& cplSiteName &

Google Goes DIY With 10 GigE

Craig Matsumoto
11/16/2007
50%
50%

Google (Nasdaq: GOOG) has built and deployed its own 10-Gbit/s Ethernet switches -- a move that could have implications for the systems, chip, and optical transceiver markets.

Analyst Andrew Schmitt of Nyquist Capital was trying to trace shipments of SFP+ optical components and found the trail led to a Google-built switch. Schmitt, an industry analyst who has financial positions in Broadcom, Vitesse, Finisar, and AMCC, reported his findings in a column earlier today.

"This decision by Google, while small in terms of units purchased, is enormous in terms of the disruptive impact it should have on 10-GigE switching equipment providers and their component supply chains," he writes.

Google took the same DIY approach with servers a few years ago. In this case, its work has implications for switch vendors like Force10 Networks Inc. and Woven Systems Inc. , since Google not only couldn't find what it needed, but also built its boxes from off-the-shelf chips.

Moreover, Schmitt believes Google is taking an unconventional approach with its choice of optical interfaces.

Read Schmitt's column here.

— Craig Matsumoto, West Coast Editor, Light Reading

(18)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
Hanover_Fist
50%
50%
Hanover_Fist,
User Rank: Light Beer
12/5/2012 | 2:58:40 PM
re: Google Goes DIY With 10 GigE
If this rumor is true, it spells serious trouble for networking manufacturers who depend on sales to Google to power their "we're #1" bragging rights.

If Google were a server manufacturer, they would be bigger than any of the current players (i.e., Dell, IBM, HP, etc...) based on their own server consumption.

If they make this transition to networking, it could seriously affect future of at least one player.
tsat
50%
50%
tsat,
User Rank: Light Beer
12/5/2012 | 2:58:40 PM
re: Google Goes DIY With 10 GigE
Wow, what are current switches lacking?

Maybe Google just needed something dumb and dirt cheap? Have an Asian CM build it and cut out the middle man?

-tsat
billy_fold
50%
50%
billy_fold,
User Rank: Light Beer
12/5/2012 | 2:58:39 PM
re: Google Goes DIY With 10 GigE
Content provider building networking equipment? I may be proven wrong, but it doesn't make much sense on the face of it. It would seem that with Google's purchasing power, they could persuade an existing 10 GigE vendor to tailor a product to what they want and need.

-billy
Hanover_Fist
50%
50%
Hanover_Fist,
User Rank: Light Beer
12/5/2012 | 2:58:39 PM
re: Google Goes DIY With 10 GigE
It's not a question of what the switches are lacking, it's more about what the vendors' include in their switch that Google sees no value-add (i.e., Google refuses to pay for the useless extra stuff that they themselves don't need).

For example, look at their early DIY servers they built - a motherboard (with CPU and memory) sitting on static free pink foam pad connected to a power supply - all placed on a standard 'bread rack' type metal racking sysetm sitting inside a server room. Who needs to pay for sheet metal, fans, etc.

I can imagine exactly what their 10GigE switch looks like ;-)
bollocks187
50%
50%
bollocks187,
User Rank: Light Beer
12/5/2012 | 2:58:38 PM
re: Google Goes DIY With 10 GigE
Its a streach but.....

If the NET becomes(already is) the key infastructure for "communications" - you could see that Google monopolizes the NET by building its own equipment.

Reminds me of ATT building its own telephone equipment (Lucent) !

mu-law
50%
50%
mu-law,
User Rank: Light Beer
12/5/2012 | 2:58:38 PM
re: Google Goes DIY With 10 GigE
They are one of the few folks out there with the demonstrated initiative and the critical mass of smart people to solve these problems themselves. They are their own credible threat to their suppliers.

I don't think this means they actually want to, or will displace COTS network equipment, but wow, what a great way for them to create levarage against their vendors.
douggreen
50%
50%
douggreen,
User Rank: Light Beer
12/5/2012 | 2:58:37 PM
re: Google Goes DIY With 10 GigE
I agree that Google's use of home grown equipment could give them an advantage, as long as they do it on a case by case basis and don't just do it internally for the sake of doing it internally.

I don't see the comparison with AT&T. AT&T was a monopoly with no need to be competitive. Their services were regulated and priced in effect on a cost-plus basis, so there was no need. Once AT&T had to be competitive, the use of their own equipment (and later Lucents) was certainly NOT a competitive advantage. There is a lot of evidence that it was a competitive disadvantage (more so in transmission than switching).

jepovic
50%
50%
jepovic,
User Rank: Light Beer
12/5/2012 | 2:58:36 PM
re: Google Goes DIY With 10 GigE
The discussion around Google's ventures into just an++thing oozes with lack of understanding of the halo effect.

Google has a tremendously successful and profitable search engine. As for the rest of Google's acitivitites, who knows whether they are smart?

The comparison with ATT during the monopoly years cannot be easily dismissed. Google has so much money, and have been expanding its number of employees so rapidly, that they pretty much have to expand into every neighbouring area. How else can they keep all these people busy? My own connections into Google tell me stories of absolutely ridiculous projects, in the line of designing their own coffee machines.

There is very little pressure on them to proof that they are doing the right things, as Google is still considered generally flawless.

Building their own equipment might work, but I suspect mostly because of the classic case of not including everything in the calcualtions. Google compares the hardware and build costs with the complete cost from the vendors. In the long run they will have massive support costs, but internal costs are always harder to quantify.
douggreen
50%
50%
douggreen,
User Rank: Light Beer
12/5/2012 | 2:58:36 PM
re: Google Goes DIY With 10 GigE
Actually, the lower the volumes the less attractive it is for Google to try to roll their own, unless there is some super function that they can't get a vendor to implement.

My guess is that the volumes are high, but the vendors aren't willing to drop their pants and bend over. Once you drop your pants for one customer, word gets around and everyone thinks you are easy.

As I used to say when I was in the business, we will bend over backwards to make our customers happy, but we will not bend over forwards.
deepsubmicron@yahoo.com
50%
50%
deepsubmicron@yahoo.com,
User Rank: Light Beer
12/5/2012 | 2:58:36 PM
re: Google Goes DIY With 10 GigE
Perhaps GOOG's volumes are too small to engage with an incumbent and pay some exorbitant NRE charge.

In any case, is this an(other) example of commoditization in the space? Sure sounds like it to me...
Page 1 / 2   >   >>
From The Founder
The time has come for a telecom app store to save the industry.
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 Documentaries
Service Provider Panel: Partnering in the Digital Era

5|22|17   |     |   (0) comments


Coopetition has always been part of telecom, but the ecosphere now includes data centers, vendors, apps developers, cloud service providers and Internet content providers. This BCE 2017 panel explores the new attitudes among network operators as to the value and variety of ...
LRTV Interviews
Site Demo: AT&T's IoT Flow Platform

5|19|17   |   04:25   |   (0) comments


At AT&T's R&D center in Tel Aviv, Israel, project leader Eyal Segev talks about the operator's Flow platform and how it helps to prototype IoT applications.
LRTV Documentaries
Agent of Change: A Q&A With AT&T's John Donovan

5|18|17   |     |   (0) comments


Carol Wilson talks with the man leading AT&T's transformation efforts about the challenge of change.
LRTV Documentaries
BCE Service Provider Panel: The New Business Realities

5|18|17   |     |   (0) comments


For virtualization to happen, the telecom industry first has to grapple with key functional aspects of SDN and NFV that need to be universal, such as onboarding of virtualized network functions and federation of software-defined networks.
LRTV Interviews
BCE Service Provider Keynote: CenturyLink

5|16|17   |   22:32   |   (0) comments


Aamir Hussain leads the Product Development and Technology organization at CenturyLink, which includes the company's information technology function. He is an experienced senior technology executive with more than 25 years of proven success in the implementation of global technology operations, operationalization of complex technology, infrastructures and business ...
LRTV Interviews
CenturyLink CTO on Transformation

5|16|17   |   7:43   |   (0) comments


The 50-year-old telco has already gone through several transformations, including every time it made an acquisition, but its purchase of Level 3 coupled with changes in technology and customer expectations necessitates its biggest transformation yet.
LRTV Documentaries
Light Reading Hall of Fame 2017

5|15|17   |   5:05   |   (1) comment


Find out who made it into Light Reading's Hall of Fame this year.
LRTV Interviews
Site Visit: AT&T's Tel Aviv R&D Center

5|15|17   |   09:58   |   (1) comment


Nir Shalom, general manager and VP of application development at AT&T Israel, talks about the key service developments undertaken at the AT&T R&D facility in Tel Aviv and how the team there has adopted new ways of working.
Telecom Innovators Video Showcase
Act on Your Intelligence With Amdocs aia!

5|15|17   |     |   (0) comments


Amdocs CMO Gary Miles explains how communications service providers can seize the AI opportunity with Amdocs real-time digital intelligence platform.
LRTV Interviews
Logtel CEO: Making Sense of IoT

5|15|17   |   09:48   |   (0) comments


Jacques Bensimon, founder and CEO of Tel Aviv-based training and consultancy Logtel, talks about the need to make IoT more than just a buzzword.
LRTV Huawei Video Resource Center
The Challenges of Mobile Banking Implementation

5|12|17   |     |   (0) comments


Kamal Quadir of bKash Limited explains the challenges and needs of implementing mobile banking in the Bangladesh market.
LRTV Interviews
Tel Aviv: A Hub of Innovation

5|10|17   |   07:58   |   (0) comments


Light Reading's Ray Le Maistre and Dan Allen discuss the technology innovation, food and amazing sights they witnessed during a recent trip to Israel.
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
AT&T's Donovan: Women Adapt Faster Than Men
Sarah Thomas, Director, Women in Comms, 5/18/2017
Verizon on M&A: Who Needs a Cableco?
Mari Silbey, Senior Editor, Cable/Video, 5/17/2017
Standardization Needs Room for Innovation
Mitch Wagner, Editor, Enterprise Cloud, 5/17/2017
Fright Wigs & Cocktails: BCE 2017 in Pics
Mitch Wagner, Editor, Enterprise Cloud, 5/19/2017
Sonus & Genband Finally Combine to Form $745M Company
Dan Jones, Mobile Editor, 5/23/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
What Brogrammers Look Like to the Rest of Us Click Here
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.