Monday, October 21, 2013

Tellabs to be Acquired to Marlin Equity Partners for $891 Million

Marlin Equity Partners, a Los Angeles California-based private investment firm with over US$1 billion of capital under management, will acquire all of the outstanding shares of Tellabs in a deal valued at $891 million ($2.45 per share in cash, representing a 4.3% premium over the closing price on October 18th).

"This transaction will deliver to Tellabs stockholders certainty of value and liquidity, immediately upon closing," said Vince Tobkin, Tellabs chairman. "Tellabs' Board of Directors arrived at the decision to enter into a transaction with Marlin after a thorough review of Tellabs' strategic alternatives and after more than 30 potential buyers, both strategic parties and financial sponsors, were contacted as part of a competitive bidding process.

“This deal reinforces Marlin’s long-term commitment to the telecommunications market sector and the business potential we believe is being driven by the concurrent demand for high-bandwidth mobile, video, and cloud-based services and applications,” said Pat DiPietro, an operating partner at Marlin. “Tellabs has an exceptionally strong heritage of technology innovation and customer-centric solutions, and we look forward to working closely with the Tellabs team to enhance long-term value for its premier customer base.

http://www.marlinequity.com/press/Tellabs_Press_Release.pdf
http://www.tellabs.com

  • Tellabs reported 2012 revenue of $1.05 billion with earnings per share (GAAP) of $.47.  The company has about 2,100 employees and is based in Naperville, Illinois.
  • Earlier this year, Marlin acquired the Optical Networks business unit of Nokia Siemens Networks as well as Sycamore Networks.  The companies were combined into Coriant, a new optical transport company headquartered in Munich, Germany.

Microsemi to Acquire Symmetricom for its Precise Timing Solutions

Microsemi agreed to acquire Symmetricom for approximately $230 million, or $7.18 per share, representing a premium of 49 percent based on the average closing price of Symmetricom's shares of common stock during the 90 trading days ended Oct. 18, 2013.

Symmetricom specializes in highly precise timekeeping technologies for data, voice, mobile and video networks and services. It provides timekeeping in GPS satellites, national time references, and national power grids as well as in critical military and civilian networks. The company is based in San Jose, California.

Microsemi said expects significant synergies from this immediately accretive transaction. Based on current assumptions, Microsemi expects the acquisition to be $0.22 to $0.25 accretive in its first full calendar year ending December 2014.

Microsemi's current product lines include high-performance and radiation-hardened analog mixed-signal integrated circuits, FPGAs, SoCs and ASICs; power management products; timing and voice processing devices; RF solutions; discrete components; security technologies and scalable anti-tamper products; Power-over-Ethernet ICs and midspans; as well as custom design capabilities and services. The company is based in Aliso Viejo, California.

"The acquisition of Symmetricom will create the largest and most complete timing portfolio in the industry today," stated James J. Peterson, Microsemi president and chief executive officer. "From source to synchronization to distribution, Microsemi will offer an end to end timing solution for an expanded range of markets, driving increased dollar content opportunity and revenue growth."
"The acquisition of Symmetricom by Microsemi will create a powerful combination," said Elizabeth Fetter, Symmetricom's chief executive officer. "I believe Microsemi is the ideal company to leverage Symmetricom's technology and capabilities further into the communications market along with the scale to accelerate the adoption of the company's innovative new chip scale atomic clock (CSAC) technology into broader markets."

http://www.microsemi.com/
http://www.symmetricom.com/

Cisco Intros XFP Transmitter Modules for Cable Operators

Cisco released a new high-density Prisma SuperQAM XFP Transmitter module for its flagship Prisma II optical video platform.

The new XFP Transmitter module is another key piece of Cisco's Converged Cable Access Platform (CCAP) migration plan, enabling operators to double the density of their current chassis from 16 transmitters to 32 transmitters and reduce power consumption by half.

Also, the module will fit into the optical physical interface card (PIC) in Cisco's next-generation Terabit CCAP product, the converged Broadband Router (cBR-8), which will directly link to the optical node and further reduce rack space in the cable headend.  Cisco is currently conducting trials and plans for deployment of the new modules with several major global service provider customers.

http://newsroom.cisco.com/release/1277350

Equinix Renews Leases for Five Data Centers with Digital Realty

Equinix will renew existing leases with Digital Realty for five data center properties located in Chicago, Dallas, Los Angeles, Miami and Washington, D.C.

