Dell Oro and IDC on the Global Service Provider Router and Switch market in 3Q-2021
According to a new report by Dell’Oro Group, the worldwide Service Provider Router and Switch market was flat in 3Q 2021. Market growth was stifled during the quarter due in large part to global supply chain constraints that affected vendors’ ability to deliver products to customers.
“Despite global supply chain problems, the underlying demand to upgrade backbone and 5G transport networks remains strong,” said Shin Umeda, Vice President at Dell’Oro Group. “Service providers are transitioning to new network architectures, and demand for 400 Gbps capable systems and enhanced edge routers offer the networking capabilities required to achieve the transformations,” added Umeda.
Additional highlights from the 3Q 2021 Service Provider Router and Switch Report:
- Cisco was the top-ranked vendor for the first three quarters of 2021, followed by Huawei, Nokia, Juniper, and ZTE.
- The Service Provider Router and Switch market is projected to grow at a slightly lower rate for 2021 due to the negative effect of supply chain constraints.
- The North American region outperformed all other regions with double-digit revenue growth through the first three quarters of 2021.
The Dell’Oro Group Service Provider Router and Switch Quarterly Report offers complete, in-depth coverage of the Service Provider Router and Switch market for future current and historical periods. The report includes qualitative analysis and detailed statistics for manufacture revenue by regions, customer types, and use cases, average selling prices, and unit and port shipments. To purchase these reports, please contact us by email at [email protected].
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
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On December 8th, IDC reported that the worldwide Ethernet switch market recorded $8.1 billion in revenue in the third quarter of 2021 (3Q21), an increase of 7.5% year over year.
Meanwhile, worldwide total enterprise and service provider (SP) router market revenues grew 4.7% year over year in 3Q21 to $3.8 billion. These growth rates are according to results published in the International Data Corporation (IDC) Worldwide Quarterly Ethernet Switch Tracker and IDC Worldwide Quarterly Router Tracker.
Ethernet Switch Market Highlights
The Ethernet switch market’s 7.5% annualized growth in 3Q21 builds on growth in the first half of the year. Year-to-date through the first three quarters of 2021, the market is up 8.6% compared to the first three quarters of 2020. On a sequential basis, the 3Q21 Ethernet switch market revenues were up 9.3% from the previous quarter. And compared to the third quarter of 2019, which was before the COVID-19 pandemic, revenues increased 9.6%, indicating strong organic growth in the market.
From a geographic perspective, the 3Q21 Ethernet switch market had strong results across most parts of the world. In the Asia/Pacific region, the People’s Republic of China increased 18.1% year over year while Japan’s market declined 13.6%. In the rest of Asia/Pacific (excluding China and Japan) (APeJC), the market rose 7.3% year over year, buoyed by the market in Korea growing 22.3% annually. In Europe, results were mixed: Western Europe’s market rose 16.7% year over year with strength from Germany, which grew 18.3%. Central and Eastern Europe’s market rose 3.3%. In the Middle East & Africa, the market declined 8.9% year over year. Across the Americas, the market in the United States rose 5.5%; Canada’s market fell 0.2%, and Latin America’s market increased 16.0% year over year with Brazil rising 43.6% compared to 3Q20.
“The Ethernet switching market continues to demonstrate impressive resilience. Through the first three quarters of 2021, the market has recorded healthy growth compared to 2020, driven by demand in both the enterprise campus and branch markets, as well as from hyperscalers and other cloud providers, which continue to invest in datacenter switching capacity,” notes Brad Casemore, research vice president, Datacenter and Multicloud Networking. “There are some headwinds in the market, though: supply-chain constraints occasioned by the COVID-19 pandemic mean that customers and vendors must plan accordingly as they look to the year ahead, and the pandemic itself continues to sow uncertainty among technology buyers, especially enterprises in certain industries.”
Overall port shipments increased 9.1% with growth in both the non-datacenter and datacenter portions of the Ethernet switch market. Non-datacenter Ethernet switch revenues grew 6.5% in 3Q21 year over year with port shipments increasing 9.1%. The non-datacenter Ethernet switch portion of the market makes up 87.1% of port shipments and 56.7% of total market revenues with the balance of revenues and port shipments in the datacenter portion of the market. In the datacenter segment, revenues rose 8.8% year over year while port shipments increased 8.7%.
The higher-speed segments of the Ethernet switch market continue to see significant growth driven by hyperscalers and cloud providers. Market revenues for 200/400 GbE switches grew 70.4% from the second quarter to the third quarter of 2021 with port shipments more than doubling (+118.1%) on a sequential basis. 100GbE revenues increased 13.8% on an annualized basis while port shipments rose 13.1% year over year. 100GbE revenues make up 24.5% of the Ethernet switch market’s total revenues. 25/50 GbE revenues declined 1.1% annually while port shipments declined 7.8%.
Lower-speed switches, a more mature part of the market, saw mixed results. 10GbE port shipments declined 1.5% year over year with revenue dropping 6.0% annually; 10GbE switches make up 23.0% of the market’s total revenue. 1GbE switches increased 10.5% year over year in port shipments and increased 7.6% in revenue. 1GbE accounts for 34.4% of the total Ethernet switch market’s revenue. 2.5/5GbE switch revenue increased 7.3% sequentially from 2Q21 to 3Q21 while port shipments rose 6.7% quarter-over-quarter.
Router Market Highlights
The worldwide enterprise and service provider router market increased 4.7% year over year in 3Q21 with the major service provider segment, which accounts for 76.4% of revenues, increasing 3.6% and the enterprise segment increasing 8.3%. From a regional perspective, the combined service provider and enterprise router market increased 15.4% in APeJC. Japan’s market declined 6.1% while the People’s Republic of China market was up 2.2% year over year. Revenues in Western Europe were off 1.6% compared to 3Q20 while the Central and Eastern Europe the combined enterprise and service provider declined 4.9% annually. The Middle East & Africa region declined 1.7%. In the U.S., the enterprise segment increased 27.6% while the service provider revenues increased 5.4% giving the combined markets a 10.6% increase on an annualized basis. The Latin American market grew 7.3% on an annualized basis and Canada’s market increased 6.2% year over year.
Vendor Highlights
Cisco finished 3Q21 with a year-over-year decline of 1.3% in overall Ethernet switch revenues and market share of 45.4%. Meanwhile, Cisco’s combined service provider and enterprise router revenue grew 10.7% year over year with enterprise router revenue increasing 14.1% and SP revenues increasing 8.7%. Cisco’s combined SP and enterprise router market share stands at 37.5% in the quarter.
Huawei’s Ethernet switch revenue increased 11.4% on an annualized basis in 3Q21 giving the company market share of 10.7%. The company’s combined SP and enterprise router revenue increased 4.0% year over year giving the company a market share of 28.1%.
Arista Networks saw its Ethernet switch revenues increase 23.0% in 3Q21, bringing its share of the total market to 7.3%.
H3C’s Ethernet switch revenue increased 18.6% year over year giving the company market share of 6.2% in the quarter. In the combined service provider and enterprise routing market, H3C’s revenues grew 31.3%, giving the company a 2.2% market share.
HPE‘s Ethernet switch revenue increased 23.6% year over year in 3Q21, giving the company a market share of 5.8%.
Juniper‘s Ethernet switch revenue, which includes the company’s cloud-managed, enterprise campus Mist portfolio as well as its EX and QFX switch portfolios, increased 25.6% year over year in 3Q21, bringing its Ethernet switch market share to 3.2%. Juniper saw an 11.0% decline in combined enterprise and SP router sales, bringing its market share in the router market to 10.0%.
“Results in the Ethernet switch market were generally strong across the globe, indicating that most regions of the world continue to recover from the COVID-19 pandemic that caused decreased spending on network infrastructure,” noted Petr Jirovsky, research director, IDC Networking Trackers. “The growth in the third quarter of 2021 compared to the same period in 2019 indicates strong fundamentals for the market, which is a positive sign for the future.”
The Worldwide Quarterly Ethernet Switch Tracker and the Worldwide Quarterly Router Tracker provide total market size and vendor shares for the Ethernet switch and router technologies in an easy-to-use Excel pivot table format. The geographic coverage for both the Ethernet switch market and the router market includes nine major regions (USA, Canada, Latin America, People’s Republic of China, Asia/Pacific (excluding Japan & China), Japan, Western Europe, Central and Eastern Europe, and Middle East and Africa) and 60 countries. The Ethernet switch market is further segmented by speed (100Mb, 1000Mb, 2.5Gb/5Gb, 10Gb, 25Gb/50Gb, 50Gb, 100Gb, 200Gb/400Gb), product (fixed managed, fixed unmanaged, modular), and layer (Ethernet switch, ADC). Measurement for the Ethernet switch market is provided in vendor revenue, value, and port shipments. The router market is further split by product (high-end, mid-range, low-end, SOHO), deployment (service provider, enterprise), connectivity (core, edge), and the measurements are in vendor revenue, value, and unit shipments.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
Samsung and Viettel launch 5G RAN trial in Da Nang, Vietnam
Samsung has launched a commercial trial of its 5G radio access network technology with Viettel in Vietnam. The network operator will use Samsung’s advanced 5G solutions to power its commercial network and to enable users in Da Nang to “experience the full benefits of 5G services. The companies will verify the high-performance and advanced capabilities made possible by Samsung’s 4G and 5G network solutions,” Samsung said in this statement.
“Viettel has continued to prioritize building 5G infrastructure in key areas of the city,” said Tao Duc Thang, Deputy General Director from Viettel. “Viettel will join hands to make smart city development in Da Nang more synchronous and modern, to connect broadband in multi-dimensional and safe ways, ensuring best network infrastructure for digital government development, supporting for business and growth of Da Nan,” Tao added.
Viettel is Vietnam’s largest telecom operator. Its 4G infrastructure covers 97% of the Vietnamese population. The company also provided the first 5G service in Vietnam.
Currently, 11 provinces/cities of Vietnam have 5G Viettel coverage (including Hanoi, Bac Ninh, Bac Giang, Vinh Phuc, Dong Nai, Ho Chi Minh City, Ba Ria–Vung Tau, Binh Phuoc, Thua Thien–Hue and Da Nang). People in these areas can experience 5G for free with unlimited capacity, on many 5G support devices. The 5G Viettel network in the above areas has a stable data download speed of 600-700 Mbps, the highest of up to more than 1Gbps.
For the commercial trial in Da Nang, Samsung provided its latest 4G and 5G solutions, which include its baseband unit as well as 64T64R Massive MIMO radios and radios on mid-band spectrum. Samsung’s latest baseband unit offers improved performance with industry leading capacity and throughput, while supporting both 4G and 5G technologies.
Samsung says its 64T64R 5G Massive MIMO radio has the capability to power highly-congested and populated areas, delivering increased coverage and data speeds for enhanced 5G end-user experiences.
“We are excited to work with Viettel to bring immersive and reliable 5G services to consumers, and demonstrate Samsung’s technical leadership in Vietnam. This trial marks a big first step for the two companies’ collaborative efforts in Vietnam,” said Ho Chi Dung, Vice President, Network Business, Samsung VINA. “We look forward to supporting Viettel with a network that is ready to unlock the future of mobile connectivity in Vietnam, and that brings a new level of 5G experiences to the country’s increasing number of mobile users.”
