Lumen DDoS and Application Threat Research Finds Threat Actors Advancing their Attack Game

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

• In new research from telco operator Lumen, the provider posits that cybercriminals are taking advantage of the increase in connected home devices to use them to build out bot networks for DDoS and other application attacks.

• For the first time, banking was the most targeted sector for DDoS attacks, largely because a single day in September 2023 when Lumen helped one institution stave off 230 separate attacks.

In research Lumen released this week based on DDoS and application threat data captured on its mitigation platform, the operator observed interesting trends in the way hackers are applying more sophisticated, and in some cases, relentless tactics to flood targeted enterprise servers with malicious traffic and steal data. Threat actors are tapping connected consumer devices to launch denial of services incidents.

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Fear and Anticipation – Broadcom’s Acquisition of VMware Nears

S. Schuchart

Summary Bullets:

• Broadcom’s planned acquisition of VMware raises fears of cost-cutting and price raises, plus integration issues.

• The harsh handling of Broadcom’s last two software acquisitions, CA Technology and Symantec, has VMware customers nervous.

Broadcom’s acquisition of VMware is set to close on October 30, 2023, provided Broadcom can get approval from Chinese officials. This long-winded, anticipated acquisition has been a bumpy ride so far to say the least. Broadcom’s handling of previous software acquisitions such as CA Technology (formerly Computer Associates) and Symantec was brutal for both companies and customers. Broadcom began a systemic plan of cutting staff, raising prices, and focusing on a select batch of customers that provide the most income opportunity. When Broadcom announced its intention to buy VMware, it wasn’t met with surprised pleasure, but with a gasp of shock.

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Telecom Wholesale: Strategic Cloud Options for Consideration

R. Muru

Summary Bullets:

• Incumbent wholesalers should develop a robust cloud architecture framework to deliver future wholesale services, utilizing carriers’ unique capabilities in owning the network.

• Incumbent wholesalers must develop an underlying strategy for cloud that is interlinked across the different business units – promotes greater agility to operate effectively in future ecosystems.

Focus on Agility, Simplicity, and Automation in the Context of Cloud
GlobalData’s discussions during the 2022-2023 period with leading wholesale providers continue to highlight agility, simplicity, and automation as being key in the development of future products and services. Wholesale customers continue to demand the flexibility and agility to scale up/down their capacity, order their services online, pick and choose the required services, and have access to on-demand/pay-as-you-go billing models. Wholesale providers continue to become platform-centric with open application programming interfaces (APIs) and greater automation – artificial intelligence (AI) will play a key role here in the future.

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BT Says it Means Business

R. Pritchard

Summary Bullets:

• BT Business continues the integration process of former UK and global enterprise divisions, focused on a smooth transition for customers while delivering benefits of consolidation.

• Key areas of interest included digitalization, the Cloud Fabric multi-cloud service, BT’s focus on the SMB market, customer portals, fleet ESIM solutions, AI, and environmental issues.

The BT Focus analyst event highlighted how BT Business is progressing during challenging times as telcos face the challenges of rolling out fiber and 5G while in a constant state of flux in a rapidly evolving technology market. BT is looking to digitalization for operational efficiency and customer empowerment, which reduces costs (e.g., using the same platforms across all segments, tailored to their specific needs, and approximately halving the overall portfolio).

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Mitel’s Acquisition of Unify is Net-Neutral for the Company

G. Willsky

Summary Bullets:

• Unify provides Mitel a larger, more heterogeneous customer base, additional markets and offers, and stronger routes to market.

• Of several drawbacks the largest is that Mitel’s core strategy remains unchanged.

Mitel completed the acquisition of the unified communications and collaboration (UCC) and communication and collaboration services (CCS) services unit of the Atos group (Unify) announced in January 2023. The acquisition inflates and diversifies Mitel’s customer base, extends its geographic coverage, broadens its offer portfolio, and enhances its go-to-market capabilities.

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Colt Brings AI and ESG to the Fore as it Hints at Further Developments

R. Pritchard

Summary Bullets:

• Despite inevitably addressing AI, Colt highlighted the importance of scale, security, and sustainability – data sovereignty and protection in particular – at its 2023 Analyst Relations event.

