Communications equipment suppliers are ready to report on the second quarter. Earnings in the next few quarters will be interesting to watch with major shifts occurring in telecom spending, including fear over AT&T's recent spending slowdown and questions about the impact of Software Defined Networking (SDN).

Despite optimism among some analysts, there are a number of negative trends in networking and telecom gear. in addition to the concern about a slowdown in spending at AT&T, the merger trend among large service providers means the overall pool of customers is shrinking. In addition, the impact of SDN, in which a new crop of software-only technology companies provides networking gear that can run on cheaper, standard server platforms, could put margin pressure on traditional networking companes. 

MKM Partners Managing Director and communications analyst Michael Genovese issued a note this morning saying he believes data networking fundamentals are still sound. He expects strong earnings from a number of companies including Juniper (JNPR), Infinera (INFN), and JDSU (JDSU), on a back of a continued optical and core network buildout. MKM also expects good results from Ciena (CIEN), Finisar (FNSR), and Cisco (CSCO).

This entry was posted on Wednesday, July 16, 2014 at 14:21 pm and is filed under Infrastructure & SDN, Investing.
Keywords: Earnings, Networking, Cisco, Alcatel-Lucent, Infinera, F5 Networks

The Rayno Report model portfolio, based on an analysis of growth stocks that trade with a reasonable valuation based on a price/earnings/growth (PEG) ratio, continues to outperform the major indices with an average gain of 14% this year (or 14.4% to be exact).

In January we announced our new picks, as we do every year. The portfolio has a record of beating the market overall since 2004, and it has never had a down year. Our lower risk PEG-based model portfolio has roared ahead this year, showing the staying power of an approach that uses valuation discipline. The overall 14.4% gain on the portfolio would have been achieved with a fully invested portfolio. With only 50% of the cash invested, (as we recommended at the start of the year), the portfolio would be up 7.2%. 

In contrast, the S&P 500 Index is up 6.18% year-to-date (YTD), which means the portfolio beat the S&P 500 even if half of it had been kept in cash. This adheres to our lower risk approach of investing less as the market climbs. 

This entry was posted on Thursday, July 10, 2014 at 14:51 pm and is filed under Investing.
Keywords: Model Portfolio, Stocks, Apple

Virtualization and Software Defined Networking (SDN) are taking over data-center networks, but many question whether the technology is ready to penetrate deeply into large, global service provider networks. An executive at at least one major service provider says we still may be many years away from that happening. 

James Walker, the president of the Cloud Ethernet Forum (CEF) and Vice President, Managed Network Services at global service provider Tata Communications, says his current focus is on connecting large-scale Ethernet services and data centers using existing technology, because SDN is not quite ready for prime time.

"SDN becomes a way for my network to interface with other networks," said Walker in an interview with the Rayno Report earlier this week. "Generally we don't have customers coming to us saying, I have a fully fledge SDN environment and I want to connect it. They say they are going to deploy it. Our Etherhet environment is very well suited to it because it's deterministic. We have the flexibility to respond to their peaks and spikes."

This entry was posted on Wednesday, July 09, 2014 at 13:46 pm and is filed under Infrastructure & SDN, Interviews.
Keywords: Cloud Ethernet Forum, SDN, Ethernet, Tata Communications, PBB

Remember how Google was the company would make money without being evil? Google's WiFi snooping may well be the biggest black mark on Google's aspirations of non-evilness.

This week, the Supreme Court declined to throw out Google's appeal that it broke the law by snooping unsecured data from private WiFi networks as its cars crawled the streets snapping pictures of everybody's homes. A federal appeals court ruled in 2013 that the U.S. Wiretap Act protects the privacy of information on unencrypted in-home Wi-Fi networks. Google is facing class-action lawsuits on the matter.

This entry was posted on Tuesday, July 01, 2014 at 14:05 pm and is filed under .
Keywords: WiFi, Google, Evil, Supreme Court

Facebook's new "Wedge" platform is the chatter of the networking world. Why is that? It encapsulates the new genre of powerful, open networking platforms, including Software Defined Networking (SDN) and Network Function Virtualization (NFV).

First off, what is it? Facebook has announced that they are building the "Wedge," their own top-of-rack networking switch. As I wrote last week on SDNcentral, this came just before several subsequent SDN announcements by companies such as Pluribus Networks and Extreme, all focused on their SDN strategy.

This entry was posted on Tuesday, July 01, 2014 at 13:25 pm and is filed under .
Keywords: Facebook, Data Center, Wedge, SDN

(Editor's Note: This is a guest post by Michael Bushong, Vice President of Marketing, Plexxi. He regularly publishes his writing on the Plexxi Blog.)

Software Defined Networking (SDN) has quickly spawned what appears in some respects to be a cottage industry of would-be disruptors to the more traditional networking approaches. With hundreds of millions of dollars in venture capital flowing into the space and dozens of infrastructure companies now vying to be the preeminent SDN vendor, how can anyone -- customers or investors -- predict who the breakout players will be?