Samsung has successfully delivered 5G end-to-end solutions including chipsets, radios and core. Through ongoing research and development, Samsung drives the industry to advance 5G networks with its market-leading product portfolio from fully virtualized RAN and Core to private network solutions and AI-powered automation tools. The company is currently providing network solutions to mobile operators that deliver connectivity to hundreds of millions of users around the world.
References:
https://news.samsung.com/global/samsung-and-viettel-to-launch-5g-commercial-trial-in-da-nang-vietnam
https://www.channelasia.tech/article/693891/viettel-kicks-off-da-nang-5g-trials-samsung/
Globe Telecom and Linksys deploy dual band mesh WiFi 6 system
Philippines network operator Globe Telecom has partnered with Linksys, a provider of home and business WiFi services, to provide Globe At Home subscribers with Linksys’ Atlas Pro 6 Dual-Band Mesh WiFi 6 system.
All Globe At Home subscribers can now pre-order the Linksys WiFi 6 Mesh device. Powered by Velop Intelligent Mesh, this dual-band WiFi 6 router is designed to allow more than 30 devices to connect across three bedrooms. It is best recommended for subscribers to Globe At Home’s Unli Fiber Up 70 Mbps plan and up, the operator added.
Globe customers can take up the Linksys Atlas Pro 6 (MX5502 – two units) for PHP 1,099 per month or for a one-time payment of PHP 19,995. For a limited time only, every pre-order will come with a bonus Samsung SmartThings camera worth PHP 5,500, Globe said.
“As a company whose mission is to give Filipinos the tools they need to keep winning in life despite all the challenges we face, we are always on the lookout for emerging technologies that can help us do just this,” says Barbie Dapul, Vice President for Marketing of Globe At Home. “From our improved unli, fiber internet plans to Globe Streamwatch 2-in-1 Entertainment Box, and now the Linksys Atlas Pro 6 WiFi Mesh, all of our efforts are geared towards turning Filipino houses into powerhouses; homes that are capable of enriching familial bonds and at the same time, fulfilling dreams.”
The Linksys Atlas Pro 6 makes so much sense especially in the post-pandemic setting with the internet becoming more central in people’s lives and the home becoming a central venue for work, school, gaming, and family entertainment. The WiFi 6 competency is designed to deliver gigabit WiFi speeds to every corner of the home, including balconies and outdoor areas, offering the best home mesh WiFi coverage to date.
“With more people working from home, and attending school online, home networks are becoming increasingly constrained, especially when used for video or other streaming applications,” said Kingsley Chan, Business Development Director, Linksys. “The new Linksys Atlas Pro 6 is designed to address this and provides all of the heavy WiFi lifting at a reasonable price.”
Access to 160 MHz unleashes the true power of WiFi 6 technology—the least-congested channels on the 5 GHz band offer incredibly fast connectivity. Faster peak data rates allow work-from-home, online learning, streaming, and gaming devices to operate simultaneously without diminished bandwidth. Meanwhile, advanced security and parental controls all add to the essentiality of this upgrade to any home.
Additional Features and Benefits
- 4X Faster Speed than WiFi 5, Powerful WiFi 6 Mesh Coverage: WiFi 6 sends and receives multiple streams of data simultaneously, providing up to 4X more WiFi capacity to handle more mobile, streaming, gaming, and smart home devices.
- Increased WiFi Range by 50%: Expands WIFI coverage up and lessens dead spots.
- Ultra-Low Latency: Faster WiFi performance for lag-free online gaming and HD streaming to any device, providing 4X more speed compared to WiFi 5.
- Easy set-up and WIFI controls with Linksys app let you access your network from anywhere, and view or prioritize which connected devices are using the most WiFi.
References:
https://www.globe.com.ph/about-us/newsroom/consumer/better-wider-wifi-globe-at-home-linksys.html
For more information, please visit shop.globe.com.ph/linksys-atlas-pro6-pre-order. You can also download the Globe At Home app and follow Globe At Home on Facebook.
https://www.linksys.com/us/velop/
Google Cloud Intrusion Detection System (IDS) now available worldwide
As more and more applications move to the cloud, cloud network security teams have to keep them secure against an ever-evolving threat landscape. Shielding applications against network threats is also one of the most important criteria for regulatory compliance. To address these challenges, many cloud network security teams build their own complex network threat detection solutions based on open source or third-party IDS components. These customized solutions can be difficult and costly to operate, and they often lack the scalability that is required to protect dynamic cloud applications.
To meet this challenge, Google Cloud has announced the general availability of Google Cloud Intrusion Detection System (IDS) – a cloud-native managed network security solution, where key security capabilities are continuously engineered into our trusted cloud platform. This core network security offering helps detect network-based threats and helps organizations meet compliance standards that call for the use of an intrusion detection system.
Cloud IDS is built with Palo Alto Networks’ industry-leading threat detection technologies, providing high levels of security efficacy that enable you to detect malicious activity with few false positives. The general availability release includes these enhancements:
- Service availability in all regions
- Auto-scaling available in all regions
- Detection signatures automatically updated daily
- Support for customers’ HIPAA compliance requirements (under the Google Cloud HIPAA Business Associate Agreement)
- ISO27001 certification (and in the audit process to support customers’ PCI-DSS compliance requirements by year end)
- Integration with Chronicle, Google’s security analytics platform, to help organizations investigate threats surfaced by Cloud IDS.
Managed network threat detection with full traffic visibility:
Cloud IDS delivers cloud-native, managed, network-based threat detection. It features simple setup and deployment, and gives customers visibility into traffic entering their cloud environment (north-south traffic) and into traffic between workloads (east-west traffic). Cloud IDS empowers security teams to focus their resources on high priority issues instead of designing and operating complex network threat detection solutions.4
“Cloud IDS delivers cloud-native, managed, network-based threat detection. It features simple setup and deployment, and gives customers visibility into traffic entering their cloud environment (north-south traffic) and into traffic between workloads (east-west traffic). Cloud IDS empowers security teams to focus their resources on high priority issues instead of designing and operating complex network threat detection solutions,” according to Google.
“Google Cloud customers will be able to deploy on-demand application visibility and threat detection between workloads or containers in any Google Cloud virtual private cloud (VPC) to support their compliance goals and protect applications,” said Palo Alto Networks Senior Vice President Muninder Singh Sambi in a separate post.
Google Cloud VPC threat detection preceding Google Cloud IDS was limited in its scope, he said. It was also complex to design and implement, and—most crucially for cloud-native businesses—couldn’t scale dynamically to handle cloud bursting events, which are necessary to handle peaks in IT demand.
“Until now, detecting threats in traffic between workloads within the trust boundary of a VPC has been a significant hurdle for cloud network security teams, leading to compliance challenges and blind spots for the Security Operations Center (SOC),” he said.
“The Palo Alto Networks ML-powered threat analysis engine processes over 15 trillion transactions per day, automatically collected from across our global network of firewalls and endpoint agents. The result is 4.3 million unique security updates made per day to ensure you’re covered against the latest threats,” Sambi added.
Google Cloud IDS comes at at time when hyper-scalers, including Google, Amazon and Microsoft, are rapidly increasing their global Wide Area Network (WAN) reach. Businesses are increasingly turning to the public cloud and multi-cloud as more companies pivot to being cloud-native or at least cloud-adjacent.
In December Google announced plans to move into Germany, Israel, and Saudi Arabia with new cloud regions planned for 2022. Those join 29 cloud regions and 88 zones already in use.
Cloud IDS is now available in all regions. It provides protection against malware, virus and spyware, command and control (C2) attacks, and vulnerabilities such as buffer overflow and illegal code execution attacks. Auto-scaling capability dynamically adjusts Cloud IDS as needed when your traffic throughput changes so that you can automatically keep up with your scale needs. Threat signature updates are applied daily so you can stay ahead of the new threat variants. You can now use Chronicle to investigate the threats surfaced in Cloud IDS. With Chronicle’s integration, you can store and analyze Cloud IDS threat logs along with all your security telemetry data in one place so that you can effectively investigate and respond to threats at scale.
Google has patented their IDS, which is defined as follows:
An intrusion detection system for detection of intrusion or attempted intrusion by an unauthorized party or entity to a computer system or network, the intrusion detection system comprising means for monitoring the activity relative to the computer system or network, means for receiving and storing one or more general rules, each of the general rules being representative of characteristics associated with a plurality of specific instances of intrusion or attempted intrusion, and matching means for receiving data relating to activity relative to said computer system or network from the monitoring means and for comparing, in a semantic manner, sets of actions forming the activity against the one or more general rules to identify an intrusion or attempted intrusion. Inductive logic techniques are proposed for suggesting new intrusion detection rules for inclusion into the system, based on examples of sinister traffic.
References:
https://www.paloaltonetworks.com/blog/2021/07/google-cloud-network-threat-detection/
https://patents.google.com/patent/WO2003090046A2
Google Cloud IDS simplifies virtual private cloud network threat detection
Cignal AI: Metro WDM forecast cut; IP-over-DWDM and Coherent Pluggables to impact market
Optical transport equipment deployment faces increasing headwinds as a broad number of network operators embrace IP-over-DWDM in Metro WDM applications, according to the most recent Transport Hardware Report from research firm Cignal AI. The impact of IP-over-DWDM on capex is expected to be moderate until 2023 when implementation of the new approach gathers momentum.
“IP-over-DWDM is a concept two decades old, but technical compromises, operational challenges, and high cost have prevented its widespread adoption. Gen60C 400ZR/ZR+ pluggable optics can solve these problems with availability well-timed to the 400 Gigabit Ethernet investment cycle,” said Kyle Hollasch, Lead Analyst for Transport Hardware at Cignal AI. “Hyperscale data center interconnect will drive early volumes, but service providers – who are responsible for 75% of optical CAPEX – should get on board in 2023 as the cost savings of IP-over-DWDM becomes impossible to ignore.”
| Cignal AI has cut forecasted spending on standalone optical transport hardware by $1.1B in 2025 as operators introduce pluggable coherent optics into routing and switching equipment to replace standalone traditional and compact modular equipment. This decline will be partially offset by greater sales of IP Routing and Switching hardware, open line systems, and long haul WDM, as well as direct sales of coherent optics to hyperscale operators. Clients can read 400ZR IPoDWDM Market Impact and Forecast for more detail. |
| Additional 3Q21 Transport Hardware Report Findings: |
- Total transport hardware (Optical and IP Switching & Routing) revenue declined -2.5%, with sales in China declining double digits for the second consecutive quarter.
- North American optical revenue grew for the 4th consecutive quarter and registered its first quarter of YoY growth since COVID impacted 2Q20. Fujitsu and Cisco led in revenue growth.
- Sales of optical hardware in EMEA increased YoY as the region registered its 6th consecutive quarter of growth. Regional market leaders Huawei and Nokia declined while ADVA, Infinera, and ZTE grew double digits.
- North American packet transport sales grew 6%, its third straight quarter of growth. Nokia and Cisco led this growth.
- Japanese packet sales continued to grow, up nearly 10% YoY. Cisco increased its lead in the region, with YoY sales growth of 42%.
Dell’Oro: SD-WAN market grew 45% YoY; Frost & Sullivan: Fortinet wins SD-WAN leadership award
According to a recently published report by Dell’Oro Group, the worldwide SD-WAN market grew 45% in the third quarter of 2021 compared to the prior year. Cisco maintained the top position for the revenue share for the quarter and was followed by Fortinet and VMware in the second and third spots.
