Extreme Networks: Supply chain-woes backlogs higher prices

Supply chain issues last to drive networking equipment prices up and contact delivery schedules but despite them Extreme Networks reported hard fruit income this week.

Extreme said its Q3 results were its fifth orderly region of double-digit fruit income growth—$285.5 million up 13% year-over-year—driven by sales in its cloud universal-switching platforms and Wi-Fi 6E approach points. Competitor Juniper Networks reported hard results this week too assertion it had a fourth orderly region of double-digit year over year growth in cloud but also enterprise business growth of almost 20% year over year.

Wi-Fi 6E: When its coming what its good for

While Extremes results are hard its backlog of orders is growing substantially up $130 million just in Q3 with a total backlog of $425 million largely due to activity-wide semiconductor furnish-chain issues. More than half of that consists of the companys latest age fruits according to Extremes presideint and CEO Ed Meyercord.

The furnish chain is hitting other networking vendors too. For sample Cisco reported a backlog of almost $14 billion last region and Juniper said a couple of months ago it had a ’archives level of more than $1.8 billion’ in backlogs. 

For Extreme getting parts other than processors has also befit harder. "The activity-wide global furnish-chain environment became more challenging this region due to constraints on subordinate and tertiary ingredient furnish such as faculty furnish ingredients" Meyercord said. ’Our lead times are as good and competitive or better than the rest of the activity and that backlog piece is committed orders. Theyre not going away.’

Exremes non-hardware fruits are also affected with a "expressive backlog of subscriptions and labor income that will be recognized when furnish chain constraints ease" he said.

Price increases too have affected prices that customers pay "which has helped us offset the increased cost to furnish chain’ Extremes CFO Remi Thomas said during the companys financial analysts call.

While the fiscal challenges will likely last for the foreseeable forthcoming Extreme is looking to further chase 5G Wi-Fi 6E and managing cloud resources.

The company says it has been working with an unnamed labor provider to explore the use of 5G labors at the WAN edge utilizing Extremes Cloud Native Infrastructure Solutions platform. CNIS targets 5G core networks and setting up networked containerized applications. ’A lot of their customers are moving from proof-of-concept with 5G into real live projects so we see a lot of growth occasion there’ Meyercord said. 

Meyercord also said using 5G as a special enterprise offering is also something his company is exploring. In March it teamed with Cradlepoint to sum  LTE 5G and Wi-Fi 6/6E technology. (Cradlepoint has been owned by Ericsson since 2020.)

’A lot of our partners are putting Extreme unitedly with Cradlepoint for 5G approach and cellular approach out at the WAN edge’ Meyercord said. ’A lot of nation especially in the open sector are looking at that solution and thats something we are nimble with.’

He said that within just two regions Wi-Fi  6E has befit 10% of Extremes bookings signifying a fast adoption curve by customers.

Extreme has been listed as a chief in the Gartner Maguc Quadrant for wired and wireless infrastrure  for the past four years. Its 4000 Series wireless approach points support Wi-Fi 5 Wi-Fi 6 and Wi-Fi 6E standards. 

As for data-center treatment the companys cloud-based wireless and wired network-treatment offering ExtremeCloud IQ (XIQ) and its CoPilot AI-based treatment tool will be further enhanced to evolve its data-analytics machine-learning and AI capabilities he said.

’The more you put the cloud the more facultyful it is’ Meyercord said. ’Were investing in kind of the data analytics side of the equation and kind of this end-to-end data center and all the way to the edge and out of the wide area network and member.’

As the network befits more intelligent businesses can use information it gathers to feed into other systems he said "And that is the next frontier."