The main message of Ribbon keynotes was that Ribbon has moved from a voice and SBC focus to a broader scope including data and analytics, such as UCaaS, Security-as-a-Service, Service Assurance-as-a-Service, SIP Trunking-as-a-Service, SD-WAN, and analytics.  The company identified two major catalysts to the change in company scope: the August 2018 acquisition of enterprise SBC company Edgewater and the February 2019 acquisition of analytics company, anova. Additionally, the company confirmed that it is not pursuing service provider mobile market opportunities such as EPC or “full IMS” that are components of larget mobile equipment larger vendors.  Instead, Ribbon is pursuing the mobile market by offering overlay analytics services that allow SP customers to derive value from mobile operators using monetization, network, marketing, and customer care.  

The company’s core business is evolving.  For instance, the company has doubled down on the Enterprise market with its Edgewater acquisition, and a result, it emphasized that it is unique because it has both service provider and enterprise SBC product offerings.  The company has offered SBC on public cloud and reiterated that this capability has been available for one year.  The company highlighted that it has a Tier-1 Mobile Network Operator VoLTE Interconnect contract win. 

Analytics.  The company sees its opportunity in the analytics market is to deliver technology to the customer for the following cases:
•             Monetization (Targeting, Advertising, Sponsored Data, Campaign Efficacy)
•             Network (Reduce Network Cost, Improved Quality of Experience, Proactive Alarms, Network Service Assurance)
•             Marketing (Service bundles, churn reduction, product insights, inferred demographics)
•             Customer Care (customer experience, bill shock, most probably cause)

We are impressed with Ribbon’s technical capabilities when it comes to using GPUs.  The company has previously discussed the performance of its GPU based media interworking function as being 3.5x more powerful than a DSP-based system, or 9x more powerful than a CPU-based system and over 2x more power efficient.  The company says its GPU-based systems are generally available for its D-SBC and i-SBC functions.  It has evaluations at three operators: Tier-1 US MNO, Tier-1 US CSP, and Tier-1 Japan CSP.  We would not be surprised if some of these customers begin deploying soon.  One of its Tier-1 operators found that the GPU-based system costs half as much in capital spending and is 800% more power efficient. 

​Kandy, the white-label voice/messaging services brand of Ribbon discussed its success with customers such as BT, NUWAVE, AT&T, Hong Kong Broadband, Optus, and ecosystem partner, Five9.  It enables UCaaS, CPaaS and WebRTC services.  The company reiterated that it plans to go to market with partners, mainly service providers, instead of opening its own store-front that would compete with service providers.  The company says its customer pipeline is growing.

We attended the Aruba Atmosphere 2019 user conference in Las Vegas.  What we learned was that Aruba had made solid progress since last year’s Atmosphere conference.  It has delivered on 802.11ax, SD-Branch (and SD-WAN), AI/ML, and Zigbee/Bluetooth 5.0, and elements of the IoT market.  The company also introduced a new access point that was not hinted at last year, an 802.11ad outdoor access point.  If we were to sum up the company’s main message for the show, it’s all about SD-Branch.  The company took great efforts to emphasize that its portfolio has greater breadth than ever and is among the few vendors that can deliver all the networking a company may desire.

802.11ax.  At last year’s event, the company told customers to expect 802.11ax products by Nov/Dec of 2018.  Our market share tables show the company shipped 802.11ax for revenue in 4Q18.  At the show, the company also announced some new, full-featured 802.11ax Access Points, the 530 and 550 series.  These new Access Points support Bluetooth 5 and Zigbee, to allow support of IoT devices.  These new 802.11ax Access Points will be available this month, April 2019.​

802.11ad.  The company also introduced a point to point outdoor access point.  The new AP387 allows 1 Gbps at 400 meters using 802.11ad and has a backup of 5 GHz 802.11ac in case of inclement weather.  This device has been shipping for a “couple months” according to the stage presentation (personnel at the show booth said since January 2019).

Machine Learning.  Using Machine Learning for Client Steering and for managing Transient clients. At last year’s Atmosphere event, the company was just rolling out AI/ML to customers to improve networking capabilities for wireless users. 

SD-Branch.  The company disclosed that it has 25,000 SD-Branch “wins,” which means that it has many contracts to sell “at some point in the future” SD-WAN and other branch equipment systems such as WLAN and switching.  At last year’s event, the company had not sold any SD-WAN, so this is a big accomplishment and signifies Aruba’s progress in delivering what it calls a Single Pane of Glass approach that includes four parts:  SD-WAN orchestration, Dynamic Path Steering, Secure Connectivity, and Dynamic Segmentation.

Clearpass Device Insight.  The company introduced its device recognition system, intended to simplify the discovery of IoT devices on the network.  Clearpass Device Insight is available in April 2019.  This cloud service uses a fingerprint database, as well as AI/ML, to find devices on the network, and then presents them by category on a single screen.

During the day-2 presentations, the company had some fun and CTO, Partha Narasimhan, showed a picture of him pretending to be an IT executive of a fictitious university.

Keynotes at the NFV World & Zero-Touch Congress in San Jose, California were very interesting today.  We share our observations and view of the main themes from these interesting presentations by Nokia, NEC/Netcracker, Google, CenturyTel.  The main theme of these presentations, we think, is this:  NFV/SDN is now deeply in the deployment and commercial phase, where compared to 3-4 years ago, it was just a concept.  

Nokia.  The company announced that its Airframe server platform, which is an OCP based design, comes available with either embedded acceleration or pluggable acceleration.  This comment includes its software acceleration.  The company explained that its Reefshark chipset can be equipped on the Airframe server and can perform better than a non-accelerated server:

• Layer 1 and 2 offloading - 100% better
• Content acceleration - 30x better
• Machine Learning / video recognition - 10x better
• Crypto acceleration

In explaining functions that an Airframe with Reefshark can perform, the company gave a good example: massive MIMO beamforming can be assisted by the machine learning capabilities.  

NEC/Netcracker.  Enrique Gracia presented several uses cases of the NEC/Netcracker customers that related to NFV/SDN.  He explained that 16 customers have deployed one or more of these uses cases.

Full Stack OSS/BSS/MANO.  A customer deployed this system in 12 weeks to launch a VNF.  The system managed both physical and virtual devices.

Expand to a new territory using VNFs from home region.  A customer now delivers services to a customer outside the home territory by deploying the software and service from the network location at the home location.  In this particular case, NEC/Netcracker and its customer do revenue sharing and VNFs include SD-WAN, virtual firewall and others.  The service provider is expected to expand its customer addressable base by 40%, mainly targeting small/medium businesses in this non-home region.  This system uses MANO, OSS, BSS and the marketplace.  The company says in this case, time to revenue is expected to take 50% less time to deploy new VNFs in the future.

uCPE (Universal Customer Premises Equipment) deployment instead of branded hardware.  The company worked with a service provider company to enable uCPE to be deployed as an alternative to Cisco, Juniper and others' gear. 

Google Cloud.  Vijoy Pandey, who represented Google Cloud, presented on the topic of using AI/ML to reconfigure its data center system.  The company's cloud data center architecture has been evolving continuously since it was first introduced.  Currently, the company is using its own AI/ML system to learn from current network traffic patterns in order to design its future network architecture.  

CenturyTel.  The company has deployed Broadcom based Ethernet switches using its own Network OS.  These switches do their own packet forwarding.  Additionally, the company has built its own orchestration system called VICTOR.  It draws upon Ansible, NetCONF, uses the service logic interpreter from ONAP and uses parts of Open Daylight.  The company plans to open source this development and the spokesperson Adam Dunstan said, perhaps jokingly, that this might be called ONAP-lite.

 SD-WAN vendor Riverbed announced plans to acquire Wireless LAN vendor Xirrus today. Riverbed emphasizes its product line and portfolio strategy in the Software Defined Wide Area Network (SD-WAN) market.  Xirrus has emphasized its product portfolio as being a cloud-enabled Wireless LAN (WLAN) market vendor.  Two main themes come to mind with this acquisition:

• the most recent acquisitions of Enterprise-class WLAN vendors (Arris/Ruckus and now Riverbed/Xirrus) have been quite different from those before them (HPE/Aruba, Extreme/Zebra), which were Campus Ethernet Switch for WLAN deals, and
• SD-WAN vendors (like Riverbed) are going to great lengths to differentiate from one another.

As background, it is quite interesting to see the journey both Riverbed and Xirrus have followed over the years that makes this deal work.  Both today are active participants in the cloud and software defined markets.  Both Riverbed and Xirrus have participated successfully in their respective marketplaces to have undergone transformations as their markets have evolved.  

• When Riverbed was publicly traded, its focus market was WAN Optimization.   This was largely a hardware market with little in the way of cloud-connectivity and software services.   However, the market has changed since those days, the company went private and now SD-WAN is the latest trend in WAN connectivity.  What this means is the company can enable its customers to allow policy-based orchestration and one-click wide area connections to cloud providers like Amazon Web Services (AWS) and Microsoft Azure, while still providing customers with the core function of WAN optimization.
• Xirrus, on the other hand, is a WLAN infrastructure vendor, offering high-performance WLAN Access Points that initially were targeted a high traffic venues, and then broadened out its product line to allow it to serve other vertical markets.  The company has a strong reputation in serving high-end customers.  A few years back, Xirrus began offering cloud-services to allow customers to manage multiple access points, and thus differentiated from other WLAN vendors.  In fact, it is one of the leading cloud-managed WLAN market players.

Our view is that SD-WAN is more than WAN optimization.  It is more than just security and services.  And it is more than branch routers.  SD-WAN is a full branch play.  Every vendor will approach SD-WAN differently depending on their strengths.  With the Xirrus acquisition, Riverbed just differentiated from its SD-WAN competitors by doubling down on enterprise relationships.  We are excited about the SD-WAN opportunity.  Many vendors are repositioning their product lines to address SD-WAN, and Riverbed is both strengthening and differentiating its product line to more fully address enterprise needs by adding LAN and WLAN capabilities to its portfolio.  

WLAN industry consolidation has been a major theme in the past several years.  Most recently, we've seen:

• Extreme Networks complete its acquisition of Zebra's Motorola WLAN business (Oct 31, 2016),
• Arris (broadband equipment company) announce plans to acquire Ruckus and the Brocade ICX switch product line from Broadcom (February 22, 2017)
• Riverbed announced plans to acquire Xirrus (today)

​Consider that the early consolidation deals for WLAN companies were mainly to allow Ethernet Campus switch companies to sell WLAN/Campus Switch products to their customers.  HPE's May 2015 acquisition of Aruba was a good example of this kind of acquisition.  And the acquisition was done in large part to respond to Cisco's acquisition of Meraki a couple years before the HPE/Aruba deal.  And, in a corporate M&A twist-of-fate, in mid 2016, switch vendor Brocade announced plans to acquire WLAN vendor Ruckus.  But, before it could complete the deal, semiconductor vendor Broadcom announced its own plans to acquire Brocade and spin off all Brocade assets but its Fibre Channel assets, putting in motion the Arris for Ruckus and Brocade ICX switch products deal.  So, the first several deals were switch/WLAN related, and like we said, more recently, WLAN acquisitions are related to broader themes than just campus switch consolidation of WLAN, including broadband equipment vendor Arris for Ruckus and SD-WAN company Riverbed for Xirrus.

This leaves very few pureplay Enterprise-class WLAN vendors in the marketplace these days, Aerohive being the largest among the pureplays.  Interesting indeed.