The companies said all five of the leases were negotiated at market rates and include 15-year initial terms from the current lease expirations, as well as two approximately 10-year renewal options at pre-negotiated rental rates. Financial terms were not disclosed.

http://www.equinix.com

Ikanos Unveils Neos Chipset Supporting G.fast

Ikanos Communications unveiled its next-generation DSL platform supporting the G.fast protocol for gigabit rates over standard copper lines.

The new Ikanos Neos architecture leverages the company’s ultra-low-power analog technology for improved power-per-port performance, gigabit data-rates, and high transmission reliability and line stability in high-data-rate vectored environments. The architecture is designed to support all the CPE and CO requirements in the G.fast specification, including line-power, VDSL2 fallback, and G.vector, configurable as single or multi-port.

Prototype availability is scheduled for the second quarter of 2014.

"The introduction of our next-generation G.fast platform is a testament to Ikanos’ commitment to advancements in DSL technology and to our dedication to driving the industry forward while bringing innovative and differentiated products to our customers,” said Omid Tahernia, president and CEO at Ikanos. “To us G.fast is not simply the next step in the evolution of the DSL standard. G.fast enables the realization of a vision where hybrid fiber-copper networks turn the promise of gigabit broadband into reality for telcos, effectively eliminating the need for costly FTTH deployments. While Ikanos has been at the forefront of driving the G.fast standardization efforts and is a strong advocate of standards compliancy and interoperability, we have maintained our focus on innovation and believe our G.fast family of products will bring unique and differentiated power profiles and robust transmission features to our customers, putting Ikanos in a leading position as the industry adopts the new standard."

In addition,  Ikanos introduced a new member of its VDSL2 CO (Central Office) processor family, the single-port Velocity-Uni. When used in tandem with a Fusiv Vx185-based home gateway, the end-to-end solution is capable of delivering up to 300Mbps aggregate data rate in FTTdp applications, covering a distance of up to 200 meters.

htttp://www.ikanos.com


  • Earlier this year Ikanos demonstrated an aggregate data rate of 150Mbps at a distance of 500 meters in a 192-port DSLAM configuration.

  • The company has also demonstrated 300Mbps aggregate performance at 200 meters, ideal for short-loop FTTdp deployments.  


Ventev Wireless Intros Optimized Wi-Fi Antennas

Ventev Wireless Infrastructure, a division of TESSCO Technologies, introduced a new line of TerraWave Solutions High-Density Antennas for Wi-Fi deployments in stadiums, convention centers, campuses, city centers, airports, manufacturing facilities, and other locales with high densities of wireless clients.

Ventev says its next-generation antennas increase capacity and optimize coverage for Wi-Fi users in large, indoor/outdoor venues by providing a narrower, focused beam of coverage that reduces channel-to-channel interference.

The highest-performing TerraWave High-Density 2.4/5 GHz Patch Antenna uses a narrow 35-degree beamwidth (compared with the traditional 50-80 degrees) and features a higher gain (14 dBi versus 6-10 dBi) that enables a greater distance between the antenna and users. Thus there is a much higher flexibility in placement without sacrificing network performance.

The 2.4/5 GHz 10/11 dBi narrow-bandwidth TerraWave Ceiling-Mount High-Density Antenna for indoor applications features an inconspicuous in-ceiling tile mount that camouflages the Wi-Fi access point for improved aesthetics and increased security. It is the only ceiling-mount high-density antenna currently available specifically designed for indoor applications such as convention centers, auditoriums, large warehouses and factories.

The new line of antennas supports all of the industry’s leading access points, including Aruba Networks, Cisco Systems, Juniper Networks, Meru Networks, and Motorola Solutions, among others. The antennas feature a broad range of technical specifications (gain, beamwidth, number of ports) and offer a variety of mounting options (ceiling, wall, mast/pole, under the seat) to ensure the right product is selected for the right application.

“Ventev’s TerraWave line of High-Density Antennas are being deployed in high-profile, high-density locations throughout North America,” said Jeff Lime, Vice President of Ventev Wireless Infrastructure. “As Wi-Fi continues to move beyond carpeted environments, including outdoors into stadiums and on campuses, the ability to provide stronger, reliable Wi-Fi signals to large numbers of simultaneous users – while mitigating interference – is a huge benefit.”

http://www.terrawave.com/hdantennas

Broadcom Debuts System-level Vector Processor

Broadcom introduced its system-level vector processor (VP) for removing crosstalk interference on DSL networks .

Broadcom said its BCM65500 solution enables services with throughput well over 100 Mbps downstream from any port of standard xDSL chassis of up to 384-lines. The BCM65500 vectoring processor is a turnkey system-level vectoring solution that offers Vector Control Entity (VCE) software to manage the BCM65500 and G.vector DSP chipsets, as well as Broadcom's high-performance, power-efficient 28nm XLP II control processor. The advanced microarchitecture leverages the 28nm process for industry-leading power and cost.

Network operators can see performance benefits with the upgrade of a single system fabric board in an already-deployed DSLAM -- a comparatively lower investment to more than double the bandwidth of existing copper lines.

"G.vector technology enables global operators to deliver high-bandwidth broadband services quickly, easily and cost-effectively by extending the performance of existing copper infrastructures," said Greg Fischer, Broadcom Vice President and General Manager, Broadband Carrier Access. "Our new system-level vector processor, utilizing Broadcom's field-proven G.vector technology and our unique DSL expertise, offers system OEMs a comprehensive solution to support the continued growth of DSL and FTTN services."

The Broadcom BCM65500 currently is sampling.

http://www.broadcom.com

Broadcom Shows Most Advanced Multi-DSL Residential Gateway Chip

Broadcom announced its next generation, ultra high-performance digital subscriber line (DSL) and Gigabit routing chip for residential gateways and set-top boxes.

Broadcom's new BCM63138 integrates single and multi-line ADSL2+/VDSL2 channel bonding interfaces supporting concurrent physical layer capabilities such as G.Vector, G.inp and SRA, along with GbE switching with advanced broadband WAN to home LAN traffic flow management.

The design incorporates dual-PCIe interfaces to support dual-band concurrent 802.11n and 802.11ac (5G WiFi) wireless networking configurations, USB3 host ports and SATA interfaces for mass storage support, and a hardware secure boot mechanism.

The BCM63138 is uniquely positioned to facilitate the combination of set-top box and DSL gateway functionality into a single platform. It also offers an integrated multi-channel VoIP with DECT baseband.

http://www.broadcom.com/press/release.php?id=s798586

Belgium's Telenet Selects ALU's 7950 Core Router

Telenet, Belgium’s leading cable broadband provider, has selected Alcatel-Lucent's 7950 Extensible Routing System (XRS) to meet the ever-expanding video and data demands of its customers.

Alcatel-Lucent said its 7950 XRS will prepare Telenet for the next decade of demand-growth from both residential and enterprise customers, supporting the explosion of video traffic created by high definition content, on-demand viewing and multi-screen delivery the widespread use of smart-phones and tablets, and the rapid adoption of ‘cloud’ applications.

http://www.alcatel-lucent.com

Sunday, October 20, 2013

Layer123 SDN & OpenFlow World Congress: DT's Terastream Project

"The fundamental premise of Terastream is simplification," said Axel Clauberg, VP Aggregation, Transport, IP & Fixed Access, Deutsche Telekom AG, speaking at last week's Layer123 conference in Bad Homburg, Germany.

The Terastream project, which is a next generation network project of Deutsche Telekom, in many ways reflects the business drivers and next steps for SDN and NFV.  Clauberg said operators must continue to invest in their networks in order to handle explosive traffic growth and deliver an excellent customer experience. Competition is tough not only because of traditional challengers but because of over-the-top (OTT) players who are able to move very fast because they live in a software-based world.

The Terastream architecture answers these challenges, said Clauberg, by providing a radical simplification of the infrastructure and eliminating legacy protocols.  What should the network look like if all the traffic were IP?  What is all of the equipment for delivering services could be centralized in an infrastructure cloud data center?  Once the network operator has a data center that serves as an infrastructure cloud, it is easy to see how other network functions could be virtualized.

Key enabling technologies for Terastream include 100G coherent optics, IP/DWDM, IPv6, a real-time OSS, KVM hypervisors, and OpenStack.    IPv4 is only a service produced in the network. Clauberg said one early decision was to push for open standard solutions. The infrastructure cloud will be run on Layer 3 networking.  There is a strong push to make everything fully automated and secure.

Terastream has already been deployed in Croatia -- part of the DT global footprint -- as a proof-of-concept.  The first rollout occurred in a matter of months.  Over 500 customers are already getting up to Gigabit access speeds with native IPv6 service.

"We are on a path toward becoming a software-defined operator," said Clauberg.  However, even though operators are moving from hardware to these software business models, his call to the industry is to keep innovating in both domains.

