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Back in January in the 2021 trends part 3 we were given a very strong indication of the potential of the router on the NIC.
I suspect that Ethernity has multiple interested parties not just for the DU solution as any layer 3 application will require forwarding and routing. Ethernity are absolutely out in front here and will sell literally millions of units through OEMs and integrators. This isn't pie in the sky, this is becoming reality now. Yes the market doesn't see it yet but it will very soon.
"The 5G distributed unit is merely one example where Router-on-NIC is a useful solution that provides the best of both worlds. It enables a paradigm shift in many other applications as well.
As operators have become more aware of this option, they have begun demanding it from their OEMs. Lately, Ethernity has noticed an increase in OEMs and system integrators requesting Router-on-NIC functionality, often being sent to Ethernity from the operators. This trend is expected to snowball in 2021, as more and more operators realize the potential applications of a router that can be included within the server, via Ethernity’s ACE-NIC SmartNICs"
I do agree TL at all. I think enet might be working with Dell. Therefore, with vodafone and Dish.
Silicom is working with dish and we are guessing they are working with vodafone too - since the team is the same + Evenstar.
I am guessing how the competiton between silicoms and enets products might play here... What do you think?
Since silicom is mostly fec accelerator (asic) for the du and enet is fpga... very different tech
Incredible insights as usual TL, you have a unique talent. To have any sort of tie in with Dell would mean a complete and utter game change.
World wide baby, world wide….
I am putting 2+2 together and whilst the answer may appear to be obvious there's possibly parts of the sum we can't see yet.
Please don't accept my posts as anything other than the ramblings of a inquisitive shareholder driven by greed. Please don't accept it as gospel, please do your own research and draw your own conclusions.
I know nothing not in the public domain. You will be surprised just how much is in the public domain if you dig a bit.
I am sure that like Tarana if/once a deal is done then the market will be updated.
I am looking to stimulate research and nothing more.
My final word on this.
When I first arrived in Israel I had a meet with a local at a beach café. I had established this contact through a recruitment portal. So we discuss Ethernity and generally the tech sector. I learn a bit, basically I have numbers but no sum to work on.
So a few weeks ago we exchanged messages and I press again. I am told that the DU partners are big. Big enough to win big contracts and yes I would have heard of them. In fact I could be using one of their devices right now.
Well I have a XPS from Dell and yes I had it on the table at the beach café.
If this isn't the way it is what's going on here.....
I believe that Dell and Ethernity are working together to build out the DU solution within the Dell Dish private network
In February 21 Ethernity said this.
The DU testing requests, initiated on recommendation of major European and North American service providers, are in line with telco operators' plans to move to OpenRAN and the increasing demand for Distribution Units, as detailed in the following link: https://ethernitynet.com/market-for-dus-in-openran/.
David said this
"We are seeing great strides toward the implementation of OpenRAN, along with the continued anticipated demand for FPGA-based virtualized routing and other telecom applications. We are excited by the progress we've achieved and the inroads we've made toward meeting the Company's growth ambitions.
We believe that with our available technology and by integrating additional functionality on our existing DU implementation that will result in additional savings for the operators, we will maintain our edge over the other solution providers in this market."
I believe that whilst the Ethernity NIC in this DU solution can support up to 9 RU given variations in load and geographical constraints probably 5 average is realistic. This is potentially a huge amount of sales.
When Brian K said we'll see private networks build out first I don't think any of us visualised it being 70% US coverage.
Dish are well backed and cashed up to deliver this network. They are connected to Ethernity through several routes so will have had knowledge of the DU development. I think that it is highly likely that Dish are our North American service provider and Dell are one of three server vendors Ethernity delivered the early version to.
I initially had a problem because I couldn't understand how Ethernity could work with 3 vendors without any conflict of interest. Now we know these deals are specific to an alliance/contract so there's no competition element.
I suspect that Dell and Dish will sell their ecosystem to other service providers globally and at that point they will take Ethernity with them.
Sales will flow through OEMs and integrators.....
This is interesting. Clearly Dish and Dell are not going to be inventing a DU platform with router on the NIC in the next 10 years let alone the next few months. In fact this while ecosystem as it should be is bought in from leading vendors and assembled.
Also in the same article there is talk of a deal for access to 20000 towers then a list 6 other tower owners they have deals with. So 50000+++ towers so at least 10000 DU units.
Through the agreement, Dell and Dish said they are creating private 5G wireless network solutions, software-defined wide area networks and multi-access edge cloud platforms.
The companies will also co-develop technology for Open RAN, SmartNICs, emerging micro-edge colocation, operational automation and other areas of R&D. Joint teams will create multi-access edge computing (MEC) solutions for enterprise and small business opportunities, the companies said.
Second those comments skid, fully agree.
I believe it should be a very exciting time to be an ENET shareholder and looking forwards as to what the next 6 months brings. It feels like we are on the cusp of something rather special and significant here.
Skid I agree with all of that.
We are seeing server vendors respond to the clients needs, largely because the vendors don't know what they are. Ethernity are managing that part I have no doubt. If this is Dell and Ethernity building a DU server for Dish which it may be then this is a product to Dish requirements in a open ecosystem. Ethernity has the expertise to identify the features and how to engineer them. Dell has the client.
Dish has bought together solutions providers to complete an end to end solution.
It is important to understand that this is done using 3 or 4 key players not all the contributors as there may be many. Ethernity identified this very early and accepted that this is not their role. Ethernity are down stream but filtering solutions in upstream.
I keep going back to it but sales will flow through OEMs and integrators.
For me it's not just about the contract in itself.
i) it is a validation of ENET technology and position in the market for other deals. I think this element has yet to be priced into the ENET share price from tarana deal.
ii) ENET really is still priced as if it has a good chance of going bust, below the asset value (if built IP could be priced). This should hopefully take this out of valuation.
Hopefully it then just becomes part of a self fulfilling cycle.
Although in competition, much of what is in a server (hw and sw) is very standardised, this is driven by customers not wanting to be tied into one provider. If the ENET proposition is technologically superior I can't see why they would go elsewhere as they would be at competitive disadvantage.
I think that it would be the catalyst we are looking for the restart the trend. To £1 at least as that was where it was going.
I like your logic there TL
I idly wonder what Dell notification re the DU would do for the sp. and it would surely increase the odds of the other two server vendors adopting ENET’s DU solution.
20p, 30p? That’s equivalent to c £12m to £18m on the market cap, surely not enough.
£1 sp would sound about right for starters to me.
Obviously if it turns out to be this server vendor and this deployment starting this year then we have to conclude that the joint product is near completion and of commercial interest.
If this is the case then the Dish Dell information is out there so nothing stopping notification. It cannot be commercially sensitive at this stage. I assume if this is correct the terms of any deal would have been discussed very early on.
Interesting dynamics on such a tiny cap.
Just to tie things up the co founder and chairman of Dish Charles Ergen is chairman and major shareholder of Echostar. Echostar are a major backer of Tarana and Tarana as we know have a long term development partnership with Ethernity. It is a small world with many other crossovers. So Dish tell Dell to check out a new product from Ethernity that will save them millions.
Ethernity tell us that they have delivered a early version of the unique DU solution to a server vendor at the request of a US service provider.
Don't know about you but as myth busters would say this myth is plausible.
To answer a question that I received by PM. I don't expect ever to see a headline like DT partner with Ethernity networks. It would be like Ford mentioning Hella for the bulbs or gates for the belts. Ethernity reach market through others so when we see say Dish partnering with Dell. Ethernity could very well be working with Dell on part of their offering. This is OpenRAN.
Ethernity make solutions but I don't think that anyone will take end to end as it is not OpenRAN and what's the chances of Ethernity leading on the end to end product at every stage.
So how will we know. Some detective work and then waiting for the announcement. Exactly like Tarana.
What is interesting is these major players aren't just building their own network but looking to develop an ecosystem for others. They see 5G well beyond the mobile device.
ASICs days are numbered. Ethernity are Telco focused and Telco is about to enter a super cycle of growth.
Out of the choices available I go with Telefonica as the European provider who instructed a major server manufacturer to approach Ethernity for a DU server with a router within the NIC.
Just speculating and cross-referencing cloud RAN users committed to those with a mention from Ethernity. Actually there are not many. Late last year Ethernity said that they are leaders in the DU solution market and offer a unique opportunity for features. They said that 2021 will see commitment. This week we have seen Vodafone, MTN and Dish make new announcements.
We know that in February Ethernity delivered the prototype starting point solution to 3 server vendors for 3 clients engaged.
As I have said I don't know anything more than exactly what is in the public domain. Clues are there for sure.
David said that sales will flow through OEMs and integrators. I don't expect any direct sales. Open networks built from the ground up are rare still but will become more common. Many integrators have established their business and are actively looking to engage clients. To move 5G beyond being a faster 4G it will take many participants.
Ethernity has a unique product which will be very useful.
Nice for them then. Hopefully Ethernity are supplying the DU solution with router. We wait and see as it will be huge for this tiny company.
silicom is selling the fec card for dish rollout
I don't know. I can convince myself easy enough. The circumstances and the facts appear extremely encouraging. A major server manufacturer, an American ISP, timing is right given this would not have happened overnight. Substantial volume of units hence the viability of a bespoke solution. Outside of Dell scope of business.
Looks like a good fit.
Dell would be incredible.
Worked at Dell for 6 years, and another 6 at EMC which they own. An incredibly focussed and operationally efficient company, would be a great partner who get things done.
Another link. It would be great to have Ethernity in that server. With the information out there we'll find out soon I suspect.
I seem to remember somewhere Ethernity telling us that SmartNIC were typically between $1-4000 depending on the functionality and complexity. I don't know what they will expect of a router on the NIC and the NIC with multiple ports. I suspect the hardware is the smallest part.
Certainly $1000 is just a figure from the air. 70% US national coverage will need a huge number of towers.