Archive

Coherent Pluggables to Transform Optical Transport Market by 2024

Fourth-generation coherent will extend beyond 400ZR to include higher performance solutions generally referred to as 400ZR+ and lower speed 100Gbps (100ZR) targeted at the metro edge.

2Q20 Transport Customer Markets Report

Cloud & Colo optical spending in North America cooled while spending in APAC was unexpectedly strong this quarter.

Ciena 3Q20 Vendor Summary Report

Ciena’s healthy 3rd quarter performance was overshadowed by expectations of a pandemic-induced slowdown for the next few quarters.

2Q20 Transport Applications Report

This report includes our initial forecasts of the 100ZR and 400ZR+ markets.. Compact Modular sales grew much faster than the overall market this quarter as disaggregation continues to gain traction in networks outside of Cloud & Colo.

5th Gen Coherent Trials and Deployments

Cignal AI continues to track announcements of 5th generation (800Gbps-capable, 90+ GBaud) optical trials and deployments.

2Q20 Transport Hardware Report

Second quarter results were mixed. Forecasted growth in Q2 from sales pushed out of Q1 did not materialize as anticipated and carriers indicated that annual CapEx will not be increased – suggesting a flat to down second half of the year.

Transport Hardware Misses Expected Bounce Back in 2Q20

Delayed order fulfillment due to COVID supply chain impact earlier this year didn’t materialize as expected.

Cisco 2Q20 Vendor Summary Report

Cisco reported a sharp decrease in orders across the company, although the decline in orders from service providers (-5%) was milder than other areas.

Infinera 2Q20 Vendor Summary Report

Despite ongoing operational issues due to COVID, increasing operator demand drove Infinera’s optical sales this quarter, and the company expects an even stronger second half.

Nokia 2Q20 Vendor Summary Report

Nokia reported rising demand from customers but a continued COVID impact on the supply chain, resulting in a down quarter in almost every region and product segment.

ADVA 2Q20 Vendor Summary Report

ADVA reported YoY growth in the second quarter but retracted guidance for the rest of the year, a narrative that will be echoed by many vendors in Q2.

Coherent Port Pricing Trends (1Q20)

Our 3Q18 report showed coherent optical port pricing dropping at 26% per year. This report examines the stability of that trend over the last 12 months as new coherent systems entered the market.

Ciena 2Q20 Vendor Summary Report

Ciena expects to generate revenue growth of 2-4% in a flat (ex-China) market in 2020, implying declines YoY for optical sales in the second half of the year.

1Q20 Transport Applications Report

Packet-OTN sales doubled in NA as carriers responded to COVID-19, and shipments of 400Gbps+ ports doubled YoY as Chinese equipment companies entered production.

1Q20 Transport Customer Markets Report

North American Incumbent optical spending was up almost 50% YoY while Wholesale, Cable/MSO, and Cloud spending all declined this quarter.

1Q20 Transport Hardware Report

Vendors generally claimed a 5-10% reduction in sales due to COVID-19 operational issues this quarter. While demand increased, the inability to get parts, manufacture equipment, and deliver to end customers reduced sales in all areas.

1Q20 network operator capex jump didn’t help everyone

Lightwave published an article summarizing 1Q20 optical hardware results using data from our report.

Network Operators Accelerate Capex in Response to COVID-19

The effects of COVID-19 simultaneously catalyzed demand for transport equipment and paralyzed supply chains worldwide during the first quarter of 2020.

Nokia PSE-V Coherent Chipset

Overview and analysis of Nokia’s fifth generation of coherent DSPs, the PSE-Vs, and PSE-Vc.

Nokia launches WaveFabric Elements optical portfolio for 400G ecosystem

Nokia launched it’s 5th generation coherent solution. This includes new PSE-5 DSPs, new CSTAR silicon photonics from its Elenion acquisition, and pluggable CFP2-DCO and QSFP-288DD pluggable modules.

Infinera 1Q20 Vendor Summary Report

On the Q1 earnings call, Infinera CEO Tom Fallon emphasized that margins were “compressed” by the inability to ship higher-margin new technology to offset of the lower-margin 200Gbps optics.

