Boosting the 100 Gigabit addressable market

Alcatel-Lucent has enhanced the optical performance of its 100 Gigabit technology with the launch of its extended reach (100G XR) line card. Extending the reach of 100 Gigabit systems helps makes the technology more attractive when compared to existing 40 Gigabit optical transport. 

"We have built some rather large [data centre to data centre] networks with spans larger that 1,000km in totality"  

Sam Bucci, Alcatel-Lucent

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Is optical components becoming a buyer's market?

Despite warnings that price cutting could erode the margins of high-valued optical components, analysts explain why they remain upbeat about the market's prospects.

"An organisation's gross margins ride on these new products"

Daryl Inniss, Ovum Components.

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Optical components: The six billion dollar industry

Chart Watch: Ovum Components

The service provider industry, including wireless and wireline players, is up 6% year-on-year (2Q10 to 1Q11) to reach US $1.82 trillion, according to Ovum. The equipment market, mainly telecom vendors but also the likes of Brocade, has also shown strong growth - up 15% - to reach revenues of over $41.4 billion. But the most striking growth has occurred in the optical components market, up 28%, to achieve revenues of over $6 billion, says the market research firm.

Source: Ovum

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Google and the optical component industry

Google caused a stir at ECOC by requesting a new 100 gigabit-per-second (Gbps) interface, claiming the existing 100 Gigabit standards fall short of what is needed.

According to a report by Pauline Rigby, Google wants something in between two existing IEEE interface standards. The 100GBase-SR10, which has 10 parallel channels and a 125m span, has too short a reach for Google.

“What is good for an 800-pound gorilla is not necessarily good for the industry. It [Google] should have been at the table when the IEEE was working on the standard."

Daryl Inniss, practice leader, components, Ovum

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Ciena post-MEN

Ciena has been busy since completing the acquisition of Nortel’s Metro Ethernet Networks (MEN) business back in March.

“The 40G and 100G technology were key to the deal and we made sure that the core team was still there”

Tom Mock, Ciena

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Is a datacom and telecom mini-boom taking place?

A reader commented that both semiconductor and optical transceiver lead-times are being extended and that the “good times are here”.  But what is the cause, he asked, and are good times really here?

Daryl Inniss believes it is largely a reflection of cutbacks that have run their course. “The industry cut back swiftly and deeply when the market started to tank, cutting suppliers and capacity,” says Inniss, practice leader, components at market research firm Ovum.

“I think it's recovery dynamics - people ordering a tiny bit more and there are no parts available such that lead-times are stretching out simulating a boom.”

Brad Smith, LightCounting

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Differentiation in a market that demands sameness

Transceiver feature: Part 2

At first sight, optical transceiver vendors have little scope for product differentiation. Modules are defined through a multi-source agreement (MSA) and used to transport specified protocols over predefined distances.

 

“Their attitude is let the big guys kill themselves at 40 and 100 Gig while they beat down costs"

Vladimir Kozlov, LightCounting

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