Light Reading

Infinera Hints At Metro 100G Launch

Dan O'Shea
7/25/2014
50%
50%

Infinera looks to be a step closer to announcing its product plans for the metro 100G market, and has identified a specific sector of the market, which it is calling the "metro cloud," to target.

CEO Tom Fallon said during the company's second quarter earnings call late Wednesday that the optical system vendor, which is experiencing increasing demand for its long-haul DTN-X transport platform, would offer a "deep dive" into its metro plans on September 18, during its Insight Infinera 2014 analyst day event. (See Infinera Reports Q2.)

That comment inspired one analyst, George Notter of Jefferies & Company Inc. , to speculate in a research note that Infinera Corp. (Nasdaq: INFN) could unveil its much-awaited photonic integrated circuit (PIC)-based metro product, which some have dubbed the DTN-M, during the September event. (See Infinera Earnings & Metro Expectations on Tap.)

The vendor, which won the Public Company of the Year at this year's Leading Lights awards, confirmed in March that it had developed a PIC for the metro market. (See Infinera Shifts Up a Gear and Leading Lights 2014 Winners Video.)

Notter wrote: "Perhaps the most 'tantalizing' thing we picked up on the call was the company's disclosure -- in effect -- that they'll formally announce the new 100G, PIC-based, metro WDM platform at their upcoming Insight Infinera analyst day on September 18th. We believe this system will be their PIC-based, 100G metro WDM platform which management has referenced numerous times in the past."


Want to know more about 100G? Check out our dedicated 100G content channel here on Light Reading.


Fallon, for his part, didn't specifically say on the earnings call that the product would be announced at the event, though he did note that the company would provide a "deep dive look" into the metro market and Infinera's "specific plans to win in this market."

The CEO said Infinera views the near term metro opportunity to be around the data center interconnection market. He noted that this market is "segmented into long haul and metro," and that the very high capacity metro part of that market, which Infinera is calling the "metro cloud," should be seen as "distinctly different from a more traditional metro aggregation market [that is] driven by telcos and cable operators."

According to the Seeking Alpha transcript of the Infinera call, Fallon noted that vendor believes that large scale 100G metro deployments will "happen first in the metro cloud market, starting in earnest in early 2015," and that 100G in the metro aggregation market will "become interesting in late 2015 or early 2016, a view shared by many industry analysts."

Meanwhile, other optical vendors have been aggressively attacking the metro 100G market, with some boasting of early success. ADVA Optical Networking (Frankfurt: ADV) , Ciena Corp. (NYSE: CIEN), MRV Communications Inc. (Nasdaq: MRVC), and Ekinops SAS , among others, have all announced new products and capabilities to chase this opportunity, while Huawei Technologies Co. Ltd. has announced its own PIC-based product. (See below for more on these developments.)

As expectation builds for the metro 100G opportunities, Infinera continues to build its long-haul transport business. The vendor reported second quarter revenues of $165.4 million, a near 20% increase compared with a year earlier and up 16% sequentially. Its earnings after one-time costs (non-GAAP) came in at $13.5 million, or 11 cents per share, higher than expected.

"I continue to be convinced in our ability to gain share in a long-haul market on a yearly basis as well as take meaningful market share with the new products we are going to introduce over the intermediate term," noted Fallon the earnings call.

Infinera's share price closed Thursday at $9.07, giving it a market capitalization of just over $1.1 billion.

For more on the metro 100G market, see:

— Dan O'Shea, Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
rgrutza600
100%
0%
rgrutza600,
User Rank: Lightning
7/27/2014 | 8:44:53 AM
September 18 Unveiling
They said they would be discussing their entire roadmap at the "Deep Dive" in September.  I would expect to also hear about when their Terabit PIC is going to come to market.  The datacenter customers probably want it.  The have had the Terabit PIC in hand for over a couple years now, just waiting for the market to demand it...
DOShea
100%
0%
DOShea,
User Rank: Blogger
7/25/2014 | 10:19:55 AM
Re: Interesting metro market view
They have talked in recent months of making headway with cloud service provider and content operator customers, which would suggest the market is telling them something. Also, Infinera's recent nationwide deployment deals with XO and Windstream appear to have a strong cloud and data center element to them as well.
Ray@LR
100%
0%
Ray@LR,
User Rank: Blogger
7/25/2014 | 6:13:38 AM
Interesting metro market view
To distinguish between the 'metro cloud' and 'metro aggregation' and put different timescales on the ramp up is pretty interesting.... I wonder if the market is driving Infinera's plans or its development and testing cycle is driving its view of the market?
Flash Poll
From The Founder
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Cable Eyeing SDN for Headend, Home Uses

5|26|15   |   05:57   |   (1) comment


CableLabs is looking at virtualizing CMTS and CCAP devices in the headend, as well as in-home devices, says CableLabs' Karthik Sundaresan.
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Procera has gathered facts, stats and customer experience feedback from a survey of 540 users from across the globe.
Hot Topics
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Bidding War for TWC Looks Likelier
Alan Breznick, Cable/Video Practice Leader, 5/22/2015
Eurobites: Alcatel-Lucent Trials 400G in Czech Republic
Paul Rainford, Assistant Editor, Europe, 5/26/2015
Comcast Targets 6 New Gigabit Markets
Mari Silbey, Senior Editor, Cable/Video, 5/21/2015
Potholes Lurk in Indian Smart City Project
Gagandeep Kaur, Contributing Editor, 5/22/2015
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
On May 29th 10 AM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM for NFV at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
Cats with Phones
Too Fluffy to Talk Click Here
Elmer found that his bountiful fur got in the way of meaningful conversation.