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Optical/IP

Fujitsu Brings ADVA Stateside

ADVA AG Optical Networking (Frankfurt: ADV), a vendor of metro and enterprise DWDM (dense wave division multiplexing) platforms, today announced completion of an OEM agreement with Fujitsu Network Communications Inc. (FNC).

The partnership looks promising for both parties. ADVA, which has a solid presence in metro DWDM in Europe, needs help entering the stateside market. Fujitsu, a key Sonet player with the U.S. RBOCs, needs to round out its metro product line.

It remains to be seen, however, whether the partners can achieve together what they can't individually. The metro market is seeing increasing competition from a number of players, old and new, and an ongoing downturn in capital spending is causing even the best-laid plans to gang aglay.

Financial terms of the deal are undisclosed (see Fujitsu to Resell ADVA Products). It calls for Fujitsu to resell ADVA's Fiber Service Platform (FSP) 500 and FSP 3000 boxes in North America as members of Fujitsu's newly minted product lineup for the carrier metro edge and premises market. ADVA's FSP 500 will become Fujitsu's Flashwave 7410 edge or premises device; the larger FSP 3000, which was recently unveiled at the CeBIT tradeshow in Europe (see ADVA to Shake Its Metro Money-Maker) will become the Flashwave 7420 metro access platform for points of presence.

Fujitsu declines to say with which vendors it compared ADVA in making its selection. ADVA competes internationally with a range of metro DWDM players, including LuxN Inc., Nortel Networks Corp. (NYSE/Toronto: NT), and ONI Systems Inc. (Nasdaq: ONIS).

Fujitsu has its own series of long-haul DWDM products, including the Flashwave 7700 and 7600. It also has one low-end metro DWDM offering, the Metro 7100. But company officials say it chose ADVA's products to get more-sophisticated premises units, for instance ones that can be installed in the basement of a large building, linking carrier customers to the point of presence for a range of services.

Fujitsu officials also say the company plans to complete its metro lineup by announcing its own DWDM box for the metro core within the next four to five weeks.

In the meantime, Fujitsu will integrate ADVA's new gear into its net management system. It's also footing the bill for the resold wares to undergo Osmine certification with Telcordia Technologies Inc., typically a multimillion-dollar expense. Osmine is considered a prerequisite for doing business with the U.S. RBOCs.

Such a chance to gain direct access to the RBOC market has ADVA plainly ecstatic. "This is a huge market opportunity for us... It gives us unprecedented access to one of the largest market segments, that of the ILECs, including the RBOCs," says Abdul Kasim, VP of marketing at ADVA.

Despite solid growth from its European sales (see ADVA Reports 2001 Earnings), the company has been continually frustrated by its lack of U.S. presence. A resale agreement with Cisco Systems Inc. (Nasdaq: CSCO) only covers ADVA's FSP-II, a older, low-end product geared primarily to the enterprise market, which Cisco sells as its Metro 1500. Deals with Inrange Technologies Corp. (Nasdaq: INRG) and Storage Technology Corp. (StorageTek) (NYSE: STK) are focused on enterprise storage.

Fujitsu is more subdued about the arrangement but says it's glad to have gotten some help rounding out its metro product line. "It was a classic case of build versus buy," says FNC spokesperson John Stewart. "We needed to fill a gap in our premises line. And ADVA needed a channel to the North American market."

Analysts say the news is a vote of confidence for ADVA, but it remains to be seen whether the partnership can stand up to the rigors of the U.S. market -- and the ongoing downturn there. "First we need to see if the market is coming back," says analyst Vidar Kalvoy of DG Bank in Frankfurt. He also notes that Fujitsu, while a force to be reckoned with in the Sonet space, hasn't sold any of these solutions into the metro market yet.

"It's literally new territory," says Stewart. "We have no sales or customers today for the new products."

But ADVA remains gung-ho. "This is clearly a strategic thing," says Kasim. "You can see that from the Osmine process FNC's already started and from its integration of our equipment with its element management system. That indicates heavy investment and shows [FNC] sees the opportunity that clearly exists, notwithstanding the short-term problems in the market."

ADVA says it plans to unveil several OEM contracts in the Asia-Pacific region, specifically Japan and Australia, within the next few weeks.

— Mary Jander, Senior Editor, Light Reading
http://www.lightreading.com
rickaty 12/4/2012 | 10:35:15 PM
re: Fujitsu Brings ADVA Stateside The are OEMing two of ADVAs Metro DWDM platforms and coming out with their own Metro DWDM platform in a few weeks ? I assume internal one will be at supercomm based on the 5 or 6 week comment. How is the internal product compare to the ADVA procduct ? Are they complimentary ? I doubt it, metro DWDM is a pretty limited application, they are probably more competative than complimentary. I guess we will see at Supercomm. Maybe they will have the internal one and the ADVA one side by side in the booth and we can see the difference!

