chief Sales Officer at Zayo.

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FCC Reauthorizes Globalstar’s HIBLEO-4 Constellation for 15 Years

Globalstar has received a 15-year license extension from the U.S. Federal Communications Commission (FCC) for its HIBLEO-4 satellite constellation. This reauthorization allows Globalstar to continue its exclusive operations in the Big LEO Band and deploy up to 26 replacement satellites, ensuring the company’s ability to meet growing demand for its satellite and communications solutions globally.

Key Points:

• FCC grants a 15-year extension for Globalstar’s HIBLEO-4 satellite constellation license.

• The extension includes authorization to operate up to 26 replacement satellites.

• Globalstar continues exclusive operations in the Big LEO Band.

• The reauthorization supports Globalstar’s mission to provide critical mobile satellite connectivity and lifesaving technology worldwide.

“Achieving this milestone is imperative to Globalstar to enable us to complete our mission of providing critical mobile satellite connectivity and lifesaving technology worldwide,” said Dr. Paul E. Jacobs, CEO of Globalstar.

• In September 2022, Apple confirmed that its  iPhone 14 models feature an "Emergency SOS via satellite" capability delivered via Globalstar's constellation of LEO satellites, which cover approximately 80% of the Earth's surface.Designed for emergency communications when out of cellular or Wi-Fi range, the iPhone 14 user must have a clear view of the sky. Texting can take from seconds to several minutes. Messages are relayed from earth-to-ground stations to the nearest emergency...

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Bhutan Telecom Enhances Network with Ciena’s Coherent Routing

 Bhutan Telecomis deploying Ciena’s coherent routing solutions to address increasing traffic demands and improve network performance. With the integration of Ciena’s 5164, 8110, and 8114 routers, Bhutan Telecom aims to enhance the customer experience as the nation shifts towards advanced technologies like edge cloud applications. This deployment is expected to simplify the network infrastructure and meet the growing bandwidth needs across the country.

• Bhutan Telecom is deploying Ciena’s 5164, 8110, and 8114 routers to enhance network performance.
• The deployment aims to meet rising bandwidth demands and support new technologies like edge cloud applications.
• Ciena’s routers are tailored for Bhutan’s unique environmental conditions, helping reduce latency and improve service quality.
• This network upgrade aligns with Bhutan Telecom’s goal to transform the nation into a digital society.

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Arrcus: Four Use Cases for AI in Networking

How can AI and ML revolutionize network operations?

Sanjay Kumar, VP of Products and Marketing from Arrcus gives several examples:

- AI/ML enables anomaly detection, providing recommendations and closed-loop remediation for unusual network patterns

- Advanced technologies enhance root cause analysis, capacity planning, and network design based on traffic demands

- AI/ML improves security posture by detecting unusual patterns in real-time and automates network operations, reducing costs

https://youtu.be/D5TxpkaZuqM

Want to be involved our video series? Contact info@nextgeninfra.io

Check out our #AI in Networking report and more videos here: https://ngi.fyi/ainetwork24yt

AvidThink analysts Archana Khetan and Roy Chua discussed their findings in the report: "Pipe Dreams and AI Realities: Networking's Midlife Crisis" on a recent fireside chat. Watch the recording: https://youtu.be/YdC_tXzCRvg

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Spirent: AI and Automation Unlock Network Operations

How can AI help improve network operations?

Steve Douglas, Head of Market Strategy from Spirent discusses the following in this video:

- AI is moving from tactical implementations to a strategic focus, unifying its use across network lifecycles and processes

- The combination of analytics, automation, and AI (both predictive and generative) is unlocking AI's true potential in networks

- Digital twin technology is emerging as a critical governance tool to test AI inferences and optimizations in a safe, emulated environment

Want to be involved our video series? Contact info@nextgeninfra.io

https://youtu.be/cE0yyrWivOQ

Check out our #AI in Networking report and more videos here: https://ngi.fyi/ainetwork24yt

AvidThink analysts Archana Khetan and Roy Chua discussed their findings in the report: "Pipe Dreams and AI Realities: Networking's Midlife Crisis" on a recent fireside chat. Watch the recording: https://youtu.be/YdC_tXzCRvg

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NIST Finalizes Quantum-Resistant Encryption Standards

The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) has finalized its primary set of encryption algorithms designed to withstand the potential cyberattacks posed by quantum computers. These algorithms, part of NIST’s post-quantum cryptography (PQC) standardization project, represent a significant advancement in securing data against the emerging threat of quantum computing. Quantum computers, which operate differently from classical computers, could eventually break current encryption methods, making these new standards crucial for future cybersecurity.

