Light Reading
The move to 100G in long-haul networks is driving the integration of DWDM transport and OTN switching, finds Heavy Reading.

Core 100G Fuels Packet-Optical Switching Growth

Sterling Perrin
4/10/2014
50%
50%

The market for packet-optical switch infrastructure is growing rapidly, propelled by the continued rapid uptake of 100G in long-haul networks.

This is the main finding in the latest edition of Heavy Reading 's Next-Gen Core Packet-Optical Market Tracker. The overall, global, long-haul (or core) transport network experienced solid growth, at 7.6% in 2013, also driven by 100G network build-outs. That overall core transport network market includes the packet-optical switching segment, which Heavy Reading defines as products that integrate DWDM transport and OTN switching and, ultimately, packet switching as well.

As operators deploy 100G, they are increasingly looking to integrate their 100G transport networks with switched OTN for a number of reasons, including the ability to groom lower-speed 10G traffic efficiently into the larger 100G pipes. We have written about the drivers for switched OTN in the core extensively in the past, and the results of this migration are now being seen concretely in the market numbers. Global core packet-optical switching revenue jumped 65% in 2013 to reach $1.3 billion (a total that includes both the switching and the transport portions of these products).

In contrast, revenues generated from legacy Sonet/SDH-based optical crossconnect products continues to plummet, falling by 22% in 2013 to just $200 million.

At this point, the numbers show us some clear trends:

  • 100G is driving core network spending growth and operators' core network architectural decision processes.
  • OTN is the clear switching choice for operators' core networks today. We believe this will remain the case over the next five years as well.
  • Operators want to combine their switched OTN with their transport platforms together, and we believe this will also remain the case over the next five years.

In addition to DWDM transport and OTN switching, Heavy Reading’s definition of packet-optical switching also includes a component for packet switching products, such as Ethernet, MPLS-TP, or MPLS switching. The evolution of packet switching in core transport is less clear at this time, and it's something Heavy Reading will be keeping a close eye on moving forward. Early on, it seemed as if some form of packet switching would be a major component of core transport. As one example, Verizon Communications Inc. (NYSE: VZ) was originally a big proponent of integrated packet switching and core transport, but ultimately the carrier made separate decisions for its MPLS core, with Juniper Networks Inc. (NYSE: JNPR), and 100G/OTN with Ciena Corp. (NYSE: CIEN)

At OFC in March, we heard rumblings from some camps that the switched OTN core would be short-lived and that MPLS switching would soon step in as the replacement. If the definition of "soon" is the next three years, we don't see how this transition will happen.

We believe the momentum of switched OTN is too great. However, if we are looking at the five-year horizon, and beyond, it's certainly a possibility (but not a given). The big routing suppliers are making their case to operators now, and we'll be polling the service provider market to see if and when these operators start listening.

— Sterling Perrin, Senior Analyst, Heavy Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
melao2
50%
50%
melao2,
User Rank: Light Beer
4/11/2014 | 10:39:36 AM
Re: Sonet/SDH
Your questions raises a good topic for discussion. How resilient SDH/Sonet as a technology it is.

I have graduated in 2000 from the university and since then SDH was a dying technology, and actually SDH is still around strong in many places.

 

I think finally we reached the point the SDH deployment will be irrelevant. 

Some carriers that I work with do not buy SDH anymore, only for some small port/board expansions in order to keep some past investments in the network. 

For new networks, either MPLS-TP or IP MPLS are chosen, be it the backhaul, aggregation layer or metro networks.

I supposesoon the competition in the Metro will be between OTN to the edge and corrent MPLS-TP and IP MPLS technologies....
sterlingperrin
50%
50%
sterlingperrin,
User Rank: Lightning
4/10/2014 | 5:01:29 PM
Re: Sonet/SDH
Dan,

In the LH network, I'd say Sonet/SDH's goose is already cooked. I'd call $200M in global revenue not worth measuring, but I measured it anyway.

In the metro, Sonet/SDH hangs around alot longer as there's still alot of sub-wavelength level traffic in metro networks.

Sterling
DOShea
50%
50%
DOShea,
User Rank: Blogger
4/10/2014 | 4:35:29 PM
Sonet/SDH
How long do you think it will be before the Sonet/SDH market fades away? Or at least gets so tiny it's not worth measuring?
sterlingperrin
50%
50%
sterlingperrin,
User Rank: Lightning
4/10/2014 | 11:15:40 AM
Re: Reminder of timescales
This is quite true. My rule of thumb is to come up with the most reasonable and well-researched estimate of a time-frame for technology adoption ... and then multiply that duration x2. 

Sterling
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
4/10/2014 | 11:11:24 AM
Reminder of timescales
This is a very real reminder, as everyone talks about the potential of transport SDN, about how long it takes for concepts to become mature enough for deployment and then for the market to reach a point of momentum. Packet-Optical and 100G were topics being discussed in earnest at least six years ago, if I recall correctly...
More Blogs from Heavy Lifting Analyst Notes
The latest highly integrated silicon components are enabling a massive acceleration of LTE worldwide.
WebRTC has the potential to enable armies of developers to create their own real-time communications apps in previously unheard-of ways.
As Release 10 and 11 of the 3GPP's LTE standards are being turned on, operators are seeking features that offer the biggest bang for their buck.
Cable and over-the-top (OTT) providers are striking up an unusual friendship, yet this unexpected pairing may lead to profitability for both sides, once some significant challenges are hurdled.
As M2M matures into the Internet of Things (IoT), the technology and network requirements are becoming much more complex.
Flash Poll
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV – Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business – Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Packet Design asks network professionals how they handle the cloud, SDN, and network management.
Hot Topics
Is Windstream Boldly Setting a New Trend?
Carol Wilson, Editor-at-large, 7/29/2014
Pics From Comic-Con -- Honest!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/30/2014
If Not Muni Networks, Then What?
Carol Wilson, Editor-at-large, 7/28/2014
Verizon Applies 3G Throttling Policy to LTE
Sarah Reedy, Senior Editor, 7/25/2014
Sprint, T-Mobile: The Price War's On
Sarah Reedy, Senior Editor, 7/30/2014
Like Us on Facebook
Twitter Feed