Infonetics: SFP+, tunable XFPs to drive 10G/40G/100G transceiver market to $1.44B by 2014/Telco Systems debuts T-Metro 7224 for MPLS in access networks
MAY 6, 2010 — Revenue for 10G, 40G, and 100G transceivers and transponders will reach $1.44 billion worldwide by 2014, says a new report from market research firm Infonetics Research. According to 10G/40G/100G Optical Transceivers Market Size and Forecasts, 10G SFP+ and tunable XFP technology, and by spikes in future 40G and 100G adoption, will drive the revenue increase.
“Our conversations with service providers and enterprises indicate they have a strong preference for 100G technology provided it is at the right price, less urgency surrounding 40G coherent technology, and wide-scale acceptance of both 10G SFP+ and tunable XFP,” says Andrew Schmitt, Infonetics Research’s directing analyst for optical. “Based on our optical transport, router, switch, and enterprise equipment forecasts, combined with our service provider deployment models, we expect 100G pricing to reach twice that of 40G in 2013, resulting in a rapid shift to 100G. By 2014, 40G and 100G modules will make up roughly half of the world’s total 10G/40G/100G optical transceiver and transponder revenue.”
Highlights from the report include:
Tunable XFPs are the major 10G growth opportunity, as they eliminate inventory management issues with fixed-wavelength modules, fulfill the need for tunability as ROADM-based networking rises in popularity, and replace the more costly 300-pin format
Meanwhile, SFP+ is replacing XFP, driven by strong growth in 850-nm modules for 10 Gigabit Ethernet (10GbE) and 8/16G Fibre Channel applications
Shipments of next-generation 40G long-range (LR) and short-range (SR) optical transceivers will begin in 2010, primarily for enterprise and IP router applications
Revenue for 40G long-reach interfaces jumped 52% in 2009 over 2008, to $114.6 million, while revenue for 40G 300-pin short- and intermediate-reach interfaces dropped 35%, driven by price erosion and demand weakness
During the 2011-2012 timeframe, shipments of DQPSK transceivers are expected to outstrip those of DPSK, as the cost differential between the two drops
Worldwide revenue is forecast to grow nearly 10-fold from 2009 to 2014 for tunable DQPSK 40G optical transceivers
Infonetics’ 10G/40G/100G Optical Transceivers report provides analysis, market size, and forecasts through 2014 for manufacturer revenue and units shipped for 10G, 40G, and 100G optical transceivers and transponders. Port forecasts in the report are based on Infonetics Research’s 10G/40G/100G ports forecast, which aggregates trends from a wide range of enterprise, carrier routing and switching, and optical transport equipment.
Infonetics touts the report as the first to analyze the optical transceiver and transponder market by module, reach, wavelength, and form factor.. It is also the first to use end-market projections of carrier preferences and equipment shipments to drive component forecasts, the company asserts.
MAY 10, 2010 — Telco Systems, a BATM company (LSE: BVC), has announced the availability of the T-Metro 7224, a platform designed to bring Multiprotocol Label Switching (MPLS) closer to the customer without the high cost and complexity generally associated with MPLS networks.
The T-Metro 7224, along with Telco Systems’ soon to be released service management platform, is the first step in the company’s overall strategy to enable simple and cost-effective multi-service-oriented access networks for service providers and mobile backhaul operators. Designed as a provider edge device, the T-Metro 7224 can augment a carrier’s network architecture by replacing the Layer 2 aggregation with a full MPLS PE approach, Telco Systems says. By moving more intelligence into the aggregation layer, the carrier reduces the costs and complexities associated with the core equipment, while improving the efficiencies of their network and offering a better customer experience, according to the company.
“We utilized our extensive experience in MPLS access switches to solve a major challenge for our customers, who have found that the technical advantages of MPLS in the access network do not outweigh the operational cost and complexities of back office integration and personnel training,” stated Nir Daube, vice president of product management for Telco Systems. “The T-Metro 7224 is both feature-rich and extremely cost effective; priced at about half the cost of the typical carrier-grade 10 Gigabit Ethernet aggregation switch, and uses half the power. This quick payback ultimately translates into a better bottom line for the provider.”
The T-Metro 7224 is designed to extend MPLS, quality of service, multicast, and IPv6 features into Ethernet access and aggregation networks. Multiple transport options including VPLS, 802.1ad, and the ability to support up to 256k MAC addresses provide flexibility and scalability in the metro access network to support large-scale MPLS-based Ethernet VPNs to E-Line, E-LAN, and E-Tree connectivity at Layer 2. Future support for MPLS-TP will be available upon ratification of the standard, Telco Systems asserts.
The T-Metro 7224 is equipped with Ethernet OAM tools to support end-to-end service management. These OAM features plus HQoS offer the mechanisms needed to ensure service delivery regardless of bandwidth availability, the company concludes.
The T-Metro’s flexible design can support eight fixed 10/100/1000Base-T or SFP-based 100/1000Base-FX/X ports; 16 SFP 100Base-FX ports; and four XFP-based 10 Gigabit ports. HQoS and enhanced MPLS are supported on all ports. The system is built around the Company’s Linux-based BiNOX operating system.
The T-Metro 7224 is being evaluated in customers’ labs today and will be generally available June 1.
