Networking

Cisco on Wednesday published its financial results for the fourth quarter and full fiscal year. By the end of fiscal 2020, Cisco said it achieved its goal of acquiring more than half of its revenue from software and services. Still, revenue was down year-over-over with the COVID-19 pandemic having its largest impact on Cisco’s enterprise and commercial orders.
“We are seeing customers continue to delay their purchasing decisions in certain areas while increasing spend in others until they have greater visibility and clarity on the timing and shape of the global economic recovery,” Chairman and CEO Chuck Robbins said on a Wednesday conference call. 
At the same time, he said, “the pandemic has also triggered a massive and rapid shift to remote operations and automation to maximize personal safety. With this, many customers are increasingly reliant on our broad portfolio of technologies, resulting in another quarter of strong demand for our Catalyst 9000, Security, WebEx and other SaaS-based solutions.”
Cisco’s fourth quarter non-GAAP net income came $3.4 billion, or 80 cents per share. Total revenue was $12.15 billion, a decrease of 9 percent year-over-year. 
Analysts were expecting earnings of 74 cents per share on revenue of $12.08 billion.
For the full 2020 fiscal year, Cisco’s non-GAAP EPS came to $3.21 on revenue of $49.3 billion, a decrease of 5 percent year-over-year.
Cisco’s focus on software and services “continues to resonate with customers as they digitize their organizations,” Robbins said in a statement. “Throughout fiscal 2020, Cisco has demonstrated operational resilience based on our strong customer relationships, solid financial foundation, and differentiated innovation. As we focus on the future, we are rebalancing our R&D investments to focus on new areas so we can continue to offer customers the best, most relevant technology in simpler, more easily consumable ways.”

Product revenue in Q4 was down 13 percent to $8.83 billion. Within this category, sales from infrastructure platforms was down 16 percent to $6.6 billion. Infrastructure platforms took the biggest hit from the pandemic, Cisco said, with declines across switching, routing, data center and wireless. There were pockets of strength with the continued growth of Cat 9K, which was up double digits. 
“Within our infrastructure platforms business, we continue to see a strong ramp of our Catalyst 9K portfolio as many customers take advantage of their employees working from home to refresh their aging infrastructure,” Robbins said. 
Application revenue was down 9 percent to $1.36 billion. On the positive side, Cisco saw a strong double-digit growth in WebEx, as well as solid growth in AppDynamics and IoT software. This was offset by declines in Unified Communication and TD endpoints. 
Sales of security products grew 10 percent to $814 million. “Other Products,” which brought in $35 million, declined by 17 percent. 
Service revenue was flat year-over-year at $3.32 billion. Cisco saw growth in its maintenance business, as well as software and support services. This was offset by the advisory services business, which was impacted by the COVID environment. 
As of Q4, software subscriptions make up 78 percent of Cisco’s software revenue, CFO Kelly Kramer noted. “Remaining performance obligations continued to grow strongly in the quarter, reflecting the strength of our portfolio of software and services,” Kramer said in a statement.
Revenue was down across all customer segments, as well as geographic segments. In terms of customer segments, Cisco saw enterprise revenue decline by 7 percent and public sector revenue decline by 1 percent. Commercial revenue fell 23 percent, while service provider sales were down 5 percent.

By region: In the Americas, sales declined by 12 percent, in EMEA by 6 percent, and in APJC revenue was down 7 percent. 
On Wednesday’s call, Robbins said Cisco will rebalance its R&D investments to focus on key areas, including: cloud security and cloud collaboration; key enhancements for education, health care and other industries; increased automation in the enterprise; the future of work; and application insights and analytics. 
At the same time, he said, Cisco will continue its focus in the following areas, many of which have been accelerated by the pandemic: multi-cloud investment, 5G and WiFi 6, 400-gig, optical networking, next-generation silicon and AI. 
“These investments will help define the next phase of our transformation and allow us to bring the best, most relevant innovation to our customers in simpler, more easily consumable ways,” Robbins said. 
For the first quarter, Cisco expects a non-GAAP EPS between 69 cents and 71 cents. It expects revenue to decline between 9 percent and 11 percent year-over-year.
Robbins also announced that Kramer will be stepping down from her role as CFO but will stay on until her successor is on board. 