A DT slide deck from last year.
http://www.slideshare.net/ceobroadband/dt-tera-stream
http://www.layer123.com/




  • In September, Deutsche Telekom confirmed multi-vendor interoperability on a 100 Gigabit Ethernet long haul link on TeraStream pilot network in Croatia.  The tests, which were a joint effort between Alcatel-Lucent, Cisco Systems, Hrvatski Telekom and Deutsche Telekom, represent an important milestone towards the future of generally available 100GbE networking.
    The actual link, the industry’s first of its kind, consisted of 600 km of Standard Single Mode Fiber (SMF) between the cities of Split and Varazdin using leveraging the TeraStream colorless, open spectrum, passive network. The 100 Gbps signal, carrying live production traffic, used ITU standard 50GHz spacing via a high gain forward error correction algorithm capable of achieving 10Gbps comparable distances. The implementation in this test used pre-standards, aligned in ITU Study Group 15.  Multi-vendor interoperability on the 100 Gigabit Ethernet (GbE) long-haul DWDM links was established between IP routers from Cisco Systems and Alcatel-Lucent. Cortina Systems also provided technology for the tests.

AT&T and Crown Castle Sign $4.85 Billion Tower Deal

AT&T and Crown Castle announced a $4.85 billion deal under which AT&T will lease the rights to approximately 9,100 of its company-owned wireless towers to Crown Castle.   The deal also includes the sale of approximately 600 AT&T towers to Crown Castle.

Under the terms of the leases, Crown Castle will have exclusive rights to lease and operate approximately the towers, including the option to sublease to other carriers. The average term of the lease rights is about 28 years. As the leases expire, Crown Castle will have fixed price purchase options, totaling approximately $4.2 billion, for these towers based on their estimated fair market values at the end of the lease terms.

AT&T will sublease capacity on the towers from Crown Castle for a minimum of 10 years for $1,900 per month per site, with annual rent increases of 2 percent. AT&T has the option to renew up to a total of 50 years. AT&T will also have access to additional reserve capacity on the towers for future use. AT&T expects the additional capacity will help it continue to meet growing demand for mobile Internet services. The transaction will have no impact on the customer experience.

“This deal is good for AT&T and our shareholders,” said Bill Hogg, Senior Vice President — Network Planning and Engineering, AT&T Services Inc. “This deal will let us monetize our towers while giving us the ability to add capacity as we need it. And we’ll get additional financial flexibility to continue to invest in our business, maintain a strong balance sheet and return value to our shareholders.”

http://www.att.com
http://www.crowncastle.com/index.aspx


  • In December 2012, Crown Castle purchased approximately 7,200 towers from T-Mobile USA for $2.4 billion in cash.  
  • Also in 2012, Crown Castle International acquired NextG Networks for approximately $1.0 billion in cash.  NextG, which specialized in outdoor distributed antenna systems ("DAS"), had over 7,000 nodes-on-air and a further 1,500 nodes under construction. In addition, NextG had rights to over 4,600 miles of fiber. Over 90% of NextG nodes were in urban and suburban locations, with 80% in the top ten US metropolitan areas, including New York, Los Angeles, Chicago and Dallas Fort Worth.

Saturday, October 19, 2013

OpenStack Havana Adds Metering and Orchestration Features for Scaling Clouds

The OpenStack community marked the eighth release of its open source software for building public, private, and hybrid clouds.

OpenStack Havana introduces nearly 400 new features to support software development, managing data and running application infrastructure at scale.  There were over 900 contributors to the Havana software release, a more than 70% increase from the Grizzly release six months ago. Two new projects, OpenStack Orchestration and Metering, were incubated during the Grizzly release cycle and are now available in the Havana release.

Some of the New Capabilities in OpenStack Havana:

  • Application-Driven Capabilities – OpenStack Orchestration, now available as part of the Havana release, is a template-driven service for describing and automating the deployment of compute, storage and networking resources for an application. The new global clusters feature for Object Storage enables you to cut costs and improve performance by replicating and delivering data around the world, and the new QoS capability across Block Storage drivers allows you to guarantee performance requirements for an application.  Docker support was also added to speed application deployment using containers.
  • Improved Operational Experience – During this release cycle, significant effort went into increasing the breadth of functionality that is exposed through the Dashboard. A new team of user experience experts also contributed their time to improve the UI, workflows and productivity. OpenStack Metering, another new service in Havana, provides users with a single source of usage data across OpenStack services for activities like enterprise chargebacks and feeding systems monitoring tools.
  • More Enterprise Features – OpenStack continues to mature and support enterprise-driven features such as end-to-end encryption across all Block Storage drivers, SSL support across all service APIs, new VPN and Firewall-as-a-Service capabilities, and support for rolling upgrades and boot from volume, which provides the foundation for live migration. Additionally, popular storage and networking providers continue to improve and write new plugins for OpenStack, making it easier for enterprises to work with their trusted vendors and take advantage of existing infrastructure.
"If software development, managing data or running application infrastructure is strategic to your business, OpenStack is the platform that will accelerate time to value," said Jonathan Bryce, executive director of the OpenStack Foundation. "We’ve seen more users contribute directly to the Havana release than ever before. It means users are empowered and driving the direction of OpenStack based on their real-world use cases and implementations."