“Enterprises are upgrading network infrastructures at accelerated rates compared to pre-pandemic times, and our research finds that the SD-WAN market is growing at strong double-digit rates in all regions of the world,” said Shin Umeda, Vice President at Dell’Oro Group. “Because SD-WAN is software-based technology, the global supply chain disruptions have had less of an effect compared to hardware-based networking products,” added Umeda.
Additional highlights from the 3Q 2021 SD-WAN Report:
- The SD-WAN market continues to consolidate around a small number of vendors with the top six vendors accounting for 69 percent market share in 3Q 2021.
- Cisco’s quarterly SD-WAN revenue nearly doubled in 3Q 2021 with especially strong growth in the North America region.
- The market for hardware-based Access Routers grew quarterly revenues for the first time in almost two years.
The Dell’Oro Group SD-WAN & Enterprise Router Quarterly Report offers complete, in-depth coverage of the SD-WAN and Enterprise Router markets for future current and historical periods. The report includes qualitative analysis and detailed statistics for manufacture revenue by regions, customer types, and use cases, average selling prices, and unit and port shipments. To purchase these reports, please contact us by email at [email protected].
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
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Separately, Frost & Sullivan recently analyzed the global SD-WAN vendor market, and recognized Fortinet with the 2021 Global SD-WAN Vendor Product Leadership Award for transforming and securing the WAN. Fortinet’s Security-driven Networking approach to SD-WAN enables a wide range of use cases including secure and optimized connections to cloud-based applications. The company’s Secure SD-WAN solution integrates SD-WAN capabilities, advanced routing functions, next-generation firewall (NGFW), and zero trust network access (ZTNA) proxy on a single appliance or a single virtual machine (VM) to deliver secure networking capability. The solution can be deployed in a virtual or physical format on-premise or as a VM in the cloud, with a throughput of 20 Gbps, the highest available in the industry.
Fortinet’s Secure SD-WAN solution, powered by the industry’s first SOC4 SD-WAN ASIC [1.] for accelerated performance, features an unrestricted WAN bandwidth consumption model on appliances that is unique in the industry. Cloud adoption continues to grow, but enterprises have generally struggled to implement and maintain a secure, high-performing WAN that allows for efficient access to cloud-based applications across their user base. With the rise in remote working and with distributed users accessing cloud-hosted applications, the enterprise perimeter is no longer limited to users within the company site. Fortinet’s solution securely connects users to cloud-based applications delivering consistent policies off- and on-network.
Note 1. On Apr 9, 2019 John Maddison, EVP of product and solutions, Fortinet said:
“The WAN edge is now a part of digital attack surfaces, but the edge of your network must never be a bottleneck. For branch offices, the ability to provide best-of-breed WAN Edge — including SD-WAN, WAN optimization, security and orchestration — with optimal performance and security is critical to enable the digital experience. Fortinet’s SoC4 SD-WAN ASIC allows organizations to realize security-driven networking whether they have 100 or 10,000 branch offices.”
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Roopa Honnachari, VP of Research, Network Services & Edge, explained that “Fortinet has been a long-time leader in the network security market, which has enabled them to deliver a solution that tightly knits advanced security features with SD-WAN. Though Fortinet is best known as a security company, they have shown their strength and innovation in networking as one of the top SD-WAN solutions on the market capable of supporting enterprise digital transformation.”
To break the perception that it is a security vendor that also does SD-WAN and to eliminate the risk of not appealing to enterprise infrastructure or network decision makers, the company has consciously focused on highlighting its routing and networking capabilities in marketing activities and proofs of concept.”
With its focus on SD-WAN with integrated advanced security and ability to deliver multiple functions in a single hardware appliance or VM, Fortinet has experienced significant growth in the last three years. The company sells 100% through channel partners, including large telcos, such as AT&T, Verizon, British Telecom, Masergy, GTT, KDDI, Orange, and Windstream, that are looking to add secure SD-WAN to their portfolios. As a result, Fortinet has nearly doubled its revenue.
Honnachari added that “Fortinet has emerged as a formidable competitor in the enterprise secure networking space. While the company has always served as a leading competitor in the network security space, the transformation to adding SD-WAN, NGFW, ZTNA access proxy, and advanced routing capabilities on a single operating system and managed by a single console is highly commendable.”
Gartner’s Magic Quadrant for WAN Edge Infrastructure
Cisco is a leader in this Magic Quadrant. It has two branded offerings: Cisco SD-WAN powered by Viptela and Cisco SD-WAN powered by Meraki. Both include hardware and software appliances, and associated orchestration and management. Cisco also provides optional additional security via the Cisco Umbrella Security Internet Gateway (SIG) platform. Cisco is based in California, U.S., and has more than 40,000 WAN edge customers. The vendor operates globally and addresses customers of all sizes, in all verticals. We expect the vendor to continue to invest in this market, particularly in the areas of improved self-healing capabilities, new consumption-based pricing models and integrated security to enable a single-vendor SASE offering.
Fortinet is a leader in this Magic Quadrant. Its offering is the FortiGate Secure SD-WAN product, which includes physical, virtual appliances and cloud-based services managed with FortiManager orchestrator. Fortinet is based in Sunnyvale, California, U.S., and Gartner estimates that it has more than 34,000 WAN edge customers with more than 10,000 SD-WAN customers. FortiOS v.7.0 combines ZTNA to its broad WAN and network security functionalities to deliver a capable SASE offering. It has a wide global presence, addressing customers across multiple verticals and sizes. We expect the vendor to continue investing in SASE, artificial intelligence for IT operations (AIOps) and 5G functionality.
VMware is a leader in this Magic Quadrant. Its offering is branded as VMware SD-WAN, and is part of VMware SASE. The offering includes edge appliances (hardware and software), gateways — VMware points of presence (POPs) offering various services — and an orchestrator and its Edge Network Intelligence. VMware provides additional optional security via VMware Cloud Web Security and VMware Secure Access. Based in California, U.S., it has more than 14,000 SD-WAN customers. The vendor operates globally and addresses customers of all sizes, and in all verticals. Gartner expects the vendor to continue investments in this market, including enhancing options for remote workers and building out its SASE offering.
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Each year, Frost & Sullivan presents this award to the company that has developed a product with innovative features and functionality that is gaining rapid market acceptance. The award recognizes the quality of the solution and the customer value enhancements it enables.
About Frost & Sullivan:
For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders, and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion. Contact us: Start the discussion.
Contact: Bianca Torres
P: 1.210.477.8418
E: [email protected]
References:
https://www.gartner.com/doc/reprints?id=1-27EGPR7B&ct=210909&st=sb
Nokia exec talks up “5G Advanced” (3GPP release 18) before 5G standards/specs have been completed
Nokia said it is working with Reliance Jio, Bharti Airtel and Vodafone Idea (Vi) in 5G field trials in advance of India’s repeatedly delayed 5G spectrum auction, now scheduled for April-May, 2022. India’s big three telecos are using government spectrum to conduct their 5G field trials.
Nokia’s chief strategy and technology officer Nishant Batra said Wednesday at India Mobile Congress that his company expects to bring in advanced 5G solutions (?):
“We have active engagements with Bharti, VI, and Jio for 5G field trials and have made several public announcements on the milestones achieved. 5G will open up new possibilities that will have a massive impact on society, industry and consumers in India…in the coming years and beyond the 5G era,” said Batra. By the end of 2023, we expect to see release 18 of 3GPP (see the actual 3GPP Timeline below)….or as we prefer to call it: 5G-Advanced. This version of the 5G evolution will develop 5G to its fullest capabilities and is an important stepping-stone to the new interactive use cases we will see on a large scale in the coming 6G era,” he added.
Nishant Batra, Nokia’s Chief Strategy and Technology Officer
3GPP Timeline for Release 17 and 18
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Telcos so far have highlighted that 5G use cases (what are they without URLLC?) can bring in transformation in healthcare, agriculture, education related areas. Batra also gave a glimpse of how human technology interfaces will change in the future and the internet used via smartphones will be “less exciting.”
“By 2030, we expect two of the biggest drivers of network evolution will be human augmentation and digital/physical fusion. Consumer broadband will still be the biggest service, and video will still drive the bulk of Internet traffic,” Batra opined. India is one of the biggest data consumers. “Practically speaking, digital/physical fusion means that by 2030 every physical thing that makes sense to connect digitally will be connected to the Internet,” he added. Nokia, which has its “Conscious Factory” in Chennai, is betting big on machine learning, automation, cloud services and automation. “As enterprises, governments and networks invest in their digital transformations, Nokia is well-positioned to provide the critical networking solutions they need,” Batra said.
Author’s Opinion:
It is premature to start thinking of 5G-Advanced when so many of the needed 5G ITU-R recommendations/standards and 3GPP specs are incomplete. These include: URLLC in the RAN and updates to ITU-R M.2150 for URLLC (to meet the 5G minimum performance requirements specified in ITU-R M.2410), implementation specs/agreements for 5G SA Core network (cloud native/microservices/containers, etc or otherwise), frequency arrangements for terrestrial 5G (ITU-R M.1036 revision to include mmWave frequencies approved at WRC’19), network management, security, roaming, interworking with WiFi 6E, etc.
References:
IMT towards 2030 and beyond (“6G”): Technologies for ubiquitous computing and data services
ATIS: Next G Alliance leadership and 6G Roadmap – Is it premature?
FAA order to avoid interfering with 5G C-Band services; RootMetrics touts coverage vs performance advantages for 5G
The FCC’s C-Band spectrum (between 3.7 GHz and 4.2 GHz) auction earlier this year raised a staggering gross total of $81.17 billion [1.], smashing the previous auction record of $44 billion raised in the AWS-3 auction that ran in 2014-2015 and raised nearly $45 billion. The mid-band spectrum acquired by AT&T, Verizon, and T-Mobile, could mark a fundamental shift to the 5G landscape in the U.S.
Note 1. Verizon spent a jaw dropping $45B at the C-Band auction, AT&T invested about $23B, while T-Mobile spent $9B to augment its already substantial mid-band holdings.
However, there is a huge controversy over use of that band by wireless telcos. The FAA and aviation industry groups say the new 5G service could interfere with radar or radio altimeters, gauges that measure the distance between aircraft and the ground. Information from those aviation devices feeds a number of cockpit safety systems used to land planes, avoid crashes and prevent midair collisions.
Today, the FAA warned that interference from planned use of 5G wireless spectrum posed an air safety risk and could result in flight diversions.
FAA outlined flight restrictions that will take effect on January 5, 2022 when new 5G C-Band services make their debut, even as regulators work with telecom and aerospace companies to avoid U.S. air traffic disruptions. The FAA order would restrict pilots from operating automatic landing and other cockpit systems commonly used in poor weather, to avoid possible interference from 5G in the spectrum range known as the C-band.
The airports that would face potential disruptions will be identified in future notices, according to the FAA order, known as an airworthiness directive. Regulators and technical experts have been working to address concerns about potential safety risks to resolve a long-running dispute between the aviation and telecom industries.
“The FAA plans to use data provided by telecommunications providers to determine which airports within the United States have or will have C-band base stations or other devices that could potentially impact airplane systems,” the agency’s order said.
Data pertaining to 5G signals’ power levels and location are expected to help air-safety regulators limit disruptions, current and former government officials have said. Aviation industry groups have warned of potentially “debilitating impacts” from such flight restrictions, saying in a Nov. 18 letter to the FCC: “Air cargo and commercial air travel will likely cease at night and in any weather where the pilot cannot see the runway.”
- The FAA said it was coordinating with the Federal Communications Commission and wireless companies and has made progress “toward safely implementing the 5G expansion.”
- The FCC said it looks forward to further guidance from the FAA that takes into account a recently proposed solution from telecom companies.
The FAA said the new 5G service could interfere with gauges that measure the distance between aircraft and the ground.
PHOTO: RANDALL HILL/REUTERS
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AT&T and Verizon previously agreed to delay by a month their activation of the fifth-generation wireless service, which provides faster broadband speeds for a range of mobile devices. The 5G C-Band services had previously been due to go live Dec. 5, but the companies agreed to hold off because of the FAA’s aviation safety concerns.
On November 24th, AT&T and Verizon offered to limit the signal power of certain 5G base stations as an additional safeguard. On Monday, a representative from the Aerospace Industries Association told the FCC in a letter the carriers’ proposed limits were “inadequate and far too narrow” to address flight safety concerns.
The U.S. telecom industry has maintained that the new 5G service doesn’t pose a safety threat to aircraft, pointing to other countries’ experience with similar wireless services.
- A Verizon spokesman said today that “there is no evidence that 5G operations using C-band spectrum pose any risk to aviation safety, as the real-world experience in dozens of countries already using this spectrum for 5G confirms.” The person added it was confident the FAA ultimately will conclude C-Band 5G use “poses no risk to air safety.” Verizon says it’s on track to reach 100 million Americans with the new service in the first quarter of 2022 and was confident the FAA’s further analysis will find C-band service “poses no risk to air safety.”
- An AT&T spokeswoman said today that the carrier recognizes the “paramount importance of air safety, and our use of the C-band spectrum will not undermine that imperative.”
In its order, the FAA said it determined that “no information has been presented that shows radio altimeters are not susceptible to interference” by the new 5G service. The FAA’s order said it affected an estimated 6,834 U.S.-registered airliners and other aircraft. A similar FAA order, also issued Tuesday, affects an estimated 1,828 helicopters.
The FAA also warned that interference from planned use of 5G wireless spectrum posed an air safety risk and could result in flight diversions. Another FAA directive on Tuesday said the “unsafe condition” posed by the planned use required immediate action before the Jan. 5 deployment “because radio altimeter anomalies that are undetected by the aircraft automation or pilot, particularly close to the ground … could lead to loss of continued safe flight and landing.”
The FCC said it “continues to make progress working with the FAA and private entities to advance the safe and swift deployment of 5G networks … We look forward to updated guidance from the FAA in the coming weeks that reflects these developments.”
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| Carrier | Low-band | C-Band/mmWave | Smartphone icon |
|---|---|---|---|
| AT&T | Nationwide 5G | 5G+ | 5G+ |
| T-Mobile | Extended Range 5G | Ultra Capacity 5G | 5G UC |
| Verizon | 5G Nationwide | Ultra Wideband 5G | 5G UW |
As the table shows, the carriers’ branding strategies combine mid-band (including C-band) and mmWave into one moniker, which is a logical choice as both mid-band and mmWave 5G can deliver much faster speeds than the low-band 5G networks that carriers currently use to provide nationwide 5G service. In simple terms, when users see those icons on their phones, they should also see faster speeds.
Here’s a look at the three frequency bands being used for 5G services:
Andersen says, “mid-band spectrum can give users a level of 5G service that other types of spectrum can’t: a combination of broad coverage plus excellent speeds, rather than just one or the other, which is the case with low-band (broad coverage but slower speeds) or mmWave (super-fast speeds but small coverage areas).”
Looking ahead to when C-Band might become the dominant spectrum for 5G, Andersen wrote (emphasis added):
C-Band has always been a few years away from becoming the dominant flavor of 5G in the US, and its rollout has been delayed for a bit as the FAA analyzes any possible effects the spectrum could have on aviation. That said, the good news for AT&T and Verizon users is that both carriers will soon begin C-Band deployments, as they pledged to minimize power output from C-Band base stations, especially those close to airports.
The bottom line is that while C-Band will likely be available in some cities in early-to-mid 2022, before it can be rolled out on a broad scale, wireless carriers will need to add new towers, install new hardware and software, and update existing network infrastructure in cities across the country.
All of that takes time, so users likely won’t see a major boost in 5G performance from the C-Band auction for another year or two. But given the results we’ve already recorded on mid-band 5G in the US and other countries, the performance gains C-Band can offer could very well be worth the wait.
We’re looking forward to testing C-Band as rollouts begin and seeing its impact on the end-user 5G experience. In the meantime, keep checking back with RootMetrics for more 5G and mobile performance insights.
Picocom PC802 SoC: 1st 5G NR/LTE small cell SoC designed for Open RAN
5G open RAN semiconductor and software upstart Picocom has announced the PC802 SoC (system on a chip), which the company calls the world’s first 4G/5G device for use in small cells with integrated support for open RAN specifications (there are no Open RAN standards). It supports disaggregated 5G small cell platforms, including indoor residential, enterprise and industrial networks, neutral host networks and outdoor networks.
The PC802 is a purpose-designed PHY SoC for 5G NR/LTE small cell disaggregated and integrated RAN architectures that includes support for 4G. The SoC supports Open RAN specifications and interfaces with a layer 2/3 stack via the SCF FAPI interface over PCIe. The PC802 supports interfacing to Radio Units (O-RU) via the O-RAN Open Fronthaul (eCPRI) interface or directly to RFICs with a standardised JESD204B high-speed serial interface.
The PC802 SoC is optimized for disaggregated small cells. It employs the FAPI protocol (defined by the Small Cell Forum) to communicate with and provide physical layer services to the MAC. It has an integrated O-RAN Alliance Open Fronthaul interface (based on eCPRI) to connect and communicate with Open RAN (remote) radio units, as well as JESD204B interfaces to connect with commonly available radio transceivers.
The PC802 supports 3GPP 5GNR releases 15 and 16, with flexibility for future releases. The PC802 also supports simultaneous 5GNR/LTE mode, flexible multi-RAT, multi-carrier component configurations and Dynamic Spectrum Sharing (DSS) support.
“We believe we’ve hit the ‘sweet spot’ in addressing the need for optimized silicon to power Open RAN,” commented said Oliver Davies, VP of marketing at Picocom. “We are delighted with the pre-launch interest in PC802 and the positive feedback we’ve received on its specification. For successful deployments, it’s clear that Open RAN needs optimized silicon, and PC802 SoC delivers. We expect to see PC802 in end-products commencing field trials during 2022.”
Key Features:
◆Silicon runs Picocom’s 5GNR and LTE PHY (lower and upper) software
◆SCF FAPI interfaces
◆Ceva XC12 5G-optimised 1280-bit vector signal processors
◆RISC-V scalar processor clusters
◆Codecs: LDPC, Turbo and Polar
◆Fourier transforms: FFT, iFFT
◆Equalisers: MMSE/MMSE-IRC/MLD
◆Digital Front End (DFE)
◆O-RAN eCPRI Open Fronthaul
◆IQ compression/decompression
◆Secure on-chip boot capability
◆Debug and device monitoring
References:
https://picocom.com/products/socs/pc802/
https://picocom.com/wp-content/uploads/2021/11/PC802-Product-Brief.pdf
Picocom introduces the industry’s first 5G NR small cell system on chip designed for Open RAN
Picocom hits the ‘sweet spot’ with new small cell SoC for Open RAN
Malaysia’s DNB to offer free 5G services to telcos during initial rollout
Malaysian state agency Digital Nasional Berhad (DNB) said on Monday that it will offer wholesale 5G services to mobile carriers at no cost during an initial rollout set to begin next week, amid concerns from telecom operators (telcos) over its pricing plans. DNB, a government agency tasked with building and managing the entire fifth-generation (5G) telecommunications network, has yet to sign long-term deals with any mobile operator, with telecoms firms raising concerns over transparency and pricing issues, Reuters reported last month.
DNB said 5G services will be commercially available from Dec. 15th in three central areas, including parts of the capital Kuala Lumpur (KL). The free 5G wholesale services will be available to telcos until 31 March 2022, as DNB seeks to finalize its wholesale agreements with carriers. DNB has said it hopes to sign long-term contracts in early 2022.
Telekom Malaysia Bhd on Saturday became the first operator to sign up for 5G trials with DNB. Malaysia’s top telco said it will be participating in the pilot trials in some parts of the capital, Kuala Lumpur, and two other urban centers.
Photo of Kuala Lumpur at night
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Other mobile network operators in Malaysia include: Maxis Berhad (Maxis), Celcom Axiata Berhad (Celcom), Digi Telecommunications Sdn Bhd (Digi), U Mobile Sdn Bhd (U Mobile), Altel Communications Sdn Bhd, Merchantrade Asia Sdn Bhd, Service Providers Service Fixed Broadband Mobile Broadband Telekom Malaysia (TM) √ √ Maxis Berhad (Maxis), Celcom Axiata Berhad (Celcom), Digi Telecommunications Sdn Bhd (Digi), U Mobile Sdn Bhd (U Mobile), Macro Lynx Sdn Bhd, MyISP Dot Com Sdn Bhd, Telekomunikasi Indonesia International (Malaysia) Sdn Bhd (Telin), and several other smaller players.
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A “reference access offer” – a public document that will cover the details of the DNB’s 5G wholesale model, including pricing and service commitments – will be approved by Malaysia’s communications regulator soon following extensive feedback from the industry, DNB said. Operators that sign up to its wholesale plan before March 31 will receive further free access to all additional 5G capacity during the initial period of operation, it said. DNB also reiterated that its 5G pricing plan would be cheaper for mobile carriers than the cost they have incurred for 4G.
Telcos have said under the proposed pricing plan, they could end up paying more than they would have if they introduced 5G on their own, as the plan did not take into account additional requirements related to issues such as traffic volume and contingency costs.
The Malaysian Communications and Multimedia Commission (MCMC) had earlier stated that: “The technical requirement for a 5G rollout is predicated by a strong foundation of 4G coverage and fiber rollout, without which, 5G rollout will not realize the optimal benefits of the new technology…..Rushing into a 5G rollout, which includes the early award of the spectrum does not make for a focused approach and a better use of financial and technical resources. Hence, the measured approach towards a 5G rollout and spectrum award.”
With the operators still adamant that the government’s approach to 5G with DNB is anti-competitive – a view notably shared by the GSMA – it will be interesting to see how many of them take up DNB’s offer over the first quarter of 2022.
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Research and Markets forecasts that revenues from mobile data services in Malaysia are set to grow at a 2.9% CAGR over 2020-2025 supported by expansion of 4G networks and roll-out of 5G networks over the forecast period. In addition:
- Mobile services revenue accounted for an estimated 61.7% of the total telecom service revenue in 2020.
- Mobile data accounted for a majority 38.7% share of the total telecom service revenue in 2020.
- Top three operators Maxis, Digi, and Celcom accounted for 69.7% share of the total mobile subscriptions in 2020.
References:
https://www.totaltele.com/511878/Malaysias-national-5G-network-to-offer-telcos-access-for-free
https://www.researchandmarkets.com/reports/5125298/malaysia-telecom-operators-country-intelligence
https://www.digitalnewsasia.com/insights/malaysias-5g-spectrum-conundrum-blessing-disguise