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The former chief customer officer for business at NBN, Paul Tyler, will become CEO of Superloop from October 1.
Tyler was previously the group managing director of Telstra Business and was APAC president at Nokia before that. 
Current Superloop chief Drew Kelton will do a month of handover with Tyler in September, before becoming an executive director until March 2021 to focus on Superloop’s international business, and thereafter be a non-executive director.
Superloop founder and chair Beven Slattery said he was delighted to have Tyler take up the role.
“He is uniquely positioned to understand the challenges and opportunities that the National Broadband Network offers enterprises and service providers looking to leverage this once in a lifetime opportunity to transition away from traditional networks,” Slattery said.
In an update to the ASX last month, Superloop said it had full year revenue of AU$107 million, a decrease on last year’s AU$117 million, while recording earnings before interest, tax, depreciation, and amortisation of AU$13.5 million.
The company said it had seen fibre connectivity sales increase by 46% over the full year to June 30, from AU$11.2 million to AU$16.4 million.
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The coronavirus pandemic has changed everything. In business that has meant millions of us are now working from home. That, in turn, means we’re now using the internet more than ever. How much more? According to the Internet Society, starting in late February, in the United States we saw a “30% in upstream traffic, with downstream traffic increasing on the order of 20%.”

Ouch! That’s a lot more bytes. 
But, Thousand Eyes, a network monitoring company, found that despite this flood of traffic, Internet Service Providers (ISP)s, Content Delivery Networks (CDN)s, and public clouds have kept the bits moving smoothly on the internet superhighway.
Using its measurements of network performance metrics such as packet loss, latency, and jitter, ThousandEyes found that, despite a 63% rise in global internet disruptions from January to March 2020 with still 44% more failures in June compared to January, the internet is doing well. That’s because many of these disruptions in North America happened after traditional business hours so they didn’t meaningfully impact most working internet users. It was a different story in Europe where ISP failures often occurred during business hours. 
ThousandEyes stated:

Overall, the Internet held up. Despite unprecedented conditions and an increase in network disruptions, Internet-related infrastructures have held up well, suggesting overall healthy capacity, scalability, and operator agility needed to adjust to unforeseen demands. Negative performance indicators, such as traffic delay, loss, and jitter generally remained within tolerable ranges, showing no evidence of systemic network duress  . 

Most of the service troubles were caused not because of an overloaded internet, but because ISP operators were adjusting their networks to accommodate changes in traffic patterns and load. 
“Initially, we saw both businesses and service providers scramble to adjust, overnight, to work-from-home environments. However now, we see a definite shift towards accommodating a more permanent scenario of serving a remote workforce,” said Paul Bevan, Bloor Research’s research director of IT Infrastructure. “This is creating a realignment of network infrastructure that will look very different from pre-March network platforms.” 
Of course, it is. As Angelique Medina, ThousandEyes’ director of product marketing, observed, “With the overnight transition to a remote workforce, remote schooling, and remote entertainment that many countries experienced in March, we saw outages spike to unprecedented levels — especially among ISPs who seem to have been more vulnerable to disruptions than cloud providers.”

