Yesterday, The Rayno Report hosted a social chat On "Big Data and Efficiency" under the #greencloud moniker. Our goal was to discover how businesses are using big data applications to drive efficiency, and where that will lead us in the future. 

Here's the idea: Across all industries, there is massive amounts of waste. By running big data applications in the cloud, not only can we learn new things, but we can eliminate waste and drive efficiency. Now, also imagine if these big data clouds ran on data centers fueled by renewable sources of energy. 

This entry was posted on Tuesday, November 25, 2014 at 17:41 pm and is filed under .
Keywords: Green Energy, Big Data, CrowdChat, Social Chat, #Greencloud

As you may know, sustainability is emerging as a key component of cloud technology and data centers. Whether it's Facebook, Amazon, or BMW, companies are in search of more efficiency in their business and technology practices. The Rayno Report will be teaming with leaders in sustainable data-center technology to lead a #GreenCloud social chat on Monday, Nov. 24 at 2 PM ET

This chat will focus around how green cloud services can help companies with big data needs without growing energy consumption in power-hungry data centers. 

Some of the questions we'll address:

  • What are the key elements of the #GreenCloud?
  • How can business build a better big data process and use green energy at the same time?
  • What are the big trends you see in Fortune 500 companies in their attitude toward a #GreenCloud?

This social chat will be hosted on the CrowdChat platform and moderated by Rayno Report Publisher & Chief Analyst, R. Scott Raynovich. Our featured guest speaker includes Pankaj Fichadia from the Open Data Center Alliance. The chat is sponsored by Verne Global.

To follow the chat, you can follow on Twitter at #GreenCloud, or better yet log on to CrowdChat to see our instant #GreenCloud community at the app link: 

This entry was posted on Sunday, November 23, 2014 at 20:26 pm and is filed under Infrastructure & SDN, Applications.
Keywords: Green Energy, #GreenCloud, Verne Global, Open Data Center Alliance

Washington D.C. -- Wedge Networks, a cloud security startup based in Calgary, Alberta, this week launched Cloud Network Defense, a cloud-based security platform that uses deep packet inspection (DPI) to provide anti-malware and security services in the cloud.

Wedge has a unique business model. Rather than being sold as a separate security appliance or even software package, Wedge works with service providers to set up a security cloud service, and then takes a cut of the revenue that the operator generates from selling cloud security services. The target customer is Small and Medium Businesses (SMBs), who don't want to hassle with installing their own security software or services. 

Wedge does this by running the security services as Network Function Virtualization (NFV) on standard server hardware, hosted on a service provider's networks. By running as a cloud service, the customers can order anti-malware, anti-spam, parental control, and other services controllers by calling the service provider, which can instantly provision the service. 

This entry was posted on Thursday, November 20, 2014 at 13:14 pm and is filed under Infrastructure & SDN, Applications, Investing.
Keywords: Security, NFV, Wedge Networks, Cloud Services

Washington D.C. -- Verizon is working on a large trial of "white boxes" that use commodity server technology to deliver next-generation networking and telecom services, according to several sources.

"Verizon has made a massive push for bare metal," said one source involved in the trial who asked not to be named because of his involvement. "Bare Metal" is another term referring to the Software Defined Networking (SDN) trend of implementing networking technology on white box server platforms.

"They have a huge initiative under way," says the source. "They can reduce their costs massively."

The vendors for Verizon include Cumulus for the Linux-based network operating system (OS), Pica8 for switching software, and Juniper for routing and switching technology that helps tie the network together with VXLAN technology, according to two separate sources close to the trial. Cumulus and Pica8 were identified as leading SDN startups in our recent SDN Revolution report, which predicted some of the current activity. 

This entry was posted on Wednesday, November 19, 2014 at 14:37 pm and is filed under .
Keywords: SDN, Verizon, Cisco, Juniper

Washington D.C. -- Guess what: One of the pioneers and inventors of Ethernet technology, Bob Metcalfe, believes that Net Neutrality and the regulation of the Internet is a colossal mistake.

"Right now the FCC [Federal Communications Commission] is being asked by the White House to invade this party we are having here," said Metcalfe, speaking here at the Metro Ethernet Forum's (MEF) GEN14 conference. "They are playing with fire. They are inviting the government to come in and regulate the Internet."

Metcalfe likened the federal government's efforts, as well as those by Net Neutrality supporters such as Google and Yahoo, as a decision that that the Internet was "done."

This entry was posted on Tuesday, November 18, 2014 at 14:38 pm and is filed under .
Keywords: Net Neutrality, Google, Bob Metcalfe, FCC

The rumor mills of Silicon Valley are working overtime speculating about why Juniper Networks CEO, Shaygan Kheradpir, suddenly resigned last week from a corner-office job that could have paid him tens of millions of dollars. 

Juniper said in an official statement on November 11 that the Kheradpir resignation followed a review by the board of directors of his leadership and "his conduct in connection with a particular negotiation with a customer."

Kheradpir had started the job on January 1. Several sources close to Juniper say the industry remains somewhat surprised and bewildered about the resignation, pointing out that high-profile CEOs don't typically walk out the door in under 12 months. At least two industry sources also told me that the customer in question was Verizon, where in the past Kheradpir worked as Executive Vice President and Chief Information & Technical Officer.

