Ciena Sharpens Its Focus on Network Automation, Creates a Separate Blue Planet Division

Glen Hunt – Principal Analyst

Summary Bullets:

  • Ciena can now promote Blue Planet as an independent automation solution which can assist operators to create new services, automate service orders, and reduce O&M complexity.
  • Separating Blue Planet’s priorities from those of Ciena’s equipment business, packet and optical transport, enables it to better address multivendor network transformation opportunities.

Ciena noted in its Q4 2018 financial reporting that several mega trends were affecting its business: an increased need for greater bandwidth and what it termed ‘adaptive automation.’ In a recent (February 2019) blog post, the company announced its intent to form a separate independent operating division focused on providing intelligent automation solutions. A key question is: why establish a separate operating division for Ciena software and services? Continue reading “Ciena Sharpens Its Focus on Network Automation, Creates a Separate Blue Planet Division”

Looking Into the Crystal Ball: GlobalData’s Most Intriguing Predictions in Telco Technology & Software in 2019

John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets:

  • GlobalData recently published its comprehensive set of 2019 predictions across mobile and fixed access, transport and routing, and telco software and services.
  • The predictions here represent some of the most intriguing industry trends that vendors and operators will need to track closely in the coming year.

Shifting RAN Vendor Landscape: It’s too difficult to predict whether more countries will follow the U.S., Australia, New Zealand, and Japan in erecting barriers to Huawei and ZTE’s participation in their network infrastructure markets. But, in any case, what has already transpired – combined with the cloud of uncertainty it casts over the future – will likely have several near-term effects in 2019. Continue reading “Looking Into the Crystal Ball: GlobalData’s Most Intriguing Predictions in Telco Technology & Software in 2019”

Nokia Partnering Up to Sharpen Focus on Enterprise Market: Is a CSP Clash Inevitable?

John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets:

  • Nokia continues to expand its partner and channel initiatives to better pursue enterprise opportunities, including a strategic alliance with Infosys announced in November.
  • The company sees major opportunities in the enterprise but may ultimately have to decide if pursuing them is worth alienating traditional CSP customers.

Over the past year, Nokia has been stepping up its focus on moving outside its traditional target market of communication service providers (CSPs) in a bid to diversify its revenue stream and tap into growth opportunities to offset flat or declining CSP spending. Based on the company’s ‘Future X for Industries’ vision, it believes there will be a EUR 22 billion market by 2023 for digital automation in the enterprise segment. Continue reading “Nokia Partnering Up to Sharpen Focus on Enterprise Market: Is a CSP Clash Inevitable?”

Cisco Continues to Chug Along, Despite a Steady Stream of Executive Departures

John Byrne
John Byrne – Service Director, Service Provider Infrastructure

Summary:

Since taking the reins at Cisco in 2015, CEO Chuck Robbins has projected an image of stability, even as the company navigates tricky challenges like the move from hardware-centric to software-defined networks. However, the company has seen a steady stream of executive departures since Robbins’ tenure began.

Continue reading “Cisco Continues to Chug Along, Despite a Steady Stream of Executive Departures”

ZTE Back in Business, but Not “Business as Usual”

John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets:                 

  • After paying a $1 billion penalty, establishing a $400 million escrow account, appointing a new board, a new CEO, and a new slate of other executive leaders, ZTE has now begun the process of resuming normal operations as soon as possible.
  • With a lengthy ten-year probationary period now underway, ZTE must convey to the market that it is a committed and trustworthy partner in order to thrive in the emerging 5G era.

ZTE began its second phase of life – the “after” phase – over the weekend after receiving final clearance from the U.S. Department of Commerce’s Bureau of Industry & Security (BIS) officially removing ZTE from the “Denied Persons List.” The resolution brings to an end a three-month shutdown since the BIS imposed sanctions on ZTE in April for not complying with terms of a settlement reached with the BIS in March 2017. Continue reading “ZTE Back in Business, but Not “Business as Usual””

ZTE’s Forced ‘Hibernation’ Prompts Changes in GlobalData Coverage

John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets:

  • In light of the U.S. Department of Commerce’s April 15, 2018 activation of the denial order suspending ZTE’s export privileges for seven years, and ZTE’s May 9, 2018 announcement that it has ceased major operating activities, GlobalData has adjusted all its ZTE Company Assessment and Product Assessment rankings to ‘Vulnerable.’
  • If and when ZTE is able to return to normal operations, we will update these reports and ratings accordingly. However, if the U.S. Department of Commerce does not reverse its ruling, ZTE’s ability to continue as a going concern will be jeopardized.

The ongoing, existential threat to ZTE from the stiff sanctions imposed by the U.S. Department of Commerce last month has required GlobalData to revise its product and company rankings across the board to our lowest rating of ‘Vulnerable.’ The revisions affect ZTE assessments across all of our coverage areas, including Mobile Access, Fixed Multimedia Access, Transport & Routing, IP Services Infrastructure, Service Enablement Ecosystem, and Support & Operation Services. In total, we rank ZTE hardware, software, and services offerings in 20 categories. Continue reading “ZTE’s Forced ‘Hibernation’ Prompts Changes in GlobalData Coverage”

U.S. Telecoms Vendors Could Ultimately Be the Biggest Victims of Government Sanctions

John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets:

  • The U.S. Department of Commerce delivered a stunning blow to Chinese telecoms vendor ZTE, activating a seven-year ban on U.S. firms from exporting any products to the Chinese company.
  • The decision – and possible Chinese countermeasures – could have major repercussions for a number of U.S. companies, highlighting the complex and highly interdependent nature of today’s telecommunications networks.

U.S. trade relations with China continue to sour, with the decision by the U.S. Department of Commerce to issue severe sanctions against ZTE representing the latest salvo. But in the complex, interdependent global supply, the ‘penalty’ sanctions imposed by the U.S. against ZTE could ultimately exact the greatest damage on U.S. vendors. Continue reading “U.S. Telecoms Vendors Could Ultimately Be the Biggest Victims of Government Sanctions”

Amdocs Industry Analyst Summit: Complexity Is Our Friend

Peter Jarich
Peter Jarich – VP, Consumer Services and Service Provider Infrastructure

Summary Bullets:

  • On December 5-6, Amdocs held an Industry Analyst Summit to provide an update on its product portfolio, corporate strategy, innovation efforts, and customer attraction across its business lines.
  • One constant across the product and business line updates is an expectation that telecom networks and services will continue to get increasingly complicated – and that Amdocs will benefit by addressing that complexity and educating its customers.

Amdocs is a fixture in telecom networking and service enablement. It’s not surprising, then, that across our telecom networks research, assessments on the vendor and its positioning are plentiful, including:

Continue reading “Amdocs Industry Analyst Summit: Complexity Is Our Friend”

After Years of Halfhearted Green Initiatives, the KPN-Led Sustainability Initiative Might be a Sign of a Real Movement Afoot

John Byrne – Service Director, Service Provider Infrastructure

Summary Bullets:

• KPN is taking a leadership position in driving its vendor community toward more sustainable practices. Other operators are likely reviewing KPN’s “Circular Manifesto” as a template for how they should revise their own sustainability initiatives.

• Telecom technology and software vendors are increasingly being pushed by their key operator customers to commit to adopt manufacturing and production practices that rely on reusable or recyclable components, as well as renewable energy sources.

Dutch network operator KPN, which provides mobile and fixed-line service to nearly 40 million customers in The Netherlands, Germany, Belgium, France and Spain, caused a stir in October, announcing an aggressive environmental initiative that could become a model for operators looking to beef up their “sustainability” credentials. Continue reading “After Years of Halfhearted Green Initiatives, the KPN-Led Sustainability Initiative Might be a Sign of a Real Movement Afoot”

Looking at the Good & Bad News in Q3 2017 Telecom Vendor Financial Results

John Byrne – Service Director, Service Provider Infrastructure

Summary Bullets:

  • Revenue was down year-to-year for Ericsson, Nokia, Cisco and even ZTE, which had carried positive growth for H1 2017. But, vendors are generally doing a good job driving out costs in order to increase profitability.
  •  On their face, Ericsson’s Q3 2017 results reflected a company facing multiple challenges and a lengthy road to recovery. However, there were signs of light indicating that the fundamental business may return to solid footing once painful restructuring initiatives are completed.

The Bad News: Revenues Down

With the results now in for Q3 2017, it’s clear it was a rough quarter for many vendors. Results were perhaps most striking for ZTE (consolidated results shown), which experienced a nearly 8% decline compared to the prior year quarter. ZTE’s results were a distinct reversal from the first half of 2017, in which the company grew revenue 13% year-to-year. Continue reading “Looking at the Good & Bad News in Q3 2017 Telecom Vendor Financial Results”