The company’s research found cloud provider networks were more stable than ISPs. That’s the good news. The bad news is that when the public cloud companies had outages they were more likely to impact users.
The key internet services companies, which are critical to internet performance — CDN and Domain Name System (DNS)  providers — held up well despite the increased and changing traffic conditions. Still, there have been real disruptions. In mid-July, Cloudflare, the major CDN and DNS service, had a major DNS failure. This led to tens of millions of users briefly finding their internet services failing.
So, for now, the internet is holding up under the load. As we close in on six months of working from home — with no end in sight — it’s good to know at least we can count on the internet. 
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Image: Equinix
Equinix announced on Tuesday morning it has paid $161 million to acquire GPX India and its two Tier 4 data centres in Mumbai.
The deal will see Equinix gain over 1,350 cabinets and 90,000 square feet of colocation space when fully built. GPX Mumbai 1 is a 30,000 square foot facility, while recently opened Mumbai 2 is expected to contribute the remaining 60,000 square feet.
GPX said its data centres host 12 telcos, over 130 ISPs, three internet exchanges, eight cloud service providers, as well as a number of content delivery networks and over-the-top content providers.
Equinix said the acquisition would close in the first quarter of 2021, while GPX said it expects the deal to close in the final quarter of 2020. Once Mumbai 2 is fully built out and utilised, Equinix expects the acquisition number to be 15 times the expected EBITDA of the facilities.
“After seven years of building our business in India, I could not think of any company better suited than Equinix to expand the platform GPX has created in India and help our customers continue to grow,” President and CEO of GPX Global Systems Nick Tanzi said.
“GPX Global Systems will now turn its attention to growing our business throughout Africa using our Egyptian business as the anchor for our expansion. We believe Africa represents a very similar opportunity which drove our investments in India.”
Last month, Equinix announced it completed the third expansion of its Hong Kong HK4 facility and had committed a further $51 million to spend on the facility.
With an additional 1,000 cabinets added, HK4 now has total capacity of 1,500 cabinets and will further add 3,000 cabinets in future phases. Equinix said it now provides total colocation space of about 34,500 square metres in Hong Kong.
In addition to five facilities in Hong Kong, Equinix has four data centres in Singapore, one in Seoul, 11 in Tokyo and another one in Osaka, as well as JK1 in Jakarta, and six in Shanghai.
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The US government on Monday announced a plan to redeploy spectrum currently used by the military towards commercialised 5G networks.
The reallocation will see 100MHz of spectrum in the 3.45-3.55GHz band, known as mid-band spectrum, be made available for commercial 5G networks via an auction. 
“Through collaboration with the Department of Defense, the Administration has worked carefully to ensure commercial use of this critically-needed mid-band spectrum does not compromise military preparedness or national security,” the White House said in a statement. 
Following the decision, which was made in a 15-week review by the Department of Defense, a total of 530MHz worth of spectrum will have been made available by the US government for commercial 5G networks. 
Defense currently uses the mid-band spectrum for radar operations that support missile defence, counter mortar capabilities, weapons control, electronic warfare, air defence, and air traffic control. 
Under the new spectrum-sharing solution, the spectrum band will continue to be used by the department, but it will also be available for use by the private sector.
“[Defense] leveraged technical work performed by the National Telecommunications and Information Administration to develop a spectrum-sharing solution that would allow 5G development to progress in the private sector, while at the same time, allow the US military to continue to use that spectrum to meet national security requirements,” Defense said.
See also: What is 5G? The business guide to next-generation wireless technology  
5G networks require a mix of low, mid, and high-band spectrum. The low band carries signals over long distances, whereas the high band travels shorter distances but is good for data-intensive tasks, the US government said. 
Mid-band spectrum, meanwhile, is useful for 5G use cases because it can deliver high capacity and reliability over larger geographic areas, it added.
The mid-band spectrum will be distributed through a 5G auction held by the Federal Communications Commission (FCC). 
The auction date will be finalised once service rules are made for how the spectrum is to be used.
Last week, Verizon SVP of Federal Regulatory and Legal Affairs Will Johnston said increasing the availability of mid-band spectrum was very important for allowing the US to maintain its global competitiveness in the 5G space. 
“New spectrum in the mid-band will help close the digital divide and open the door to new innovations for millions of American consumers and businesses,” he said.
At the same time, the FCC is currently planning a 5G auction for 280MHz of C-band spectrum that was made available at the start of the year.
Major telcos such as Verizon, AT&T, and T-Mobile are expected to bid for the freed C-band frequencies, with Verizon CEO Hans Vestberg previously labelling the proposal as a “monumental” moment for the rollout of 5G networks in the US. 
The C-band spectrum auction will be held in December.  
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COVID-19 pushing telcos to boost customer service to empower at-home workers (TechRepublic)
As demand continues to rise due to remote work pressures, the industry is having to change with the times.
Worldwide 5G network infrastructure spending expected to nearly double in 2020 (TechRepublic)
While spending rises, revenues are expected to decline 4.4% to $38.1 billion, according to a new Gartner forecast. More

