By Josh Bancroft, senior analyst, DC and enterprise SDN, Networked Services, IHS Markit

Software-defined networking (SD-WAN) software revenue, including appliance and control and management software, rose 26 percent quarter over quarter to reach $359 million in the fourth quarter (Q4) of 2018. VMware led SD-WAN market revenue share with 20 percent, followed by Cisco at 14 percent and Aryaka at 12 percent, according to the “Data Center Network Equipment Market Tracker” from IHS Markit.

In the fourth quarter, vendors began to reap the rewards of partnering with multiple managed-service providers, systems integrators and telcos. Revenue deal sizes have been rising, and the number of enterprise sites deploying SD-WAN continues to grow.

For the foreseeable future, both direct and channel sales will continue to drive SD-WAN market growth. In the IHS Markit “Edge Connectivity Strategies North American Enterprise” survey in February 2019, respondents showed a clear bias for consuming SD-WAN with self-managed on-site hardware and software, or as a standalone managed service bundled with connectivity. However, by 2019 they expect to shift to managed services bundled with other network functions virtualization (NFV) services and connectivity.

“Telcos want to utilize the high speeds and network-slicing capability of 5G, along with the application-traffic steering capability of SD-WAN, to support the industrial internet of things and other new edge applications,” said Josh Bancroft, senior research analyst at IHS Markit. “The telcos view SD-WAN as a key way to ensure various traffic types are automatically steered to the appropriate links. It can also guarantee IoT traffic is prioritized over 5G, and other applications are automatically routed over broadband.”

“If they haven’t done so already, SD-WAN vendors should consider adding IoT-specific features to their offering, such as application identification, prioritization and protocol translation functionality on SD-WAN appliances,” Bancroft said.


Following are some additional data center network market highlights:

  • Application delivery controller revenue declined 4 percent quarter over quarter and 7 percent year over year in Q4 2018, reaching $438 million.
  • Virtual ADC appliances comprised 35 percent of ADC revenue in Q4 2018.
  • F5 revenue declined by 8 percent, quarter over quarter, in Q4 2018, but the company still garnered 47 percent of ADC market share. Citrix followed F5 with 27 percent, and A10 came in third with 8 percent.


Sydney cloud-based enterprise messaging firm Soprano Design has reached a strategic agreement with Smart Communications, the Philippines primary mobile network operator, allowing it to enter the Philippines market for the first time.

Founded in Australia in 1994, Soprano Design delivers enterprise-focused mobile interactions via its cloud-based mobile communication platform.

The partnership will see Soprano making its enterprise messaging suite available to Smart’s portfolio of enterprise customers. In the Philippines, the Soprano messaging service will be branded Smart Messaging Suite.

According to Soprano, Smart controls nearly 50 per cent of the estimated 130 million mobile connections in the Philippines.

Soprano Design APAC SVP Robin Ng tipped the Philippines as a strong SMS market with enormous potential.

“The Philippines market is technology savvy and like many regions within Asia Pacific, is experiencing a lot of rapid-fire technology change,” Ng said. “Businesses are looking for effective enterprise-grade messaging solutions that are flexible, secure and easy to deploy. SMS technology is the principal communication channel in the Philippines.” 

Within Asia Pacific, Soprano is flagging a surge in demand for enterprise-grade messaging platforms as businesses look to stay ahead of the digital transformation curve. The Smart agreement is Soprano’s sixth major APAC telco partnership.

“Other APAC markets where Soprano is seeing strong growth include Australia and Singapore,” the Sydney company added. “According to a recent market study conducted by Infoholic Research, the Asia Pacific A2P (application to person) SMS market is expected to grow during 2016-2022 at a CAGR of 6.34%.”


Seaborn Networks has established an interconnection to datacenter neutral internet exhange specialist DE-CIX New York, enabling turn-key direct access to some 200 US networks for its South American customers using its Seabras-1 low latency submarine cable system between Brazil and the US.

In addition, Seaborn said the move allowed customers on Seabras-1 to gain access to DE-CIX Frankfurt via its GlobePEER Remote service. GlobePEER Remote provides VLAN connectivity from DE-CIX New York enabling companies to peer with networks connected to DE-CIX Frankfurt and Marseille as well as Hamburg, Munich, Dusseldorf and Istanbul reaching more than 1,000 European-Asian-African networks.

“This partnership with DE-CIX provides Brazil’s IP networks with one-stop-shop, remote IPX access to DE-CIX’s most compelling interconnect locations, leveraging the scale and agility of Seaborn’s Seabras-1 system,” said SEABORN CEO Larry Schwartz.  “In this new arrangement, Seaborn is pleased to continue supporting the global expansion initiatives of Brazil’s ISP community.”