NIST initiated the process in 2015, evaluating 82 algorithms from 25 countries. After a rigorous selection process, four algorithms were chosen for standardization. The finalized standards include three algorithms: 

• Federal Information Processing Standard (FIPS) 203, intended as the primary standard for general encryption. Among its advantages are comparatively small encryption keys that two parties can exchange easily, as well as its speed of operation. The standard is based on the CRYSTALS-Kyber algorithm, which has been renamed ML-KEM, short for Module-Lattice-Based Key-Encapsulation Mechanism.
• FIPS 204, intended as the primary standard for protecting digital signatures. The standard uses the CRYSTALS-Dilithium algorithm, which has been renamed ML-DSA, short for Module-Lattice-Based Digital Signature Algorithm.
• FIPS 205, also designed for digital signatures. The standard employs the Sphincs+ algorithm, which has been renamed SLH-DSA, short for Stateless Hash-Based Digital Signature Algorithm. The standard is based on a different math approach than ML-DSA, and it is intended as a backup method in case ML-DSA proves vulnerable.

Similarly, when the draft FIPS 206 standard built around FALCON is released, the algorithm will be dubbed FN-DSA, short for FFT (fast-Fourier transform) over NTRU-Lattice-Based Digital Signature Algorithm. 

IBM played a crucial role in developing these standards. Two of the finalized algorithms, ML-KEM and ML-DSA, were developed by IBM researchers in collaboration with industry and academic partners. SLH-DSA, another of the selected algorithms, was co-developed by a researcher now affiliated with IBM. These algorithms mark a critical step in protecting global data from the potential threats posed by quantum computing. The new standards are now available for immediate use, enabling governments and industries worldwide to begin adopting post-quantum cybersecurity measures.

NIST has also made testing for these new algorithms available through its Automated Cryptographic Validation Test System (ACVTS), allowing vendors to validate their implementations. 

Key Points:

• NIST finalizes three post-quantum cryptography algorithms: ML-KEM, ML-DSA, and SLH-DSA.
• The standards are designed to protect data from potential quantum computing threats.
• IBM developed two of the finalized algorithms and contributed to a third.
• A fourth algorithm, FN-DSA, is expected to be standardized by late 2024.
• NIST’s testing system is now available for validating these new encryption standards.

“Quantum computing technology could become a force for solving many of society’s most intractable problems, and the new standards represent NIST’s commitment to ensuring it will not simultaneously disrupt our security,” said NIST Director Laurie E. Locascio.

https://csrc.nist.gov/projects/cryptographic-algorithm-validation-program/validation-search?searchMode=implementation&product=leancrypto&productType=-1&dateFrom=08%2F13%2F2024&ipp=25

https://newsroom.ibm.com/2024-08-13-ibm-developed-algorithms-announced-as-worlds-first-post-quantum-cryptography-standards

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AMD to Acquire ZT Systems for $4.9B, Boosting its Data Center AI Team

AMD announced it will acquire ZT Systems, a leading provider of AI and general-purpose compute infrastructure for hyperscale computing companies, in a transaction valued at $4.9 billion. The acquisition is part of AMD’s strategy to enhance its AI systems capabilities, enabling the company to deliver optimized rack-scale solutions that address the growing demand for data center AI infrastructure. The transaction, expected to close in the first half of 2025, will allow AMD to combine its existing silicon and software expertise with ZT Systems’ design and deployment capabilities to accelerate AI infrastructure development for cloud and enterprise customers.

ZT Systems, headquartered in Secaucus, New Jersey, brings over 15 years of experience in designing and deploying AI and compute infrastructure at scale. Following the acquisition, ZT Systems will become part of AMD’s Data Center Solutions Business Group, with CEO Frank Zhang leading the manufacturing division and President Doug Huang overseeing design and customer enablement. AMD plans to seek a strategic partner to acquire ZT Systems’ manufacturing business while integrating the company’s expertise to strengthen its AI product offerings.

• AMD to acquire ZT Systems in a $4.9 billion cash and stock transaction.
• ZT Systems specializes in AI infrastructure for hyperscale computing companies.
• The acquisition will strengthen AMD’s data center AI capabilities and expand its market presence.
• Add ~1,000 engineers with systems and data center services expertise, resulting in ~$150M of annualized opex
• AMD aims to close the transaction in the first half of 2025, subject to regulatory approvals.
• ZT Systems will join AMD’s Data Center Solutions Business Group post-acquisition.

• AMD to seek strategic partner to acquire the manufacturing business. ZT Systems Founder & CEO, Frank Zhang will lead the manufacturing business

“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” said Dr. Lisa Su, Chair and CEO of AMD.

https://ir.amd.com/news-events/ir-calendar/detail/6977/amd-investor-call-regarding-proposed-acquisition-of-zt

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Sateliot Launches 4 NanoSatellites Aiming for Global IoT

Sateliot, a start-up based in Barcelona, has taken a significant step forward in its mission to provide global Internet of Things (IoT) connectivity. On August 16, 2024, the company successfully launched four new satellites as part of its ambitious ‘Revolution’ mission, bringing it closer to establishing a comprehensive low-Earth orbit (LEO) nanosatellite constellation designed to offer 100% global coverage.

Sateliot’s primary objective is to extend IoT connectivity to even the most remote regions of the world, where traditional terrestrial networks are often unavailable. The company’s approach leverages the 5G NB-IoT NTN (Narrowband IoT Non-Terrestrial Network) standard, enabling standard cellular narrowband IoT devices to seamlessly connect with both terrestrial networks and Sateliot’s satellite constellation. This technology is compatible with existing commercial IoT devices that adhere to the 3GPP Release 17 standards, which means users can access global coverage without the need for specialized equipment, lowering the barrier to entry for a wide range of customers.

The recent launch of four satellites is the cornerstone of Sateliot’s LEO constellation, which aims for 100 nanosatellites by 2028. Sateliot’s unique “Store and Forward” technology, coupled with the Regenerative Payload, guarantees optimal uplink and downlink connectivity, even in low-density constellations. This technology was a key contribution from Sateliot to the 3GPP standards, further solidifying the company’s leadership in non-terrestrial network (NTN) developments.

Since its inception in 2018, Sateliot has raised 25 million euros and is now in discussions to secure an additional Series B funding round. The recent launch event garnered support from key partners and stakeholders, including the European Space Agency (ESA), the Global System for Mobile Communications Association (GSMA), and the Spanish Government, reflecting its strategic importance on both national and international stages.

Sateliot’s technology is built on the 5G NB-IoT NTN standard, which is integral to the 3GPP Release 17 specifications. These standards enable the seamless integration of satellite and terrestrial telecommunications, making it possible for IoT devices to operate globally without connectivity interruptions. Sateliot’s contributions to the 3GPP standards, particularly in areas like the Store and Forward technology, are crucial for the ongoing evolution of satellite communications and are expected to be included in future 3GPP releases.

