AvidThink

Research and Analysis

AvidThink 2023 November Newsletter

Closing out AvidThink Events and Travel

We loved seeing more of you at KubeCon+CloudNativeCon (Chicago) and AWS re:Invent (Las Vegas) in the past weeks. Just two more to go! This week, we’ll be at Silverlinings (Questex) Cloud Executive Summit in Sonoma (California Wine Country). We look forward to seeing our friends at Upperside’s SD-WAN/SASE next week in Paris. Then it’s a wrap for 2023 — until next year!

Quick Notes from the Road

  • AWS re:Invent was another awesome show with sooo many announcements: Amazon Q AI assistant, Gen AI Bedrock expansion, Kuiper satellites, serverless everything, AI Trainium2, and Arm Graviton4 silicon. We’ll provide a more detailed write-up later. Meanwhile, check out our quick takes for NextGenInfra.io here. And here’s a video collaboration with Leonard Lee, fellow analyst from neXt Curve, on the ground during Day 3.
  • KubeCon+CloudNativeCon 2023 is always a good show to track the latest in the cloud native space. We have a write-up with our takeaways on Silverlinings: abstractions on abstractions, sustainability, observability, cost management, edge and AI.

We continue to encounter GenAI everywhere and in nearly every conversation. It shows no signs of abating (at least not in 2023), and the fracas at OpenAI over Thanksgiving added more drama and spice to conversations.

AI and Cloud Data Center Networking Site: Coming Soon

GenAI and other AI/ML workloads feature in our upcoming AI and Cloud Data Center Networking report, the successor to prior years’ SmartNICs and Infrastructure Acceleration reports. We will cover the impact of next-gen workloads on data center networking and the evolution of SmartNICs/IPUs/DPUs, and … SuperNICs (yes, there is such a thing, ask Nvidia)!

Watch for the launch later this week!

Private Wireless Resource Site: Launched!!!

In the meantime, we launched our Private 5G resource site in early November. Check it out if you haven’t, and download our latest report on private wireless. You’ll hear from thought leaders at Dell, Spirent, Aarna Networks, Napatech, HPE Aruba, Boingo, Airspace, Interdigital, JMA Wireless, Juniper, and NTT, along with insights from fellow analysts at 650 Group, Dell’Oro, and neXt Curve. We thank our sponsors for making the site and report possible.

Other NextGenInfra Sites and Reports

Linux Foundation Networking just launched AvidThink’s report on open source in networking. We cover the history of open-source networking and discuss why creating value requires active engagement with open ecosystems and adopting open processes. Download a free copy of our report Shared Code, Shared Future on Linux Foundations’ website.

Also, check out content from recent NextGenInfra.io sites:

Recent Events/Webinars

Missed recent events AvidThink was on? Here are links to the recordings:

Now, a quick rundown of November news:

BREAKING NEWS

We’ll dig into this next month, but we had to include this breaking news item.

AT&T Picks Ericsson for Open RAN Deployment
AT&T committed to buying $14 billion of Ericsson software and hardware over the next five years. Ericsson will, in turn, continue to adopt open interfaces on their RAN products. This will displace existing Nokia equipment in the network. AT&T plans to run 70% of its wireless network traffic over open RAN-capable platforms by late 2026. Open RAN sites powered by Ericsson and Fujitsu will start operating in 2024.

6G
ITU Adopts Resolution for 6G Development
The International Telecommunication Union (ITU) adopted a resolution to guide the development of a 6G standard. This is part of the ITU’s mission to organize the world’s communications networks, focusing on spectrum management and technical standards. The resolution is a step towards advancing 6G at the World Radiocommunication Conference (WRC-23).

Wireless Operators Weigh 6G ROI, Eye Consumer Use Cases
AT&T’s EVP Chris Sambar expressed concerns over the economics of 6G at the Brooklyn 6G Summit. Speakers highlighted 6G use cases linked to metaverse adoption and extended reality (XR) in enterprises. The new standard is expected to improve link performance by 50% and offer better capacity and energy efficiency.

6G Deployment to Utilize Existing 5G Cores, Focus on Software
NTT DoCoMo’s chief standardization officer, Takehiro Nakamura, indicated at the Brooklyn 6G Summit that 6G deployment might use existing 5G cores, primarily driven by software updates. However, upgrades in the RAN network and additional spectrum will be needed, particularly for indoor IoT-type networks.

5G

Vodafone UK Proposes 5G SA Deployment, Aided by Three UK Merger
Vodafone UK is advocating for its merger with Three UK, leveraging research showing economic benefits of accelerated 5G SA deployment. The merger could add $9.2 billion in economic value by 2030 and allow a $13.7 billion investment in nationwide SA deployment.

Japanese and Chinese Operators Lead Telco Transformation, ABI Research
ABI Research identified Chinese and Japanese operators, including China Telecom, China Mobile, and NTT DoCoMo, as leaders in telco transformation. These operators excel in patent filings and participation in standard-setting initiatives, particularly in the enterprise market and 5G SA networks.

Verizon Demonstrates Improved Public Safety Services with 5G Network Slicing
In tests with Axon Enterprises, Verizon demonstrated 53% faster time to first frame, 5% higher start percent, 68% lower latency and 83% less jitter with a dedicated public safety network slice.

Italian Operators Bring 5G Connectivity to Rome’s Metro Lines
Telecom Italia (TIM), Iliad, WindTre, and Vodafone Italy have equipped Rome’s ATAC metro lines with 5G connectivity. This initiative aligns with the 2030 Digital Agenda, aiming to enhance telecom services for tourists and locals in Rome.

Ericsson teams with Canadian universities to improve network security
Ericsson is collaborating with three Canadian universities on a government-funded project using AI techniques to automate and improve 5G network security against zero-day attacks.

Open RAN

$13 Million in Open RAN Grants Announced by US Administration
The Biden administration allocated $13 million in grants for open RAN development, focusing on testing procedures. Recipients include universities, government contractors, and companies like Parallel Wireless and PhasorLab. These grants are part of the $1.5 billion Wireless Innovation Fund to advance security and energy efficiency in open RAN.

German Operator 1&1 Reiterates Commitments to Open RAN, Faces Deployment Challenges
German operator 1&1, using Rakuten for open RAN deployment, blames delays on incumbent operator Vodafone’s tower unit prioritizing Vodafone’s buildout but still plans to launch 5G mobile service with less than 100 active open RAN antennas.

AI

Cisco Foresees a Surge in AI Business for Upcoming Fiscal Year
Cisco anticipates significant business growth from AI in the coming year, as reported by EVP Jonathan Davidson. The surge in data from AI learning models will benefit Cisco, as much of this AI data is expected to run over business networks, offering new opportunities for Cisco’s network solutions.

AWS Launches AI-Powered Chatbot Q at Re:Invent Conference
Amazon Web Services introduced ‘Q,’ an AI-powered chatbot, at its re:Invent conference. Q can answer complex questions and is customizable for organization-specific apps and software. It can index data and learn business-specific structures, concepts, and product names.

Private Networks

2028 Olympics Organizer Considers Private Wireless Networking
LA28, the non-profit organizing the 2028 Olympics in Los Angeles, is exploring using private wireless networks to serve 10 million spectators and 12,000 athletes. They will closely observe the Paris 2024 Olympics to decide on a potential private network partnership between private companies and public operators.

Federated Wireless Builds Private LTE Network for Tukwila Schools
Federated Wireless has constructed a private LTE network for students in Tukwila, Washington, utilizing CBRS spectrum. This network, funded by a $1.4 million grant, provides free internet access to 1200 students in areas with poor connectivity.

