& cplSiteName &

ADMs Get Smaller, Cheaper

Light Reading
Supercomm News Analysis
Light Reading
6/14/2004
50%
50%

Chipmakers Parama Networks Inc. and PMC-Sierra Inc. (Nasdaq: PMCS) are compacting the functions of add/drop multiplexers (ADMs) onto single chips, aiming to catalyze a generation of lower-cost systems.

Working on the low end, PMC-Sierra today announced a $300 chip that could bring a pizza-box-sized ADM's price to the range of $3,000 to $5,000. Parama, likewise, is continuing to tout its own ADM-on-a-chip and a $5,000 system price, although the company has its eye on higher-end systems than does PMC. Parama will be showing its chips at Supercomm next week.

According to Parama CEO Hemant Bheda, the driver for single-chip products is the fear of low-cost competition from China, which has led both carriers and equipment vendors to rethink the ADM. That's not why Parama got started -- the company originally wanted to develop an entire system though it now sells only chips -- but it's pointing ADM vendors towards the chip camp, he says.

The most ambitious project along those lines comes from Infinera Inc., which recently revealed details of a chip combining ADM functions with WDM optics (see Infinera Declares WDM War). Parama and PMC-Sierra are taking a more down-to-earth approach, coalescing the add/drop functions onto a chip but leaving the optics -- WDM or otherwise -- up to the equipment vendor.

Parama introduced two chips in January, a lower-end device for OC3 and OC12 speeds and a second chip targeting interfaces up to OC768 (see Parama Intros 'ADM on a Chip'). The latter is a bit starry-eyed but helps draw in customers. "They want to see [the chip family] scale from OC48 up to multiple OC192s and, sometime in the future, to OC768," Bheda says.

Bolstering its low-end pitch, Parama today announced interoperability with Finisar Corp.'s (Nasdaq: FNSR) configurable optics, which can be altered in software to provide OC3, OC12, or Gigabit Ethernet interfaces. "If an OEM were to take these two and install them in a system, they could have completely software-configurable line rates," Bheda says. (See Parama Intros 'ADM on a Chip' and Parama & Finisar Intro Sonet/SDH Chips.)

Parama's chips are sampling, with general availability slated for July. Two ADM vendors are using Parama's chip and its reference designs to develop products that could surface within six months, Bheda says.

Unlike Parama, PMC is sticking to line speeds of OC12 and below with its ADM 622 family of chips. "Count the number of 10-Gbit/s rings around the world today: That's not where the money is," says Babak Samimi, product marketing engineer for PMC's service provider division. PMC's target is the pizza-box kind of ADM, a system that might even sit in the basement of an office building.

The PM5337 and PM5338 can handle up to 28 T1 lines and three DS3s. The PM5337 also adds eight ports of up to 1-Gbit/s Ethernet, a concession to a trend PMC sees of vendors "MSPP-izing the ADM, making them data capable," Samimi says, referring to the multiprotocol abilities of multiservice provisioning platforms.

— Craig Matsumoto, Senior Editor, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
goundan
50%
50%
goundan,
User Rank: Light Beer
12/5/2012 | 1:35:20 AM
re: ADMs Get Smaller, Cheaper
EOM
goundan
50%
50%
goundan,
User Rank: Light Beer
12/5/2012 | 1:35:19 AM
re: ADMs Get Smaller, Cheaper
Latest pricing information from AP. A big french vendor won an ADM deal last week from an AP customer for STM-1 ADMs at $1800 a pop. STM-4 ADMs for $4200 a pop with protection including lasers. Prices are already below the $5K quoted in the article.
Telecommedian
50%
50%
Telecommedian,
User Rank: Light Beer
12/5/2012 | 1:35:13 AM
re: ADMs Get Smaller, Cheaper
Ah, but read more closely, please. The $5000 pizza box mentioned in the article is an OC-192. That's STM-64 for those of you who speak SDH.

If the big French vendor (and I don't have a Cluseau who that might be with your clever obfuscation) is selling OC-12s for $4200 a pop and the new guys are promising 16 times the speed at $5000, it's a new world order, paradigm, or other politically correct phrase.

And before anyone starts spouting about apples to oranges (or bagels to croissants), yes the OC-192 pizza box doesn't support all of the DS3s and other goodies that the OC-12 probably supports. Each has a place in the network. But if these guys can make an OC-192 for $5000, imagine what's going to happen to the OC-12 market going forward.

Ahh, I can almost smell the bubble rising again. (OK, that's a pretty awful metaphor. Just ignore it.)

TC
PO
50%
50%
PO,
User Rank: Light Beer
12/5/2012 | 1:35:08 AM
re: ADMs Get Smaller, Cheaper
If the big French vendor (and I don't have a Cluseau who that might be with your clever obfuscation) is selling OC-12s for $4200 a pop and the new guys are promising 16 times the speed at $5000, it's a new world order, paradigm, or other politically correct phrase.

I'll be more interested when the article says that these are the bottom-line prices, rather than a "get me started" price. Are these prices inclusive of all required ancillaries? Or do we add costs for licensing software, management interfaces, specialty cabling, etc, etc on top of these numbers?
particle_man
50%
50%
particle_man,
User Rank: Light Beer
12/5/2012 | 1:34:59 AM
re: ADMs Get Smaller, Cheaper
What I have heard on the street about the $5K ADM is that the chip vendors are aiming to bring the COGS for the box down to where the OEMs can sell them for $5K and still have decent margin.

I think the competition between the hardware vendors will determine how much they can charge for things like software, cables, and the like.

The whole conversation appears to be happening in the SDH/Asia arena. I wonder if the SONET vendors are paying attention?

PM
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (1) comment


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
Google Security Lessons for IT
Curtis Franklin, Security Editor, 1/18/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.