Thursday, July 1, 2010

Ticonderoga Securities: "DPI will become critical in LTE networks"

In an article in Barron's Apurva Patel, Analyst at Ticonderoga Securities, selects his winners for "Next-Gen Video", following presentations in two industry conferences -the 10th annual Backhaul Strategies Conference  (here) and the 3rd annual Cable Next-Gen Video Strategies Conference - both organized by Light Reading.

See the report "Winners in Next-Gen Video" - here.

One of the conclusions is "We believe wireless- and video-service providers are facing some of the same challenges, mainly balancing revenue and higher costs per bit. In regards to telecom-service providers, we believe they are demanding higher bandwidth capacity with intelligent processing capabilities (including better security options), which we view as positive for semiconductor companies that enable equipment suppliers to meet their end-customer demands. For example, we believe security features, like Deep Packet Inspection (DPI), will become critical in long-term evolution networks.

I guess that DPI here relates more to the traffic management aspects (which is the main issue presented) rather than security (a valid aspect by itself). We saw a similar conclusion yesterday from Yankee Group (see "Yankee Group: 4G Video is a Killer App, but might be a Network Killer" - here).

The investment recommendation relate to semiconductor suppliers - including Cavium Networks  and NetLogic Microsystems (see "DPI Announcements - Cavium Networks OCTEON II CN68XX" - here) - anything beyond it - products, systems and solution vendors is not discussed.

No comments:

Post a Comment