This entry was posted on Sunday, November 16, 2014 at 18:26 pm and is filed under Infrastructure & SDN, Investing.
Keywords: Juniper, Kheradpir, IP Routers, CEO Resignation, Verizon

Not a bad quarter for Cisco, given that the bottom has fallen out of the emerging markets and service provider business. 

After the market closed yesterday, Cisco (CSCO) announced fiscal first quarter revenue and earnings that beat expectations, but the company also lowered its forward guidance as service providers, emerging markets, and regulatory uncertainty continue to weigh on the networking company's business. (Sometimes we get some headlines right.)

The networking giant announced sales of $12.25 billion for the quarter, which came in above consensus estimates of $12.17 billion and guidance for $12.1-12.2 billion. Pro forma Earnings Per Share (EPS) of $0.54 beat $0.53 consensus estimates.

Gross margins held nicely, coming in at 63.3% vs. consensus of 61.7%, which was greeted as good news by investors, in an environment where pricing pressure is intense. Cisco shares were up about 2% on the news this morning, trading at $25.63.

This entry was posted on Thursday, November 13, 2014 at 16:42 pm and is filed under .
Keywords: Cisco, John Chambers, Earnings, AT&T, Service Providers, Nexus 9000

AT&T's capex announcement is still sending ripples through the networking hardware business. Let's face it, right now it's a telco bloodbath for equipment providers. As we noted on Friday, many telecom equipment suppliers have missed their quarters and have been forced to guide down. This is based on one thing and one thing only: Pricing pressure in legacy proprietary hardware.

Even before the AT&T announcement, suppliers were already under a lot of pressure, as witnessed by one round of vicious pricing cuts experienced by Ciena (CIEN) in the quarter and the daily rumors of more pricing cuts in markets such as IP routers. You have to ask: How is this going to be good for Cisco? The company reports earnings tomorrow, after the market close. Some analysts predict the company will have to lower its guidance, based on service provider market alone.

"We think Cisco's revenue guidance this week may be soft, largely due to the Service Provider market," wrote MKM Managing Director Michael Genovese in a research note.

This entry was posted on Tuesday, November 11, 2014 at 15:08 pm and is filed under Infrastructure & SDN, Investing.
Keywords: Cisco, Routers, Pricing, White Boxes, SDN

Sneaky AT&T. On Friday afternoon, after markets had closed and many business participants had moved on to either cocktails or other weekend plans, the global service provider announced in a release that it was buying Mexican mobile service provider Iusacell for $2.5B and that it will shrink its 2015 capital spending (capex) 15% from the 2014 plan, to $18B in spending.  

The Iusacell deal is just another part of a gigantic trend: Mobile service provider consolidation. The capex news is somewhat more surprising, and it's going to more ripples through the already beleagured service-provider hardware segment. This is a trend we highlighted on Friday: As the service providers look at new mobile architectures and Software Defined Networking (SDN), they are looking to reduce their spending on equipment. We also highlighted concerns about AT&T spending earlier this year

Under the terms of the Iusacell agreement, AT&T will acquire all of Iusacell’s wireless properties, including licenses, network assets, retail stores and approximately 8.6 million subscribers. Grupo Salinas, the current owner of 50 percent of Iusacell, will close its announced purchase of the other 50 percent of Iusacell that Grupo Salinas does not own today. AT&T says this deal will help it cover 400 million Mexico & U.S. consumers. Iusacell covers 70% of Mexico’s population, according to the companies.

This entry was posted on Monday, November 10, 2014 at 13:25 pm and is filed under Mobile, Infrastructure & SDN.
Keywords: AT&T, Capex, Mobile Networks, SDN, Iusacell, service providers

It has not been a great earnings for the networking hardware equipment makers, especially those in the service provider segment. All through the food chain, from chips to routers, margins and sales are on a disappointing trajectory. 

This has been happening for a while, and I predict it will get worse. The advent of Software Defined Networking (SDN) and Network Functions Virtualization (NFV) cannot be underestimated. It's shaking up the way networking hardware and software are delivered, and changing the business models.

If you don't believe this, take a look at some of the earnings signals from the past month:

  • Juniper (JNPR) shares tanked on Q3 earnings, which the CEO called "disappointing." Both revenue and profits came in below expectations. Long-term revenue has been in decline.
  • Ciena (CIEN) shares recently hit a new 1-year low.  Analysts have been slicing price targets. This has mostly been driven by generally weak pricing on optical equipment. 
  • Shares of Cyan Inc.(CYNI) this week hit a new all-time low of $2.76. The company went public in 2013 at $11 per share. 
  • A warning from semiconductor company Microchip (MCHP), which sells into all sorts of end markets ranging from wireless networks to embedded systems, freaked out the semiconductor market. Shares have bounced a little, but the stock chart still looks sketchy. 

This entry was posted on Friday, November 07, 2014 at 17:54 pm and is filed under .
Keywords: Cisco, Juniper, SDN, NFV, Routers
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