Kajeet Launches Neutral Host Private Wireless Platform
Kajeet has launched a neutral host private wireless platform targeting various institutions and property owners. The platform supports 4G LTE voice and data services, with plans to transition to 5G. It currently works with T-Mobile and AT&T, with hopes to include Verizon in the future.

Open APIs

Brazilian Operators Launch Security-Focused Network APIs
Brazilian operators Claro, TIM Brasil, and Telefonica’s Vivo have launched three network API services as part of the GSMA’s Open Gateway initiative. These APIs, including Number Verify, SIM Swap, and Device Location, are designed to combat digital fraud in mobile commerce and financial institutions.

Cloud

Broadcom Begins Layoffs Post-VMware Acquisition
Broadcom has started layoffs following its $69 billion acquisition of VMWare, with WARN notices indicating 401 VMware employees being laid off in Georgia and Colorado. Experts predict the total job cuts could impact up to 20,000 employees.

FinOps Foundation Developing Universal Cloud Billing Spec
The FinOps Foundation is unveiling the FinOps Open Cost and Usage Specification (FOCUS) version 1.0, aimed at creating a universal cloud billing spec. This initiative involves collaboration with hyperscalers and service providers, simplifying budgeting for cloud usage.

Deutsche Telekom Prioritizes DIY Clouds Over Public Alternatives
Deutsche Telekom, along with BT and other operators, show a preference for their do-it-yourself (DIY) clouds, with DT deploying its 5G core on the TCaaS platform and developing a unified layer to support multiple vendor network functions.

NaaS Model Gains Traction Among Developers
The network-as-a-service (NaaS) model is becoming increasingly attractive. Analysts see network-as-a-service enabling payment flexibility, visibility, and developer focus on solutions, forecasted as an $80-150 billion market by 2030 but requiring more standardization. Amazon Web Services views NaaS as a significant shift, providing developers more visibility into the network.

AWS and Alianza Partner for Voice and Data Services in the Cloud
Amazon Web Services (AWS) partners with Alianza to integrate Alianza’s cloud communications platform with AWS’ infrastructure. This collaboration aims to enable operators to deploy next-generation voice and data services cost-effectively.

Amazon’s Project Kuiper to Provide Private Networking with AWS
Amazon’s Project Kuiper LEO satellite constellation will collaborate with AWS to offer private networking for enterprises, operators, and public sector customers. This will enable private data movement into cloud regions without relying on the public internet.

Gartner Revises 2024 Cloud Spending Forecast Upwards
Gartner has revised its 2024 cloud spending forecast, now expecting a global public cloud end-user services spending of $678.8 billion. This $6B adjustment is due to increased spending in various cloud service categories.

Google Cloud CTO Focuses on AI and Sustainability
Google Cloud CTO Will Grannis discussed the company’s focus on AI and sustainability. Emphasis is on integrating AI into services efficiently and sustainably, with an approach to match AI workloads with the right resources for power efficiency.

Developers Urged to Understand Cloud Resources for Cost Management
Expense management company Tangoe emphasizes the importance of developers understanding cloud resources to help enterprises avoid excess costs and optimize cloud resource usage.

VMware collaborates with Intel, IBM to incorporate AI into the private cloud
VMware, in collaboration with Intel and IBM, is developing an AI stack that allows customers to build and deploy AI models using VMware Cloud Foundation, Intel’s AI software suite, and Intel’s hardware. This is part of a broader effort to incorporate AI services into private clouds and data centers.

Edge

Red Hat Unveils Edge Platform for IoT Devices
Red Hat introduced an edge computing platform designed for resource-constrained devices. This platform, featuring a minimal footprint, supports IoT devices and aims to provide consistent operations using the same tools as centralized environments like lightweight Kubernetes and Edge Linux OS variants.

Wrapping Up

And it’s a wrap! See you back here in early January 2024. In the meantime, we wish you and your loved ones a safe and wonderful holiday season while keeping in our thoughts those struggling during this period. May we all have a better 2024 to look forward to!

The AvidThink team