& cplSiteName &

100G Revenue Drives 400G Investment

Simon Stanley
Heavy Lifting Analyst Notes
Simon Stanley
1/13/2014
50%
50%

With revenue increasing for 100Gbit/s optical modules and components, and developments well advanced for the highly integrated 25 Gbit/s optical and silicon components needed for the next generation of modules, companies are starting to ramp investment in 400G. We are seeing these 400G developments across the industry, including long-haul, metro, and datacenter and from small, medium, and large companies. The enthusiasm for 400G and the dollars to pay for this investment is largely driven by the revenue these companies are already receiving for 100G.

Now 100G networking is entering the mainstream market. Most large switches and routers already support 100Gbit/s interfaces, and the number of ports per line card has increased from two to eight over the last two years. Also, 100G is becoming widely deployed in the long-haul network, and the coherent receiver technology developed for long-haul applications is becoming available for shorter-reach metro applications. Investment in 40Gbit/s links is shrinking, since the cost per Mbit/s is now lower for 100G.

QSFP+ and CXP optical modules and active cables are available from many vendors for very short-reach 40Gbit/s and 100Gbit/s links in data centers. These will be joined by 100Gbit/s QSFP28 optical modules and active cables in 2014. The first generation of pluggable 100Gbit/s optical modules for longer distances manufactured to the CFP specification are available from 14 vendors. The first of the smaller CFP2 modules are shipping. CFP2 is likely to be a short-term solution, since the next-generation CFP4 modules are half the width. Finisar gave the first public demonstration of a CFP4 module in September 2013. We expect the first CFP4 modules to be shipping in 2014.

The first 100Gbit/s optical modules used 10x10Gbit/s optics and electrical interfaces. The industry is moving to 4x25Gbit/s for both electrical interfaces and optics. At the same time, the industry has developed more advanced modulation technologies for long-haul and now metro links. These developments have been made possible by the significant investment by device vendors in high-speed serial technology, integrated silicon and optical technologies, and digital signal processing (DSP). The result is a huge range of 100Gbit/s devices, including gearboxes, coherent receivers, driver/receiver arrays, transceivers, and CDRs.

The trend across the 100G market is greater component integration, lower power consumption, smaller optical modules, and higher port density. These developments are dramatically reducing the cost per port for 100G and commoditizing technologies that will be applied to 400G in the future.

For more insight into developments in 100Gbit/s and 400Gbit/s networking, see Heavy Reading's recent report, 40/100Gbit/s Optical Modules & Components: A Heavy Reading Competitive Analysis. This report identifies the full spectrum of vendors developing 40/100Gbit/s optical modules and components, and provides critical analysis of the overall market and ecosystem for 40G, 100G, and 400G technologies.

Simon Stanley, Analyst, Heavy Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
sterlingperrin
50%
50%
sterlingperrin,
User Rank: Lightning
1/14/2014 | 2:27:10 PM
Re: Blow to anyone that bet the future on CFP2?
Good point Ray.

A rapid move to CFP4 would also pose problems for Cisco. Their CPAK marketing has been aimed at 1st generation CFP and CFP2. They will have to have something ready to beat CFP4 specs when CFP4 comes out. That may be tough to do if it's 2014!

Sterling
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
1/14/2014 | 5:10:53 AM
Blow to anyone that bet the future on CFP2?
"CFP2 is likely to be a short-term solution, since the next-generation CFP4 modules are half the width... We expect the first CFP4 modules to be shipping in 2014."

Woah - did anyone bet their future on long-term denand for CFP2 modules? 

THis seems a bit like the narrow window that 40G systems had while 100G loomed behind....
More Blogs from Heavy Lifting Analyst Notes
(Sponsored.) Even in non-line-of-sight conditions, fixed wireless access can provide reliable high-speed broadband, as tests have now shown.
Gluttony. Lust. And five others. What's not to like?
The most recent Thought Leadership Council survey finds that business/operations support system (B/OSS) transformation will be an important focus for service providers in the coming years.
Cellular vehicle-to-everything (C-V2X) systems are gaining traction in the market, and may surpass dedicated short range communications (DSRC) systems in traffic safety applications across the world.
While NFV provides an opportunity to reduce opex and improve customer experience, it also introduces additional layers of operational complexity.
Featured Video
From The Founder
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
February 26-28, 2018, Santa Clara Convention Center, CA
March 20-22, 2018, Denver Marriott Tech Center
April 4, 2018, The Westin Dallas Downtown, Dallas
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
Here's Pai in Your Eye
Alan Breznick, Cable/Video Practice Leader, Light Reading, 12/11/2017
Verizon's New Fios TV Is No More
Mari Silbey, Senior Editor, Cable/Video, 12/12/2017
Ericsson & Samsung to Supply Verizon With Fixed 5G Gear
Dan Jones, Mobile Editor, 12/11/2017
Juniper Turns Contrail Into a Platform for Multicloud
Craig Matsumoto, Editor-in-Chief, Light Reading, 12/12/2017
The Anatomy of Automation: Q&A With Cisco's Roland Acra
Steve Saunders, Founder, Light Reading, 12/7/2017
Animals with Phones
Don't Fall Asleep on the Job! Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed