Cisco and Citrix Form Alliance for Rich-Media Virtual Desktops.  Cisco (CSCO) and Citrix Systems (CTXS) have entered into a strategic alliance to develop and deliver solutions that help customers simplify and accelerate large-scale desktop virtualization deployments. Collaboration between the two companies will include integrations in areas such as enhancing Cisco products with full support for Citrix HDX technology, delivering an optimized user experience for virtual desktops, and accelerate innovation with Cisco UCS, Citrix XenDesktop and XenServer. In addition, the two companies will work together on product development in such areas as desktop virtualization and cloud. ”Cisco is collaborating with Citrix on a broad range of virtualization technologies. Our first deliverables will be focused on giving end users a rich multimedia experience of voice, video and data on their virtual desktops and apps over the Cisco Intelligent Network, so that from any device from wherever they are, IT managers can deliver the same superior experience at a lower cost,” said Phil Sherburne, vice president, Enterprise Systems and Architectures, Cisco.

Level 3 Combines Vyvx with Global Crossing Genesis.  Level 3 Communications (LVLT) announced an expanded set of media and broadcast services that combines Level 3′s Vyvx Services platform for broadcast backhaul with Global Crossing’s Genesis Solutions managed video contribution and distribution services. ”From the transport of native or source HD and 3D television signals to the delivery of Internet Broadcast applications, we are exceedingly well positioned to fully manage end-to-end video for our broadcast and media clients,” said Mark Taylor, vice president of Content and Media at Level 3. The Vyvx and Genesis solutions are built around a new generation of advanced video services designed to deliver broadcast quality rich media content to more than 450 markets in more than 45 network countries.

Blue Coat Adds Video Intelligence.  Blue Coat Systems (BCSI) announced that its Blue Coat Reporter now provides intelligence about the usage of Web video on corporate networks. The new version provides website ranking for sites that employees watch video on, ranking of employees using the greatest amount of bandwidth watching video, and ranking of the protocols or methods used to delivery web video. “Blue Coat uniquely solves the challenges companies face in delivering Web video and internal video over their existing networks,” said Steve Daheb, chief marketing officer and senior vice president, Blue Coat Systems. “The new Reporter product provides important insight on how employees are using Web video and enables companies to understand and address trends and patterns of behavior. In addition, our next generation WAN optimization solutions reduce the impact of video by a substantial factor while boosting the performance of business-critical applications.” Blue Coat Reporter 9.3 is available immediately.

“While I’ve heard that both AT&T and Microsoft have passed at acquiring Limelight, the bigger news I have confirmed is that Level 3 and Limelight have been in discussions for a few weeks now about joining forces and combining their CDN assets as a joint venture,” Dan writes. “If a deal between Limelight and Level 3 gets done, it’s going to have a lot of impact on the content delivery market overall. Such a combined offering would also give telcos and carriers a run for their money and might also convince a few of them not to spend money to try and build out their own CDN. While it’s too early to know all the ramifications of such a deal, it would drastically change the CDN landscape.”

Read Dan’s full account and analysis over at the Streaming Media blog.

Fusion-io to acquire IO Turbine. Fusion-io (FIO) announced that it has entered into a definitive agreement to acquire IO Turbine, Inc., a provider of caching solutions for virtual environments. Fusion-io will pay up to approximately $95 million, subject to purchase price adjustments, for all outstanding securities of IO Turbine. Integrating the IO Turbine software with Fusion-io’s platform will enable traditional storage infrastructures to keep up with the increasing demands of virtualized servers and expands Fusion’s market opportunities to both new and existing customers. “IO Turbine’s software is uniquely architected to take advantage of flash memory in the server to solve the I/O bottlenecks, the inhibitor to the adoption of enterprise virtualization,” said David Flynn, Chairman and Chief Executive Officer of Fusion-io. “We believe integrating ioMemory and IO Turbine adds a critical and previously missing performance component to virtualized IT environments that will accelerate the adoption of Fusion-io technology. This acquisition also underscores our focus on providing customers with an enterprise solution that features software and hardware components designed to accelerate their business’ full suite of applications.” Twenty IO Turbine employees will be added to the Fusion-io engineering team upon closing.

Level 3 acquisition of Global Crossing approved.  Level 3 Communications (LVLT) announced that stockholders of both companies voted to approve Level 3′s proposed acquisition of Global Crossing (GLBC). ”We are very pleased that stockholders of both companies have given their support to this transaction,” said James Crowe, CEO of Level 3. “We believe that the combination of our two companies will create immediate and long-term value for our stockholders and customers. We continue to work to obtain the requisite regulatory approvals needed to close the transaction and begin the process of integrating the companies to realize the synergies and opportunities expected from the transaction.” The companies continue to expect the transaction to close before the end of 2011.

Eaton offers 480/277V power distribution.  Eaton Corporation  announced 480 volt (V) configurations for its ePDU power distribution product line. Eaton introduced a new line of 400V ePDU products in March and continues to drive efficiency gains with this new 480/277V AC offering. Since utility power in North America typically enters a facility at 480V AC, Eaton’s 480V ePDU products remove the need for step-down transformers, reduce distribution costs and power high-efficiency 277V power supplies. The higher voltage allows for more efficient power distribution, resulting in less loss than at 208V. ”We’ve noticed a trend with many of the new, cutting-edge data centers choosing a 480V power scheme and 277V custom power supplies that are extremely efficient,” said Joe Skorjanec, ePDU product manager, Eaton Distributed Power Solutions. “Power distribution units at this voltage are usually only available as custom solutions. Eaton is among the first in the industry to offer 480V as part of our ePDU catalog offering in order to better meet the needs of server manufacturers.”

Level 3 connects London Stock Exchange.  Level 3 Communications (LVLT) announced that it now offers connectivity to its colocation facility at London Stock Exchange Group’s Data Center in the City of London. The Exchange hosts customers including members of London Stock Exchange Group, non-member firms, vendors and service providers. The Exchange Hosting Service provides access to the London Stock Exchange, Borsa Italiana, Turquoise and Oslo Børs trading venues. “Connecting London Stock Exchange Hosting clients to our global network underscores our commitment to continually invest in improving connectivity to the financial community,” said James Heard, president of European Markets for Level 3. “As a result, we can now provide secure connectivity to key participants trading on London Stock Exchange Group’s markets.”

Arista selected by CBOE Holdings.  Arista Networks and Solarflare announced that CBOE Holdings, Inc., home of the Chicago Board Options Exchange (CBOE) and other exchange subsidiaries, chose Solarflare and Arista to support next-generation technology for high frequency trading on its CBOEdirect platform. CBOE technologists leading the network design effort selected an Arista and Solarflare solution that delivers dramatic improvements in performance, bandwidth and response time to CBOE customers. “System performance and response time have always been central to CBOE’s technology focus,” said Gerald O’Connell, CBOE Holdings executive vice president and chief information officer.  “By implementing a combination of Solarflare’s and Arista’s low latency, high-performance networking products, CBOE continues to provide the lowest latency experience to our customers. We’re extremely pleased with the benefits – including measurable lower latency – delivered with these new network enhancements.”

Palo Alto Networks announces new CEO and $200 Million run rate.  Palo Alto Networks announced Monday that it has achieved a bookings run rate well above the US$200 million mark, surpassing the company’s expectations. The company has seen positive cash flow from operations for 5 consecutive quarters, their business was split 60 percent domestic and 40 percent international, and their global customer count has surpassed 4,500 enterprises.  ”These numbers reflect the highly disruptive impact we have on the network security market,” said Nir Zuk, founder, CTO, and member of the office of the CEO at Palo Alto Networks. “We are rapidly replacing the firewalls the incumbent vendors have sold to enterprises over the past 15 years. Our focus on product innovation and customer success has made that choice easy for organizations looking to modernize their network security.” On Monday the company also announced the appointment of Mark D. McLaughlin as president and CEO of Palo Alto Networks. McLaughlin will commence his new role later this month following his departure as president and CEO of Verisign.

Fox Sports signs on with Level 3. Level 3 Communications (LVLT) announced that FOX Sports is using Level 3’s Vyvx VenueNet+ services to support the delivery of all Major League Baseball games that it broadcasts for the 2011 season. Combining voice, video and data services VenueNet+ will reduce operational complexities for FOX Sports and enable more advanced communications options for the event delivery process. “After using Level 3’s VenueNet+ services for the 2010 football season – including the Super Bowl, which was one of the most-watched events in history – we were truly impressed with the simplicity of the panel as well as the tremendous operational capabilities it enabled,” said Jerry Steinberg, senior vice president of Field Operations with FOX Sports. “We’re pleased to work with Level 3 to provide viewers with top-quality broadcasts for the 2011 baseball season.” Level 3 also announced that they have signed an agreement with Information Television Network (ITV), a producer of health and wellness broadcast programming based in Florida, to provide bandwidth support for the company’s expanding production needs.

