Heavy Reading’s take on optical module trends

Part 1: Optical transceiver trends 

The industry knows what the next-generation 400-gigabit client-side interfaces will look like but uncertainty remains regarding what form factors to use. So says Simon Stanley who has just authored a report entitled: From 25/100G to 400/600G: A Competitive analysis of Optical Modules and Components.

Implementing the desired 400-gigabit module designs is also technically challenging, presenting 200-gigabit modules with a market opportunity should any slip occur at 400 gigabits.

Simon StanleyStanley, analyst-at-large at Heavy Reading and principal consultant at Earlswood Marketing, points to several notable developments that have taken place in the last year. For 400 gigabits, the first CFP8 modules are now available. There are also numerous suppliers of 100-gigabit QSFP28 modules for the CWDM4 and PSM4 multi-source agreements (MSAs). He also highlights the latest 100-gigabit SFP-DD MSA, and how coherent technology for line-side transmission continues to mature.

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Giving telecom networks a computing edge

Operators have long sought to provide their users with a consistent quality of service. For cellular it is why ubiquitous cellular coverage is important, for example.

But a subtler approach is taking hold as networks evolve whereby what a user does will change depending on their location. And what will enable this is edge computing.

 Source: Senza-Fili Consulting

“This is an entirely new concept,” says Monica Paolini, president and founder at Senza-Fili Consulting. “It is a way to think about service which is going to have a profound impact.”

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Daryl Inniss reflects on a career in market research

Daryl Inniss was until recently an analyst covering optical components. In an invited piece, he reflects on the role of a market researcher and what he has learnt in his 15-year career.

Daryl Inniss 

Rocky beginnings

I jumped ship in 2001 joining RHK, a market research firm, knowing nothing about the craft. I had been a technical manager and loved research and development, but work was 500 miles from my family and the weekly commute was gruelling.

Back then, the telecom market was crashing and I believed my job was at risk. Moving to a small market research firm could hardly be described as good planning, but it turned out to be a godsend.

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Global optical networking market set for solid growth

Source: Ovum

The global optical networking market will grow at a year-over-year rate of 5 percent through 2019. So claims market research firm, Ovum, in its optical networking forecast for 2013 to 2019. North America will lead the market growth, with data centre deployments and demand for 100 Gigabit being the main drivers.

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WDM and 100G: A Q&A with Infonetics' Andrew Schmitt

The WDM optical networking market grew 8 percent year-on-year, with spending on 100 Gigabit now accounting for a fifth of the WDM market. So claims the first quarter 2014 optical networking report from market research firm, Infonetics Research. Overall, the optical networking market declined 2 percent, due to the continuing decline of legacy SONET/SDH.

In a Q&A with Gazettabyte, Andrew Schmitt, principal analyst for optical at Infonetics Research, talks about the report's findings.

Q: Overall WDM optical spending was up 8% year-on-year: Is that in line with expectations?

AS: It is roughly in line with the figures I use for trend growth but what is surprising is how there is no longer a fourth quarter capital expenditure flush in North America followed by a down year in the first quarter. This still happens in EMEA but spending in North America, particularly by the Tier-1 operators, is now less tied to calendar spending and more towards specific project timelines.

This has always been the case at the more competitive carriers. A good example of this was the big order Infinera got in Q1, 2014.

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Optical networking spending up in all regions except Europe

A new cycle of investment in optical networking in taking place in all regions except Europe, the Middle East and Africa (EMEA), says market research company, Ovum. Market growth is being led by North America, while spending is also up in Asia Pacific (APAC) and South and Central America (S&C America). But EMEA will again be down in 2013.

Source data: Ovum

Ovum forecasts that the global optical networking market will grow to US $17.5 billion by 2018, a compound annual growth rate of 3.1 percent.

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Avago to acquire CyOptics

• Avago to become the second largest optical component player
• Company gains laser and photonic integration technologies
• The goal is to grow data centre and enterprise market share
• CyOptics achieved revenues of $210M in 2012 

How the acquisition of CyOptics will expand Avago's market opportunities. SAM is the serviceable addressable market and TAM is the total addressable market. Source: Avago

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