The company responsible for deploying the National Broadband Network (NBN) is closing in on positive earnings before interest, tax, depreciation, and amortisation (EBITDA), as NBN posted an EBITDA loss of AU$648 million for the year to the end of June.
Revenue was up by 36% to AU$3.8 billion while operating expenses were down 7% to AU$2.07 billion. With the NBN hitting the end of its main rollout, capital expenditure decreased from almost AU$6 billion last year to AU$5 billion.
Payments to Telstra and Optus — which NBN has previously complained about as wiping out its otherwise positive EBITDA — increased by 27% to AU$2.4 billion for the full year.
Once depreciation and amortisation are taken into account, the company finished with slightly improved EBIT loss of AU$3.78 billion for fiscal year 2020, compared to AU$3.89 billion a year prior.
Over the year, NBN increased revenue from business connections by 40% to record AU$666 million, while residential revenue increased from AU$2.17 billion to AU$2.98 billion. Monthly residential average revenue per user increased by AU$1 to AU$45 over the period.
With the company leaving more difficult to connect premises until the end of its rollout, cost per premises has ticked upward for all technologies beside fibre to the premises.
A fibre-to-the-node (FttN) connection now averages AU$2,330, an increase of AU$62 compared to last year; fibre to the curb (FttC) is up AU$214 to AU$3,343; HFC is now AU$2,752 compared to AU$2,590 for last year; and fixed wireless shot up by AU$477 to AU$4,315 where around 90,000 premises were removed from its estimates of the number of premises within the footprint of that technology.
For fibre to the premises (FttP), brownfields connections dropped AU$3 to AU$4,395 and new greenfields connections dropped AU$48 to AU$2,130.
The 11.7 million premises that were ready to connect as of the end of June consisted of 1.97 million FttP connections, 4.76 million connections with FttN, FttC accounted for 1.46 million premises, the fixed wireless estimate now sits at 610,000, and satellite is estimated to be 432,000 premises.
NBN CEO Stephen Rue praised the result, saying the company was able to complete its volume build two months earlier than planned and connected an extra 230,000 premises by year end.
“From a standing start, it took more than five years to connect our one millionth customer in 2016, but from that moment on we have flown,” he said.
“Over the last four years, we have connected another six million premises to the network, and today’s total activated services stands at more than 7.4 million premises.”
Rue added that in a year’s time, NBN expects to have 8 million premises connected to its network. The company had 7.27 million premises on its network as of June 30.
During the coronavirus pandemic, NBN has been offering a 40% CVC boost to retailers, and despite multiple extensions, the company has said the discount will end on September 19.
“While it has been critical to support the industry through these waves of heightened data demand, the additional CVC capacity we put in place was only ever intended as a short-term measure,” Rue said on Tuesday.
Rue added that a “seismic shift” had taken place in Australia, with the pandemic accelerating the pace of digital change.
“COVID has induced changes over the last 6 months that would otherwise have taken years to play out. It’s changed not just where we work, but how we work: how we collaborate; how we innovate, and who we work with,” he said.
“The information superhighways made possible by NBN have never been more critical to our way of life.
“The distributed workforces of the future have arrived.”
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The coronavirus pandemic has disrupted businesses and the working habits and lives of billions around the world. But it has also shone a spotlight on some of the wider IT challenges already being faced by many governments, businesses and communities.

