AvidThink

Research and Analysis

AvidThink 2023 May Newsletter

We’re still in the thick of Spring conference season. Roy was at FutureNet World 2023 in London, then Big 5G in Austin, followed by ONUG Spring in Dallas. He’ll be in Las Vegas for client meetings at Cisco Live next, then at OpenInfra Summit in Vancouver, and finally at the SmartNICs Summit in San Jose before closing out the season.

FutureNet World 2023 CxO Panel

First, congratulations to all the FutureNet World award winners and to Enrique Blanco for winning Technology Leader Award for outstanding contribution throughout their career.

Those who weren’t present can watch the on-demand footage of Roy’s panel discussing the future of telcos with Enrique Blanco (CTIO,Telefónica), Scott Petty (CTO, Vodafone Group), Greg McCall (Chief Networks Officer, BT), and Joe Cumello (SVP, GM, Blue Planet | Ciena) on FutureNet World’s site.

Also, fun onsite interviews with Susan White, Netcracker and Niall Norton, Amdocs. And, there’s an even more fun behind-the-scenes reel with Niall that he might share if you ask nicely.

Big 5G Pre-Event Workshop

The pre-event workshop at Big 5G organized by the Open Networking Foundation (ONF), Telecom Infra Project (TIP), and Open Compute Project (OCP) was well attended, with standing room only for majority of the half-day event. Presenters, panelists, and the audience engaged in lively conversations around the role of open in telco, RAN, and edge, including a session on the state of the RAN intelligent controller (RIC).

NextGenInfra Latest Showcases

First, check out our New Middle Mile report — already downloaded and read by Tier-1 CSP CTOs, Chief Network Officers, and Data Center CEOs. Find out why the CEO of a SASE company calls this one of the most insightful reports of 2023. At the very least, the report will give you a new perspective on the state of metro connectivity.

Here’s other showcases that allow you to experience the energy and buzz even if you weren’t there:

Recent Webinars

Missed our recent webinars and panels? Catch up on:

Reach out to us at [email protected] for collaboration opportunities on upcoming topics like enterprise edge and cloud networking (SD-WAN, SASE, SSE, MCN, ZTNA), private 5G, disaggregated/cloud-native networks, and infrastructure security.

Now, let’s dive into the news!

6G

6G Should Prioritize Net Zero Alongside Sustainability

Bhushan Joshi, Head of Sustainability and Corporate Responsibility at Ericsson and Chair of the NextG Alliance’s Green G Working Group, has emphasized the need for 6G to be sustainable from inception. In a recent speech at the Big 5G Event, he highlighted increasing extreme weather events and consequent industry concern about climate change. The Green G Working Group aims to assess 6G’s environmental impact and energy use, intending to embed sustainability in 6G from the outset.

5G

5G’s Overlooked Advantages: Sustainability, Efficiency

Chad Wilkerson, T-Mobile’s Director of Sustainability and Infrastructure Sourcing, underscored the overlooked sustainability and efficiency benefits of 5G at Light Reading’s Big 5G Event. He indicated that energy-efficient equipment could cut power consumption by up to 90% and advanced antenna systems could lessen the need for additional cell sites, potentially saving up to 50% in leasing costs. T-Mobile has been striving in this direction, managing to reduce its network energy consumption by 14.4% between 2019 and 2021.

Verizon Expands its 5G Network Coverage

Wells Fargo analysts believe Verizon is ramping up its 5G network expansion and coverage to keep pace with competitors T-Mobile and AT&T. T-Mobile’s utilization of Sprint’s 2.5 GHz network spectrum combined with its low-band 5G spectrum has enhanced its coverage, prompting Verizon to improve its coverage. Recently, Verizon announced a seven-year $200 million contract with ATN International’s Commnet Wireless to extend its network in Southwestern U.S. Additionally, it signed an agreement with DigitalBridge’s tower company Vertical Bridge to construct new cell towers in select U.S. locations where they currently do not exist.

Telenor Finalizes Multi-Vendor 5G Network Slicing Test

Telenor has successfully completed a multi-vendor network slicing test using software from Enea, Oracle, and Casa Systems, and hardware from HPE, Intel, and Nokia. While Telenor doesn’t currently offer commercial 5G network slicing, these trials are seen as crucial. Given its significant collaborations with vertical enterprises, it’s important for Telenor to demonstrate network slicing capabilities. However, a commercial offering is likely to be held back until there’s a strong market demand for this technology.

Open RAN

Dish Network: RIC to Greatly Enhance Energy Efficiency

Marc Rouanne, Chief Network Officer at Dish Network, announced at the Big 5G event that the company will commence work on the RAN Intelligent Controller (RIC) in the third quarter. The RIC, to be developed by VMware, provides a platform for hosting network management software applications. Rouanne expects Dish to double its energy efficiency and improve spectrum efficiency once the RIC is deployed.

Analyst Firm: O-RAN and vRAN Revenues Growing Slower than in 2022

The growth rate of revenues from virtualized RAN (vRAN) and open RAN (O-RAN) is slowing compared to 2022, according to the Dell’Oro Group. In Q1 2023, vRAN revenues grew by 20% to 30%, and O-RAN revenues increased by 10% to 20%, a slowdown compared to Q1 2022 when O-RAN revenues more than doubled. Early O-RAN adopters like Rakuten and Dish Network have carried out large-scale deployments involving hundreds of thousands of radios, but these have now stabilized. Nearly a hundred operators are investing, testing, and planning O-RAN deployments both in the U.S. and internationally.

Mavenir Secures Open RAN Contract in India

Mavenir has clinched a contract with Bharti Airtel, India’s second-largest operator, to provide 5G equipment for up to 10,000 rural sites. Initially, Mavenir will focus on 2,500 sites before scaling up. Mavenir, originally a software provider for open RAN deployments, has expanded to include hardware and systems integration.

Intel Dominates O-RAN Market

A Counterpoint report reveals that all O-RAN deployments to date rely on Intel’s x86-based COTS servers and use Intel’s proprietary FlexRAN software architecture. However, as more chip designers introduce their own silicon, this scenario may change.

Mavenir Raises $100M to Expand Automation Capabilities

Open-RAN firm Mavenir has secured an additional $100 million in funding, led by tech-focused private equity firm Siris, Mavenir’s largest equity holder, and two other strategic partners. The funds will enhance Mavenir’s artificial intelligence and automation capabilities. This complements the $250 million Mavenir raised in 2022. Despite this, Dell’Oro Group’s analyst Stephen Pongratz notes that Mavenir, though progressing in RAN, holds a small market share.

Private Networks

Federated Wireless, AWS, T-Mobile, and Cal Poly Inaugurate 5G Innovation Lab

Federated Wireless, Amazon Web Services (AWS), and T-Mobile have partnered with California Polytechnic State University (Cal Poly) to establish a 5G Innovation Lab. The lab, built and managed by Federated Wireless and supported by the AWS cloud, aims to augment campus operations, improve IT services, and accelerate interdisciplinary collaboration.

AT&T: Enterprises Seek Private Infrastructure

AT&T CEO John Stankey announced at a Morgan Stanley conference that enterprises desire private wireless infrastructure. They aim to combine this private infrastructure with a wide area network, ensuring continued employee connectivity even outside their premises. AT&T plans to phase out legacy products, including its traditional copper infrastructure.

Verizon Foresees Private Network Push in Late 2023 and 2024

Verizon Business CEO Kyle Malady, during CTIA’s 5G Summit, indicated that Verizon plans to bolster its private network business later this year and in 2024. Verizon is collaborating with prominent banking institutions to simplify device management for remote workers. The Department of Veterans Affairs, Cleveland Clinic, and the NFL are testing private 5G networks from Verizon.

Anterix Sells 900 MHz Spectrum Licenses to LCRA

Anterix has agreed to sell a selection of 900 MHz spectrum licenses to Texas Utility’s Lower Colorado River Authority (LCRA) for $30 million. LCRA intends to use the spectrum to construct a private LTE network, replacing its existing narrowband network that also employs 900 MHz spectrum. LCRA operates dams, power plants, and over 5,400 miles of transmission lines, providing wholesale electricity to more than 30 municipalities and electric cooperatives.

Edge

Dell’Oro Group Reduces Forecast for MEC Market

Analyst firm Dell’Oro Group has cut its forecast for the multi-edge computing (MEC) market by over 20%, citing a slower than expected market development. The firm attributes this to several factors: a sharp decline in China’s Mobile Core Network market in Q1, slower enterprise adoption of MEC, competition from hyperscale cloud providers, the incoming Wi-Fi 7 standard, and a lack of applications with a well-defined return on investment.

AI

IBM’s WatsonX Aims to Scale Enterprise AI Use

IBM’s Watson has evolved into a platform designed to help enterprises escalate their usage of AI foundation models and generative AI. The new version, WatsonX, aims to facilitate code deployment and more, enabling businesses to harness the benefits of generative AI, according to IBM CEO Arvind Krishna.

AI Puts Telecom Jobs at Risk

AI threatens numerous telecom jobs, as functions can be performed by artificial intelligence. Rakuten, for instance, operates a nationwide mobile network with a 200-person operations team, contrasting with legacy operators that require teams of 6,000 to 7,000 employees. Legacy telcos such as AT&T, T-Mobile, and Verizon cut 45,000 jobs combined in the U.S. market in 2022.

AI Drives Rise in GPU Cloud Specialists

AI is accelerating the growth of GPU specialists, becoming a vital growth factor for Microsoft and Google Cloud. Companies such as CoreWave, Lambda Labs, RunPod, and Arc Compute are focusing on GPU computation and exploring methods to provide GPU resources at a lower cost.

HPE Reports Surge in Customer Interest in AI Solutions

Hewlett Packard Enterprise CEO Antonio Neri announced during the company’s fiscal Q2 investor call that they have observed a “significant uptick” in customer interest in AI-based solutions. This surge resulted in $800 million in additional AI orders for the quarter. Neri added that HPE has secured multiple contracts from large cloud providers and enterprise customers.

Dell and Nvidia Collaborate on Project Helix

Dell Technologies and Nvidia unveiled a collaboration on Project Helix. This joint initiative aims to deliver generative AI to on-premises environments using pre-built tools on Dell and Nvidia infrastructure and software. This project aims to empower enterprises to leverage their proprietary data for AI benefit. The announcement was made at the Dell Technologies World conference in Las Vegas.

Cloud

IBM’s Hybrid Cloud Mesh Incorporates NS1 Assets

IBM has introduced its new Hybrid Cloud Mesh product, designed to simplify application deployment. This product integrates automation assets from NS1, a network automation firm IBM acquired in February. The aim of Hybrid Cloud Mesh is to automate application deployment across multi-cloud environments, a process which could typically take months due to manual sequencing by the cloud operations team.

Microsoft’s Sovereign Cloud Could Benefit Regulated Companies

Increasing data privacy regulations globally and in the U.S. may benefit from Microsoft’s Cloud for Sovereignty. Launched nearly a year ago, this product serves government and public sector customers needing public cloud benefits while complying with strict regulatory requirements. Microsoft’s Cloud for Sovereignty uses “sovereign landing zones” to help customers manage specific requirements on a country-by-country or state-by-state basis, simplifying public cloud configuration.

Broadcom May Lose Customers Post VMware Acquisition

Analyst firm Gartner advises VMware customers to consider alternatives as Broadcom faces regulatory hurdles in its planned $61 billion acquisition of VMware. Following customer complaints about significant cost increases after Broadcom’s acquisition of CA Technologies in 2018 and Symantec’s enterprise security business in 2019, Gartner recommends preparing exit strategies. Nevertheless, Broadcom has pledged to support VMware products and refrain from raising prices, also committing to a $2 billion investment for VMware product R&D and partnerships.

Cloud Repatriation is a Part of the Cloud Journey

Cloud repatriation, the transfer of workloads from public to private clouds, is increasingly speculated due to the rising costs of cloud services. An IDC survey revealed over 80% of organizations have relocated applications or data from public clouds to on-premise data centers or private clouds, and half plan to do the same within the next two years. However, cloud experts maintain that repatriation is part of the cloud journey and companies are refining their cloud portfolio needs.

Open Source

Linux Foundation’s FOCUS Aims to Streamline Cloud Financial Management

The Linux Foundation has introduced subsidiary, FinOps Open Cost and Usage Specification (FOCUS), aimed at streamlining cloud financial management. FOCUS, with founding members from Google Cloud and Microsoft, plans to develop an open specification for cloud cost, usage, and billing data presentation. Initially targeting Infrastructure-as-a-Service (IaaS) providers, FOCUS plans to extend its scope to include Platform-as-a-Service and on-premise costs.

Microsoft Announces General Availability of Azure Linux

Microsoft has announced the general availability of Azure Linux, an open-source container host OS for the Azure Kubernetes Service. Azure Linux has been in use internally at Microsoft for two years and in public preview since October 2022. Optimized for Azure, Azure Linux aims to simplify deployment and management of container workloads using Microsoft tools for developers.

Linux Foundation’s New Project Incorporates Meta’s Terragraph and Evenstar

The Linux Foundation has initiated a new open-source project, “LF Connectivity”, featuring Meta’s Terragraph and some software from Meta’s Evenstar. Terragraph, Meta’s Fixed Wireless Access (FWA) service, delivers multi-gigabit speed data using 60 GHz unlicensed millimeter-wave spectrum. Evenstar is an initiative formed to design and manufacture open RAN radios. Meta is contributing the Open M-Plane software component of the Evenstar hardware design for the RAN configuration and management.

Meta Releases its AI Technology LLaMA as Open Source Software

Meta, Facebook’s parent company, has released its artificial intelligence (AI) technology, LLaMA, as open source software. LLaMA powers online chatbots and its code was released to academics, researchers, and others in February. Meta aims to influence and accelerate technology evolution by sharing its AI engine, a strategy differing from rivals.

SD-WAN

Graphiant Report Suggests MPLS and SD-WAN Fall Short of Business Expectations

Network-as-a-service startup Graphiant, founded by Khalid Raza, released a report indicating MPLS and SD-WAN are not fully satisfying enterprise needs, thus shifting attention towards Network-as-a-Service (NaaS) solutions. Surveying 200 North American network architects and administrators, the report highlights that the rise of remote work and difficulties in connecting with external entities and public cloud are prompting enterprises to consider alternatives. About 62% of respondents indicated they were ‘somewhat likely’ to transition to NaaS.

Cisco Alerts Customers about Expired Certificate Issue Impacting SD-WANs

Cisco has issued a warning to customers about an expired certificate bug affecting its Viptela SD-WAN hardware and causing service interruptions. Several Viptela SD-WAN devices, including the vEdge 100, 1000, and 2000, are experiencing device failure problems. Cisco has identified that an expired certificate is disrupting control plane connections, which in turn affects data plane connections leading to service loss.

Wrapping Up

And…it’s a wrap! See you back here in early July (unless you’re on vacation) or at a conference in the next few weeks!

The AvidThink team