Cisco Networking cloud brings the Meraki stack to Catalyst

Cisco outlined its vision a single platform experience for seamlessly managing all networking domains. The Cisco Networking cloud will be the powerful and intelligent platform to proactively manage the network, eliminate silos, assure performance, and reduce human workload.

The idea is to deliver a common set of cloud management components based on the Meraki dashboard and stack for the entire Cisco networking products portfolio.

“Today we are sharing our vision and first steps to eliminate networking complexity and securely connect the world,” said Jonathan Davidson, Executive Vice President and General Manager, Cisco Networking. “Only Cisco has the portfolio, experience, and partner ecosystem to bring together campus and branch, data center, compute, IoT, and SD-WAN to optimize outcomes using one networking management platform to deliver unified experiences.”

As a first step, Cisco is delivering the following components across its existing networking products portfolio:

• Single sign-on (SSO) simplifying access across Cisco networking platforms.
• API key exchange/repository, when linked with SSO, making it easier for Cisco networking platforms to connect and exchange data through automation to reduce friction and opportunities for error.
• Cross-platform navigation, delivering more seamless navigation between Cisco networking platforms.
• Common user interface across Cisco networking platforms, bringing greater consistency and ease of use across a customer’s operational functions.
• Cisco ThousandEyes for end-to-end network assurance over any network
• Enhancements to the Meraki dashboard will now support new capabilities for Cisco Catalyst switches including a CLI view, image management, and advanced troubleshooting. 

https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2023/m06/cisco-showcases-vision-to-simplify-networking-and-securely-connect-the-world.html

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NTT selects Fujitsu's 1FINITY Ultra Optical for national core network

NTT has adopted Fujitsu's 1FINITY Ultra optical transport platform as a verification system for use in trials ahead of the construction of the next optical core network covering Japan. 

Fujitsu received the system order in June 2023 and will deliver it in the first half of fiscal 2023.

The 1FINITY Ultra Optical platform leverages an open architecture system that enables flexible network construction. It is anticipated that the system, which will operate nationwide, will deliver transmission speeds of 1.2 Tbps for metropolitan areas such as Tokyo, and transmission speeds at 800 Gbps connecting remote locations, etc., optimized according to the use and the needs of the region.

NTT has proposed its IOWN concept for information and communications infrastructure. To support this concept, Fujitsu is building an All-Photonics Network (APN) that uses photonics in all areas of the communications network. APN features large capacity transmission, diminished delay, and low power consumption which greatly exceeds conventional communication technologies and will be used for the next optical core network which NTT Group will start to construct nationwide.

Fujitsu’s “1FINITY Ultra Optical System” meets the specifications required by the IOWN Global Forum for Open APN and can provide optimum solutions such as world-class high-capacity transmission of 1.2 Tbps per optical wave and long-distance transmission at 800 Gbps. In a world-first, the optical transmission equipment also uses liquid cooling to reduce CO2 emissions from the entire system by 60% compared to conventional products. Fujitsu is offering the "1FINITY Ultra Optical System" globally.

https://www.fujitsu.com/global/about/resources/news/press-releases/2023/0606-01.html

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OIF launches four new projects

 OIF has commenced work on four new projects.

• Management of Smart Optical Modules Project: Current system management paradigms require tight coupling between hosts and pluggable optical modules. As module capabilities advance, host software must be updated. This additional development cycle delays the deployment of these advanced capabilities. In multi-vendor environments, it is becoming challenging for the various equipment developers to implement and track all the advanced features implemented by the various module vendors. There is also the requirement by end users for disaggregation of IPoDWDM solutions. This new OIF project will result in a white paper describing a new paradigm that decouples the cont
  
  
  roller from host software development, enabling faster realization of advanced module capabilities.
• Energy Efficient Interfaces Framework Project: This umbrella framework project will study energy-efficient electrical and optical interfaces (sometimes referred to as “Linear” or “Direct Drive”) necessary to support the energy-efficient application requirements prioritized by OIF’s Physical Layer User Group Working Group.
• 800G/1.6T FlexE Project: This project will define interoperable next-generation FlexE specifications for 800G/1.6T PHY rates for mobile backhaul and data center interconnect applications. It will result in the revision of the OIF-FLEXE-02.2 implementation agreement by adding support for 800Gb/s and 1.6Tb/s FlexE PHYs.
• Digital Twin Optical Network as an Enhanced Network Operation Project: Digital twins can enhance and accelerate network transformations, systems and operational process integrations. Verifying the accuracy of configuration or optimization orders provided by Digital Twin Network (DTN) systems is a challenge. This project will result in a white paper that identifies the challenges and technical requirements for digital twin modeling as an enhanced optical network operation. It will specify the relationship between the DTN and network management and control, interface operation, input/output data requirements and data collection – essential steps to broaden the adoption of digital twin use in optical networks.

At last month's hybrid Q2 2023 Technical and MA&E Committees meeting held in Budapest, Jia He, Huawei Technologies Co., Ltd., was re-elected as Chair of the Networking & Operations Working Group and Tom Huber, Nokia, was appointed as Physical & Link Layer Working Group Protocol Vice Chair.

http://www.oiforum.com

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Ciena's quarterly sales rise 19% yoy to $1.13 billion

Ciena reported revenue of $1.13 billion or its fiscal second quarter ended April 29, 2023, up 19% as compared to $949.2 million for the fiscal second quarter 2022.

Ciena's GAAP net income for the fiscal second quarter 2023 was $57.7 million, or $0.38 per diluted common share, which compares to a GAAP net income of $38.9 million, or $0.25 per diluted common share, for the fiscal second quarter 2022.

Ciena's adjusted (non-GAAP) net income for the fiscal second quarter 2023 was $110.4 million, or $0.74 per diluted common share, which compares to an adjusted (non-GAAP) net income of $76.4 million, or $0.50 per diluted common share, for the fiscal second quarter 2022.

"We delivered outstanding results for the fiscal second quarter as we were able to ship more to customers with continued improvements in supply chain dynamics," said Gary Smith, president and CEO of Ciena. "We are confident in our ability to take market share given our backlog and strategic industry position with market-leading technologies and an expanding addressable market."

Some highlights

• One customer represented 10%-plus of revenue for a total of 10.9% of revenue
• Cash and investments totaled $1.34 billion
• Cash flow from operations totaled $229.8 million
• Headcount totaled 8,385
• Non-telco represented 42% of total revenue in fiscal Q2 2023
•  Direct Cloud Provider revenue increased 20% YoY
• Service Provider revenue increased 22% YoY
• Routing and Switching revenue increased 19% YoY in fiscal Q2 2023, reflecting strong contribution across the routing portfolio
• APAC revenue increased 60% YoY and 19% QoQ driven by strength in India

https://investor.ciena.com/financials/quarterly-results#section=quarterly

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Digital Realty raises $1.1 billion, sells Texas data center

Digital Realty raised approximately $1.1 billion of gross proceeds from the sale of approximately 11 million shares issued under the company's at-the-market program, including 3.5 million shares to be issued pursuant to forward sales agreements. 

In addition, Digital Realty sold a data center in Texas for approximately $150 million. The data center was originally acquired in 2012 and leased as a powered shell facility. The property was sold at a 4.4% cap rate, based on projected 2023 net operating income and generated a capital gain of approximately $88 million. 

Digital Realty expects to use the combined proceeds from the asset sale and ATM issuance to pay down debt and ultimately to fund ongoing and future investment activity. 

"Consistent with our goals for this year, this transaction enables us to recycle capital from a non-core asset at an attractive valuation," said Digital Realty Chief Investment Officer Greg Wright. "We are consistently enhancing our portfolio by redeploying proceeds into strategic investments with premium growth prospects. Institutional demand for data centers remains robust and we look forward to continued execution on our capital plan." 

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Apple's new M2 Ultra leverages its UltraFusion silicon interposer

Apple introduced its flagship M2 Ultra system on a chip (SoC) built using a second-generation 5-nanometer process and boasting 134 billion transistors — 20 billion more than M1 Ultra.

The M2 Ultra chip leverages Apple’s UltraFusion® silicon interposer technology to connect the die of two M2 Max chips. The design connects the dies with more than 10,000 signals, providing over 2.5TB/s of low-latency interprocessor bandwidth. 

