AvidThink January 2025 Analyst Update

AvidThink's January 2025 News Update

Author

AvidThink Analysts
February 07, 2025

AvidThink 2025 January Update

We apologize for a late sending of our January newsletter — we were waiting till we could give you a sneak peek at the latest edition of our report on Data Center Networking for AI and Cloud Workloads.  It’s available now!

What a crazy start to 2025 in the technology and infrastructure space! In the month since our last newsletter, we’ve had Stargate (exuberance in infrastructure investment) followed by DeepSeek (exuberance in cost-efficient AI but prompting questions on the scale of infrastructure investment). No one said AI would be boring! Related to AI, we’re pleased to announce our latest report that touches on AI infrastructure…

Data Center Networking Report — Sneak Peek

Barely 30 days into the year, we’re continuing our site launch momentum. We first had our

super popular Predictions 2025 showcase, featuring over 50 top tech executives sharing their prognostications for the coming year. That was followed by our hot-off-the-press 2025 SASE and SDWAN Report discussing the complexification (not a real word) of the space followed by a drive towards simplification.

Today, we’re please to pre-announce our 2025 Data Center Networking Report, covering the impact of AI and cloud workloads on data center — well, mostly AI impact. Our team takes a comprehensive survey of connectivity technologies from die-to-die to xPU-to-xPU (including GPUs and AI accelerators) to server-to-server, then all the way to datacenter-to-datacenter. We go from scale-up to scale-out to scale-outside technologies. What’s scale-outside? Download the report and find out.

And while you’re on the Data Center Networking Report site, check out videos from leaders at Arrcus, DriveNets, Juniper, Marvell, Nokia, NVIDIA, and many more! Get hot takes from executives on Ethernet and InfiniBand, UALink and NVLInk, scale-up and scale-out, DCI, and other key topics for data center networking and interconnectivity.

Here’s what the rest of our newsletter has in store for you:

  • Roy’s NoTravel-ogue — Wow! A whole month with zero travel.

  • Latest Reports — Data Center Networking for AI and Cloud Workloads

  • Recent Articles— Insights from MEF’s GNE 2024 plus 2025 look ahead

  • NextGenInfra — Data Center Networking, SASE and SD-WAN, Predictions 2025

  • January News Roundup — You guessed it! AI, AI, and more AI — Stargate, DeepSeek, Telco APIs and Aduna, Private Networks recovery?

  • Other Content — AvidThink in the News, Webinars, Meet Us Live!

Roy’s NoTravel-ogue

No-travel January, how refreshing! Well, we were at Chiplet Summit 2025 in Santa Clara, where there was a clear uptick in attendance, thanks to the role of the chiplet economy for the AI data center. UCIe was discussed as a die-to-die interconnect, enabling re-usable chiplet components. With cycle times reducing for AI accelerators (12 month cycles versus 18-24 month cycles for each generation), fast time-to-market and speedy packaging and integration are needed. What’s UCIe, you ask? Download our data center networking report and find out.

Many of our conversations in January were dominated by DeepSeek and Stargate. Do they have funding or don’t they? Where will the money come from? How does DeepSeek change the AI landscape? Did they train on output from OpenAI? What’s the real cost of DeepSeek-V3 and R1? Did DeepSeek out-Meta Meta, or out-Llama Llama? Like other analysts, we have plenty of opinions, but suffice to say that the lessons the DeepSeek team have shared will be used by all the other model builders, and that open weights models have become more in vogue. Also, the gap between China and the US in AI is be smaller than previously expected, despite export restrictions.

Speaking of AI and telcos, check out our recent interviews on AI-RAN with Dr. Ryuji Wakikawa, Head of Research Institute of Advanced Technology, SoftBank Corp., and Dr. Alex Choi, Principal Fellow, SoftBank Corp. Alex is also Chair of the AI-RAN Alliance (and former Chair of the O-RAN Alliance). I just hosted a webinar with them on Fierce Network — visit this page and hopefully it’ll take you to the on-demand version.

I don’t know what February will be like. Maybe more exciting than January, if that’s possible. We’re gearing up for MWC Barcelona 2025 and booking those appointments — we have a few slots left so feel free to reach out. I look forward to seeing you all there!

And here’s a final reminder that NextGenInfra.io is taking reservations for our MWC 2025 Showcase. If interested, drop [email protected] a line.

— Roy for the AvidThink Team

Latest Reports at NextGenInfra

NextGenInfra is our collaboration with media partner, Converge Digest

Subscribe to our videos at @NextGenInfra YouTube Channel

UCIe, CXL, NVLink, UALink, Ethernet, InfiniBand, ROCEv2, UEC/UET, 400ZR/ZR+, 800ZR/ZR+, LPO, LRO, CPO, AI, AI, Oh!

Didn’t get enough alphabet soup with our SASE report? Well, we’ve outdone ourselves this time with our Data Center Networking report. Remember, only you know about this so far (promotions start next week), so grab your copy quickly!

If you’re into SASE, SD-WAN, SSE, ZTNA, plus CASB, DLP, NGFW, RBI, FWaaS, SWG, … you’ll want your own copy of this report.

Haven’t downloaded your copy yet? You’re missing out. Go ahead and download your free copy of our latest SASE Report today!

Recent Articles

 Insights from GNE 2024: Carrier NaaS in 2025 (NEW)  

(posted on MEF Blog)

Roy shares his key takeaways from MEF GNE 2024 event and discusses what he expects in 2025.

2025 January News Roundup

6G

Ericsson CEO: 6G Will Be an Evolution, Not a RevolutionDuring Ericsson’s Q4 earnings call, CEO Börje Ekholm emphasized that 6G should be viewed as an evolution of 5G rather than requiring a complete network overhaul. Expected to launch in 2030, 6G deployment will likely follow a more gradual upgrade path compared to previous generations. Recon Analytics supports this assessment, noting operators' preference to avoid another “rip and replace” cycle.

5G

South Korea Explores Wholesale Rate Cuts to Boost MVNO MarketThe Ministry of Science and ICT is considering reducing wholesale telecom prices to encourage MVNO growth and provide more affordable consumer options. The initiative includes plans to require all three major operators—SK Telecom, KT Corp, and LG Uplus—to become mandatory wholesale providers, expanding beyond the current sole mandatory provider SK Telecom.

U Mobile Secures Funding for Malaysia’s Second 5G NetworkCIMB Bank will finance U Mobile’s construction of Malaysia’s second nationwide 5G network, following U Mobile’s selection by the Malaysian Communications and Multimedia Commission over competitors Maxis and Celcom-Digi. The bank previously provided $266.4 million in 2021, later increased to $310.8 million in 2023.

T-Mobile Launches Network Slicing for LA Fire DepartmentT-Mobile’s T-Priority 5G network slicing service is now available to 350 LAFD members, providing dedicated network capacity and enhanced speeds during wildfire response. The implementation includes AI-driven network optimization, with over 12,000 network uptilts completed by January 16.

BT Group Successfully Tests 5G Network SlicingBT Group deployed 5G standalone network slicing over EE’s mobile network, successfully supporting mobile payments at Belfast’s Christmas market. This marks the first commercial application of 5G SA network slicing for business services in their network.

Nokia Reaches 7,000 5G Patent MilestoneNokia announced that 7,000 of its patent families are now essential for 5G technology, encompassing core network interaction technologies. The company’s total patent portfolio exceeds 20,000 families, with over 250 companies licensed to use these technologies.

Cloud

Microsoft Retains Metaswitch Packet Core TechnologyFollowing Metaswitch’s asset sale to Alianza, Microsoft maintained ownership of the packet core assets, continuing support for existing customers including AT&T and Etisalat. This decision particularly impacts AT&T’s 5G packet core operations on Microsoft infrastructure and Etisalat’s use of Azure Operator Nexus.

Google Cloud Predicted to Surpass Microsoft AzureAnalyst Jack Gold projects Google Cloud’s revenue will exceed Microsoft Azure’s by 55% within four years, citing higher growth rates. However, Synergy Research data shows Google Cloud currently trails Microsoft by approximately $6 billion in revenue.

DOJ Challenges HPE-Juniper Networks MergerThe U.S. Department of Justice filed a lawsuit to block HPE’s $14 billion acquisition of Juniper Networks, citing concerns over market concentration. The combined entity would control over 70% of the enterprise wireless equipment market.

Private Networks

U.S. Private Network Market to Reach $3.7B by 2027SNS Telecom & IT forecasts 18% CAGR for private LTE and 5G spending through 2027, reaching $3.7 billion. LTE will maintain 80% market share in utilities sector, with growing adoption of private network-based neutral host solutions for indoor coverage.

Port of Valencia Implements 2.3 GHz 5G Private NetworkValencia’s port authority is deploying a 5G standalone private network using 2.3 GHz spectrum, following similar implementations at Spanish transportation hubs. The project received approximately $6 million in funding in September 2024.

Federated Wireless Wins $6M DOD ContractFederated Wireless secured a $6 million contract to build a CBRS-based private 5G network for Marine Corps Logistics Command. The network will cover 1 million square feet with 100 CBRS radios, providing 40 Gbps wireless capacity for robotics applications.