Cisco 1Q20 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Cisco’s 1Q20 results.

Nokia 1Q20 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Nokia’s 1Q20 results.

ADVA 1Q20 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers ADVA’s 1Q20 results.

Ciena 1Q20 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Ciena’s 1Q20 results.

Acacia 1Q20 Vendor Summary Report

Acacia’s results are a bellwether to the industry. This report looks at the most recent results for the company and examines them in the context of historical trends.

Tejas Logo

Tejas 1Q20 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Tejas 1Q20 results.

OIF Publishes Implementation Agreement for 400ZR

The OIF announced that the official release of the 400ZR implementation agreement is now available for download.

COVID-19 Impact – 2020 Forecast Update

Cignal AI updated the 2020 optical and packet transport hardware forecast with our best estimates of the impact of COVID-19.

Infinera Unveils More Compact Modular Optical Transport Solutions

Infinera announced new versions of the Groove chassis to support 5th generation coherent ICE6 optics and provide feature enhancements to better address applications outside of cloud and colo operators.

OFC2020 Optical Hardware Review

Major optical transport equipment vendors did not present at OFC in March due to COVID-19 concerns, but that did not stop announcements of products and online updates to customers and analysts.

4Q19 TRNEQ_MA PPT

4Q19 Transport Customer Markets Report

Cloud & Colo optical spending growth cooled in the 4th quarter but still led growth for the year with Ciena as market share leader. North American Incumbent and Cable/MSO optical spending came back strong in the 4th quarter.

4Q19 Transport Applications Report

Compact Modular sales growth slowed in North America in the 4th quarter, but sales growth outside of NA was exceptionally strong and total worldwide sales grew nearly 50% year-over-year.

North American Optical Sales Rebound In 2019

Recent optical sales in North America were encouraging – up more than 25% for 4Q19 and 10% for all of 2019 according to the most recent Transport Hardware Report from research firm Cignal AI.

4Q19 Transport Hardware Report

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2024.

Infinera 4Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Infinera’s 4Q19 results.

Acacia Builds Upon Coherent Pluggable Leadership with 400G Portfolio

Acacia announced a new family of 400G coherent pluggable optics for 400ZR/Open ROADM applications based on the new 7nm Greylock DSP.

Cisco 4Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Cisco’s 4Q19 results.

OFC 2020 Preview and Predictions

The Optical Fiber Communications Conference is the most significant industry trade and technical show for optical communications. In preparation for the event, Cignal AI has compiled a list of what to watch at OFC and what announcements to expect.

Nokia 4Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Nokia’s 4Q19 results.

Juniper 4Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Juniper’s 4Q19 results.

Ciena 4Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Ciena’s 4Q19 results.

Is 2020 the year for data center network 400G?

Lightwave gathered opinions from several people in the industry to look at the opportunity for 400G in the data center during 2020.

transport report outline

Expanding Our Market Research to Include Packet Networks

Cignal AI invites you to attend an overview presentation about the expansion of Cignal AI’s optical hardware research to include comprehensive coverage of packet switching and routing in service provider transport networks.

The Era of 400G Coherent Pluggables Finally Emerges

Gazettabyte authored a lengthy article about the sampling of the first 400G DSP for use in pluggable applications. It included an interview with Inphi, Neophotonics, and analysts including Andrew Schmitt.

Cisco: The Future of the Internet

Cisco held a major launch event to communicate that the company is reorienting its focus to changing network architectures and customers. The deeper message was one of cultural changes at Cisco.

Inphi Samples Industry’s First 400ZR QSFP-DD Transceiver

Inphi announced it sampled the industry’s first 400ZR QSFP-DD module to major cloud operators and equipment manufacturers.

5th Gen Coherent Optics – 4Q19 Update

An update to October’s State of 5th Generation Optics report based on recent developments at Ciena and Infinera.

3Q19 Optical Customer Markets Report

Cloud & Colo led growth in North America, up 45% this quarter. Ciena increased its market share to over 50% in 3Q19.

