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So the million dollar or more question is who are the 3 server vendors/manufacturers. Dell?? Maybe. We know that they cover Europe and US and we know that they have clients engaged already. We know those clients directed the server creators to Ethernity because they want a onboard router DU solution for their 5G networks. We know that Ethernity are working with the creators to develop a solution for each client to cover their total requirements.
Now we see this.
https://www.reuters.com/business/media-telecom/dish-network-taps-dell-5g-network-infrastructure-2021-06-17/
We can see that even in the US 5G mature networks will be started this year. Ethernity could very well be part of this.
TL - you're picking up some very interesting stuff here. I'm very excited for H2 - if any of this is ENET my god we're looking at £2.
Trading it is very much the way I saw it going and it is good to see 5G moving as anticipated. Ethernity won't be filling any headlines but will be filling solutions. There will be production orders this year I am absolutely certain but they will be small. We'll see 5G networks built this year but next year we'll see huge acceleration.
I said about 18 months ago that I expect Ethernity to win a substantial of the market. Now my view has moved on. I expect Ethernity to win a substantial part of the open DU market, a small part of OpenUPF market (mainly in China) and a substantial part of flow processor and wireless backhaul market.
Avionics switch I don't know about but Ethernity are at the lead if the market with 2 OEMs marketing products containing Ethernity switch solutions.
I am very confident about the tech but short term the AIM will be a jungle.
I just bought 10k shares. In my short term fund. Just too cheap.
Great link there TL, agree with trading1987, sure am liking the stuff you are picking up. If we’re part of this then the sky is the limit and, imo, way beyond £2.
Out of interest, why do you feel ENET won’t gain as much in the UPF as you once thought? Is it competition, spec, pricing, ENET small/unknown or any other factors?
Ethernity has a product, a very good product and excellent alliances TietoEVRY and FiberHome (maybe still) however they are not alone, this is a crowded market and the others have made it their focus. I believe that in China they will win business but elsewhere it may be tougher.
In China they will win because many others are excluded from the market.
If you think about it there are only a few OpenRAN networks in the US. So a server vendor engages an ISP wanting to build their network. So already we are down to a handful. So this ISP needs to be big enough to encourage the server vendors to make a new product for them. So this eliminates regional even statewide ISPs as no way they make work for a couple thousand server sales. So we are looking at national networks. So can anyone think of another building a solution from scratch in the US. OK so we have a couple potentially but no more.
Then they tap up a server vendor like Dell. The significance is Dell, they have named the server vendor so they must be more than a server vendor because they could use any CoTS server. They build "open" but name a key supplier.
I bet Dell are the DU solution provider on their CoTS server.
"Under the deal, Dell will provide Dish with computer servers that will sit at the bottom of cell towers or nearby to crunch data when sending it all the way back to a central data center would cause too much delay, such as helping future cars communicate with city infrastructure.
"We can put the servers at the bottom of the tower, or we can centralize 10, 15 or 50 sites," Dish's Executive Vice President and Chief Network Officer Marc Rouanne said in an interview. "The beauty of this edge cloud is the software can be placed where we want it."
That from Dell describes the Ethernity DU solution.
Thanks for the replies re UPF TL, appreciated, that all makes sense
Very interesting post TL re US and DU solution.
What do you think the total size of the open DU market could be? Presumably if it’s substantive enough for Tier 1 server vendors then the DU element shouldn’t be too shabby.
ps
Don’t know if that’s a how long is a piece of string type question.
70k buy just popped up from yesterday then. All rather exciting. Atb
Show me the piece of string and I will measure it. Elastic is more challenging.
Yes enough for a industry major to build a solution to sell CoTS servers which will not be huge margin as the market is extremely competitive with purchasing in the 1000's units at a time. How much the Ethernity bit, maybe $1000 a unit times 20000+ units. Who knows really.
TL,
What is the proposed business model.
Upfront design fee plus either royalty or product? Would have thought tier 1 server companies would be able to produce or subco at a much lower cost / quality than enet ever could.
I suspect a $1-2m payment plus royalty per unit sold. Then a period of maintenance and zeroing in. After that fees for reconfiguration or upgrades.
Just guessing. Yes as they are designed together using Ethernity protected elements I would expect the server vendor to be the manufacturers.
So the $1000 per unit effectively 100% margin, or is that the assumed total cost of the unit ?
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.
https://corporate.delltechnologies.com/en-us/newsroom/announcements/detailpage.press-releases~usa~2021~06~20210617-dish-and-dell-technologies-will-build-the-nations-first-open-ran-5g-edge-infrastructure.htm
Another link. It would be great to have Ethernity in that server. With the information out there we'll find out soon I suspect.
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.
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.
silicom is selling the fec card for dish rollout
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.
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.