Category Archives: Cloud Servers
Lenovo Teams With Microsoft Azure At The Edge – The Next Platform
In the ever-evolving landscape that is the edge, applications are the driving force. The Internet of Things (IoT) and the billions of connected devices and systems that make it up are giving the edge structure, and the massive amounts of data that those systems and devices are generating are the jewels. But its the applications the run the engine, such as AI-infused software that will pull the crucial, real-time information from all that data and allow enterprises to make immediate and informed business decisions.
It is a point Keerti Melkote, Aruba founder and president of Aruba Networks within Hewlett Packard Enterprise as well as president of HPEs Intelligent Edge business, made to us last year, saying that the interesting part to me is, whats the application ecosystem at the edge look like? Thats what drives the infrastructure ecosystem and data ecosystem.
That said, hardware is no doubt part of the land rush out to the edge. OEMs and original design manufacturers for the past several years have been rolling out a plethora of servers and storage systems designed not only for the power and space constraints of the edge but also to be able to connect back to the core datacenter and the cloud, creating a distributed IT environment that can pass applications and data from one to another and can be managed with common tools. Theyre also being built to be ready for such advanced technologies like 5G networking and the significant upgrades in speed, bandwidth and capacity that will come with it as it ramps over the next several years.
Recently, Dell EMC in February rolled out the PowerEdge XE2420, a short-depth two-socket system built for space-constrained and harsh edge environments and using up to four Nvidia GPUs, and the Modular Data Center Micro 415, a pre-integrated system that comes with power, cooling and remote management that can be placed in various edge locations, part of the companys larger strategy of developing a continuum from the edge to the datacenter and cloud with systems using common components. Supermicro earlier this month expanded its edge portfolio with small and rugged systems for outdoor environments, 5G RAN (radio access networks, and AI inference.
Like most system makers, Lenovo looks at the edge as a key growth area for the company. The companys Data Center Group (DCG) for the past few years has been looking to build on its $2.1 billion acquisition in 2014 of IBMs x86 server business. The company put a sharp focus on the edge last year. At the Transform 2019 event, Lenovo introduced the ThinkSystem ES350, an edge server about the size of a notebook powered by Intels Xeon-D chip and Nvidia Tesla T4 GPU accelerators and aimed at workloads like machine learning inference. The rugged system provides 256GB of RAM and 16TB of internal solid-state storage and can tolerate environments with a range of temperatures, a lot of dust and vibration.
If you look at it from a hardware perspective, I havent seen anybody deliver something like the SE350 today in the market, Kamran Amini, vice president and general manager of server, storage and software-defined infrastructure at Lenovo DCG, tells The Next Platform. Its a very unique product thats delivering AI capability, storage, different types of connectivity from Wi-Fi to 10 gig LAN to LTE and cellular and enabled for future support of 5G. The form factor and the ruggedized and the security built-in, if you look at the market, I dont see anybody having something similar.
Lenovo is coming around this week with another server based on the SE350 as well as family of all-flash and hybrid flash storage systems that deliver NVM-Express throughout, from the compute through the fabric and all the way to the storage data management area. The new offerings are tied closely to Microsofts Azure software stack for enterprises operating in a hybrid cloud model, with a presence both on-premises and in the cloud. Microsoft actually pre-announced the new ThinkAgile MX1021 at its Ignite 2019 show in November, according to Amini.
The MX1021, coming out of Lenovos family of hyperconverged infrastructure systems, uses the Azure Stack HCI solutions to push compute further out to the edge. It also can be used in combination with Azure Stack Hub to drive the datacenter-to-cloud-to-edge infrastructure model by enabling enterprises to run Azure cloud services on-premises and with Azure IoT Hub to connect edge devices to the Azure cloud. Its a 1U, half-width system powered by a Xeon D-2100 with up to eight cores, up to 256GB of RAM and four DIMM slots. It includes multiple M.2 SATA drive bays and provides direct-connect networking to enable a two- to three-node HCI cluster.
On the storage side is the ThinkSystem DM7100 storage family for Azure hybrid cloud environment. It includes the DM7100F (see below), an all-flash model that includes the NVM-Express protocol for improved performance for non-volatile storage like flash and integrated Azure cloud tiering that drives consistent data management across all enterprise environments. In addition, uses can keep data reduction capabilities in the cloud to reduce their cloud footprints. The DM7100H brings flash with support for SAN and NAS.
With both of these, were really targeting not just purely the traditional environments, but beyond that at whats happening in retail, whats happening in manufacturing or healthcare, Amini says. For example, when you look at healthcare, data is very sensitive and you require pure security, encryption of the drives, insurance, full security. You want to be able to provide better performance, data tiering into the cloud, leveraging the healthcare IT administration more efficiently and streaming what they do. You look at areas like manufacturing, where with our edge MX1021, where delivering HCI capabilities shows no loss of sensor data at that remote manufacturing location. Allowing also offline operation with pure connectivity environments. Were really looking at this to tackle a broad spectrum, but also looking at how 5G and others are changing the dynamics of what is required by IT delivering a true edge-to-core-to-cloud offering here between these two products.
For edge environments, its more than just having a piece of hardware, he says, adding that the key is leveraging that ecosystem and being first where you truly have a seamless integration between, for example, Azure and Azure HCI on-prem and delivering truly whats needed at the edge, which is the seamless integration, deployment and management across the entire stack with Microsoft. You could think about it also that its helping customers that want to extend running Microsoft HCI more to the edge. This is a seamless extension to the edge for them, leveraging Lenovos leading-edge computing technology plus Microsoft HCI Stack. Customers look at edge to have easy access to the cloud while they have access to the core as well.
When looking at the evolution of the edge, verticals are going to play an important role. Industries have different needs that solutions and infrastructure are going to have to address. Lenovo will address those needs with not only through DCG, but also its Intelligent Devices Group, which includes its Nano and Tiny products with their small and micro PCs and other systems, and its IoT business.
Theyre looking at how you deliver services as well, Amini says. How you manage your datacenter, its all consolidated a single space. Its one person to 10,000 devices in one place. When you look at edge, the far edge, youre looking at 10,000 pieces that have to be serviced. Were also looking at how we provide different managed services that are a structure of management of the IT, where it can be deployed and the seamless upgrade if you want or managed in that environment. Thats where youre going to see continued enhancements of this space happen.
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Lenovo Teams With Microsoft Azure At The Edge - The Next Platform
[Update: Launching April 13] New HomeKit-compatible pan-and-tilt Eufy camera seems to be on the way – 9to5Mac
Earlier this week, Eufy started rolling out HomeKit Secure Video support for the eufyCam 2, and it now seems there is a new pan-and-tilt Eufy camera on the way.
If accurate, this would be the first non-static camera from the budget-focused smart home company
Update 4/3:Reported by HomeKit News, an email from Eufy to customers interested in the new camera says that it will launch the new HomeKit product on April 13th.
HomeKit News reports.
Earlier today, we sent out a tweet about a post in the HomeKit subReddit, where user u/KingKarl-TM uploaded what appears to be an offer from Eufy, via their Facebook page, revealing not one, but two indoor cameras, one of which would appear to be capable of pan and tilt functionality. Given the number of doctored images found online these days, its prudent to be cautious about such claims, however, Christopher Close from iMore did a bit more digging, and found further evidence of the tilt camera in the Eufy Security app.
Not only does the app reveal the aforementioned camera albeit in beta, but the existence of a HomeKit code is shown on the base of the device, further pushing this into the realm of being likely to be HomeKit compatible. Stranger things have happened of course, and it wouldnt be beyond the realms of possibility that such a camera doesnt actually get released. Still, given that it appears they at some point have promoted these via Facebook (no sign of this now seemingly exists beyond the Reddit post) it does look rather promising.
As we explained previously, there are two levels of HomeKit support for security cameras, and theres no indication at this stage which the new cameras might support.
HomeKit Secure Video is designed to address the main security weakness with most of todays smarter cameras. In order to do things like detect people and recognize faces, most cameras upload your video stream to the cloud and carry out the analysis there. That means that unencrypted video is stored on someone elses server, representing a tasty target for hackers.
With HSV, all of the people, animal, and vehicle detection is performed locally, on your own iPad, HomePod, or Apple TV, and only encrypted video is sent to Apples cloud servers.
The situation is, however, complicated by the fact that additional cameras have a more basic form of HomeKit-compatibility, meaning Siri support and motion-triggered actions, but not HomeKit Secure Video.
Eufy offers a range of more wallet-friendly smart home products, including security cameras and robot cleaning devices. A pan-and-tilt Eufy camera would be a welcome addition to the range.
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Microsoft answers Amazons Verizon cloud partnership with new 5G-enabled Azure Edge Zones, starting with AT&T – GeekWire
Microsoft Image
A new service from Microsoft will connect its Azure cloud services to 5G wireless networks inside data centers operated by wireless carriers, aiming to boost the performance of devices and mobile applications such as online gaming, remote virtual meeting and urban infrastructure.
The first of the Azure Edge Zones with carriers will be launched in partnership with AT&T in Los Angeles late spring, Microsoft announced this morning. The project builds on work that Microsoft and AT&T started in Dallas last November. Microsoft is leaving open the possibility of working with other wireless carriers, as well.
Amazon Web Services and Verizon announced a similar partnership in December, connecting Amazons cloud services to Verizons 5G network through AWS Wavelength, with initial customers including Bethesda Softworks and the NFL.
Microsoft says it will also support connections to private 5G and LTE networks through what its calling Azure Private Edge Zones. This is an offshoot of Microsofts Azure Stack technology, which puts cloud technologies into private, on-premises data centers and servers.
The Redmond company acquired mobile network solutions company Affirmed Networks on March 26 as part of this broader 5G push for the Azure cloud platform.
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Microsoft answers Amazons Verizon cloud partnership with new 5G-enabled Azure Edge Zones, starting with AT&T - GeekWire
Local Break Out (LBO) and Its Role in Bringing Cloud to the Edge – Data Center Knowledge
Its been a part of wireless networks for years, including as a component of 4G LTE. Recently, however, with the rise of edge computing, Local Break Out has become topic of serious discussion in the data center market.
LBO is the part of the wireless network that lets selected streams of incoming data be diverted, like a fork in a river or a tap on a beer barrel, away from the networks own addresses. It was proposed by communications engineers back in 2012 to enable roaming devices like smartphones to have the data theyre using to be routed to them by service providers other than the ones theyre customers of. At the time it was also under consideration by the European Parliament [PDF] as a kind of platform for a competitive market in roaming communication, a way for many networks to serve a single customer with voice and data.
Related: Why Google Cloud and AT&T May Merge their Telco Edges
It later became part of the 3GPP standards organizations Release 8 of the global standard for wireless infrastructure baked into the network. The standard is presently on Release 16, the second stage of 5G deployment, with Release 17 due to be finalized in early 2021.
With 5G turning up the volume on data throughput, LBO is becoming a kind of all-purpose socket for edge computing platforms to tap into the wireless network and connect to services and data providers upstream. One of the things this does is enable smaller platforms to provide data center services that are competitive, at least in some regards, to colocation and public cloud giants by leveraging wireless networks fiber optic links as their interconnecting fabrics.
Related: Vapor IO Intros Kinetic Edge Exchange for Network Peering at the Edge
3GPP has defined the roles of home and visited networks while sharing the responsibility of providing the user experience or data service, remarked Tom Nadeau, regarded by many as a father of SDN and presently a technical director at Red Hat. The visited network is responsible for building its network infrastructure independently of the home network operator.
LBO was designed to enable a shorter path between a wireless user and a roaming data network, leveraging the existing wireless packet gateway in the network being visited as the routing agent. In practice, however, LBO was expanded for the home networks purposes, shortening the distance between the packet gateway and a nearby access point to the internet, or to a cloud service provider. In a note to DCK, Nadeau explained that 3GPPs architecture for LBO is altogether agnostic about the infrastructure of either the remote visited service provider network that connects to it or the home network from which a connection may be made.
The 3GPP SBA (Service Based Architecture) refers to a 3GPP-defined model of how [network] functions are built and chained to deliver mobile services, Nadeau wrote. These services are built using software components called network functions. The functions can run on a cloud platform such as Red Hats OpenStack, he pointed out.
LBO is an option to short-circuit traffic at the local POP [point-of-presence] where the data plane exists to deliver edge services. S/PGW-U [the converged serving gateway and packet data network gateway in 5G, on the user plane of SDN] can be placed as a network function on OpenStack at the edge to handle Local Break Out.
In other words, no single part of the roaming data connection requires a peculiar type of server or unique network appliance. Its an anything-to-anything connection. And at the point where just about anything comes together, why not build an entirely new data services market?
At the edge, theres this concept of an edge exchange, explained Alex Marcham, technical marketing manager for the edge data center provider Vapor IO. An edge exchange is similar to a provider-neutral Internet Exchange, which gives networks more options for direct connectivity to ISPs and CDNs, giving operators similar options for outside connectivity at the edges of their networks. Conceivably, it could be a way for Amazon Web Services or another cloud provider to offer low-latency connectivity between its cloud platform and subscribing private facilities.
In those cases, if you were to have an LBO connection from your packet gateway to one or more of those edge exchange sites you could potentially exchange data between, say, a Verizon and an Amazon without having to take your original long path back to a hyperscale facility, Marcham said. In that case, once you leave the packet gateway on that SGi interface, you are routable IP. You go into an edge exchange which has the same components as a traditional network exchange, in the form of a meet-me room, and the various letters of agreement that control those network connections through that MMR.
Theres an argument to be made, Marcham believes, in favor of the development of an edge services ecosystem. It wouldnt replace or supplant the current cloud services-based economy, but rather supplement it with lower-latency options on a premium service tier.
In one scenario, for example, a CSP could offer API access to an AI service, perhaps for rapidly processing photo or video data and identifying its contents. Today, a round-trip transaction involving a cloud data center in one of its regional availability zones would take too long for a near-real-time application. But on a premium tier, where the connectivity is arranged through an edge exchange, users could be linked to the same service using the much faster fiber optic network that wireless operators use for backhaul. LBO would provide both the on-ramp and the off-ramp into the fiber network.
Theres a business to be forged there, believes Vapor IOs chief marketing officer Matt Trifiro. Just whose business it will be, however, remains to be determined.
Offering the operators the ability to deploy white-box hardware in facilities that they didnt have to build and dont have to carry on their balance sheets provides massive economic benefits, as well as massive time-to-market benefits, he said. Conceivably, as much as one-third of the cost of operating an edge data center could be wiped off an operators balance sheet, and risk could be offloaded to a partner.
If Im Verizon, if Im Amazon, Ive got to put something there, continued Trifiro. And somebodys already solved the networking and the colocation problem. Its an order of magnitude more efficient and cheaper to use that than to build my own.
Customers are hoping to capitalize on the opportunities that edge computing can bring to their organizations, noted Red Hats Nadeau. While edge computing and Mobile Edge Computing are established concepts, whats different are the new technologies that are making it easier to deploy and operate resources at large scale across broadly distributed locations, while at the same time enabling a new wave of applications and workloads that businesses can use to create differentiation, drive new business, or lower costs.
In 1904, an electrical engineer named Harvey Hubbell happened upon the concept that electricity could become a viable industry if the network were to adopt standard sockets. Well over a century later, engineers believe, edge exchanges could become a similarly viable, world-changing industry, as long as everyone agreed on how to plug in.
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Local Break Out (LBO) and Its Role in Bringing Cloud to the Edge - Data Center Knowledge
Snap Launches App Stories to Expand Its Reach – Nasdaq
Snap (NYSE: SNAP), the maker of the disappearing messaging app Snapchat, launched App Storieson Tuesday, a new tool that enables its Stories feature to show up in third-party apps.
Launched in 2013, Stories is one of Snap's most popular features. Facebook's (NASDAQ: FB)Instagram cloned Stories in 2016, and Twitter (NYSE: TWTR) recently launched Fleets, which are disappearing Tweets.
IMAGE SOURCE: Snap.
Snap Stories enables users to post videos and photographs that disappear in 24 hours. With App Stories, users will be able to post their disappearing videos and photos to other apps, which will expand the number of people that can view content made on Snapchat.
In their initial phase, App Stories will be available on social, video, and dating apps Triller, Squad, Hily, and Octi. Snap expects to add more apps in the coming months.Snap teased App Stories about a year ago at the company's Partner Summit. At the time, Snap said App Stories would appear on Tinder and Houseparty, two popular apps.
By launching App Stories, Snap is aiming to extend the number of people who can view its content and potentially become Snap customers. Snap has been enjoying double-digit growth during 2019 and is seeing an uptick in usage amid the COVID-19 pandemic. In order to chip away at Facebook and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google advertising dominance Snap has to continue to grow its user base. Enabling third-party apps to feature Snapchat content may not make it more money in the beginning, but it could expand its reach, which is important to advertisers.
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Snap Launches App Stories to Expand Its Reach - Nasdaq
Holy Water: A creative water-holing attack discovered by Kaspersky – ETCIO.com
Kaspersky researchers have discovered a watering-hole campaign targeting users in Asia since May 2019.
More than 10 websites related to religion, voluntary programs, charity, and several other areas were compromised to selectively trigger a drive-by download attack resulting in a backdoor set up on the targets' devices.
Attackers used a creative toolset, which included GitHub distribution and the use of open-source code.
A watering hole is a targeted attack strategy in which cyber criminals compromise websites that are considered to be fertile ground for potential victims and wait for the planted malware to end up on their computers. In order to be exposed to malware, a user needs to simply visit a compromised website, which makes this type of attack easy to spread and thus more dangerous.
This multi-stage waterhole attack with an unsophisticated but creative toolset is distinctive due to its fast evolution since its inception date, as well as the wide range of tools used.
Upon visiting one of the water-holing websites, a previously compromised resource will load an obfuscated malicious JavaScript, which gathers information about the visitor.
An external server then ascertains whether the visitor is a target. If the visitor is validated as a target, the second JavaScript stage will load a plugin, which in turn will trigger a download attack, showing a fake Adobe Flash update pop-up.
The visitor is then expected to be lured into the update trap, and download a malicious installer package that will set up a backdoor named 'Godlike12', thus providing the threat actor with full remote access to the infected device, enabling them to modify files, harvest confidential data from the computer, log activity on the computer and more.
Another backdoor, a modified version of the open-source Python backdoor called Stitch, was also used in the attack. It provided classic backdoor functionalities by establishing a direct socket connection to exchange AES-encrypted data with the remote server.
The fake Adobe Flash pop-up was linked to an executable file hosted on github.com under the guise of a Flash update file. GitHub disabled this repository on the 14th of February 2020 after Kaspersky reported it to them, thus breaking the infection chain of the campaign.
The repository has, however, been online for more than 9 months, and thanks to GitHub's commit history, the researchers were able to gain unique insight on the attacker's activity and tools.
This campaign stands out due to its low-budget and not fully developed toolset, which has been modified several times in a few months to leverage interesting features like Google Drive C2. Kaspersky characterizes the attack as likely being the work of a small, agile team.
"Watering hole is an interesting strategy that delivers results using targeted attacks on specific groups of people. We were not able to witness any live attacks and thus could not determine the operational target," said Kaspersky senior security researcher, Ivan Kwiatkowski.
"However, this campaign once again demonstrates why online privacy needs to be actively protected. Privacy risks are especially high when we consider various social groups and minorities because there are always actors that are interested in finding out more about such groups."
Kaspersky recommends following a series of steps to avoid falling victim to targeted attacks on organizations or persons.
According to the organization, people should not update nor install Adobe Flash Player, as the product is no longer supported and most likely, the update disguises something malicious. In case it has been installed, Kaspersky recommends removing it as the technology is now obsolete.
VPN must be used to hide the person's association with a specific group by masking the real IP address and hiding the real location you are at.
Kaspersky suggests that people choose a proven security solution such as Kaspersky Security Cloud for effective personal protection against known and unknown threats.
The Security Operations Center (SOC) team must be provided with access to the latest threat intelligence, and to stay up to date with new and emerging tools, techniques and tactics used by threat actors and cybercriminals.
For endpoint level detection, investigation and timely remediation of incidents, implementation of EDR solutions such as Kaspersky Endpoint Detection and Response are advised.
In addition to adopting essential endpoint protection, implementing a corporate-grade security solution that detects advanced threats on the network level at an early stage, such as Kaspersky Anti Targeted Attack Platform is also advised.
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Holy Water: A creative water-holing attack discovered by Kaspersky - ETCIO.com
StorageOS hits the big 2.0 as it targets more ‘mature’ clusters – DevClass
StorageOS has shipped v2.0 of its Kubernetes persistent storage platform bringing a brace of new features over the previous version, 1.5, which shipped last November.
The London-based developer said the latest full digit release which shot out on March 31 was developed to take account of some key trends in cloud native storage over the last year.
These include users increasingly running multiple cluster deployments in various patterns and wanting storage to connect across all of them, as well as bigger Kubernetes clusters with more nodes requiring storage to scale to match. Users are also demanding production grade storage as they deploy more mature Kubernetes environments.
Meanwhile, StorageOS added, complex Kubernetes deployments can be unpredictable with users demanding storage that can handle replication and failover.
Hence the two new features in v2.0. StorageOS Delta Sync promises to reduce time to recovery allowing rapid cluster convergence by only replicating the missed data to the node. This should make recovery times more predictable, even as clusters gain more moving parts, with the inevitable increase in network interruptions and node reboots.
The second new feature is the addition of encryption in transit with traffic between nodes now encrypted and authenticated, with certificates managed by StorageOS internal certificate authority.
Other changes related to etcd. The latest version does not provide an embedded etcd server unlike its predecessors, and users will need to set up an etcd server for StorageOS to use prior to installation.
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StorageOS hits the big 2.0 as it targets more 'mature' clusters - DevClass
North West Logistics moves to the cloud – Tina Massey
Accrington, UK: North West Logistics has moved its data to Mandatas cloud-based systems.
The system provides customers with real-time information but also also allows North West Logistics personnel to remotely access systems from home now more important given the measures introduced to cope with the coronavirus.In previous times, says the company, all operational data was on a server which presented access problems and raised concerns regarding long term reliability.Stephen Dunn, managing director, North West Logistics: says: The server needed replacing and we were worried about the disaster recovery aspect and interruption to the business, should the system fail. Plus, we needed to use discs to back-up everything and for those reasons we looked for a more versatile and reliable solution.The move went very well with little disruption to our business. It was extremely well planned and were very pleased with the way Mandatas IT and software team handled the project, he says.Now we can give our customers the freedom to access and interact with real-time information when they log into the Mandata system. Our directors and staff can access our systems remotely. None of this was possible before.Its already given us big benefits across the business including electronic PODs, instant progress on jobs for our customers and of course, remote working, he says.
We could never have anticipated the extraordinary circumstances which were now facing and were so pleased that we moved to the cloud when we did.All in all, its the way the industry is moving. Being able to give customers information today, not tomorrow. Having the flexibility to access financial as well as operational information as and when you need, without having to be physically in the office.The cloud has given us an extra dimension to our business. Its a seamless way of working that we didnt have before, in terms of remote access and mobile working, he says.
Cloud-Based Security Tool Adoption: Latest Research Findings – MSSP Alert
Most organizations have migrated security tools to the cloud, according to a survey from security information & event management (SIEM) provider Exabeam.
by Dan Kobialka Mar 25, 2020
Approximately 58% of organizations have migrated at least a quarter of their security tools to cloud-based options, according to a survey from security information and event management (SIEM) platform provider Exabeam. In addition, 33 percent said they have moved more than half of their security tools to cloud options.
Other findings from Exabeams survey included:
The survey also revealed cloud-based security tools are being used to protect different types of data, including:
Cloud-based security tools may be beneficial, but organizations must still maintain visibility into their cloud services, Exabeam Security Strategist Sam Humphries stated. In doing so, these organizations can use cloud-based security tools to enjoy the functionality of traditional on-premise security solutions, along with reduced costs and maintenance issues.
Organizations that want to implement cloud-based security can leverageExabeam SaaS Cloud, which is available for hosting in 15 locations across the following regions:
SaaS Cloud helps organizations identify cyber threats and meet compliance and policy requirements, the company indicated. It also provides data lake, behavioral analytics, case management, security orchestration and incident response automation capabilities.
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Cloud-Based Security Tool Adoption: Latest Research Findings - MSSP Alert
Micron Gains as Cloud Strength Boosts its Earnings and Guidance – TheStreet
While Microns (MU) - Get Reportsales to some major customers are under pressure, its sales to some others are holding up pretty well right now.
After the bell on Wednesday, the memory giant reported February quarter (fiscal second quarter) revenue of $4.8 billion (down 18% annually) and non-GAAP EPS of $0.45, topping consensus analyst estimates of $4.69 billion and $0.37.
Micron also guided for May quarter revenue of $4.6 billion to $5.2 billion and non-GAAP EPS of $0.40 to $0.70. The midpoints of those wider-than-usual guidance ranges are slightly above consensus estimates of $4.87 billion and $0.52.
With markets having been on edge about the COVID-19 pandemics impact on Microns sales, the numbers are going over well. As of the time of this article, Microns stock is up 5.3% in after-hours trading to $44.75. Shares are now up 44% from a March 18 low of $31.13, albeit still down 27% from a Feb. 12 52-week high of $61.19.
In its prepared remarks, Micron did caution that it expects smartphone, consumer electronics and automotive demand to be below prior expectations during the second half of its fiscal 2020 (ends in Aug. 2020). However, the company also noted it has seen higher notebook demand as more workers and students work and learn from home, and that demand from data center end-markets (already on the upswing in recent months thanks to a cloud capex rebound) is strong as usage for various online/cloud services grows, and even leading to shortages.
In addition, Micron reported that Chinas COVID-19 pandemic weighed on its sales to consumer electronics clients and caused factory shutdowns for some clients. However, it added local data center demand was strong, and that Chinese smartphone production volumes have begun to rebound.
Micron's near-term demand outlook. Source: Micron.
Microns demand commentary has some things in common with what GPU giant and Micron graphics DRAM client Nvidia (NVDA) - Get Reportshared on a Tuesday conference call. Among other things, Nvidia said its seeing strong demand for GPUs going into notebooks and cloud servers, and indicated Chinese demand has begun normalizing. Micron, for its part, disclosed that its bit shipments of GDDR6 graphics DRAM (used by some of Nvidias GPUs) rose over 40% sequentially last quarter.
With full-year supply and demand trends quite uncertain right now, Micron chose not to provide calendar 2020 outlooks for DRAM and NAND flash memory bit supply and demand growth -- either for itself or the memory industry at-large.
In December, Micron guided for DRAM industry bit demand to grow by a mid-teens percentage this year, and for NAND bit demand to grow by a high-20s to low-30s percentage. Now, Micron is merely reiterating long-term guidance for DRAM bit demand to see a mid-to-high teens compound annual growth rate (CAGR), and for NAND bit demand to see a roughly 30% CAGR.
Micron is also for now reiterating fiscal 2020 capital spending guidance of $7 billion to $8 billion, while adding that its evaluating its capex plans for calendar 2020. Several chip equipment makers, including Applied Materials (AMAT) - Get Report, have withdrawn their quarterly guidance, while noting that recent lockdown orders have impacted their manufacturing operations.
Micron received a few questions on its earnings call about inventory levels -- both its own and those of its customers.
Microns inventory rose by $300 million sequentially to $5.2 billion, leading its days of inventory to rise by 13 to 134. The company insisted that much of this growth was due to seasonality and the holding of additional NAND inventory ahead of a technology transition. However, it also reported building its raw materials stockpiles due to supply chain uncertainty.
Separately, Micron admitted that just as its stockpiling raw materials, some of its customers could be stockpiling memory products, and that these efforts could be masking weakening end-market demand.
Following a sharp downturn in late 2018 and early 2019, DRAM and (especially) NAND pricing trends have seen meaningful improvement, as industry capex cuts make themselves felt. And for now at least, Micron insists memory pricing trends remain favorable.
During the February quarter, Microns DRAM average selling price (ASP) was roughly flat sequentially, after having dropped by a high-single digit percentage in its November quarter. NAND ASP rose by a high-single digit percentage, after having risen by a low-single digit percentage in the November quarter.
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Micron Gains as Cloud Strength Boosts its Earnings and Guidance - TheStreet