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The International Telecommunication Union (ITU) has acknowledged these issues, noting “the COVID-19 crisis has … highlighted its own digital divide, where many families, workers, businesses and populations are not able to access or afford the benefits of digital technology”.
SEE: Network security policy (TechRepublic Premium)    
In the Middle East and North Africa, these digital discrepancies are especially pronounced given the cultural and financial diversity of the region. Although these issues pre-date the pandemic, it has nonetheless reinforced the need for them to be tackled.
Here are three of the biggest digital-divide issues the region faces:
1.   Access and affordability
“In the Middle East and North Africa, the proportion of the population not covered by a mobile broadband network fell by more than half between 2014 and 2018 and now stands at 11%,” the GSMA states. 
Yet, as the GSMA observes, “almost half the population are not connected to the mobile internet even though they are covered by a 3G or 4G network”.
One long-standing reason for this situation is the relatively high cost of handsets and data packages. 
As a result, GSMA data shows that in 2018 smartphone penetration across the typically more affluent Gulf nations stood at 75%, compared with 52% in North Africa and 39% in other Arab states such as Sudan. At a time of growing unemployment and reduced government subsidies, the cost of digital services may become harder still for many households to afford.
Alongside this problem, a further factor behind these, and other, take-up statistics is the pronounced gender gap present across much of the region when it comes to technology access. 
And, of course, as Internews’ Saoussen Ben Cheikh reminds us, moving your life or business online is not an option in conflict-stricken countries. In places such as “Libya, Syria and Yemen, strained by conflict and economic chaos, users face low-speed internet and prohibitive costs”.

The gap between those who have internet access and those without it is stuck at about 50%.
Image: GSMA
2. Availability of online services
For those able to work from home, comes another potential issue: many popular video-calling and VoIP services have historically been blocked by state regulators.
These restrictions have been lifted during the pandemic, allowing people to legally use some services like Zoom and Skype, but it’s unclear whether these changes will be permanent. 
Effective use of services can also be stymied by connection speeds. The region is home to some of the slowest, as well as to some of the fastest, connections in the world. 
SEE: Middle East: Web-chat services unblocked but big tech projects take a hit in COVID crisis
Moreover, “many countries saw meaningful drops in average download speeds for mobile and fixed internet connections between February and March 2020”, Simon Kemp, chief analyst at DataReportal, writes. Average download speeds for mobile internet dropped by 13% in Israel, 12% in Morocco, and 9.7% in Turkey, between February and March 2020. 
At the same time, other persistent challenges also exist, including the lack of content and services available in the Arabic language, the large number of smaller businesses without a digital presence and the slow, although accelerating, growth curve for e-commerce. 
Addressing these issues may further help to reduce digital divides, by creating more reasons for widespread digital adoption and engagement.

The Middle East and North Africa region has some of the slowest, as well as some of the fastest, connections in the world.   
Image: Ookla
3. Digital skills and literacy 
Historically, efforts to engender digital skills have focused on meeting existing and predicted IT skill gaps. This remains a priority for countries across the region as they continue to pivot towards becoming knowledge-based economies. 
That said, digital skill requirements must go beyond conventional technology education and training. 
A further important consideration, even in countries with high levels of tech take-up, is the breadth and depth of digital usage. 
The coronavirus may have helped to remedy elements of this problem, by creating opportunities for new digital habits, such as online shopping and learning. But, it has also amplified other digital literacy issues. 
Dubbed an ‘infodemic’, by Dr Tedros Adhanom Ghebreyesus, the director general of the World Health Organization (WHO), there’s a further concern that “fake news spreads faster and more easily than this virus, and is just as dangerous”.
Like other regions, the Middle East and North Africa has been increasingly susceptible to digital disinformation, although this trend is not unique to the current climate. Disinformation can be especially problematic in closed networks – like WhatsApp groups – which many netizens have migrated to, due to concerns about online privacy and surveillance.
To counteract the spread of falsehoods, consumers need to become more information literate, and we need to see more fact-checking efforts – especially during a public-health crisis – like the one launched last year by AFP, in Arabic. 

Just over two-thirds of the Middle East population have internet access. 
Image: Iberdrola/Internet World Stats
Bridging the divide
The region’s digital divide is readily apparent. Remedying this social injustice is important if the socio-economic benefits afforded by digital technology are to be unlocked across the region. 
“Now, more than ever, governments, industry, international organizations, NGOs, academia and other stakeholders must work together to find mutually beneficial solutions,” the ITU suggests. 
There is precedent for this type of collaboration and innovation. Facebook and Twitter have sought to address affordability issues through the launch of ‘lite’ versions of their services.
Telcos have explored infrastructure-sharing to improve access, while governments and Silicon Valley giants have supported initiatives focused on skills training and innovation.
To this list, we should add further investment in local tech education and Arabic digital content, cultural shifts towards a greater acceptance of working from home, and the creation of new products and services – such as mobile wallets – which meet real consumer needs. 
Meanwhile, making some government services online only, coupled with efforts like the Dubai Paperless Strategy, and Egypt’s rollout of digital IDs as a means to access services, will further incentivize behavioral change and the necessary adoption of new digital habits. 
Closing the digital divide is in the interests of governments, telecom providers and other businesses, all of which stand to benefit from a wider user base.
At the same time, consumers also need to reap the benefits too, with digital improving and enhancing their lives, not adding another layer of complication and cost to it.
Whether COVID-19 provides the impetus for these changes remains to be seen, but the pandemic has demonstrated the need to address these issues sooner rather than later. More

Cisco is urging customers to update small business switches, its DNA Center software, routers with its StarOS software, and its AnyConnect Secure Mobility VPN client for Windows. 
Cisco has disclosed a bug in the IPv6 packet processing engine of several Cisco Small Business Smart and Managed Switches that could allow a remote attacker without credentials to trigger a denial of service on affected devices. 

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Affected switches include 250 Series Smart Switches, 350 Series Managed Switches, 350X Series Stackable Managed Switches, 550X Series Stackable Managed Switches, Small Business 200 Series Smart Switches, Small Business 300 Series Managed Switches, and Small Business 500 Series Stackable Managed Switches. 
While the bug leaves all named switches vulnerable to being rebooted and knocked offline, only four of them have software updates available because some are beyond the end-of-software-maintenance milestone. 
The switches with an update available include 250 Series Smart Switches, 350 Series Managed Switches, 350X Series Stackable Managed Switches, and 550X Series Stackable Managed Switches. 
Cisco says it’s not aware of any malicious use of the vulnerability and found it during internal testing. It’s given the bug, tracked as CVE-2020-3363, a severity score of 8.6 out of 10. It also notes that the issue only affects IPV6 traffic, not IPv4 traffic.
Certain versions of Cisco’s DNA Center network automation software are also vulnerable to a high-severity flaw that could let a remote attacker access sensitive information, including configuration files. It has a severity rating of 7.5. 
The software doesn’t handle authentication tokens properly, according to Cisco. This allows an attacker to send a crafted HTTPS request to an affected device. The bug, tracked as CVE-2020-3411, affects all 1.3.x versions of DNA Center software releases prior to 1.3.1.4. 
This bug was also found in internal testing and Cisco is not aware of its use in malicious attacks.  
There’s a slightly more serious flaw in the IPv6 implementation of Cisco StarOS. It’s being tracked as CVE-2020-3324 and could allow a remote attacker without credentials to cause a denial of service on affected routers. It has a severity rating of 8.6. 
Affected devices include Cisco’s ASR 5000 Series Aggregation Services Routers and its Virtualized Packet Core-Single Instance (VPC-SI).
The routers could be attacked if they are running a vulnerable release of Cisco StarOS and have the Vector Packet Processing (VPP) feature enabled. However, VPP is disabled by default. Cisco has details about which releases of StarOS have been fixed in the advisory. 
Finally, AnyConnect VPN mobility client for Windows has a flaw that can let an authenticated, local attacker perform a dynamic link library (DLL) hijacking attack. If attackers gained valid credentials on the Windows system, they could run malicious code with system-level privileges. 
“An attacker could exploit this vulnerability by sending a crafted IPC message to the AnyConnect process,” Cisco explains in the advisory. 
“A successful exploit could allow the attacker to execute arbitrary code on the affected machine with System privileges. To exploit this vulnerability, the attacker would need to have valid credentials on the Windows system.”
Users running Cisco AnyConnect Secure Mobility Client for Windows releases 4.9.00086 and later are not vulnerable. 
This bug doesn’t affect the AnyConnect client for macOS, Linux, or the client for iOS, Android, and the Universal Windows Platform. Cisco has given CVE-2020-3433 a severity score of 7.8. 
Cisco lists a further 15 medium-severity flaws on the company’s security advisories page. 
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