Seaborn said Seabras-1 was built to avoid ‘hurricane alley’ which means the delivery is less vulnerable to disruption from hurricanes and other disruptions. “100% Brazilian underground backhaul means a more resilient more reliable delivery of service with fewer outages,” it added.

“This inter-connection means a significant lower latency to and from Brazil for all DE-CIX customers (850+ ISPs) and for Seaborn’s new and existing Brazil customers wanting to send traffic to the USA and potentially onwards via DE-CIX exchanges to Europe,” a Seaborn Networks spokesperson told Telecom Times.

“DE-CIX is the largest exchange point worldwide with 11 exchange points. This means lower charges to the Brazilian market for transport costs to any DE-CIX customer globally versus having to go off net,” the spokesperson added. “DE-CIX customers will benefit from having their data travel on a system that is owned and operated independently by Seaborn. This means not subject to consortium or big OTT system pricing and service.”


VHA to repurpose key spectrum holdings to upgrade NSW 4G network

Vodafone Australia is set to expand its 4G mobile network across select areas in New South Wales, with upgrade work kicking off on 18 March to offer improved 4G services and capacity to some two million local customers.

Vodafone – whose mobile network comprises a set of different spectrum frequencies supporting voice calls and data usage for its users said the upgrades involve converting 2100MHz spectrum, currently used in the 3G network, for use in the 4G network.

Its mobile subscribers in Australia’s Capital Territory are already using the newly allocated 4G 2100Mhz spectrum, with Victoria, Queensland, Western Australia and South Australia to follow throughout 2019.

Vodafone General Manager of Access Delivery Networks Tom Joynson said the work will complement the changing usage patterns of the operator’s customers.

“We are always working to give our customers the best possible network experience. Over recent years we have seen huge changes to the traffic carried on Vodafone’s mobile network,” said Joynson. “Our customers are using more and more data – more than 90 percent of our mobile customers use the 4G network with 4G data usage across our network increased by 58 per cent during 2018.

“This upgrade work will ensure the 4G network gets a capacity boost, so more of our customers can use their data to stream their favourite content or use social media, while still keeping our 3G network strong. Once the work is complete in each state, we will be delivering even better service to more than 90 per cent of Vodafone’s mobile subscribers across Australian metro areas.”

According to the operator, due to the upgrades, some older devices that are only compatible with 3G 2100MHz spectrum will no longer work after the spectrum is converted to the 4G network.

“A small number of older mobile devices that are only compatible with 3G 2100MHz spectrum won’t work when the spectrum becomes part of the 4G network. We encourage those customers to get in touch with us before the work begins to ensure there is no interruption to their service,” it added.

Vodafone’s mobile subscribers in Australia’s Capital Territory are already experiencing the benefits of the newly allocated 4G 2100Mhz spectrum, with Victoria, Queensland, Western Australia and South Australia to follow throughout 2019.




Huawei has filed a complaint in a U.S. federal court that challenges the constitutionality of Section 889 of the 2019 National Defense Authorization Act (NDAA). Through this action, the Shnzen-bsed firm will seek a declaratory judgment that the restrictions targeting Huawei are unconstitutional, and a permanent injunction against these restrictions.

“The U.S. Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products. We are compelled to take this legal action as a proper and last resort,”explained Guo Ping, Huawei Rotating Chairman said. “”This ban not only is unlawful, but also restricts Huawei from engaging in fair competition, ultimately harming U.S. consumers. We look forward to the court’s verdict, and trust that it will benefit both
Huawei and the American people.”

The lawsuit was filed in a U.S. District Court in Plano, Texas. According to the complaint, Section 889 of the 2019 NDAA not only bars all U.S. Government agencies from buying Huawei equipment and services, but also prohibits them from contracting with or awarding grants or loans to third parties who buy Huawei equipment or services, without any executive or judicial process, added Huawei.

“This violates the Bill of Attainder Clause and the DueProcess Clause. It also violates the Separation-of-Powers principles enshrined in the U.S.Constitution, because Congress is both making the law, and attempting to adjudicate and execute it,” it said.

Huawei Chief Legal Officer Song Liuping emphasized: “Section 889 is based on numerous false, unproven, and untested propositions. Contrary to the statute’s premise, Huawei is not owned, controlled, or influenced by the Chinese government. Moreover, Huawei has an excellent security record and program. No contrary evidence has been offered.”

“At Huawei we are proud that we are the most open, transparent, and scrutinized company in the world,” said John Suffolk, Huawei’s Global Cyber Security Privacy Officer. “Huawei’s approach to security by design development and deployment sets a high standards bar that few can match.”

From Huaweis perspective, the NDAA restrictions prevent the company from providing more advanced 5G technologies to U.S. consumers, which it strsesed will see the commercial application of 5G significantly delayed, in turn, impeding efforts to improve the performance of 5G networks in the U.S.