Scotland’s National Robotarium Deploys Private 5GThe National Robotarium in Edinburgh is implementing a private 5G network to support wireless quadruped robots for agricultural applications. The network will enable live video streaming, 3D mapping, and infrared assessments in farming environments.

Vodafone Spain to Build Mining Private NetworkVodafone Spain will install a combined 4G/5G private network at Geoalcali’s mining facilities in Navarra. The network will provide underground connectivity for workers and machinery, including push-to-talk systems, digital twins, and drone monitoring.

Cox Edge Integrates with Private Networks DivisionCox Communications has merged its Cox Edge computing service into its private networks business under the Hospitality Network team. The company maintains approximately 30 computing sites across the U.S., focusing on wireless networks for venues.

API

Ericsson’s API Venture Launches as AdunaThe joint venture between Ericsson, Google Cloud, Deutsche Telekom, Reliance Jio, and T-Mobile has been named Aduna, with former Vonage COO Anthony Bartolo as CEO. The initiative aims to develop cross-network APIs for application interoperability.

AI

Trump Announces $500B Stargate AI Infrastructure ProjectThe Stargate Project, backed by SoftBank, OpenAI, Oracle, and MGX, aims to invest $500 billion in U.S. AI infrastructure. Construction of data centers has begun in Texas, with plans to employ 100,000 people and potentially utilize nuclear power.

DeepSeek Disrupts AI Market with Cost-Efficient ModelDeepSeek’s R1 reasoning model claims performance comparable to major competitors at lower costs, causing Nvidia’s stock to drop 17%. The company’s success challenges assumptions about necessary computing investments in AI development.

AT&T Sells 74 Central Offices in Sale-Leaseback DealAT&T completed a sale-leaseback agreement with Reign Capital for 74 central office facilities, maintaining service for copper customers while potentially enabling AI hosting capabilities.

Verizon Positions for AI Infrastructure HostingVerizon Business CEO Kyle Malady outlined plans to leverage existing facilities for AI systems hosting, estimating a $40 billion market opportunity. The company will deploy Vultr’s GPU-as-a-Service in data centers to support AI computing applications.

Starlink Faces Edge AI LimitationsAnalysts indicate Starlink’s high latency (25–60ms) and limited compute capacity restrict its potential in edge AI applications. Satellite infrastructure constraints and update limitations present additional challenges for AI workload processing.

T-Mobile Targets Revenue from AI and Network SlicingCEO Mike Sievert highlighted opportunities in AI, network slicing, and satellite services. T-Mobile plans to monetize its SpaceX-powered direct-to-device service through premium plan offerings.

Microsoft and Meta Embrace AI Market EvolutionMicrosoft reported $13 billion annual AI revenue run-rate, up 175% year-over-year. Meta plans to expand AI infrastructure to 2 gigawatts capacity, with both companies viewing DeepSeek’s market entry positively.

O-RAN

Rakuten Mobile Partners with U.S. Radio Unit VendorsRakuten Mobile announced collaboration with U.S.-based radio unit vendors selected by NTIA, including Battelle Memorial Institute and Airspan Networks. The partnership will facilitate testing and integration of open radio units for commercial deployment.

AvidThink in the News

Upcoming and On-Demand Webinars

AI-RAN Alliance: The Origin Story (on-demand)Dr. Ryuji Wakikawa , SoftBank Corp's VP and Head of Research Institute of Advanced Technology and one of the drivers behind the AI-RAN Alliance sits down for a chat with Roy Chua

Dr. Alex Jinsung Choi, Chair of the AI-RAN Alliance. and Principal Fellow at SoftBank Corp, sits down with Roy Chua of AvidThink to explain what the new Alliance intends to do and why it’s needed.

Roy and Ken Rutsky, CMO of Aryaka discusses the SASE 2025 Report in 3 webinar sessions — you know it has to be good because it’s in three parts!

Roy Chua (AvidThink) and SoftBank's Ryuji Wakikawa, Alex Jinsung Choi, Rajeev Koodli, and Koichiro Furueda for an exclusive webinar on AI-RAN. Learn how AI is revolutionizing telecom, from radio performance to network automation, with insights from SoftBank's journey.

Meet Us at Upcoming Events

MWC Barcelona 2025

3-6 March

Barcelona, Spain

NVIDIA GTC

17-20 March

San Jose, California

LinkedIn icon
YouTube icon
Twitter icon
Website icon

Copyright (C) " target="_blank">unsubscribe