• Networking topics covered intent-based networking – software-defined and on demand – orchestration platforms and the importance of the customer experience and managing complexity.

Colt’s annual Analyst Relations event kicked off with the inevitable discussion about artificial intelligence (AI) both at a broader level and as a technology that is being used in networks and in supporting customers. The discussion then moved on to current challenges such as the importance of scale, security, and sustainability. Part of this was focused on geopolitics and the growing importance of data sovereignty, with enterprises needing to know what data they have, where it resides, and how it is being moved around.

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Will Network Slicing be the Savior for 5G in the Enterprise?

J. Marcus

Summary Bullets:

• The enterprise is where 5G was meant to shine, but the long and evolutionary rollout approach by network operators has limited the impact.

• Some of the use cases originally targeted by 5G have been deployed using 4G or non-standalone (NSA) 5G from public or private networks, but the advanced features of standalone (SA) 5G such as network slicing could finally help realize the industry’s claims now that availability is starting to appear.

So much verbiage has been expended by the telecom industry (including analysts like me) regarding the potential for 5G to enterprise organizations and to the network service providers themselves. After five years or so, the hype has died down considerably as the impact has yet to materialize at the expected scale. For the consumer market, serious questions remain around the potential for 5G – even for SA 5G – when (once it’s widely available) the full palette of features enabled by the 5G core network and requisite radio spectrum will be realized. Beyond mobile gaming, the conversation tends to stop after connected car-related advances.

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Malicious Synthetic AI Poses an Ominous Security Threat to Business and Governments

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

• The recent rash of synthetic AI-driven deepfakes have business and government entities alarmed about potential security implications.

• The US National Security Agency (NSA) has issued guidance on how to detect images designed for malevolent purposes and what steps they can take to minimize damage from deepfakes.

Advances in generative artificial intelligence (AI) are offering promising use cases. But the technology can also be applied for more nefarious purposes. Cyber criminals can harness synthetic AI to spread misinformation, cause harm to organizations, and potentially to profit from their attacks. In one of the most recent high-profile cases, the actor Tom Hanks criticized a dental plan advertisement that used an AI-generated image of him without his consent. In a separate case, the “CBS Mornings” host Gayle King said a deepfake video using her likeness and voice to hawk a weight loss product was created and distributed without her permission. The synthetic AI video was built using a sanctioned post publicizing King’s radio show.

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ESG Watch: Virgin Media O2 Business Launches New ESG Tools for Large SD-WAN and Mobile Customers

R. Pritchard

Summary Bullets:

• Virgin Media O2 Business’ carbon calculator aims to provide trustworthy information to business customers on emissions related to their services, forming a basis for an annual carbon footprint report.

• The Virgin Media O2 Business Tech Donation Programme focuses on digital inclusion, enabling enterprises to offer free refurbished smartphones, mobile data, texts and calls to 11 to 16-year-olds and people over 65.

In common with almost all telecoms services providers, Virgin Media O2 Business is looking to enable and improve reporting on greenhouse gas (GHG) emissions for its SD-WAN and mobile business customers in the UK. Its carbon calculator aims to help customers realize their environmental, social, and governance (ESG) strategies as they strive to meet the needs of customers, regulators, investors, and talent.

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Sell Connectivity Not Communications for UK PSTN Switch-off

R. Pritchard

Summary Bullets:
• UK PSTN switch-off in December 2025 presents a significant revenue and market share gain opportunity for telecoms service providers.
• BT has started rolling out Digital Voice on a region by region basis and many smaller businesses may not realize how it might affect them.

As mandated by Ofcom and the Government, the UK’s analog network (PSTN) is set to be ‘switched off’ in December 2025, meaning that all fixed connectivity will be carried over IP networks. BT has conducted successful pilots in Salisbury (Wiltshire) and Mildenhall (Suffolk), and now plans to roll the new platform out on a region by region basis, starting with the East Midlands in July 2023, Yorkshire and Humber in August, and other regions going forward until the summer of 2024:

1) Autumn 2023: North West and London
2) Spring 2024: West Midlands, South East; Wales; and East Anglia
3) Summer 2024: North East; Scotland; and South West

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