Key Points:

• Sateliot launched four new satellites, advancing its LEO nanosatellite constellation.
• The company’s technology leverages the 5G NB-IoT NTN standard, compatible with 3GPP Release 17, for seamless global IoT connectivity.
• Sateliot plans to expand its constellation to over 100 satellites by 2028, aiming to provide continuous global coverage.
• Sateliot has raised 25 million euros and is targeting a Series B funding round.

https://sateliot.space/

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InfoRR and 4WNet pick Padtec for 800-km DWDM Net in No. Brazil

 InfoRR and 4WNet, two internet providers based in Roraima, Brazil, have chosen Padtec’s DWDM (Dense Wavelength Division Multiplexing) technology to build a new high-availability optical network connecting the cities of Boa Vista and Manaus. The 800-kilometer network, known as Projeto Rizolmar, is designed to enhance internet connectivity across Roraima and Amazonas states. The project features advanced network reconfiguration and monitoring capabilities, including the use of OTDR (Optical Time-Domain Reflectometer) technology to quickly identify and address fiber optic faults.

The new network, implemented on Padtec’s LightPad i6400G platform, includes ROADM (reconfigurable optical add/drop multiplexer) technology, which allows for flexible capacity upgrades without service interruptions. The network will support high-speed data transmission with dual TMD400G transponders, each with a capacity of 400 Gbps. This investment in modern infrastructure is part of InfoRR’s broader strategy to expand its market reach and provide high-quality internet services to customers in the region.

• InfoRR and 4WNet are building an 800-kilometer DWDM optical network in Northern Brazil.

• The network connects Boa Vista (Roraima) and Manaus (Amazonas) and covers six additional municipalities.

• The project includes advanced network reconfiguration and OTDR capabilities for fault detection.

• Padtec’s technology allows for capacity upgrades without service interruptions.

• The network is part of InfoRR’s strategy to expand and improve internet services in the region.

“With the combination of OTDR and ROADM intelligence and automation resources in a complete DWDM solution, InfoRR now has a highly available and reliable network that will allow it to offer its customers high-quality internet services,” said Argemiro Sousa, Padtec’s Chief Operations Officer for Equipment.

https://www.padtec.com.br/

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Kinetic Reports Vandalism of Fiber Cables in Kentucky

Windstream's Kinetic business reported an incident of vandalism in Hazard, Kentucky, that disrupted telecommunications services for residential and business customers. The vandalism, which occurred between August 8-9, targeted fiber-optic cables, causing significant outages across the region. Local law enforcement and Kinetic are investigating the incident, which is part of a broader pattern of cable thefts in Kentucky, with over 66 reported cases this year.

Kinetic has repaired the damaged cables but remains concerned about the ongoing threat to critical infrastructure. The disruption not only affected communication services but also posed risks to public safety by limiting access to emergency services. In response, Kinetic is working closely with law enforcement to enhance security measures and is offering a reward for information leading to the arrest and conviction of those responsible.

• Vandalism in Hazard, Kentucky, disrupted telecommunications services on August 8-9.
• The incident is part of a broader trend of cable thefts in the state, with over 66 cases reported this year.
• Damage to fiber-optic cables affected both residential and business customers and posed safety risks.
• Kinetic is collaborating with law enforcement to enhance security and is offering a reward for information.
• Residents are urged to report any suspicious activity near telecommunications infrastructure.

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Télécoms Sans Frontières: Observing World Humanitarian Day

 Monique Lanne-Petit, Co-founder and Director of Télécoms Sans Frontière (TSF), posted the following in observance of World Humanitarian Day:  

“As we mark World Humanitarian Day in the midst of several global humanitarian crises, this year's #ActForHumanity theme alerts: 2023 was the deadliest year on record for humanitarian workers, and 2024 could be even worse. Télécoms Sans Frontières calls to end these violations of international law, and protect civilians and humanitarian workers.

“Specializing in information and communication technologies (ICT), we connect humanitarian organizations when they need it most to contribute to their security on the ground, and in providing crucial, sometimes life-saving, information to affected communities.

"Meaningful connectivity is an essential resource for people affected, enabling them to reach their loved ones and find relief during crisis. At a time when climate change is having a growing impact on humanitarian crises every year, ICT can help prepare for and mitigate crises through early warning and effective coordination of relief efforts.

“Crises are global, and everyone needs to be part of the discussion to meet these challenges, especially the 2.6 billion people who currently have no access to the internet, the majority of whom are in the worst-affected countries. We believe technology, when used responsibly, plays a pivotal role in humanitarian action.”

• Télécoms Sans Frontières (TSF) was founded in 1998 as the world’s first NGO focusing on emergency-response technologies.

https://www.tsfi.org/

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Rakuten Symphony: AI Augments Humans

How is AI transforming operations at Rakuten?

Geoff Hollingworth, Chief Marketing Officer from Rakuten Symphony explains:

- Predictive AI has been automating network operations by detecting anomalies without human intervention

- Generative AI is revolutionizing the software development lifecycle, improving efficiency by 30-70% in various phases

- AI, especially generative AI, is augmenting human capabilities rather than replacing them, requiring a gradual learning process

https://youtu.be/D0n-3Ma-jdI

Want to be involved our video series? Contact info@nextgeninfra.io

Check out our #AI in Networking report and more videos here: https://ngi.fyi/ainetwork24yt

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AvidThink analysts Archana Khetan and Roy Chua discussed their findings in the report: "Pipe Dreams and AI Realities: Networking's Midlife Crisis" on a recent fireside chat. Watch the recording: https://youtu.be/YdC_tXzCRvg

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AIRA: AI Toolsets for RAN Optimization

How is AI revolutionizing RAN technology?

RaviKiran Gopalan, Chief Technology Officer from Aira Technology explains:

- AI in RAN is structured in three layers: standard software, traditional AI for optimization, and generative AI for advanced applications

- Generative AI is being applied in three modalities: human-computer interface, mapping user intent to hyperparameters, and direct code generation

- Future developments in generative AI will enable operators to optimize networks more efficiently, addressing even medium and low-level issues

https://youtu.be/vkgqLJ-Eb38

Want to be involved our video series? Contact info@nextgeninfra.io

 Check out our #AI in Networking report and more videos here: https://ngi.fyi/ainetwork24yt

AvidThink analysts Archana Khetan and Roy Chua discussed their findings in the report: "Pipe Dreams and AI Realities: Networking's Midlife Crisis" on a recent fireside chat. Watch the recording: https://youtu.be/YdC_tXzCRvg

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Texas Instruments Secures $1.6 Billion in CHIPS Act Funding

Texas Instruments (TI) reached a preliminary agreement with the U.S. Department of Commerce to potentially receive up to $1.6 billion in funding under the CHIPS and Science Act. This financial support will aid in the construction of three new 300mm semiconductor wafer fabs located in Sherman, Texas, and Lehi, Utah. The investment is expected to enhance TI's manufacturing capabilities, providing a reliable supply of analog and embedded processing semiconductors crucial for various technologies.

In addition to the CHIPS Act funding, TI anticipates receiving between $6 billion and $8 billion from the U.S. Department of Treasury's Investment Tax Credit for its domestic manufacturing investments. The proposed funding will also include $10 million dedicated to workforce development, which will create over 2,000 new jobs at TI and thousands more indirectly across related industries. The new fabs are part of TI’s broader $18 billion investment in manufacturing through 2029, aimed at expanding its semiconductor production and strengthening its market position.

Haviv Ilan, President and CEO of Texas Instruments, emphasized the significance of this investment, stating, "The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient. Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S."

The proposed direct funding under the CHIPS Act would support TI's investment of more than $18 billion through 2029, which is part of the company's broader investment in manufacturing. This proposed direct funding will support three new wafer fabs, two in Sherman, Texas, (SM1 and SM2) and one in Lehi, Utah (LFAB2), specifically to:

• Construct and build the SM1 cleanroom and complete pilot line for first production;
• Construct and build the LFAB2 cleanroom for first production; and
• Construct the SM2 shell.

These connected, multi-fab sites benefit from shared infrastructure, talent and technology sharing, and a strong network of suppliers and community partners. They will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for TI's broad portfolio of analog and embedded processing products.

The project will create over 2,000 direct jobs at TI and thousands of additional jobs in construction and related sectors.

Since its enactment in August 2022, the CHIPS and Science Act has significantly bolstered U.S. semiconductor manufacturing with substantial federal funding. Intel has received approximately $20 billion for its expansion projects, including new fabs in Ohio. Micron Technology has been awarded around $15 billion to support its memory chip production expansion in Idaho. GlobalFoundries was granted $10 billion to enhance its semiconductor manufacturing capabilities at its facilities in New York. 

https://news.ti.com/2024-08-16-Texas-Instruments-signs-preliminary-agreement-to-receive-up-to-1-6-billion-in-CHIPS-and-Science-Act-proposed-funding-for-semiconductor-manufacturing-in-Texas-and-Utah?HQS=corp-dbwti-manu-chips-bhp-pr-null-wwe

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Ericsson to Sell iconectiv (formerly Telcordia, Bellcore) to Koch for US$1 billion

 Ericsson  announced a strategic divestment of its U.S. subsidiary, iconectiv, to Koch Equity Development. Acquired by Ericsson in 2012 through the Telcordia acquisition, iconectiv specializes in network number portability and data exchange services. The sale is expected to provide Ericsson with a cash benefit of approximately SEK 10.6 billion (USD 1.0 billion) after accounting for taxes and transaction costs. The deal, which will require regulatory approvals, is anticipated to close in the first half of 2025.

The transaction will also result in a one-off EBIT benefit of around SEK 8.8 billion (USD 0.8 billion) for Ericsson. Iconectiv, which has been co-owned by private equity firm Francisco Partners since 2017, contributed SEK 1.0 billion (USD 0.1 billion) to Ericsson’s net income in 2023. The divestment aligns with Ericsson's strategy to streamline its operations and focus on its core business areas.

Under its new ownership, iconectiv is expected to continue its growth trajectory. The move will allow the company to further develop its number portability and network services offerings without the strategic constraints of its previous parent company. Ericsson’s decision reflects its ongoing efforts to optimize its portfolio and enhance shareholder value.

Key Points:

• Ericsson is selling iconectiv to Koch Equity Development LLC.
• The sale will generate approximately SEK 10.6 billion (USD 1.0 billion) in cash for Ericsson.
• A one-off EBIT benefit of SEK 8.8 billion (USD 0.8 billion) is anticipated upon transaction closure.
• The transaction is subject to regulatory approval and expected to complete in the first half of 2025.
• Iconectiv has been a part of Ericsson since 2012 and has co-ownership with Francisco Partners since 2017.

"By divesting iconectiv, we are enabling the company to pursue its growth ambitions under new ownership while streamlining our focus on core areas," said Börje Ekholm, CEO of Ericsson.

• iconectiv, which is based in Bridgewater, New Jersey, was founded as Bellcore in 1984. The company changed its name to Telcordia in 1999. 
• iconectiv is known as the global leader in providing numbering solutions and previously designated by the U.S. Federal Communications Commission to serve as the Local Number Portability Administrator in the U.S.
• In 2012, Ericsson acquired Telcordia for $1.5 billion in cash from Providence Equity Partners and Warburg Pincus.
• In 2017, Francisco Partners invested US$200 million to acquire a 16.7% ownership in iconectiv, an independent subsidiary owned by Ericsson that develops connectivity solutions used by more than 1,200 service providers, regulators, enterprises, and content providers worldwide.

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Archtop Fiber picks Render to accelerate rollout in Hudson Valley

Render Networks announced a partnership with Archtop Fiber to expedite the deployment of high-speed, reliable, and affordable fiber internet across underserved markets in the Northeast U.S. This collaboration aims to enhance efficiency through Render’s network construction management technology, which will streamline the entire process from construction to operations. 

Render Networks, based in Melbourne, Australia, offers a construction management platform optimized for fiber network deployment, focusing on digitizing geospatial data flow in real-time to enhance the efficiency of network construction and management.

Archtop Fiber is headquartered in Kingston, NY in the Hudson Valley region. The company is investing up to $350 million to build out their fiber network in the Hudson Valley area, including Ulster, Sullivan, Dutchess, Columbia, Greene and Orange Counties in New York

• Render Networks provides construction management technology to accelerate fiber deployment.
• Archtop Fiber focuses on underserved markets in the Northeast U.S., offering multi-gig services.
• The partnership will enhance efficiency, driving faster network build-out and improved operations.
• Render’s solution integrates with VETRO Fibermap for seamless fiber management.

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Sterlite to Appeal Verdict in Prysmian Lawsuit

Sterlite Technologies has decided to appeal a recent federal district court verdict in a lawsuit filed against it by Prysmian Cables & Systems. STI asserts that the verdict is not supported by the evidence and testimony presented during the three-year case and believes the lawsuit was initiated for anti-competitive reasons. The court dismissed all but two of Prysmian’s claims against STI.

Earlier this month, a jury in South Carolina awarded $96.5m in damages to Prysmian Cables.

STI emphasized its longstanding global presence in the optical manufacturing industry, with over 700 patents and ten manufacturing facilities worldwide. The company remains committed to expanding its U.S. operations and continuing its involvement in federally funded and private fiber broadband projects across the country. STI’s leadership reiterated their dedication to the U.S. market and to upholding high ethical standards as they move forward with their appeal.

Key Points:

• STI to appeal federal court verdict in a lawsuit filed by Prysmian Cables & Systems.
• Court dismissed all but two of Prysmian’s claims during the three-year litigation.
• STI has a strong global presence with 700 patents and ten manufacturing facilities.
• The company is committed to expanding its U.S. operations and participating in broadband projects.
• STI continues to support its U.S. employees, distributors, and customers.

“We believe the verdict is not supported by the testimony and evidence presented at the trial and intend to appeal and vigorously pursue all available post-trial remedies,” said Ankit Agarwal, Managing Director, STL.

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Quantum Circuits Secures $60M or Error-Detecting Qubits

Quantum Circuits, a spinout from Yale University specializing in superconducting quantum computing, has closed its Series B funding round with more than $60 million. This final investment round aims to advance the company's efforts to commercialize its quantum systems, which feature an industry-first: a powerful qubit with built-in error detection, addressing one of the critical challenges in quantum computing—error correction.

The funding round was led by ARCH Venture Partners, F-Prime Capital, Sequoia Capital, and Hither Creek Ventures, with participation from several other investors including Canaan Partners and In-Q-Tel. The new capital follows the recent hiring of Ray Smets as President and CEO, and will support the company's go-to-market plans and customer engagement strategies.

Investment Total: Over $60 million in Series B funding.

Lead Investors: ARCH Venture Partners, F-Prime Capital, Sequoia Capital, Hither Creek Ventures.

Technology Focus: Superconducting quantum computing with built-in error detection.

Recent Leadership: Ray Smets appointed as President and CEO.

Core Innovation: Industry-first dual-rail qubit with error detection, aimed at scalable, reliable quantum computing.

"By putting the power of error detection and real-time control into the hands of algorithm developers, we will accelerate their ability to create new solutions and achieve better results needed for commercial applications," said Ray Smets, CEO of Quantum Circuits.

https://quantumcircuits.com/quantum-circuits-secures-series-b-investment/

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Key Observations from Cisco's Q4 2024 Analyst Call

 Following Cisco Systems' release of its financial results on August 14th, key observations from the subsequent market analyst call provide insight into the company’s performance, strategic shifts, and future outlook. Cisco reported strong fourth-quarter results for fiscal year 2024, with $13.6 billion in revenue, surpassing its guidance range. The company demonstrated robust demand across its product lines, particularly in security, AI infrastructure, and observability, while also outlining a strategic restructuring plan aimed at driving growth in high-priority areas such as AI, cloud, and cybersecurity.

During the call, Cisco execs highlighted robust performance in its security, AI infrastructure, and observability segments. The integration of Splunk into Cisco's broader portfolio was a significant contributor to this success, with Splunk adding $960 million in revenue for the quarter. Cisco's gross margin reached 67.5%, the highest in 20 years, reflecting the strong impact of this acquisition. The company also announced a strategic restructuring plan that includes a 7% workforce reduction, aimed at reallocating resources toward high-growth areas such as AI, cloud, and cybersecurity.

A notable theme throughout the call was Cisco's focus on AI. The company has crossed $1 billion in AI-related orders from web-scale customers and expects an additional $1 billion in fiscal year 2025. Cisco's AI-driven products, including Hypershield, are expected to enhance its position in the market as enterprises increasingly modernize their infrastructure to support AI applications. The company also emphasized the normalization of customer inventory levels, signaling the end of a challenging period of inventory digestion.

Some observations from the call:

Subscription Revenue: Subscription revenue accounted for 56% of Cisco's total revenue in Q4 2024.

Splunk Contribution: Splunk integration contributed $960 million in revenue for Q4, with continued double-digit ARR growth.

AI Infrastructure Investments: Strong demand for AI-related infrastructure, with double-digit growth in data center switching.

Security Product Orders: Security product orders grew by double digits, driven by competitive wins and new solutions like XDR and Secure Access.

Wireless Order Growth: Wireless product orders exceeding $1 million increased by over 20% year-over-year.

Gross Margin: Cisco achieved a product gross margin of 67% and a services gross margin of 70.3% in Q4.

Operating Cash Flow: Cisco generated $3.7 billion in operating cash flow during Q4 2024.

Shareholder Returns: Cisco returned $3.6 billion to shareholders through dividends and share repurchases in Q4, totaling $12.1 billion for FY24.

Public Sector Demand: Public sector demand increased by 20% year-over-year, with strong federal spending in the U.S. and growth in APJC (Asia Pacific, Japan, and China).

Enterprise Demand: Enterprise demand rebounded with 13% growth, showing strength across all geographies, particularly in APJC.

Service Provider and Cloud: Service provider and cloud product orders grew by 5%, with notable strength in EMEA (Europe, Middle East, and Africa).

AI Orders: Cisco secured over $1 billion in AI-related orders from web-scale customers and expects another $1 billion in FY25.

Platform Deals: Cisco signed several nine-figure platform deals, including a significant agreement with a global logistics company to modernize its AI-powered supply chain.

Observability Growth: Observability product revenue grew 41% year-over-year, with contributions from Splunk, ThousandEyes, and Cisco’s observability suite.

Networking Segment: Cisco's networking segment revenue declined by 28% year-over-year, impacted by comparisons to a strong Q4 2023 driven by backlog clearance.

Hypershield Launch: Cisco introduced Hypershield, an AI-native cybersecurity solution, expected to be available in the fall of 2024.

R&D Focus: Over 50% of Cisco’s R&D spend is now focused on AI, cloud, and cybersecurity.

AI-Specific Orders: Cisco's partnerships with top hyperscalers are driving AI-related orders, including design wins that are expected to convert into significant revenue.

Customer Inventory Levels: Cisco confirmed that customer inventory levels have normalized, ending a period of inventory digestion that had affected order flow.

Long-Term Revenue Headwind: Cisco acknowledged a revenue headwind for FY25 due to a strong backlog shipment in Q1 FY24, which will not be repeated.

Global Revenue Performance: Revenue growth was observed across all geographic segments, with the Americas up 15%, EMEA up 12%, and APJC up 16%.

Product Recurring Revenue: Product annual recurring revenue (ARR) grew by 43% with Splunk and by 9% excluding Splunk.

Sales Strategy Shift: Cisco's sales strategy is increasingly focused on cross-portfolio sales, leveraging the combined strengths of Cisco and Splunk to win large enterprise deals.

Workforce Reduction: The restructuring plan, impacting approximately 7% of the workforce, or 7,000 employees, is aimed at reallocating resources toward AI, cloud, and cybersecurity initiatives. Some of the restructuring involves moving some operations to lower-cost location.

Fiscal Year Guidance: For fiscal year 2025, Cisco expects revenue in the range of $55 billion to $56.2 billion, with non-GAAP EPS between $3.52 and $3.58.

A replay of the call is available on the company's investor relations web site.

https://investor.cisco.com/home/default.aspx

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