AEG Digital Media Has Record Month with Akamai.  AEG Digital media, provider of complete webcast management and digital media services, announced today that it teamed with Akamai Technologies (AKAM) to deliver almost 170 million streams and more than 2,400 terabytes across the Akamai HD Network in April, the largest month ever for events enabled across the two companies’ platforms. Fueling the 14.7 billion online viewing sessions during April 2011 alone were the Royal Wedding and Coachella Music and Arts Festival events. “More media companies are taking advantage of the fantastic opportunity to engage viewers and add value to programming through digital broadcasts of live events,” said Suzanne Johnson, Director of Marketing at Akamai. “We have seen the numbers grow exponentially over the last year and expect that to continue as new devices and platforms emerge. The scale and power of the Akamai HD Network is behind many of these popular events to optimize the highest quality viewing experience on a global basis.”

Octoshape selected by Tennis Channel.  Octoshape and B2 Broadcasting announced they have been chosen by Tennis Channel as the exclusive provier of video streaming services for the 110th French Open. B2 Broadcasting is providing the on-site encoding services, as well as the enhanced multi court video player experience. The encoded video signals are acquired using the Octoshape Infinite Uplink technologies and streaming to the audience is delivered through the Octoshape Infinite Edge technology suite. “The French Open is a fantastic event for B2 to leverage our Octoshape partnership and our core broadcasting competencies in providing a robust broadband player for Tennis Channel,” said Paul Dingwitz, CTO B2 Broadcasting.

Cotendo selected by Conduit. CDN and service company Cotendo announced that Conduit, one of the world’s largest networks for application publishers, has adopted Cotendo’s suite of services as its primary tool for accelerating content delivery and enhancing content management to serve the needs of 260,000 publishers and 230 million users. Cotendo’s global network and traffic management services, such as CDN Load Balancing, Site Assure and Advanced DNS (ADNS), have enabled Conduit to offload on average 70-80% (and for some services up to 90%) of traffic from origin servers. “We are able to add new services and applications with confidence because Cotendo handles the traffic,” said Conduit’s Chief Technology Officer Dror Erez. “We can quickly introduce new programs without worrying about performance.”

Limelight acquires Clickability. Limelight Networks (LLNW) announced the acquisition of Clickability, a software-as-a-service (SaaS) provider of web content management (WCM) tools. San Francisco-based Clickability helps enterprise marketers and online publishers create, manage and publish content globally; track visitor experiences; and implement branding, social media, and demand generation campaigns on a website. Clickability content and marketing tools complement the Limelight platform and deepens the relationships with publishers, enterprises, and agencies by providing them with streamlined workflows, differentiated performance, and global scale. “This acquisition expands Limelight’s total addressable market in cloud-based services by $1 billion, and the web content management segment is expected by Gartner to grow to $1.7 billion by 2014,” said Jeff Lunsford, chairman and chief executive officer, Limelight Networks. “Limelight has built a track record of successfully integrating other high-value, high-margin cloud-based services. We look forward to continuing that success with Clickability as they begin to leverage our technical and operational infrastructure.”  The transaction was completed with a combination of Limelight Networks common stock and cash and is valued at approximately $10 million.

MLB.com adds Level 3 to CDN mix.  Dan Rayburn reveals some CDN usage of Level 3 by MLB.com, instead of having Akamai as a sole provider. After seeing an increase in content trace routes Dan called MLB and they said that the reason for using Level 3 CDN was to provide the best performance for the end user and not due to price. Dan estimates 25 to 30 percent of MLB.com’s traffic is now going over Level 3′s CDN. Additionally, Twitter seems to be exclusively using the Level 3 CDN. With recent earnings reports from both Akamai and Level 3, it appears that Level 3 is growing while Akamai reported that growth had “moderated”.

Meru announces AP400. Meru Networks (MERU) announced the AP400 Mobile Edge access point platform, the industry’s first first three-stream 802.11n quad-radio AP platform. The new AP400 was designed specifically to manage a smooth and accelerated transformation of the enterprise edge network from a wired Ethernet switch architecture to the new Mobile Edge. The AP400 Mobile Edge platform also leverages Meru’s patent-pending Orthogonal Array Beam Forming technology and next generation sub-carrier level beam forming to deliver Adaptive Optimization. Zeus Kerravala from Yankee Group commented that “enterprises are becoming more mobile by the day. The workforce is no longer attached to their desks accessing applications via a wired connection. Optimizing mobile devices and providing a flexible and reliable network from anywhere will be the next challenge on the IT horizon, forcing enterprises to rethink the way the network edge is designed. Meru is offering enterprises a clear migration path to a new wireless edge with the introduction of the AP400 platform, while enabling much needed cost savings and a more efficient workforce.”

• The Yankee Group – The scale of this new company creates a more formidable network services competitor to the likes of AT&T, Verizon Business, BT, etc. With the breadth and depth of its coverage and data and converged services offerings at both the wholesale and large enterprise segments, this new company provides a formidable option for many companies with global needs.
• Bloomberg – The deal will combine two unprofitable companies with total revenue of $6.26 billion as of last year, and cut annualized capital spending by about $40 million, according to the statement. It will also help reduce the pressure on prices, which have declined by as much as 30 percent a year in the industry, said Donna Jaegers, an analyst at DA Davidson & Co. “This is what telecom has needed for a long time,” said Denver-based Jaegers, who recommends buying both stocks. “You have way too many players.”
• Fierce Telecom – One of the major growth drivers Level 3 will be around CDN services. While it has extensive CDN presence in the U.S., the Global Crossing acquisition will give it instant CDN access in Latin America, one that Global Crossing recently bolstered with its acquisition of Genesis Networks, in addition to mid-market and large enterprise services.
• GigaOm – With the metro fiber assets, undersea cable and long-haul fiber crisscrossing the world, this deal allows Level 3 to play with broadband’s big boys, as those boys get bigger. For example, the industry is consolidating in terms of sharing towers for wireless networks, monopoly wireline providers combining and even wireless providers getting bought. As the last mile and wireless providers consolidate, Level 3 needs the power and scale to control its own destiny.
• Telecom Ramblings – Both companies have underlying strategic needs that this deal fills. Level 3 needs greater scale to bear the load of its debt while maintaining a growth footing. Global Crossing needs US and continental European metro access to boost its margins, and for two years now has been quite open about the benefits of consolidation. That these two eventually managed to agree on a price is not nearly as surprising as how long it has taken.

The Global Crossing data center at the Docklands in London. The company is being acquired by Level 3.

In a deal combining two operators of major Internet backbones, Level 3 Communications will acquire Global Crossing for approximately $3 billion in an all-stock deal, the companies said this morning.

“This is a transformational combination that we believe will deliver significant value to the investors, customers and employees of both Level 3 and Global Crossing,” said Jim Crowe, chief executive officer of Level 3. “The complementary fit between the two companies’ networks, service portfolios and customers is compelling. By leveraging the respective strengths and extensive reach of both companies, we are creating a highly efficient and more extensive global platform that is well-positioned to meet the local and international needs of our customers.”

Creates Huge Global Network

The companies’ combined network will serve a worldwide customer base in more than 50 countries and combined 2010 revenues of $6.26 billion

Under the terms of the agreement, shareholders of Global Crossing (GLBC) will receive 16 shares of common stock of Level 3 (LVLT), which at current pricing values each Global Crossing share at $23.04. That values the deal at approximately $3.0 billion, including the assumption of approximately $1.1 billion of net debt.

“This is the right combination at the right time,” said John Legere, chief executive officer of Global Crossing. “This kind of combination has been talked about for years, and our companies have talked about this several times over the year. We will be a truly unique global powerhouse. Our combined platform will be allow us to move massive amounts of content around the globe.”

That includes Latin America, one of the areas where Global Crossing’s footprint fills a gap in Level 3′s global footprint. The extra capacity in South America will be a timely addition for Level 3′s growing content delivery business ahead of the next World Cup and 2016 Summer Olympics, both being held in Brazil.