It is very much like when Cisco bought Qeyton and also released their own DWDM a year or two ago. Strange indeed.
giraffe 12/4/2012 | 10:35:13 PM
re: Fujitsu Brings ADVA Stateside I doubt that FNC would be spending serious money on Osmine if there was significant overlap with their own product. The ADVA products are metro access - the FNC product is metro core.
rickaty 12/4/2012 | 10:34:56 PM
re: Fujitsu Brings ADVA Stateside Really ? The FSP 3000 from ADVA is a 32 channel DWDM system with protection capabilities. That is Metro DWDM access ? Heck, that is as much capacity as ONIs product. What is Fuji's Metro Core product 180 10G channels that can go 2000 KM without regen ?

And Metro access DWDM ? Get serious, that is essentially a non-existant market segment.

BlueSkies 12/4/2012 | 10:34:18 PM
re: Fujitsu Brings ADVA Stateside Here is another naive new kid in the block (European Metro Optical vendor) thinks that they can benefit and leverage from the Fujitsu's OSMINE work with Telcordia.

As far as I am concerned, Telcordia's OSMINE monopoly will not last too long. It has survived and was a cash cow (more likely highway robbery)of Telcordia thanks to the old fat and very protective RBOC executives (who helped creating Bellcore). It has costed much $B and many jobs in the industry. The sole beneficiary has been Telcordia. The vendors will soon find out that it costs $100K's just to start the talk and to find out what Telcorida has and what they cannot do.

The NG products such as Metro Optical will not fit into the old nor NG Telcordia OSS's. IT IS TIME TO REVOLUTIONALIZE the Telco's OAMP infrastructure not to evolutionalize it again and again!

Wake up Mr. RBOCs & NG product vendors!

Blue Skies
pigglywiggly 12/4/2012 | 10:34:10 PM
re: Fujitsu Brings ADVA Stateside Blue Skies wrote: "As far as I am concerned, Telcordia's OSMINE monopoly will not last too long. It has survived and was a cash cow (more likely highway robbery)of Telcordia thanks to the old fat and very protective RBOC executives (who helped creating Bellcore)."

As far as I'm concerned, Telcordia's OSMINE monopoly SHOULD not last too long, but wishing won't make it so. RBOC's aren't exactly ecstatic with the means by which next-gen boxes are shoehorned into Telcordia OSS operations, but they are less inclined to change how the manage their enormous network infrastrcuture so that the next best thing will be better acommodated. In short, they need OSMINE, and are historically slow movers... I don't see OSMINE disappearing, and any change in the process would likely be slow at best.
BlueSkies 12/4/2012 | 10:33:21 PM
re: Fujitsu Brings ADVA Stateside PigglyWiggly wrote, "As far as I'm concerned, Telcordia's OSMINE monopoly SHOULD not last too long, but wishing won't make it so. RBOC's aren't exactly ecstatic with the means by which next-gen boxes are shoehorned into Telcordia OSS operations, but they are less inclined to change how the manage their enormous network infrastrcuture so that the next best thing will be better acommodated. In short, they need OSMINE, and are historically slow movers... I don't see OSMINE disappearing, and any change in the process would likely be slow at best."

I am happy to see many people in the industry including PigglyWiggly concur with:
- Telcordia's OSMINE monopoly SHOULD not last too long
- RBOC's aren't exactly ecstatic with the means by which next-gen boxes are shoehorned into Telcordia OSS operations
- RBOC's are less inclined to change how the manage their enormous network infrastrcuture
- RBOC's are historically slow movers...

However, I do NOT agree on the following points:
- the next best thing will be better acommodated
- In short, they need OSMINE
- I don't see OSMINE disappearing
- any change in the process would likely be slow at best

IT IS TIME TO CHANGE!!!

Previously, RBOC's didn't like the big equipment vendors for the exact same reasons (slow, expensive, etc.) and preferred new Start-Ups for faster and cheaper solutions. That's why Cisco was somewhat successful up to now. Now, the time has changed that RBOC's cannot depend on unstable (& may disappear) IPO-focused vendors. The RBOC's are now seriously talking to the stable (backed with cash reserves) and fast big companies (how many out there do you know of?).

The OSMINE is a road-block to what RBOC's want nowadays, Stable, Fast but Cheap solutions for the NG networks infrastructure.

IT IS TIME TO CHANGE!!!

Blue Skies
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