 SDN is a How, Not a What

The most basic thing that potential customers and investors need to understand is that SDN reflects how solutions work, not what their fundamental purpose is. Whether or not something is SDN is almost immaterial to the role that the device or solution plays. Indeed, most common networking problems can be solved with both legacy solutions and their SDN counterparts. 

Think about SDN like the type of engine in a car. For most buyers, it’s a detail that gets weighed along with how much cargo space there is and how many cup holders are available. For others, the distinction between a V6 and a V8 is hugely important. But even in the latter case, the type of engine typically serves as a proxy for how much power or acceleration the car has. The real objective is not the engine but what the engine provides.

This entry was posted on Friday, June 27, 2014 at 15:33 pm and is filed under .
Keywords: SDN, Venture Capital, TAM

Pluribus Networks seems to be stacking up partners as fast as its server switches. Today the Software Defined Networking (SDN) startup announced a deal with Arrow Electronics to co-produce a Pluribus-branded E-68 server switch that combines networking, computing, virtualization, and analytics capabilities for the data center. 

Packaged in "white box" fashion, in which Pluribus supplies the SDN software and Arrow ships the hardware, the product will come in a one-rack unit (1RU) form factor featuring Broadcom (BRCM) Trident II switch chips and Intel Xeon multi-core processors, loaded with Pluribus' Netvisor virtualization software. It's targeted at "top-of-rack" switching applications in large data centers, where large numbers of servers need to be networked together. 

Pluribus Networks, which was named one of the Top Ten Startups in our recent "SDN Revolution" report, now has a big roster of partners and distributors including Arrow, Oracle (ORCL), Super Micro, and Tibco software. The strategy is to leverage the hardware and distribution expertise of partners, while supplying sophisticated software that handles virtualization and application-aware networking. 

This entry was posted on Tuesday, June 24, 2014 at 20:24 pm and is filed under Infrastructure & SDN, Investing.
Keywords: Pluribus, SDN, Server Switch, Arrow Electronics, Oracle, Cisco

In a move that demonstrates the growing urgency for traditional networking technology vendors to adopt open approaches to Software Defined Networking (SDN), Extreme Networks (EXTR) has joined the Open Daylight, joining Oracle and Flextronics as recent additions to the movement.

Extreme Networks said that it will develop its own SDN controller based on open standards. Oracle announced on June 5 that it will join Open Daylight and integrate the open source platform into its Solaris operating system. Oracle said the goal is to more easily build SDN applications into its software. 

This entry was posted on Tuesday, June 24, 2014 at 13:14 pm and is filed under .
Keywords: Open Daylight, Open Source, OpenFlow, Extreme, Cisco, HP, Oracle

Net neutrality has always been gray to me, not black or white. Wired points this out in a nice article making the rounds today.

It's a popular topic of debate that has recently flared up with new proposed Federal Communications (FCC) rules as well as proposed cable mega-mergers

The truth is, it may be a fruitless existential argument, like arguing whether or not you have the right to hamburger neutrality -- the right to buy an industry standard hamburger (McDonalds?)

This entry was posted on Monday, June 23, 2014 at 13:36 pm and is filed under .
Keywords: Comcast, Netflix, Net Neutrality

Davra Networks came out of stealth mode this week, with a plan that seems to be a public relations dream. Take the Internet of Things (Iot) and combine it with business intelligence (BI) and cloud, and then nab a partnership with Cisco Systems (CSCO), and announce your launch. That's Davra Networks in a nutshell. 

This week, as I detailed on, Davra unveiled the RuBAN platform, a cloud services targeted at vertical industries that need help in the management and sorting of data they will gather from networked devices, whether it be from farm equipment or school buses. 

This entry was posted on Friday, June 20, 2014 at 15:40 pm and is filed under Mobile, Applications, M2M.
Keywords: Davra Networks, Cisco Systems, Internet of Things, IoT, Business Intelligence

Shareable Social Garners $118,000 Seed Round
  • Company: Shareable Social
  • Description: Creates and posts social media content for small and midsize businesses.
  • Website:
  • Type: Accelerator
  • Amount: $118,000
  • Round: Seed
  • Purpose: The company will use the proceeds to accelerate its initial development.
  • Investors:

Adtonik Receives $20,000 Seed Funding Round
  • Company: Adtonik
  • Description: See how your TV ad placements affect mobile ad engagement.
  • Website:
  • Type: Accelerator
  • Amount: $20,000
  • Round: Seed
  • Purpose: The company will use the proceeds to accelerate its initial development.
  • Investors:

Flawk Obtains $20,000 Seed Financing
  • Company: Flawk
  • Description: Engage your Twitter followers with synchronized media sharing, fan-curated questions, and one-on-one interaction.
  • Website:
  • Type: Accelerator
  • Amount: $20,000
  • Round: Seed
  • Purpose: The company will use the proceeds to accelerate its initial development.
  • Investors: