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BTI Reports 25 Percent Revenue Jump

BTI Systems, the global leader redefining service delivery for metro network operators, today announced that the Company enters the third quarter in a very strong position with more than 30 new customers globally, significantly increased bookings and backlog, and market share growth. Bookings grew more than 30 percent year-over-year in Q2 2012. Revenues increased more than 25 percent over the same period.

BTI provides innovative packet optical software and system solutions that enable service and content providers to capitalize on the massive demand for bandwidth driven by dramatic growth in mobility, Internet video, and cloud connectivity. Additionally, very large data center operators – who stream enormous amounts of data between centers – increase scale, lower latency, reduce power usage and footprint and decrease costs with BTI solutions.

“Our continued growth is reflective of our end-to-end solutions that are fully integrated and designed to enable service and content providers to capture new market opportunities,” said Steve Waszak, President and CEO, BTI Systems. “Our management platform is unequaled in accelerating services delivery and operational leverage, enabling our customers to drive revenues and increase profits from advanced, high-value service offerings. We look forward to continuing to help our global customers capitalize on the enormous growth of mobile traffic, broadband content and demand for cloud communications.”

BTI Systems Inc.

Prospects for 40G and 100G in the data center improve

Forty-gigabit/second interconnects in the data center are poised to take off as all the various server, switch, cabling, and transceiver parts have finally come together.

After about a six-month delay, Intel finally released its next-generation "Romley" architecture that offers 10 cores per microprocessor and a PCI Express 3.0 bus that supports faster I/O. With the servers and switches therefore ready to go, 40G interconnects using direct attach copper (DAC), active optical cables (AOCs), and optical transceivers should be in demand as data center infrastructures begin a major upgrade cycle.

10G faces many issues
Once the server upgrades, faster uplinks to top-of-rack switches are needed. But the 1G-to-10G transition is fraught with issues. In the past, server suppliers included Gigabit Ethernet (GbE) RJ-45 LAN-on-motherboard (LOM) for "free" -- but a dual-port 10GBase-T today costs far too much for such largesse. Meanwhile, with Cat5e almost free as well, the interconnect was never a serious cost issue. Now it is.

Server companies offer 10G ports on pluggable "daughter cards" that block out aftermarket competitors and ensure high prices. Daughter cards come in different flavors of 1G and 10GBase-T, two to four SFP+ ports, or dual QSFP with a path to 100G CXP and CFP/2 in the future. As server manufacturers are making a lot of money on the 10G/40G upgrades, this begs the question, "Will server companies ever return to the LOM model where buyers consider it a freebee?"

Meanwhile, 10GBase-T has had problems with high power consumption, size, and cost. This has left the door open for SFP+ DAC cabling to move in while 10GBase-T suppliers build 28-nm parts. This event changed the entire industry. But DAC has its share of issues too, as it "electrically" connects two different systems together, and not all SFP+ ports are alike.

LightCounting estimates that 2012 will show about 1 million 10GBase-T ports actually filled, representing about 500,000 links -- almost what can be found in a single large data center today with 1GBase-T! SFP+ DAC demand is shaping up to be about 2.5-3.5 million ports filled, mostly to link servers to top-of-rack switches at less than 7 m.

On the optical end, SFP+ AOCs are on the near-term horizon, and optical transceivers are typically being used to link switches together over reaches greater than 7 m. LightCounting forecasts about 6 million 10G SFP+ short-reach (SR) and long-reach (LR) optical transceivers will ship in 2012.

40G the "next big thing"
Upgrading server-switch links from 1G to 10G forces switch uplinks that connect top-of-rack to end-of-row and aggregation switch layers to jump to 40G. However, as data center operators emerge from the economic recession, budgets are still very tight and "incremental upgrades" are the way operators are buying. Adding 10G/40G links "as needed" is the current buying practice.

While 100G seems to get all the trade show and press coverage, 40G is where the money is for the next two to three years. Data centers are just hitting the need for about 4G to 6G, never mind 10G; so many data centers are in a transitional, upgrade-as-needed state. The so called Mega Data Centers at Google, Facebook, Microsoft, etc., at $1 billion a piece, do not represent the mainstream data center -- although they garner a lot of attention and awe.

Chasing the transceiver opportunity 40G will present, multiple transceiver suppliers have jumped at offering 40G QSFP SR transceivers and Ethernet AOCs for applications of less than 50 m. Over 10 transceiver companies have announced transceivers and/or AOCs, and more suppliers are coming! Technical barriers to entry are low, and cost-sensitive Internet data centers (especially in China) are likely to gobble these up in volume.

LightCounting expects the transceiver industry will do its traditional pricing act of "Let's all cut our own throats on price and see who bleeds to death last." As a result, 40G SR parts are likely to see a very rapid price drop from about $250 today to under $190 for fully compliant OEM offerings next year. We even have seen "plug and hope they play" parts at $65. (But you get what you pay for!) OEM prices for Ethernet AOCs can be found below $190 -- and that is for a complete link with both ends and fiber!

The 40G QSFP MSA uniquely supports SR at approximately 100 m with multimode fiber or 10 km with duplex, singlemode fiber - all in the same QSFP switch port. Companies such as ColorChip, Sumitomo, and a few others offer QSFP parts and Oclaro (via its merger with Opnext), NeoPhotonics, Finisar, InnoLight, etc., offer larger CFP devices. QSFP enables 36 ports per line card compared to only four with CFPs. Running at 32 W, at LightCounting we affectionately refer to the CFP as the “Compact Frying Pan”; although popular in telecom, it is not in datacom! OEM prices range from $2,000 to $3,000 depending on data center or telecom features.

Implementing 100G is much more complex
Much noise has been made at industry conferences about the imminent need for tens of thousands of 100G medium-reach links in the data center to support the upcoming "exa-flood" of traffic from server virtualization, big data, smartphones, tablets, and even software-defined networking. Ten-channel CXPs are used for multimode primarily by the large core switching companies in both transceivers and AOCs. At 25G signaling for 4x25G, multimode noise spikes threaten to decrease the reach of multimode transceivers to 50-70 m; therefore, these modules may require forward error correction (FEC) and/or equalization to reach 125 m.

The 100G 2-km problem
Sending 100G more than 100 m has proven frustratingly hard to implement and longer to develop than first expected. The IEEE 40/100G High Speed Study Group met in July and extended its study another six months to deal with the technical issues.

For longer reaches, engineers are wrestling with trying to fit all the optics and electronics into new MSA packages and hit all the power, size, electrical, and optical specs required. This goal is achievable -- but at what cost and power is still an open issue. CFP/2 is not a given! Much debate still centers on zCXP vs CFP/2 for the next MSA, with Molex and TE Connectivity backing zCXP. Meanwhile, silicon photonics companies such as Luxtera, Kotura, and LightWire/Cisco claim to be able to fit all the necessary optics and electronics into a QSFP!

It's very important for the IEEE to get the 25G-28G line-rate specifications right as it is a unique convergence point for a number of protocols: InfiniBand EDR at 26G, Ethernet at 25G, SAS 4.0 at 24G, Fibre Channel 28G, and telecom at 28G.

Today, there's no economically viable option for 100 to 600 m, and as data centers become bigger, this is a hot area and the center of debates within the IEEE community. One extra meter can bump the transceiver OEM cost from a CXP at $1,000 to a telecom-centric CFP at $14,000! Often referred to as 2 km, the reach for this application actually translates to between 400 and 600 m with an optical budget of about 4-5 dB in a lossy data center environment with patch panels and dirty connectors. To go 10 km, the link will need 6 dB. Next-generation lasers and CMOS electronics instead of SiGe are on the way, but Mother Nature just keeps getting in the way of our industry PowerPoint slides!

Conclusion
The next few years will involve Intel's Romley server architecture and subsequent silicon shrink, PCI Express 3.0, 10G uplinks to the top-of-rack switches, and 40G uplinks in the switching infrastructure. Supporting links at 40G will be where the money is for the next three years, but everyone can see that 100G will be the next stop -- with mid-board optics as well. IEEE will sort out the technical issues, and 100G infrastructure technology should kick in with volume in late 2014. It is important for the community to get this right as 100G will be around for a very long time.

Brad Smith is a senior vice president at LightCounting.com, a market research company forecasting high-speed interconnects. This article is an excerpt from the soon to be released report, "40G & 100G Interconnects in the Data Center."

Network core switches to drive Fibre Channel switch and adapter demand says Dell'Oro Group

Revenues from Fibre Channel switch and adapter revenues will near $3 billion in 2016, having grown at a compounded annual growth rate (CAGR) of about 2%, says market research firm Dell’Oro Group. The company made the prediction in its latest "SAN 5-Year Forecast Report."

"Although Ethernet has become an increasingly popular storage network technology, Fibre Channel is being used to backend the Ethernet systems," said Casey Quillin, senior analyst at Dell'Oro Group. "We forecast a portion of the server aggregation layer to shift away from Fibre Channel, which will result in a decline in port shipments in the outer years. However, we expect overall prices to rise with advanced data management features and the shift to 16 Gbps, resulting in positive growth throughout our forecast horizon."

The report also covers alternative storage-area network (SAN) technologies, such as Fibre Channel over Ethernet (FCoE). Vendors currently shipping FCoE enabled equipment include Cisco, HP, Brocade, Juniper, Emulex, and QLogic.

The new "SAN 5-Year Forecast Report" covers manufacturers' revenue, average selling prices, and port shipments by speed. This includes 1 Gbps (historical data), 2 Gbps (historical data), 4 Gbps, 8 Gbps, and greater than or equal to 16 Gbps for Fibre Channel switches and adapters, and 10-Gbps FCoE switches, controllers, and adapters.

Keymile Lands FTTH Deal

Herne Stadtwerke, a utility in the Ruhr region, has laid fibre optic lines to a new housing development that accommodates several generations. As a result, people living there will have 100 Mbps Internet access, as well as fixed-line telephony and a vast range of digital TV programmes. KEYMILE’s multi-service access platform MileGate lies at the heart of the solution.

Linking up fibre optic lines opens up a wealth of options. Herne utility provided the fibre-optic infrastructure to the homes (FTTH). The new multi-generation housing development in Stratmanns Weg in Herne now has fast Internet, fixed-line network telephony and digital TV. QSC in Cologne delivers extensive ICT services. The company is in charge of line operation and integration to the backbone. Each house’s fibre optic line is connected using KEYMILE’s multi-service access platform MileGate. Consequently, a high level of reliability and availability is ensured. IT-systems integrator AXIANS supported the QSC project team beforehand during the planning phase of the active network. It also helped select and later design the KEYMILE solution. In future, AXIANS will also provide maintenance services to guarantee reliable operation and assist QSC and the Herne utility with further expansion plans.

MileGate’s technical options, such as those employed in a range of comparable FTTH projects, swung the decision in its favour. The multi-service access platform is a compact solution with a high level of port density for broadband access (100 Mbps lines), telephony and data interfaces. A key feature is the ability to transmit digital TV services at the same time as broadband Internet access. Therefore, the Herne utility can easily and cost effectively supply customers connected via its own fibre optic lines with a wide range of television programmes.

Keymile AG

ADTRAN new mini-ROADM blade adds degrees and channel capacity

Looking to extend the applications of its packet-optical transport technology into metro and middle-mile applications, ADTRAN, Inc., (NASDAQ:ADTN) has announced a new miniature reconfigurable optical add/drop multiplexer (ROADM) card with double the number of degrees and the number of channels of its predecessor. The ROADM blade, which fits into the company’s Total Access 5000 platform, offers four degrees of reconfigurability and 88-channel support.

The ROADM line card reached general availability within the past four to six weeks, and deployments with customers are in the initial phases, according to Kurt Raaflaub, product manager, Ethernet and optical solutions, within ADTRAN’s Carrier Networks Division. It enables the Total Access 5000 to be used in all-optical multi-ring and mesh architectures. Like its predecessor in the Optical Networking Edge (ONE) portfolio, the blade integrates all the required elements for ROADM functionality – including amplification, optical monitoring, and automatic power balancing – into a single package. In this instance, the integration includes the ability to switch between 100-GHz and 50-GHz grid spacing, which enables compatibility with the first-generation blade that was designed for 100-GHz spacing and 44 channels. This feature should prove useful when interfacing metro and access ring networks.

“Historically, ADTRAN has been very focused on optimizing its optical product line to support access applications at the network’s edge. That is until now,” said Ron Kline, principal analyst, network infrastructure, Ovum, via an ADTRAN press release. “The new four-degree, gridless ROADM for ADTRAN’s ONE converged packet optical product supports both 100-GHz and 50-GHz designs, extending ONE’s network role to support metro mesh-centric and middle-mile applications. The ROADM technology also gives operators a bridge between edge and core networks and provides the flexibility to evolve channel plans over time as higher-speed wavelengths are deployed in the metro: 100G and ultimately even 400G.”

While ADTRAN does position the new ONE ROADM capabilities as a stepping stone from its current support of 10-Gbps data rates to 100 Gbps, the company doesn’t yet offer 100-Gbps capabilities, Raaflaub admits. He was non-committal about whether ADTRAN will take a coherent or 4x28-Gbps approach, although he did say that ADTRAN engineers likely will pursue an in-house rather than module-based design.

Eoptolink

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