“Beyond this, network users in rural and remote regions of the U.S. will be forced to choose between government funding and high-quality, cost-effective products. This will impede the network upgrade process, thus widening the digital divide. Even worse, the restrictions on Huawei will stifle competition, leaving U.S. consumers paying higher prices for inferior products,” the firm said.

According to Huawei, estimates from industry sources show that allowing the company to compete would reduce the cost of wireless infrastructure by between 15% and 40%.

“This would save North America at least US$20 billion over the next four years,” Guo Ping added,

“If this law is set aside, as it should be, Huawei can bring more advanced technologies to the United States and help it build the best 5G networks. Huawei is willing to address the U.S. Governmen’t’s security concerns. Lifting the NDAA ban will give the U.S. Government the flexibility it needs to work with Huawei and solve real security issues.”


Operators are optimistic about the future services 5G will enable, but estimates suggest network energy consumption could increase by up to 170 per cent by 2026

Vertiv, in collaboration with technology analyst firm 451 Research, has released the findings of an in-depth survey which reveals a good sense of optimism about the services 5G will enable and the interplay with edge computing. The majority of telecoms operators surveyed believe the 5G era will start in earnest in 2021 in all geographies, with 88 per cent of respondents planning to deploy 5G in 2021-2022.

However, more than 90 per cent of respondents believe 5G will result in higher energy costs and are interested in technologies and services that improve efficiency. This is consistent with internal analysis by Vertiv, which finds the move to 5G is likely to increase total network energy consumption by 150-170 per cent by 2026, with the largest increases in macro, node and network data centre areas.

The survey questioned more than 100 global telecoms operators about the opportunities and potential obstacles of deploying 5G services and the impact on edge computing adoption. Vertiv and 451 Research shared details of the findings at Mobile World Congress on February 27th in Barcelona, Spain.

“There’s no doubt that 5G is the next big thing for communications and mobile networks. It is understandable, however, that there are concerns when it comes to deploying this technology. It is critical for operators to have the right infrastructure in place that would allow them to rollout 5G in the most efficient manner. By understanding the different use cases as outlined by Vertiv, and with the aid of the 451 Research survey, it is our hope that they can make informed decisions when it comes to investing in their critical infrastructure,” said Danny Wong, senior director for telecoms at Vertiv in Asia.

Regarding edge and 5G specifically, the survey reveals that a large majority of operators have deployed (37 per cent) or plan to deploy (47 per cent) edge compute that is aligned with mobile infrastructure – also called multi-access edge computing (MEC).

“This survey brings us clarity on telecom operators’ hopes and fears around 5G and edge deployments,” says Brian Partridge, research vice president for 451 Research. “The two toughest connectivity challenges for supporting 5G topologies were revealed to be upgrading access and aggregation layer networks and adding new backhaul links. Survey respondents indicated that the availability of high quality connectivity to distributed POPs and ease of site acquisition were viewed as the most critical enablers to 5G success. We were frankly surprised by some of these results and believe it brings clarity to the level of transformation the industry now faces.”



Huawei has launched its Cyber Security Transparency Centre in Brussels, with some 200 representatives from regulators, telecom carriers, enterprises, and the media attending.

Emphasizing how trust in cyber security is a major challenge that the world faces in the digital era, Ken Hu, Huawei’s Deputy Chairman said, “Trust needs to be based on facts, facts must be verifiable, and verification must be based on common standards. We believe that this is an effective model to build trust for the digital era.”

Acording to the firm, new developments in All Cloud, intelligence, and software-defined everything are posing unprecedented challenges to the cyber security of ICT infrastructure.

“The lack of consensus on cyber security, technical standards, verification systems, and legislative support further exacerbates these challenges. Safeguarding cyber security is considered to be a responsibility held by all industry players and society as a whole. Growing security risksare significant threats to future digital society,” it said.

To address these challenges, Huawei’s Cyber Security Transparency Centre in Brussels, aims to offer government agencies, technical experts, industry associations, and standards organizations a platform, where they can communicate and collaborate to balance out security and development in the digital era.

Based in Europe, Centre has three major functions.

First, the Centre will showcase Huawei’s end-to-end cyber security practices, from strategies and supply chain to R&D and products and solutions. This will allow visitors to experience cyber security with Huawei’s products and solutions, in areas including 5G, IoT, and cloud.

Second, the Centre will facilitate communication between Huawei and key stakeholders on cyber security strategies and end-to-end cyber security and privacy protection practices. Huawei will work with industry partners to explore and promote the development of security standards and verification mechanisms, to facilitate technological innovation in cyber security across the industry.

Third, the Centre will provide a product security testing and verification platform and related services to Huawei customers.