& cplSiteName &

Metro P-OTS 2.0 Has Arrived

Sterling Perrin
1/21/2014
50%
50%

Metro transport networking will never be the same again. That's the main conclusion to be drawn from the latest edition of Heavy Reading 's metro packet-optical tracker, the findings of which highlight a trend we identified a year ago -- the arrival of the P-OTS 2.0 era.

Packet-optical transport (P-OTS) has always been a nebulous term in the industry, but we've defined P-OTS products as those that combine native packet switching/transport and native TDM switching/transport, with or without DWDM optics, within a single network element.

In early 2013, data from a Heavy Reading survey of network operators pointed to a coming shift in their metro transport requirements, away from the historic emphasis on TDM features and functions and firmly toward packet features and functions, and, where capacity demands warranted it, integrated DWDM optics. We've labeled this shift as "P-OTS 2.0," and it provided a strong catalyst for P-OTS suppliers in 2013. With three quarters of market data gathered, we estimate that global P-OTS system revenue increased 40% in 2013 to reach $1.8 billion. In 2012, P-OTS had a relatively lackluster year of just 21% growth, so the market resurgence has been a welcome trend for suppliers.

Our current thinking is that P-OTS 2.0 has enough momentum to carry the market through 2015, as operators continue to drop legacy Sonet/SDH equipment in favor of packet- and optics-heavy P-OTS gear. We believe that 2014 will the critical cross-over year in which annual P-OTS spend exceeds legacy Sonet/SDH spend for the first time.

However, there is a cautionary tale here for P-OTS suppliers as well. The declining relevance of native TDM that is helping P-OTS today will ultimately prove problematic as traditional Layer 2/3 switch suppliers, some of which may integrate DWDM optics to their products, increasingly compete for transport applications. In a world where all TDM is emulated, what will be the advantage of P-OTS over transport class Layer 2/3 switches?

A battle looms, and we think it's one that heats up from 2016 onward. At that point, P-OTS suppliers will need to have (and articulate) a clear advantage that does not rest on native TDM.

— Sterling Perrin, Senior Analyst, Heavy Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Heavy Lifting Analyst Notes
Containers seemed poised to take over the Earth, but they've proven slow to implement. Find out how people are implementing containers on real-world service provider networks at the Big Communications Event in Austin next month!
Find out what it takes to transition telecom networks to cloud-native architectures at the Big Communications Event in Austin in May!
At BCE, we'll dive into the topic of Zero-Touch Automation without trying to boil the ocean.
The UK quad-play provider's Colin Whitbread gets closer to the edge, using automation and more.
A major re-architecting of the network will be needed to deliver future services, as we'll discuss during the upcoming BCE 2018.
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
I'm Back for the Future of Communications
Phil Harvey, US News Editor, 4/20/2018
AT&T Exec Dishes That He's Not So Hot on Rival-Partner Comcast
Mari Silbey, Senior Editor, Cable/Video, 4/19/2018
Facebook Hearings Were the TIP of the Data Iceberg
Dan Jones, Mobile Editor, 4/20/2018
Telco Journey to Cloud-Native: We Want What They've Got
Roz Roseboro, Principal Analyst – Cloud Infrastructure & Management, Heavy Reading, 4/24/2018
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
What's in the Box?
By Huawei
Beginning With the End In Mind
By Kevin Taylor, for Huawei
All Partner Perspectives