The 10 Biggest Networking Stories Of 2014
Hot Networking News
One thing's for sure: There was plenty to talk about in the networking industry in 2014.
Vendors ranging from VMware to Cisco Systems continued their battle for software-defined networking supremacy; telecom carriers like AT&T made significant inroads with the channel; and a mysterious CEO exit got Juniper Networks partners talking.
Here's a look back at the networking stories that had the biggest impact on the channel in 2014.
10. Comcast-Time Warner Merger
Though it's not a done deal yet, Comcast's proposed acquisition of Time Warner Cable garnered a lot of attention in 2014.
Comcast in February revealed plans to acquire Time Warner Cable for $45.2 billion, a potential blockbuster deal that would combine the two largest cable companies in the U.S. The deal, which is expected to close in 2015 pending regulatory approval, would see Comcast gain Time Warner Cable's roughly 11 million subscribers, bringing the combined company's total subscriber base to about 30 million.
9. Mitel Makes Bid For ShoreTel
Convinced a merger would create a unified communications powerhouse, Mitel this year made multiple bids to acquire rival ShoreTel.
Mitel's highest offer for ShoreTel, which was $8.50 a share or about $574 million, was ultimately rejected in November by the ShoreTel board, which called the offer "highly inadequate."
Most ShoreTel partners were glad to see Mitel's proposal shot down.
"Mitel wouldn't bring anything to our table," Don Gulling, president of Verteks Consulting, an Ocala, Fla.-based ShoreTel partner, told CRN last month. "I see us winning against [Mitel] in the marketplace all the time."
8. Telecom Carriers Make Big Channel Inroads
There's been talk for years of the ongoing convergence between the IT and telecom channels. But in 2014, the lines between the two became more blurred than ever, with major telecom carriers including AT&T, Verizon and Comcast touting big gains within the IT solution provider community.
AT&T was especially bullish when it came to solution provider recruitment. In addition to committing $300 million to its Partner Exchange channel program over the next three years, the Dallas-based carrier giant hosted its first-ever partner conference specifically for IT solution providers.
Verizon, meanwhile, tapped channel veteran Adam Famularo as its new vice president of global channels, and Comcast said IT solution providers now account for roughly 60 percent of its overall indirect partner base.
7. Riverbed Pressed For Change
Riverbed Technology in 2014 faced ongoing pressure from activist investor Elliott Management, which repeatedly urged the WAN optimization vendor to pursue a sale.
Elliott Management itself first offered to buy Riverbed in January for roughly $3.1 billion, but Riverbed rejected the offer, saying it was too low. Throughout the year, Elliott Management staged several other takeover attempts for San Francisco-based Riverbed, claiming the company has been consistently "overpromising and under-delivering" to shareholders.
Riverbed in October revealed plans to restructure, cut costs and explore strategic options. And then on Dec. 15, Riverbed agreed to be acquired by private equity firm Thoma Bravo for $3.6 billion in a deal expected to close in the first half of 2015.
6. The Net Neutrality Debate
Net neutrality -- or the idea that all Internet data should be treated equally -- has been a subject of debate for years. But that debate was re-ignited big time in 2014 when the Federal Communications Commission said it would propose a new rule allowing ISPs to charge content providers for access to higher bandwidth or so-called Internet fast lanes.
The FCC received nearly 4 million public comments in response to that proposed rule, many of which opposed it, arguing that those fast lanes would put startups and smaller content providers at a major disadvantage.
President Obama, meanwhile, urged the FCC in November to enforce "the strongest possible rules" to protect Net neutrality and to regulate Internet services like any other public utility.
The FCC has yet to announce a finalized set of rules.
5. Cisco Gets Into Public Cloud Game
In a move Cisco said would return it to its roots as an IT market disrupter, the networking giant in March made its official entry in the public cloud arena.
Cisco unveiled Intercloud, a new cloud strategy that involves a mix of public, private and hybrid clouds that are hosted across a network of Cisco-owned and partner-owned data centers built on end-to-end Cisco gear.
Cisco has been steadily expanding its Intercloud partner ecosystem ever since. In September, Cisco said Intercloud services are now being hosted in more than 250 data centers in 50 countries.
4. The Cisco-VMware SDN Battle
Startups and networking stalwarts alike continued their battle for SDN supremacy in 2014. But perhaps none battled more fiercely than Cisco and VMware.
Cisco this year firmly maintained its stance that the pure software approach VMware is taking with its NSX offering falls short compared to Cisco's own Application Centric Infrastructure (ACI), which includes a mix of hardware and software.
In May, Cisco CEO John Chambers said Cisco is well positioned to lure away VMware NSX customers, telling analysts, "I think you'll just see us knock them off one after the other."
Meanwhile, VMware in September poached a key Cisco data center executive, Dominick Delfino, to help lead its engineering efforts. Sources told CRN at the time Cisco was "livid" about the move.
3. Juniper Restructuring And CEO Ouster
In the midst of a major corporate restructuring -- and not even a year after taking the helm -- Juniper Networks CEO Shaygan Kheradpir suddenly (and somewhat mysteriously) resigned this November, in a move that left many Juniper partners scratching their head.
Kheradpir's exit followed a review by the Juniper board into his leadership and conduct. Juniper said the board had specifically questioned Kheradpir's behavior related to a customer negotiation, but, other than that, details were light.
Juniper, meanwhile, continues to restructure and cut costs under its "Integrated Operating Plan." As part of that effort, Juniper in May cut about 6 percent of its global workforce, and in July sold off its Junos Pulse mobile security business.
2. Arista In The Spotlight
Between a hot debut on the New York Stock Exchange and continuing to turn up the heat on Cisco, Arista Networks had a big year in 2014.
In June, Arista raised $226 million in its initial public offering, and its shares jumped as high as 35 percent to roughly $57 when it made its public trading debut. The move put Arista's market cap at around $3.7 billion.
Santa Clara, Calif.-based Arista, which sells merchant silicon-based switches running its own Linux-based operating system, continued to see strong growth in 2014.
In November, Arista reported third-quarter revenue of $155.5 million, up 53 percent compared to the same quarter last year. According to the company's IPO filing, Arista's revenue in 2013 was $361.2 million, up 86.6 percent compared to 2012.
Some solution providers say the startup is becoming a clear thorn in Cisco's side. Cisco basically copped to as much in December when it filed patent infringement lawsuits against Arista in federal district court.
1. Change In The Air At Cisco
Cisco was no stranger to change in 2014, making a number of adjustments as it looked to double down on cloud and big data while better aligning itself with the industry's shift toward software.
For starters, the company in August cut 8 percent of its global workforce, or about 6,000 jobs, following several tough quarters for Cisco, underscoring the impact SDN is having on its core network hardware business.
In July, Cisco said it's transitioning its entire engineering organization to more of a DevOps approach, and made a vow to invest more in software, later launching DevNet, an online resource for software developers, and its new Cisco ONE strategy.
Meanwhile, Cisco in March created a new cloud business unit dedicated to its Intercloud strategy and on Dec. 11 made the jump into big data.
All of this, as questions swirl about how much longer John Chambers' tenure at the helm of the networking giant will last, sets the company up for a lot of soul searching in 2015.