$2.5 Billion in Cost Cuts Seen

The companies said they expected to realize $2.5 billion in savings through cost-cutting. Of those savings, 39 percent are expected to come from network expense savings, approximately 49 percent from operating expense savings, and approximately 12 percent are from reductions in capital expenditures.

It wasn’t immediately clear what this might mean for the data center footprints of the two companies. Level 3 operates 52 data centers around the world, according to Data Center Map, while Global Crossing has 17 data centers around the globe.

“We are committed to creating a high-performing combined business through a carefully managed integration plan executed by a select team from both companies,” said Jeff Storey, president and chief operating officer of Level 3. “We will begin integration planning immediately and bring an aggressive, disciplined approach to the process.”

Level 3 said the deal would shore up its balance sheet, which has historically been a concern for investors.

“The transaction is expected to improve Level 3’s credit profile as well as significantly strengthen the company’s balance sheet,” the companies said in their anouncement. “On a pro forma basis and including the benefit of expected synergies, the ratio of net debt (including capital leases) to Adjusted EBITDA is expected to improve from 6.8x to 4.4x as of Dec. 31, 2010.” Level 3 also said it “expects to have significant free cash flow available for investment in high-return opportunities, including U.S. and international network expansions, and potential repurchase of the company’s securities.

CENX announces D.C. Ethernet Exchange.  CENX announced the launching of a new Carrier Ethernet Exchange at CoreSite’s (COR) Washington DC data center at 1275 K Street.  The new exchange will be the company’s 10th world-wide and is in response to accelerated customer demand.  It is expected to be operational in the second quarter of 2011.  ”We believe the combination of CENX’s industry-leading Carrier Ethernet exchanges with CoreSite’s Washington, DC interconnection hub creates an ideal environment for the successful development of a significant Carrier Ethernet exchange,” said Nan Chen, President of CENX.  Verizon (VZ) also announced that it is expanding availability of Ethernet services using the nationwide CENX Carrier Ethernet Exchange to include Los Angeles and Washington, D.C.  In June 2010, Verizon Global Wholesale and its Ethernet exchange partner CENX earned top honors from Global Telecoms Business magazine for providing Verizon’s wholesale customers simplified access to a broad range of Ethernet services.

Level 3 signs TSI and expands into South America. Level 3 Communications (LVLT) announced that it has signed an agreement with TSI, a regional service provider based in Los Angeles. Level 3 will provide TSI with a suite of voice services as well as data capabilities that will broaden the breadth of services TSI provides to its regional and national customers and enhance its network capabilities. “We chose Level 3 because of the company’s ability to provide Tier 1 carrier-grade services at rates that allow us to compete more effectively against other regional service providers. Level 3’s comprehensive voice services have enabled us to offer our customers premium solutions that capitalize on this rising demand and strengthen our national position,” said Deborah Ward, CEO for TSI.  Level 3 also announced an agreement with INTERNEXA, a  leading telecommunications carrier with extensive regional coverage with more than 18,000 kilometers of fiber-optic network across seven countries in South America, to expand Level 3’s content delivery network (CDN) services to Colombia, Ecuador, Venezuela and Peru. “We’re effectively building the next generation of Internet in South America. A large amount of the data demand in South America is for content that originates in North America, which is why we’re combining forces with Level 3 and their impressive CDN to deliver a high-quality IP Transit service. We’re making it possible to provide this content directly from our region over our network,” said Genaro García Domínguez, CEO of INTERNEXA.

Juniper expands mobile Internet with TCA Series.  Juniper Networks (JNPR) announced the TCA Series Timing Appliance portfolio to provide high-precision timing and synchronization critical for time-sensitive applications. Designed to provide sub-microsecond time and phase accuracy, the TCA Series delivers scalable and flexible timing for mobile networks to ensure high quality of experience.  The TCA Series was derived from technology acquired from Brilliant Telecommunications. “As mobile backhaul networks transition to packet-based transport networks, providing reliable clock synchronization over these networks has become a critical requirement,” said Rami Rahim, senior vice president of Juniper Networks. “The industry-leading technology assets from Brilliant Telecommunications will enable tighter integration in our mobile backhaul solution and extend our offerings to converged service providers, allowing them to deliver superior experience for multimedia applications which will dominate traffic in the future.”

For additional background, see our earlier coverage:

• Level 3 Vs. Comcast: More Than A Peering Spat?
• Comcast-Level 3 Feud Spurs Intense Debate