& cplSiteName &

Infinera CEO Campaigns for Growth

Light Reading
News Analysis
Light Reading
9/5/2012
50%
50%

Infinera Corp. (Nasdaq: INFN) CEO Tom Fallon says he won't be updating his company's quarterly guidance as he takes the stage today at the Citi Technology Conference in New York City.

Whew.

But will he announce a new customer? We'll see.

What is worth noting is that this week's speaking engagement comes almost exactly one year after Infinera’s launched its DTN-X packet optical platform, based on 500Gbit/s photonic integrated circuits (PICs), an announcement that had Infinera jumping ahead of the 100Gbit/s crowd after it took a pass on the 40Gbit/s market. (See A Peek Into Infinera's PICs and Infinera Unleashes Coherent 100G.)

Infinera has at least 10 purchase orders for its DTN-X platform, all of them signed since mid-June. One of those orders is from a Tier 1 carrier, widely believed to be Verizon Communications. "The Tier 1 that we have won we are not at liberty to say who it is yet, but I believe we’ll have that ability over the next quarter," Fallon tells Light Reading.

Infinera’s announced customers for the DTN-X include Cable & Wireless Worldwide and research and education network Dante. "It’s still a young market and for us to come in with this many customers in the first quarter of shipping, I’m pretty pumped up," he says.

Fallon’s feelings of confidence come not long after Infinera was passed over by XO Communications Inc. for its first 100Gbit/s deployment. The carrier committed to Nokia Siemens Networks instead. Though Infinera is an XO supplier, and XO indicated it will use Infinera’s DTN-X, the perception was that Infinera’s platform was not ready for the August announcement. An Infinera spokesman admitted that the DTN-X was not ready to fill what he described as a "stop-gap" need for XO, but added that XO's evaluation of the vendors came in the first quarter, before the DTN-X was ready to move off the loading dock.

"The vendor selection for 100G deployment across the XO network is not yet final," the Infinera spokesman says.

[Ed. note: For more on XO's NSN selection and how it unfolded, please see: XO Deploys First Nationwide 100G Network.]

Legacy laggards
Infinera, like Ciena, at least won’t be burdened with legacy gear as it tries to avoid the macro-economic trends cutting into the optical sector. Andrew Schmitt, principal analyst, optical, at Infonetics Research, suggested a few weeks ago that the Synchronous Optical Network (Sonet) market was cratering and said companies with revenue weighted toward legacy Sonet platforms face more of a threat.

"If your business is half WDM and half Sonet/SDH, and one is declining 15 percent a year and the other is growing 15 percent, your top line revenue is intrinsically flat," Schmitt says. "So companies with large amounts of legacy revenue in Tier-1 carriers have massive growth headwinds. But that is more a reflection of financial condition, not the quality of their WDM products."

Schmitt indicated that the increasingly busy 100 Gbit/s marketplace may offer some daylight, with carriers now able to get competitive bids from a longer list of suppliers. "Prices are dropping fast, so evaluation of 100G is going on in a big way now," he says.

That Infinera is pushing 500 Gbit/s flex-coherent superchannels on the DTN-X while most others are still focused on 100 Gb/s line cards should not delay appeal of fatter pipes, Schmitt adds. "There are always bleeding-edge customers who need that kind of bandwidth, but decisions on what I deploy today are about what I will need in the years down the road, so whether I can fill a 500G pipe immediately isn’t the core issue."

Fallon is betting that service providers will realize the benefit of investing in the packet-optical convergence, an area where PIC provides power and space benefits to allow lower-cost integration of transport, switching and bandwidth management. "Convergence of bandwidth management, switching and transport really is becoming a requirement in the industry," he says.

"There’s energy around how do we lower all costs, not just transport, not just switching, not just routing, but overall. People who are putting in 40G networks now are putting in less cost-effective networks than the competitors doing 100G, and that kind of mismatch in the industry won’t exist for very long," Fallon says.

The question for Infinera and other optical suppliers is how long they will have to wait. Fallon notes that the whole sector is focused on one question: "How much will the industry grow this year? Will it be 5 to 10 percent, or will it be more like 2 percent? If it stays flat, that’s a big deal for both Sonet and WDM."

There is increasing evidence that optical investor confidence is being shaken by the economy. Ciena's recent report and subsequent stock price drop and Infinera's string of quarterly losses aren't helping. (See Burnt Ciena: Optical Stock Falls After a Tough Quarter.) But Schmitt says there's a more optimistic angle here. "If Infinera takes three quarters rather than one to be profitable that isn't a big deal two or three years down the road. Quarterly results are important but you need to ignore the high-frequency noise."

— Dan O'Shea, special to Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
UPCOMING COURSE SCHEDULE
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
Wednesday, August 17, 1:00PM EDT
Using Open Source for Data Centers and Cloud Services
Roz Roseboro, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
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 Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (0) comments


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (0) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Verizon Sports Big Plans for Yahoo
Alan Breznick, Cable/Video Practice Leader, Light Reading, 7/26/2016
Light Reading Beyond
Steve Saunders, CEO and founder, Light Reading, 7/28/2016
Are IP/Optical Integration Initiatives Moving to Silos?
Faisal Khan, Network Operator Technology Planning Dept., 7/28/2016
Yahoo Signing Off in $4.83B Sale to Verizon
Mari Silbey, Senior Editor, Cable/Video, 7/25/2016
Ericsson Board Has Been Asleep at the Wheel – Consultant
Ray Le Maistre, Editor-in-chief, 7/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.