Light Reading
The numbers from the latest tracker report show that the next generation of metro packet-optical technology is here.

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
More Blogs from Heavy Lifting Analyst Notes
Integrated multicore processors offer a cost-effective solution for hardware systems used in demanding SDN and NFV applications.
Next-generation passive optical network (PON) pushes fiber closer to the edge.
Improving processor performance and virtualized network architectures are opening up new opportunities for rackmount appliance platforms.
Communications service providers are looking to offer cloud services to any device, anywhere and at any time to boost their revenues from enterprise and SMB customers.
Service providers are looking to social customer relationship management (CRM) to provide superior customer experience
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Graham Finnie from Heavy Reading about some of the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control.
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
LRTV Interviews
Bob Wilson, Arsenal Legend: The Light Reading Interview

1|16|15   |   35:36   |   (3) comments


Arsenal goalkeeping legend Bob Wilson was Light Reading's guest interviewee at the 2020 Vision Executive Summit in December. See what the former soccer star and sports broadcaster had to say when he took to the stage in Iceland.
LRTV Custom TV
What MEF Third Network Initiative Means for SDN & NFV

1|14|15   |   6:13   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss discusses the importance of the MEF Third Network initiative and why it's good news for SDN/NFV industry initiatives.
LRTV Huawei Video Resource Center
Frank Miller: Distributed Solutions are the Best Build for the Future - Part II

1|9|15   |   2:46   |   (0) comments


At SCTE, Frank Miller, Global CTO of MSO at Huawei, speaks about Cable 2.0 and its innovative future.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Cuomo Unveils Broadband Aid Program
Alan Breznick, Cable/Video Practice Leader, 1/19/2015
FiOS Picks Up Pace Again
Alan Breznick, Cable/Video Practice Leader, 1/22/2015
BlackBerry Wants Net Neutrality Protection -- That's Just Sad
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/22/2015
Indiana Carrier Takes Fiber to the Farm
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/22/2015
Verizon Ready for Google MVNO Challenge
Dan Jones, Mobile Editor, 1/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive