Optical/IP Networks

Intelligent Hardware: 'An $8.5B Market'

Infonetics Research Inc. has published market forecasts for “intelligent” optical networking hardware -- equipment that automates networks so they can be controlled as single entities rather than as collections of individual boxes.

Right now, intelligent hardware represents 15 to 20 percent of the overall market for optical networking equipment, according to Infonetics, which notes strong demand for it, particularly for long-haul applications.

Intelligent Optical Network Market Year 2000 Intelligent optical networking gear will grow to an $8.52 billion market in 2001 -- up from $5.3 billion last year, the firm says.

The report includes a long list of companies that tout intelligent products, including Ciena Corp. (Nasdaq: CIEN), Corvis Corp. (Nasdaq: CORV), Quantum Bridge Communications Inc., Sycamore Networks Inc. (Nasdaq: SCMR), and Tellium Inc., to name just a few. Older, more established players like Cisco Systems Inc. (Nasdaq: CSCO) and Nortel Networks Corp. (NYSE/Toronto: NT) also are introducing products in the space.

According to Michael Howard, author of the report and cofounder of Infonetics, the new market is a dynamic one. While most intelligent products now are designed for long-haul applications, that will change as the backbone gets faster and the network edge and access portions shift to take advantage of the bigger bandwidth, Howard says: "Expect a lot of growth in the metro edge, metro core/regional, and last-mile access parts of the network."

Presently, all areas of Howard's taxonomy are growing by at least 15 to 20 percent per quarter, he says. This will generate overall growth for intelligent optical devices of 59 percent over year 2000 levels, he predicts.

-- Mary Jander, senior editor, Light Reading http://www.lightreading.com

hippo 12/4/2012 | 8:39:08 PM
re: Intelligent Hardware: 'An $8.5B Market' Could anyone please explain in detail what "intelligent" means? Or point me to the articles that discuss this topic?

Thanks in advance!
jessejacksonsnewbaby 12/4/2012 | 8:39:05 PM
re: Intelligent Hardware: 'An $8.5B Market' Check out Sycamore's web site at www.sycamorenet.com under Management for a discussion of Intelligent Optical Networking.

all-software-are-buggy 12/4/2012 | 8:39:04 PM
re: Intelligent Hardware: 'An $8.5B Market' Hey
What is intelligent optical network mean. What does sensitivie automatic packet routing mean. What does packet tensioning and piping mean. What does packet configuration and packet-subscriber link mean.

We can use long list of endless english Shakespearian, Shelly type words. Finally, the product that is being delivered by the network companies dont even resemble the hell they are talking about.

The networking industry needs a quality revolution just like the Japs did for the automobile market. We need companies that 'deliver' what they talk.

Hiring quality engineers, treating them properly, maintaining quality, living and dying for the quality of the software, hardware and embedded systems in the Network element, maintaining the philosphy that 'customer is god' only can make ordinary boxes work leave only 'intelligent' boxes.
Peter Heywood 12/4/2012 | 8:38:50 PM
re: Intelligent Hardware: 'An $8.5B Market' Hippo, we had a more elaborate definition of "intelligent hardware" in this story at one stage and I cut it in the editing process, because I thought it confused rather than clarified things.

Now I'm feeling guilty, so I'll try and explain my understanding of the term.

Infonetics is distinguishing between equipment that needs to be configured and managed individually and equipment that forms part of an automated network that can be configured and managed as a single entity, from a remote console.

Take the example of old style Sonet equipment and newer style optical switches from the likes of Ciena, Sycamore, Tellium etc.

In order to set up a connection using the old gear, engineers had to go to each individual piece of equipment in different locations and manually configure them from a local terminal.

With the newer style stuff, an operator can sit at a central console, define a route across a network and from then on, the connection can be set up automatically, without any site visits from engineers. That counts as intelligent hardware. The former doesn't.

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