The M2 Ultra supports up to 192GB of unified memory capacity with 800GB/s of memory bandwidth — twice that of M2 Max. The GPU can be configured with 60 or 76 next-generation cores. The Neural Engine features 32 cores delivering 31.6 trillion operations per second.

Apple says the M2 Ultra CPU is 20 percent faster than M1 Ultra, the GPU is up to 30 percent faster, and the Neural Engine is up to 40 percent faster.

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Intel shows PowerVia chip backside power delivery

Intel announced the first implementation of its PowerVia backside power delivery technology in a product-like test chip.

PowerVia solves the growing issue of interconnect bottlenecks in area scaling by moving power routing to the backside of a wafer.

Intel said PowerVia was tested on its own internal test node to debug and ensure good functionality of the technology before its integration with RibbonFET in Intel 20A. After fabrication and testing on a silicon test chip, PowerVia was confirmed to bring a remarkably efficient use of chip resources with greater than 90% cell utilization and major transistor scaling, enabling chip designers to achieve performance and efficiency gains in their products.

Intel plans to introduce PowerVia on the Intel 20A process node in the first half of 2024.

“PowerVia is a major milestone in our aggressive ‘five nodes in four years’ strategy and on our path to achieving a trillion transistors in a package in 2030. Using a trial process node and subsequent test chip enabled us to de-risk backside power for our leading process nodes, placing Intel a node ahead of competitors in bringing backside power delivery to market,”  states Ben Sell, Intel vice president of Technology Development.

https://www.intel.com/content/www/us/en/newsroom/news/powervia-intel-achieves-chipmaking-breakthrough.html#gs.zm1e02

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Charter to deploy Nokia CBRS RAN to offload from leased network

Charter Communications will deploy Nokia’s AirScale equipment portfolio, including 5G RAN, to increase network capacity to Spectrum Mobile customers in its trial markets in the United States. The deployment will offload traffic from its leased mobile network.

This is the first win for Nokia in the Multiple System Operator (MSO) space. Charter will deploy Nokia’s 5G RAN products, including strand mounted radios for CBRS, baseband units, and a newly developed 5G CBRS Strand Mount Small Cells All-in-One portfolio on the company’s assets, which will help Charter continue to deliver mobile traffic in strategic locations across its 41-state footprint while providing customers with the best possible 5G service experience.

 

Charter’s Spectrum Mobile, which currently has 6 million customer lines as of Q12023, claims to be the fastest growing mobile provider in the United States.

Shaun McCarthy, President of North America Sales at Nokia, said: “This news builds on our more than 20-year relationship working with Charter to enhance its network. We are excited to expand its current trial to additional select metropolitan markets in the US, enabling an enhanced user experience for Spectrum Mobile subscribers. This win strengthens Nokia’s leadership position in the MSO space for 5G wireless deployments.”

https://ir.charter.com/static-files/3943ccd3-dd07-4dfa-9946-a9afd1bef557

• Charter Communications, the second largest U.S. cable operator, launched its Spectrum Mobile service in July 2018 as a mobile virtual network operator (MVNO) using Verizon’s nationwide network.

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Adva Network Security and Quantum Optics demo QKD

Adva Network Security and Quantum Optics Jena demonstrated entanglement-based quantum key distribution (QKD) technology to establish a secure optical communication channel between data centers owned and operated by the Thüringer Landesrechenzentrum (TLRZ), the IT service provider for the state’s administration in Thuringia. 

Adva Network Security said that by delivering quantum-secured keys to the encryptor of the high-bitrate optical channel, the team was able to show how data traffic could resist quantum attacks on the link between the data centers. The demo represents a significant leap forward for quantum-safe communications made in Germany and is a crucial step toward bolstering critical infrastructure security to protect against the real and impending threat quantum computers pose to private data.

The field trial leveraged Quantum Optics Jena’s entanglement-based QKD technology and Adva Network Security’s ConnectGuard Layer 1 technology to demonstrate a consistent quantum-secure connection between TLRZ data centers. Using the unique properties of quantum entanglement, the system generates a secure method for key exchange impervious to data interception. During one day of operation, the system sends over 20 billion entangled photons and creates 11.84 million secure bits to generate more than 46,000 256-bit keys for encryption services like Adva Network Security’s Layer 1 encryption. The keys generated by the QKD system will always remain secure, even if a potential attacker attempts to interfere with or eavesdrop on the entangled quantum states during transmission. Adva Network Security’s Layer 1 encryption technology ensures comprehensive protection for all network layers and operates with line speeds of 10Gbit/s or 100Gbit/s.

“Quantum computers may soon render traditional encryption methods obsolete, making safeguarding sensitive data an urgent priority for governments the world over,” said Kevin Füchsel, CEO at Quantum Optics Jena. “With our field trial, we’re demonstrating just how effective our innovative entanglement-based QKD system, ELVIS, is at securing data in transit. What’s more, Adva Network Security’s ConnectGuard™ encryption technology enables our solution to function effectively over DCI links, significantly enhancing data integrity for sectors including government, defense, healthcare and financial services. Our combined product offering made in Germany is the world’s most mature and robust solution for securing optical communications.”

“As quantum computer technology evolves, vast amounts of currently unbreakable encrypted information will become vulnerable to hackers,” noted Michael Roth, GM of Adva Network Security. “That’s why this trial is so crucial. Working together with Quantum Optics Jena, we’ve demonstrated how our technology can be embedded within communications networks to secure the most highly-sensitive data of financial institutions, defense organizations, healthcare and many other sectors. Our standardized key exchange protocol assured seamless integration with the QKD technology from Quantum Optics Jena, showing how easy it is to upgrade our security solution to QKD and highlighting the future-proof nature of our products.”

https://www.advasecurity.com

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GTT boosts its security offerings

GTT Communications is rolling out the following enhancements to its fully managed cloud-and premise-based cybersecurity service offerings for enterprises: 

• 
  GTT MDR: New heightened service-level agreement (SLA) for GTT’s Managed Detection and Response (MDR), assuring enterprises with 24/7 threat monitoring and ongoing assurance that investigations will take place within 15 minutes. The service combines Security Information and Event Management (SIEM) technology with human intelligence to provide enterprises with 24/7 threat monitoring and ongoing assurance that investigations will take place within 15 minutes. 
• GTT DDoS Mitigation: New standard service option for enterprises with dedicated DDoS Mitigation infrastructure to augment and uplift their network security to help protect against the effects of large-scale/complex attacks. The service detects DDoS attacks targeting customers’ networks and directs internet traffic to the closest of GTT’s 10 global DDoS scrubbing centers, where any malicious traffic is dropped while legitimate traffic is allowed to flow unimpeded to its destination with little to no added latency.

“As cyberthreats continue to grow in scale and complexity, managed and professional services can help enterprises both overcome the cyber skills gap and strike the right balance between risk management, cost and performance,” said Todd Kiehn, senior vice president of Strategy & Product, GTT. “We recognize that flexibility and speed are key to how enterprises can build out successful and adaptable network security strategies. Our new heightened SLA for MDR ensures customers that any security issues triggering an alert are investigated within 15 minutes to rapidly identify potential threats.”

https://www.gtt.net

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Deutsche Telekom and Ericsson test Network Slicing

Deutsche Telekom and Ericsson conducted a network slicing proof-of-Concept (PoC) that enables enterprise accounts to automatically connect to private cloud services. The proof-of-concept was implemented on a 5G Standalone (SA) testbed in a Deutsche Telekom lab with the enterprise smart phones connecting to a predefined set of private cloud applications.  Ericsson provided the 5G Core network, Radio Access Network (RAN) and end-to-end orchestration including URSP.

Deutsche Telekom said the demo provides for automated configuration, provisioning and end-to-end orchestration of the enterprise slicing service order. 

Within this integrated solution, a slice design tool enables an enterprise’s IT administrators to flexibly manage, monitor and analyze slice performance. Via a single management interface, the administrator can customize, order, configure and manage an end-to-end network consisting of enterprise smart phone devices, a 5G network slice and private cloud services. Enterprise employees can then access private cloud-based applications on their enterprise smartphone device via a secure network slice over the public network. The enterprise administrator can also make use of a variety of analytics services in the integrated solution to monitor and analyze the use of the customized network slice.

The features and capabilities of the integrated solution include an app-level configuration of the device using Mobile Device Management (MDM) and User Equipment Route Selection Policy (URSP). In addition, the Business Support System (BSS) exposes TM Forum APIs for integration into third party management interfaces. That way, external management systems can incorporate slice ordering and management. 

“This successful demonstration highlights the potential of advanced 5G network slicing capabilities to enable unique and flexible services for enterprises, customized to specific needs,” states Kaniz Mahdi, SVP Technology Architecture & Innovation at Deutsche Telekom. “Working with our partners, we are committed to transferring this innovation into compelling solutions for our enterprise customers’ digitalization journeys.”  

Daniel Leimbach, Head of Customer Unit Western Europe at Ericsson, says: “As communication service providers and enterprises globally seek to make full use of 5G’s advanced features, network slicing holds the key to creating sustainable business cases. This Proof of Concept shows that the ability for enterprises to create and tailor network slices easily to fit their applications and user needs is no longer something for the future, but something for today. We’re looking forward to continuing this great partnership with Deutsche Telekom to deliver on the real promise of 5G.” 

https://www.telekom.com/en/media/media-information/archive/network-slicing-solution-1040466

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NTT’s Edge Advantage report finds accelerated adoption

More than 8 out of 10 organizations expect their dependency on third-party edge services to grow over the next two years, according to a new report issued by NTT Ltd.

The NTT Edge Advantage Report finds that nearly 40% of those planning edge deployments are concerned that current infrastructure capabilities won’t be able to support the promise of edge.

“The growing need for faster processing and a distributed digital architecture is creating increased pressure on networks and infrastructure capabilities, driving both accelerated adoption of private 5G and edge,” said Shahid Ahmed, EVP New Ventures & Innovation at NTT Ltd. “Achieving the edge advantage will require end-to-end solutions with holistic management and uncompromising accountability. Only through utilizing these solutions can enterprises gain instant access to data, where it is generated or collected, with near zero latency, and harness it to drive powerful business outcomes.”

“The growing need for faster processing and a distributed digital architecture is creating increased pressure on networks and infrastructure capabilities, driving both accelerated adoption of private 5G and edge,” said Shahid Ahmed, EVP New Ventures & Innovation at NTT Ltd. “Achieving the edge advantage will require end-to-end solutions with holistic management and uncompromising accountability. Only through utilizing these solutions can enterprises gain instant access to data, where it is generated or collected, with near zero latency, and harness it to drive powerful business outcomes.”

https://services.global.ntt/en-us/insights/2023-edge-advantage-report

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Renesas acquires Panthronics for NFC chips

Renesas has acquired Panthronics AG, a fabless semiconductor company headquartered in Graz, Austria, specializing in high-performance wireless products. 

Panthronics offers advanced NFC chipsets and software that are easy to apply, small-in-size, and highly efficient for payment, IoT, asset tracking and wireless charging.

Renesas said the deal brings  in-house capability to instantly capture growing market opportunities for NFC. With Panthronics’ NFC expertise and skilled engineering talent, Renesas will be able to offer customers a compelling breadth of connectivity solutions in growing areas spanning fintech, IoT, and automotive spheres.

“We are excited to welcome the Panthronics team to Renesas, and announce 13 Winning Combinations showcasing the technological synergy between the companies on the same day,” said Sailesh Chittipeddi, Executive Vice President & General Manager of the Embedded Processing, Digital Power and Signal Chain Solutions Group. 

https://www.renesas.com/br/en/about/press-room/renesas-completes-acquisition-panthronics

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Australia’s NBNco offers uncapped satellite data plan

 Australia’s non introduced a Sky Muster Plus Premium satellite service with the following characteristics:

• Uncapped Data Usage
• Capability to Burst Faster: for the first time our 25/5Mbps wholesale plan can offer burst download speeds of up to 100Mbps enabling users to enjoy higher-quality online experiences, from learning and working at home to connecting with their communities and loved ones.
• 
  Lower nbn wholesale pricing: making it even more accessible to people in regional and rural Australia.

Gavin Williams, nbn Chief Development Officer for Regional and Remote, states: “With the rapid growth in data usage, people live their digital lives with more connected devices for remote work, online learning, social media, e-commerce and entertainment. Homes and small businesses in remote areas require access to more data to help cater for their needs.”

https://www.nbnco.com.au/corporate-information/media-centre/media-statements/nbn-unveils-nbn-sky-muster-plus-premium-offering-even-more-connectivity-options-for-australia

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Viasat completes Inmarsat acquisition

Viasat completed its previously announced acquisition of Inmarsat for its spectrum, satellite, and terrestrial assets, including 19 satellites in space spanning Ka-, L- and S- bands. 

The combined company will continue to be led by Mark Dankberg as Chairman and CEO and Guru Gowrappan as President. Viasat also reconfirmed that its new global international business headquarters will be in London. Corporate headquarters will continue to be in Carlsbad, California. Further decisions regarding organizational structure and leadership will be determined as part of the ongoing integration process.

Inmarsat’s shareholders received an aggregate of $551 million in cash, subject to adjustments, and approximately 46.36 million shares of common stock. The cash portion of the purchase price was reduced from $850 million to $551 million after Inmarsat paid a $299 million special dividend to its shareholders in April 2022. The shares issued to the Inmarsat shareholders at the closing represent an aggregate of approximately 37.6% of the total shares of Viasat common stock on a fully diluted basis, with no Inmarsat shareholder receiving shares representing 10% or more. In connection with closing of the acquisition on May 30, 2023, Viasat drew down on approximately $1.35 billion of its committed financing package, including a $617 million secured term loan facility and a $733 million unsecured bridge loan. The lower financed amount reflects in part the reduction in the cash component of the purchase price.

https://news.viasat.com/newsroom/press-releases/viasat-completes-acquisition-of-inmarsat

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Cyxtera Initiates Pre-Arranged Chapter 11

Cyxtera entered into a pre-arranged Chapter 11 process in the U.S. Bankruptcy Court for the District of New Jersey.

Cyxtera said it is continuing to operate its unique global platform of highly interconnected data centers normally and without interruption. Customers also continue to have access to their Cyxtera data center sites and equipment as usual.

Nelson Fonseca, Cyxtera’s Chief Executive Officer, said, “We have thoroughly evaluated options to enhance value for the Company and our stakeholders. Together with our Lenders, we determined that initiating this process is the best path forward for Cyxtera and our stakeholders as we pursue new opportunities for growth. We appreciate the significant support from our Lenders, which will enable us to move through this process as quickly as possible. We are confident these steps will enable us to position our business for the long term as we continue serving our customers with innovative services and the highest levels of support.”

www.CyxteraRestructuring.com

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Dell'Oro: Data center switch sales at record level

Global sales of Data Center Switches witnessed an impressive growth of more than 20 percent in 1Q 2023, representing the fourth consecutive quarter of record-breaking revenue levels, according to a new report from Dell'Oro Group. The growth was broad-based across all major vendors, with Arista and Nvidia leading the pack and significantly outpacing market performance.

"The substantial growth was primarily fueled by the ongoing release of the backlog as supply conditions continue to improve. In fact, some vendors reported 40 percent reduction in lead times on certain products compared to the prior quarter," said Sameh Boujelbene, Vice President at Dell'Oro Group. "Additionally, the market started to see some positive impact of list price increases implemented by most vendors about a year ago, as newer backlogs started to gradually get released.

"Revenue growth was broad-based across all major vendors, with Arista leading the pack by growing three times faster than the overall market and gaining over six points of revenue share in the quarter. Another standout performer was Nvidia, surpassing market growth and gaining more than one point of revenue share during the quarter," added Boujelbene.

Additional highlights from the 1Q 2023 Ethernet Switch – Data Center Report:

• Cloud Service Providers accounted for nearly two-thirds of the revenue growth in the quarter, while the Large Enterprise segment contributed to the remaining share.
• Further fueled by Artificial Intelligence (AI) applications, shipments of 200 Gbps and 400 Gbps switches constituted approximately 25 percent of the revenue and 20 percent of the total shipments. Although Google, Amazon, Microsoft, and Meta continue to drive the majority of deployments, we observed an increasing number of shipments directed toward Tier 2/3 Cloud Service Providers and large enterprises.

https://www.delloro.com/news/higher-prices-and-backlog-release-catapulted-data-center-switch-sales-to-a-new-record-level-in-1q-2023/

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Broadcom's networking revenue up 20%, VMware deal on track

Broadcom reported Q2 consolidated revenue of $8.7 billion, up 8% year-over-year, and adjusted EBITDA margin of 65%.

"Broadcom's second quarter results were driven by demand for next generation technologies from hyperscale, while enterprise and service providers continued to sustain," said Hock Tan, President and CEO of Broadcom Inc. "Our third quarter outlook projects year-over-year growth, reflecting continued leadership in networking as we support a measured ramp into large scale AI networks."

Some highlights

• Semiconductor solutions revenue increased 9% yoy to $6.8 billion
• Infrastructure software solutions grew 3% yoy to $1.9 billion
• Networking revenue was $2.6 billion, up 20% year-on-year, representing 39% of semiconductor revenue. There are 2 growth drivers here (1) continue growth in merchant deployments of Tomahawk and Jericho switching and routing (2) strong hyperscaler growth in AI infrastructure solutions from compute offload and networking, including 800G solutions.
• About 15% of the semiconductor business currently supports generative AI use cases and the company expects this to reach 25% next year.
• Broadband revenue grew 10% year on year to $1.2 billion. Growth drivers included 10G PON and DOCSIS solutions.
• Broadcom’s CEO Hock Tan also noted that the company’s pending acquisition of VMware is on track and the completion is expected this fiscal year.

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VMware's revenue rises 6% to $3.28 billion, SaaS at 37% of sales

VMware reported revenue for 1Q FY 24 of $3.28 billion, an increase of 6% from the first quarter of fiscal 2023. GAAP net income for the first quarter was $224 million, or $0.52 per diluted share, down 9% per diluted share compared to $242 million, or $0.57 per diluted share, for the first quarter of fiscal 2023. Non-GAAP net income for the first quarter was $644 million, or $1.49 per diluted share, up 16% per diluted share compared to $542 million, or $1.28 per diluted share, for the first quarter of fiscal 2023.

Highlights

• Subscription and SaaS revenue for the first quarter was $1.22 billion, an increase of 35% year-over-year.
• Subscription and SaaS revenue constituted 37% of total revenue for the quarter.
• Subscription and SaaS ARR for the first quarter was $4.85 billion, an increase of 32% year-over-year.

“We are pleased with our Q1 results. This past quarter we demonstrated momentum and engagement with our customers and partners as we continue to help them transform their businesses and unlock the full potential of multi-cloud,” said Raghu Raghuram, CEO, VMware. “

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Dell Technologies sees infrastructure sales drop 20% to $7.6 billion

Dell Technologies reported 1Q FY24 revenue of $20.9 billion, down 20%. The company generated operating income of $1.1 billion and non-GAAP operating income of $1.6 billion, down 31% and 25%, respectively. Diluted earnings per share was $0.79, and non-GAAP diluted earnings per share was $1.31, down 42% and 29%, respectively. Cash flow from operations was $1.8 billion.

"We executed well against a challenging economic backdrop," said Chuck Whitten, co-chief operating officer, Dell Technologies. "We maintained pricing discipline, reduced operating expenses, and our supply chain continued to perform well after normalizing ahead of competitors. We announced a record number of innovations, making good on our promise to extend Dell APEX as-a-Service capabilities across our full portfolio and simplifying multicloud and edge computing for our customers."

Highlights

• Infrastructure Solutions Group delivered first quarter revenue of $7.6 billion, down 18%. Storage revenue was $3.8 billion, with demand growth in the company's software-defined storage and leading midrange storage array. Servers and networking revenue was $3.8 billion, with demand growth in AI optimized high value workload servers. Operating income was $740 million, or approximately 10% of Infrastructure Solutions Group revenue.  
• Client Solutions Group delivered first quarter revenue of $12 billion, down 23%. Commercial revenue was $9.9 billion, and Consumer revenue was $2.1 billion. Operating income was $892 million, or approximately 7% of Client Solutions Group revenue.

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