http://www.openstack.org/havana

Friday, October 18, 2013

Verizon Teams with NetApp for Software-Defined Storage in Verizon Cloud

Verizon has agreed to deliver NetApp's Data ONTAP as a virtual storage appliance (VSA) for Verizon Cloud clients. The software will deliver on the promise of software-defined storage, adding additional deployment and management flexibility for clients implementing Verizon Cloud Compute and Verizon Cloud Storage.

Under the collaboration alliance announced by the firms, Data ONTAP becomes part of a software-defined infrastructure management layer that adds NetApp enterprise-grade efficiency, data protection and manageability on top of Verizon's high-performance cloud infrastructure.

"Our announcement with NetApp marks the first of many strategic relationships that we are forging as we build a dynamic ecosystem of enterprise-class networking, storage, and software-based capabilities that will run on top of our new Verizon Cloud infrastructure," said John Considine, chief technology officer of Verizon Terremark. "Teaming with NetApp reinforces our commitment to revolutionize how cloud-based solutions are delivered and will serve as a complement to traditional on-premises, hardware-based storage models. As more enterprises embrace the cloud, businesses both large and small will look to virtualization for greater functionality to enhance business operations."

"NetApp is committed to working with Verizon and other leading service provider visionaries to unlock the value of our software in innovative software-defined cloud architectures that bring more choices and new value to customers," said Phil Brotherton, vice president of Cloud Solutions Group, NetApp. "As enterprises increasingly look to combine public and on-premises cloud resources to optimize IT efficiency and business flexibility, Data ONTAP provides a universal data management platform to facilitate data and workload movement across multicloud environments."

http://www.netapp.com/us/company/news/press-releases/news-rel-20131017-575570.aspx
http://www.verizon.net

IBM Wins Patent for Cloud Service Cost-Optimal Data Center Assignment

IBM was awarded U.S. Patent #8,370,490 for its "Cloud Service Cost-Optimal Data Center Assignment" invention.

IBM said its technique can dynamically allocate cloud computing data center resources based on an automated analysis of the most effective use of assets, leading to improved performance and cost-savings.

"Our patented invention will help service providers increase performance, improve customer service and realize cost benefits," said Yu Deng, IBM Master Inventor and co-inventor on the patent. "We are focused on inventing new ways to address challenges in large complex data centers and foster a new era of cloud innovation."

http://www.ibm.com


Xtera Supplies 100G for TIM Brasil in Amazonas

Xtera Communications supplied its 100G optical transport platform to TIM Brasil for a new infrastructure deployment connecting three cities in the Amazon: Manaus, Macapá and Belém.

Xtera’s Nu-Wave Optima 100G optical networking platform was used for a new optical backbone network that was built using the tower transmission lines and power substations of the LT Amazon consortium.  The TIM Brasil cables connect 27 cities in the states of Amazonas, Pará and Amapá. Given the challenging geography of this network environment, the lengths of 5 out of the 14 spans that make up this infrastructure exceed 200 km between sites where active optical equipment is positioned. The longest of these spans reaches nearly 260 km.

"The construction of the first 100G backbone in the Amazon is an innovative and challenging project, connecting one of the most important cities in the Amazon region – Manaus – that will host 2014 FIFA World Cup. This project will bring many benefits to the regional population and reinforces the commitment of TIM for expanding and improving its network throughout Brazil," says Cicero Olivieri, Director of Fixed & Transport Network of TIM Brazil. “We are pleased with the performance of Xtera’s technology, highlighted by the long-span capability and the minimal number of regeneration sites throughout the network, and with their commitment to take on the challenges inherent to any deployment in the Amazon Region."

http://www.xtera.com/

Calxeda Adds Chairman of the Open Compute Foundation to its Board

Calxeda, a start-up developing ARM-based “EnergyCore” Server-on-a-Chip designed for a new generation of high-density servers, announce today that Frank Frankovsky, chairman and president of the Open Compute Foundation, has joined its board of directors.  Frankovsky is also a vice president of infrastructure at Facebook, where he joined in 2009 after previously working at Dell and Compaq.

Calxeda said it has worked closely with the Open Compute Project, joining as an official member in January 2013 with support for the OCP "Group Hug" common slot specification. Frankovsky had previously served as an informal advisor to Calxeda executives.

http://www.calxeda.com/


  • Calxeda is based in Austin, Texas.


Cable & Wireless Communications Names CEO

Cable & Wireless Communications named Phil Bentley as its new CEO, replacing Tony Rice, with effect from 1 January 2014.

Bentley was previously Managing Director at British Gas, the UK’s leading energy and services provider between 2007 and 2013. Rice decided to step down as CEO, ahead of the establishment of CWC’s new executive office in Miami, Florida, and will leave the Board at the end of 2013.

Cable & Wireless Communications has set its sights on being the leading provider of mobile, fixed line and broadband communications services in Latin America and the Caribbean region. CWC is investing in its operations in the region, particularly in mobile data, high-speed broadband and customer experience systems, as well as considering strategic acquisition opportunities. It has also committed to reducing operating costs by US$100 million over the next
two years.

Sir Richard Lapthorne, Chairman of CWC, commented: "CWC is entering a new phase. Following our recent divestments, we now have a business with a single geographic focus and a strong balance sheet and we are investing in growth areas of mobile data and high-speed broadband. I am delighted to have attracted someone of Phil Bentley’s calibre to lead the Company. Phil demonstrated his leadership skills at British Gas, combining strong operational capability with a real focus on customer value – experience which he will bring to CWC as we focus our business on a single region, and drive greater operational improvements."

http://www.cwc.com/

Thursday, October 17, 2013

Layer123 SDN & OpenFlow World Congress: China Unicom and Telefónica on NFV

China Unicom and Telefónica published a whitepaper about their Joint Approach to Network Virtualization.

The carriers see network transformation as fundamental for achieving the flexibility and efficiency required to keep up with exploding customer traffic. The collaboration focuses on the development and standardization of Network Virtualisation technologies.  Use cases they are working on include the Virtualization of the Customer Premises Equipment (vCPE).

“China Unicom considers operators are facing great challenges such as complicate, huge network, difficult to maintain and long time to provide new services, with the SDN and NFV technology, network virtualization will be a good way for us to solve these problems”, Mr Zhang Zhong Ping, director of technical department of China Unicom said.

“Telefónica sees the implementation of SDN and NFV technologies as a factor of our network infrastructure development strategy,” said Mr Enrique Algaba, Director of Network Innovation at Telefónica I+D – Global CTO Unit. “We expect that scheme for CPE virtualization we jointly propose will help us prove the viability of this technology and enable us to implement rollouts in a more flexible and reliable way coupled with low operating costs.”

http://www.layer123.com/download&doc=China-Unicom-Telefonica-Joint_Vision_on_Network_Virtualization







Blueprint Tutorial: SDN and NFV for Optimizing Carrier Networks

By Raghu Kondapalli, Director of Strategic Planning at LSI

The ongoing convergence of video and cloud-based applications, along with the exploding adoption of mobile devices and services, are having a profound impact on carrier networks. Carriers are under tremendous pressure to deploy new, value-added services to grow subscriber numbers and increase revenue per user, while simultaneously lowering capital and operational expenditures.

To help meet these challenges, some carriers are creating some of these new services by more tightly integrating the traditionally separate data center and carrier networks. By extending the virtualization technologies that are already well-established in data centers into the telecom network domain, overall network utilization and operational efficiencies can be improved end-to-end, resulting in a substantially more versatile and cost-effective infrastructure.

This two-part article series explores the application of two virtualization techniques—software-defined networking (SDN) and network function virtualization (NFV)—to the emerging unified datacenter-carrier network infrastructure.

Drivers for virtualization of carrier networks in a unified datacenter-carrier network

In recent years, user expectations for “anywhere, anytime” access to business and entertainment applications and services are changing the service model needed by carrier network operators. For example, e-commerce applications are now adopting cloud technologies, as service providers continue incorporating new business applications into their service models. For entertainment, video streaming content now includes not only traditional movies and shows, but also user-created content and Internet video. The video delivery mechanism is evolving, as well, to include streaming onto a variety of fixed and mobile platforms. Feature-rich mobile devices now serve as e-commerce and entertainment platforms in addition to their traditional role as communication devices, fueling deployment of new applications, such as mobile TV, online gaming, Web 2.0 and personalized video.

Figures 1 and 2 show some pertinent trends affecting carrier networks. Worldwide services revenue is expected to reach $2.1 trillion in 2017, according to an Insight research report, while the global number of mobile subscribers is expected to reach 2.6 billion by 2016, according to Infonetics Research.



To remain profitable, carriers need to offer value-added services that increase the average revenue per user (ARPU), and to create these new services cost-effectively, they need to leverage the existing datacenter and network infrastructures. This is why the datacenters running these new services are becoming as critical as the networks delivering them when it comes to providing profitable services to subscribers.

Datacenter and carrier networks are quite different in their architectures and operational models, which can make unifying them potentially complex and costly. According to The Yankee Group, about 30 percent of the total operating expenditures (OpEx) of a service provider are due to network costs, as shown in Figure 3. To reduce OpEx and, over time, capital expenditures (CapEx), service providers are being pushed to find solutions that enable them to leverage a more unified datacenter-carrier network model as a means to optimize their network and improve overall resource utilization.

Virtualization of the network infrastructure is one strategy for achieving this cost-effectively. Virtualization is a proven technique that has been widely adopted in enterprise IT based on its ability to improve utilization and operational efficiency of datacenter server, storage and network resources. By extending the virtualization principles into the various segments of a carrier network, a unified datacenter-carrier network can be fully virtualized—end-to-end and top-to-bottom—making it far more scalable, adaptable and affordable than ever before.

Benefits of integrating datacenters into a carrier network

Leveraging the virtualized datacenter model to virtualize the carrier network has several benefits that can help address the challenges associated with a growing subscriber base and more demanding performance expectations, while simultaneously reducing CapEx and OpEx. The approach also enables carriers to seamlessly integrate new services for businesses and consumers, such as Software-as-a-Service (SaaS) or video acceleration. Google, Facebook and Amazon, for example, now use integrated datacenter models to store and analyze Big Data. Integration makes it possible to leverage datacenter virtualization architectures, such as multi-tenant compute or content delivery networks, to scale or deploy new services without requiring expensive hardware upgrades. Incorporating the datacenter model can also enable a carrier to centralize its billing support system (BSS) and operation support system (OSS) stacks, thereby doing away with distributed, heterogeneous network elements and consolidating them to centralized servers. And by using commodity servers instead of proprietary network elements, carriers are able to further reduce both CapEx and OpEx.

Integrated datacenter-carrier virtualization technology trends

The benefits of virtualization derive from its ability to create a layer of abstraction with the physical resources. For example, the hypervisor software creates and manages multiple virtual machines (VMs) on a single physical server to improve overall utilization.

While the telecom industry has lagged behind the IT industry in virtualizing resources, most service providers are now aggressively working to adapt virtualization principles in their carrier networks. Network function virtualization (NFV), for example, is being developed by a collaboration of service providers as a standard means to decouple and virtualize carrier network functions from traditional network elements, and then distribute these functions across the network more cost-effectively. By enabling network functions to be consolidated onto VMs running on a homogenous hardware platform, NFV holds the potential to minimize both CapEx and OpEx in carrier networks.

Another trend in virtualized datacenters is the abstraction being made possible with software-defined networking, which is enabling datacenter networks to become more manageable and more open to innovation. SDN shifts the network paradigm by decoupling or abstracting the physical topology to present a logical or virtual view of the network. SDN technology is particularly applicable to carrier networks, which usually consist of disparate network segments based on heterogeneous hardware platforms.

Technical overview of network virtualization

Here is a brief overview of the two technologies currently being used in unified datacenter-carrier network infrastructures: SDN and NFV.

Software-Defined Networking

SDN is a network virtualization technique based on the logical separation and abstraction of both the control and data plane functions, as shown in Figure 4. Using SDN, the network elements, such as switches, routers, etc., can be implemented in software, virtualized as shown, and executed anywhere in a network, including in the cloud.


SDN decouples the network functions from the underlying physical resources using OpenFlow®, the vendor-agnostic standard interface being developed by the Open Networking Foundation (ONF). With SDN, a network administrator can deploy a new network application by writing a program that simply manipulates the logical map for a “slice” of the network.

Because most carrier networks are implemented today with a mix of different platforms and protocols, SDN offers some substantial advantages in a unified datacenter-carrier network. It opens up the network for incorporating innovation. It makes it easier for network administrators to manage and control the network infrastructure. It reduces CapEx by facilitating the use of commodity servers and services, potentially by mixing and matching platforms from different vendors. In the datacenter, for example, network functions could be decoupled from the network elements, like line and control cards, and moved onto commodity servers. Compared to expensive proprietary networking solutions, commodity servers provide a far more affordable yet fully mature platform based on proven virtualization technologies, and industry-standard processors and software.

To ensure robust security—always important in a carrier network—the OpenFlow architecture requires authentication when establishing connections between end-stations, and operators can leverage this capability to augment existing security functions or add new ones. This is especially beneficial in carrier networks where there is a need to support a variety of secure and non-secure applications, and third-party and user-defined APIs.

Network Function Virtualization

NFV is an initiative being driven by network operators with a goal to reduce end-to-end network expenditures by applying virtualization techniques to telecom infrastructures. Like SDN, NFV decouples network functions from traditional network elements, like switches, routers and appliances, enabling these task-based functions to then be centralized or distributed on other (less expensive) network elements. With NFV, the various network functions are normally consolidated onto commodity servers, switches and storage systems to lower costs. Figure 5 illustrates a virtualized carrier network in which network functions, such as a mobility management entity (MME), are run on VMs on a common hardware platform and an open source hypervisor, such as a KVM.

NFV and SDN are complementary technologies that can be applied independently of each other. Or NFV can provide a foundation for SDN. By using an NFV foundation combined with SDN’s separation of the control and data planes, carrier network performance can be enhanced, its management can be simplified, and new services can be more easily deployed. 


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 Raghu Kondapalli is director of technology focused on Strategic Planning and Solution Architecture for the Networking Solutions Group of LSI Corporation.

Kondapalli brings a rich experience and deep knowledge of the cloud-based, service provider and enterprise networking business, specifically in packet processing, switching and SoC architectures.

Most recently he was a founder and CTO of cloud-based video services company Cloud Grapes Inc., where he was the chief architect for the cloud-based video-as-a-service solution.  Prior to Cloud Grapes, Kondapalli led technology and architecture teams at AppliedMicro, Marvell, Nokia and Nortel. Kondapalli has about 25 patent applications in process and has been a thought leader behind many technologies at the companies where he has worked.

Kondapalli received a bachelor’s degree in Electronics and Telecommunications from Osmania University in India and a master’s degree in Electrical Engineering from San Jose State University.

Level 3 Launches Cloud Connect Direct Access over MPLS, IPVPN, EVPL, Wavelengths

Level 3 Communications introduced a Cloud Connect Solution to help global enterprises to integrate the cloud into their networks.

Level 3 Cloud Connect Solutions provide private network access to leading cloud and data center services. The idea is to deliver a secure, reliable path for customers to realize the efficiency and flexibility of the cloud without compromising productivity or revenue.

The service supports multiple ways to connect enterprises with cloud and data centers, including MPLS/IPVPN, Virtual Private Line Service, Ethernet Virtual Private Line, Ethernet Private Line and Wavelength services. Level 3 also provides professional and managed services, which include consulting, implementation, monitoring, management and managed network services for enterprises to further reduce operational complexity and oversight of their public, private and hybrid cloud deployments.

Highlights include:

  • Application Performance – Extensive fiber-based and low-latency route options allowing customers to be prescriptive about global network performance and enable core IT functions such as email, websites and customer relationship management services to perform more quickly and without interruption.
  • Global Network Security – Comprehensive network security portfolio that leverages Level 3's private network access, managed security, Distributed Denial of Service mitigation and consulting services so enterprises can realize end-to-end control of their network and entrust their most important applications and information to the cloud.
  • Flexibility – The freedom to connect to the leading cloud services and data centers of choice without forcing businesses into an outmoded technology or restrictive service bundle. The flexibility to allocate bandwidth dynamically and pay only for what businesses consume.  

"From performance to cost efficiency, enterprises have high expectations for cloud-based services and the network is integral to meeting those expectations," said Paul Savill, Level 3's senior vice president of Global Core Product Management. "Level 3 Cloud Connect Solutions deliver global network reach with direct connections to the evolving landscape of leading cloud service providers, placing Level 3 in a strong position to help enterprise IT organizations successfully realize their cloud strategies."

http://www.level3.com/cloudconnectsoultions