3Q19 Optical Applications Report

200G coherent shipments from China exceeded forecasts, worldwide shipments of 100G coherent ports will now decline until lower-cost alternatives emerge.

3Q19 Optical Hardware Report

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2023.

Cisco 3Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Cisco’s 3Q19 results.

Infinera 3Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Infinera’s 3Q19 results.

Nokia 3Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Nokia’s 3Q19 results.

Inphi Samples Industry’s First Coherent DSP Enabling 400G Pluggables

Inphi announced it sampled its new Canopus coherent DSP, the industry’s first merchant 7nm coherent DSP designed to support 400ZR and 400ZR+ applications. Andrew Schmitt commented in the press release, joined by others from Arista and Juniper.

Ciena 3Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Ciena’s 3Q19 results.

The State of 5th Generation Optics

In this report, we survey recent coherent optical progress and provide an overview of the market status of 5th generation coherent optics.

ECOC 2019 Notes and Observations

Hosted in Dublin this year, ECOC 2019 offered three days of interaction with primarily component companies. Equipment and service provider attendance was minimal, although a handful did make the trip to the component-centric show.

Infinera Announces XR Optics

Infinera introduced its roadmap concept for XR optics, the industry’s first point-to-multipoint coherent optical subcarrier aggregation technology. Andrew Schmitt provided editorial commentary in the release.

Inphi Announces Volume Production Shipments of Porrima PAM4 Platform

Inphi announced that it was first to production with a 100Gbps/400Gbps Single-Lambda PAM4, a complete 56GBaud solution with linear TIA and drivers.

Compact Modular Market Slows as Customers Evaluate 600G

Sales of Compact Modular platforms slowed during the second quarter of the year despite significant growth from market leader Ciena.

2Q19 Optical Customer Markets Report

Incumbent spending grew in every region, Cloud & Colo spending growth slowed, and Cable & MSO sales declined.

3Q19 Optical Hardware Tracker

The Cignal AI 3rd quarter 2019 (3Q19) Optical Hardware market share tracker is now active. The tracker gives clients a real-time view of market results as they are released.

Acacia ADVA logo

Webinar – Disaggregated Optical Networks

Forward-looking operators use disaggregation to build agile optical transport networks.

2Q19 Optical Applications Report

Over a quarter of North American compact modular sales were for long haul deployments as applications continue to expand.

2Q19 Optical Hardware Report

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2023.

Huawei logo

Huawei 2Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Huawei’s 2Q19 results.

Growth Returns as Optical Hardware Spending Increases in Every Region

Optical hardware spending grew in every region and for every business segment during 2Q19.

Infinera 2Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Infinera’s 2Q19 results.

New Projects at the OIF 3Q19 Meeting

Andrew Schmitt spoke at the Optical Internetworking Forum’s 3Q19 meeting in Montreal on July 30th, 2019. The OIF press release mentioned the two new projects kicked off at the meeting as well as highlighted Andrew’s presentation on 400ZR, which was attended by about 100 OIF members.

Ciena 2Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Ciena’s 2Q19 results.

Nokia 2Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Nokia’s 2Q19 results.

North America: Less Demand or More Efficiency?

Optical hardware spending has been declining in North America since 2015. In this report, we examine the question of whether North America’s decline in overall optical spending signifies a long-term trend and whether EMEA and the rest of the world will follow this same trend.

OIF 3Q19 Meeting Presentation

Andrew Schmitt gave a presentation on July 30th, 2019 during the Optical Internetworking Forum quarterly meeting. He was asked to give a brief overview of emerging pluggable coherent technologies and the opportunity this new market presents.

ADVA 2Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers ADVA’s 2Q19 results.

Cloud and Colo Optical Hardware Spending Increases by 50% in North America

Cloud and colo operator spending on optical communications hardware continued to spur market growth in the first quarter of 2019.

Compact Modular Optical Sales Expand, Reaching Over $275M

Compact modular optical hardware is being used in more network applications than ever before, driving up sales during the first quarter of 2019 as reported in the latest Optical Applications Report from market research firm Cignal AI.

Cisco Buys Acacia

Acacia is a transformational acquisition that can vault Cisco into a market leadership position as the world transitions to disaggregated network design and pluggable, interoperable coherent optics.

Opinions abound on Cisco’s purchase of Acacia

LightWave summarized the opinions of several people in the optics industry about the $2.6B proposed acquisition of Acacia by Cisco.

Cisco to Buy Acacia for Pluggable Optical Goodness

LightReading reported on Cisco’s proposed acquisition of Acacia and requested a quote from Cignal AI.

ITW 2019 Observations

Cignal AI attended the 2019 International Telecoms Week (ITW) in Atlanta June 24-26. ITW is a trade show focused on the wholesale telecommunications market and is attended primarily by network operators. The presentations and panels centered on issues relevant to wholesale carriers, and the trade show floor was populated by service providers, internet exchanges, and…

2Q19 Optical Hardware Tracker

The Cignal AI 2nd quarter 2019 (2Q19) Optical Hardware market share tracker is now active. The tracker gives clients a real-time view of market results as they are released.

1Q19 Optical Customer Markets Report

Cignal AI has issued the 1Q19 Optical Customer Markets Report

Optical Hardware Spending Growth Surges Over 80% in Japan

Japan’s optical hardware spending surge continued for the fourth quarter in a row with an extraordinary 82% year-over-year increase in the first quarter of 2019.

1Q19 Optical Applications Report

Cignal AI’s 1Q19 Optical Hardware Applications Report has been issued.

What’s Next for Neophotonics?

LightReading summarized the challenges faced by Neophotonics as a result of the ban on component shipments to Huawei. The article quoted Andrew Schmitt at length about the potential outcome of the ban and the prospect for M&A activity involving Neophotonics as a result.

1Q19 Optical Hardware Live Presentation

Cignal AI presents the results from the 1Q19 Optical Hardware Report.

1Q19 Optical Hardware Report

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2023.

NGON 2019 Notes and Observations

The Next Generation Optical Networks trade show (NGON) was in Nice, France May 21-23, and Cignal AI was in attendance.

Fujitsu 1Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Fujitsu’s 1Q19 results.

Nokia 1Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Nokia’s 1Q19 results.

Infinera 1Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Infinera’s 1Q19 results.

Ciena 1Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Ciena’s 1Q19 results.

ADVA 1Q19 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers ADVA’s 1Q19 results.

Success Story: OIF Tunable Laser Standardization Efforts

OIF standardization initiatives catalyzed a transition from multiple proprietary tunable laser solutions to a nearly universally used standard

Record Spending on Cloud Operator Optical Networks Drives Growth in 2018

Cloud operator spending on optical hardware grew almost 50 percent year-over-year to reach well over over $1 billion in 2018, according to the most recent (4Q18) Optical Customer Markets Report from research firm Cignal AI.

1Q19 Optical Hardware Tracker

The Cignal AI 1st quarter 2019 (1Q19) Optical Hardware market share tracker is now active. The tracker gives clients a real-time view of market results as they are released.

4Q18 Optical Customer Markets Webinar

Cignal AI presents the results from the 4Q18 Optical Customer Markets Report.

4Q18 Optical Customer Markets Report

Cignal AI has issued the 4Q18 Optical Customer Markets Report

4Q18 Optical Applications Webinar

Cignal AI presents the results from the 4Q18 Optical Applications Report.

4Q18 Optical Applications Report

Cignal AI’s 4Q18 Optical Hardware Applications Report has been issued.

4Q18 Optical Hardware Webinar

Cignal AI presents the results from the 4Q18 Optical Hardware Report.

NGON 2019 Webinar: Disaggregation

Scott Wilkinson, Lead Analyst for Optical Hardware, recently moderated a discussion on “Disaggregation Strategies & Transport SDN” in advance of the NGON & DCI World conference in Nice. Scott talked with Juan Pedro Fernandez of Telefonica about that carrier’s drivers, implementations, and plans for deploying a disaggregated optical network.

Access a video replay of…

OFC2019 – 5G and MSO Access

5G mobile technology and the cable/MSO initiative Fiber Deep are generating interest in new and unique optical networking solutions

OFC2019 – Inside the Datacenter

The next major stop on the road to faster speeds in the datacenter is 400Gbps Ethernet, and activity at OFC2019 centered on making this speed a feasible commercial option.

OFC2019 – Open and Disaggregated Networks

Open and disaggregated network equipment, software, and standards were a common theme on the floor and in presentations at OFC this year.

OFC2019 – Compact Modular

The compact modular format continues to be the fastest growing segment of the optical hardware market. In this section, the announcements and demonstrations at OFC are detailed.

OFC2019 – Coherent Technology

Coherent announcements and roadmaps at the show focused on two themes: lowering the power of coherent technology for use in pluggable applications and increasing baud rates to raise the maximum capacity of a single wavelength beyond 600Gbps. And despite few new ROADM announcements, there was a spirited debate about future ROADM architectures.

OFC 2019 – Marketwatch Presentations

Scott Wilkinson and Andrew Schmitt gave presentations about 5G and 400ZR during the OFC2019 Marketwatch program. Download a copy of their slides.

Long-Haul Deployment Growth Sets Stage for Increased Spending in 2019

Long-haul WDM deployments rebounded in the fourth quarter of 2018 (4Q18) with growth of nearly 20 percent, fueled by a reversal of almost two years of a terrestrial spending decline in North America and a year-over-year surge in Japan.

Acacia Communication’s Pico DSP and AC1200 Builds Industry Momentum

Before OFC, Acacia highlighted progress towards bringing the AC1200 optical module and Pico DSP to production with customer field trials of its components in Adva and Cisco equipment.

4Q18 Optical Hardware Report

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2023.

Infinera 4Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Infinera’s 4Q18 results.

Nokia 4Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Nokia’s 4Q18 results.

Cisco 4Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Cisco’s 4Q18 results.

Cisco and Verizon Demonstrate the Benefit of Multi-Haul Transport

Cisco mentioned multi-haul, our concept of a coherent link that is capable of operating across a wide range of speeds and distance, in a blog detailing the results of a trial with Verizon of their new NCS1004 platform.

Huawei logo

Huawei 4Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Huawei’s 4Q18 results.

Ciena 4Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Ciena’s 4Q18 results.

Impact of 5G on the Optical Hardware Market (Part 2)

Despite early claims that the optical network must be upgraded to realize the capabilities of 5G, network operators are instead building the radio network first and updating the optical network only when needed.

Ciena Introduces WaveLogic 5 to Fuel the Content Economy

Ciena announced its latest generation of coherent technology with a dual strategy of pushing coherent speeds to 800Gbs as well as delivering low power pluggable 400ZR solutions.

Tejas Logo

Tejas 4Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Tejas’ 4Q18 results.

Fujitsu 4Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Fujitsu’s 4Q18 results.

Infinera Announces ICE6

Infinera announced the details and schedule for ICE6, its next-generation coherent engine featuring 800G operation. It is a 1.6T monolithic PIC co-packaged with a new internally developed 7nm DSP.

OFC 2019 Preview and Predictions

The 2019 Optical Fiber Conference is less than a month away. Cignal AI’s analysts have compiled a list of predictions and expectations for what we expect to see from vendors and other OFC participants.

Impact of 5G on the Optical Hardware Market (Part 1)

Despite early claims that the optical network must be upgraded to realize the capabilities of 5G, network operators are instead building the radio network first and updating the optical network only when needed.

4Q18 Optical Hardware Tracker

The Cignal AI 4th quarter 2018 (4Q18) Optical Hardware market share tracker is now active. This interactive page tracks hardware sales as results are reported for the quarter.

3Q18 Coherent Port Pricing Trends

This report examines trends in coherent port pricing from multiple vendors and for the industry overall.

2018 Cloud and Colo Optical Equipment Spending Will Exceed $1.4 Billion

Incumbent operator spending in Asia remains strong and now represents 35% of all optical hardware spending worldwide according to the 3Q18 Optical Markets Report.

3Q18 Optical Hardware Webinar

On December 13, 2018, Cignal AI presented their results from the 3Q 2018 Optical Hardware Report.

3Q18 Optical Customer Markets Report

Cignal AI has issued the 3Q18 Optical Customer Markets Report

200G to Capture Over a Quarter of Coherent WDM Market in 2018

Infinera + Coriant Challenge Ciena for Compact Modular Market Leadership

3Q18 Optical Applications Report

Cignal AI’s 3Q18 Optical Hardware Applications Report has been issued.

400ZR – The 4th Generation Coherent Opportunity

The arrival of standardized, pluggable 400ZR and derivative technologies – fourth generation coherent – is poised to be the most disruptive event in optical hardware since the advent of coherent 100G in 2010.

Optical Hardware Revenue Growth by Region (3Q18)

Cignal AI Increases Forecasts for Asia Based on Strong 3Q18 Results

Optical Hardware Report Shows 8th Consecutive Quarter of Spending Declines in North America Despite Strength of Cloud and Colo Market

3Q18 Optical Hardware Report

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2022. It is released once results for the current quarter (3Q18) are complete. Clients have been able to see company results as they were released during the quarter via the Optical Hardware Tracker, a service unique to Cignal AI.

3Q18 Optical Hardware Tracker

The Cignal AI 3rd quarter 2018 (3Q18) Optical Hardware market share tracker is now active. This tracker allows clients to download a real-time view of industry results as companies report. Updates are made continuously and are reflected in the tracking table below.

Infinera / Coriant 3Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Fujitsu’s 3Q18 results.

Fujitsu 3Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Fujitsu’s 3Q18 results.

Nokia 3Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Nokia’s 3Q18 results.

Huawei logo

Huawei 3Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Huawei’s 3Q18 results.

II-VI to acquire Finisar for $3.2 billion

Lightwave summarized the acquisition of Finisar by II-VI and requested commentary from Cignal AI.

New York Investor Visits – Raymond James

On November 5th, Andrew Schmitt and Scott Wilkinson traveled to New York for a day of 1:1 meetings with investors and a lunch presentation to a group of investors. Topics included the role compact modular systems would play in shaping operator spending, Chinese spending and technology trends and discussion of the ongoing industry consolidation.

Raymond James released a note summarizing the discussions – some observations are excerpted here:

Ciena 3Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Ciena’s 3Q18 results, announced August 30, 2018.

Inphi 3Q18 Conference Call

Acacia mentioned data from our Optical Applications report during its calendar first quarter conference call with investors on May 3, 2018. The company referenced our extensive work following the development of the coherent 400G ZR market.

2018 SCTE Cable-Tec Expo: Key Optical Topics

The SCTE Cable-Tec Expo is the premiere technical trade show for North American Cable MSOs and has historically been oriented towards software, analog hardware, outside plant, and HFC-specific equipment. This year a greater number of prominent optical companies joined in. Factor such as fiber deep, native optics, 5G, and virtualization are driving optical deployments into the MSOs.

ADVA 3Q18 Vendor Summary Report

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers ADVA’s 3Q18 results, announced October 25, 2018.

Cignal AI Reports Record Cloud and Colo Optical Hardware Spending

Ciena Leads Sales to North American Cloud/Colo Operators as Spending Increases 6 Percent Quarter-Over-Quarter; Huawei Sees Strong Demand from Chinese Cloud Giants

2Q18 Optical Customer Markets Report

Cignal AI has issued the 2Q18 Optical Customer Markets Report

Gazettabyte: Ciena to sell its own coherent modules

Gazettabyte discovers that Ciena is actively hiring people to staff an Optical Microsystems Division including internal salespeople tasked to secure market footprint.

Infinera Acquires Coriant: Now the Hard Work Begins

Infinera’s acquisition of Coriant officially closed on October 1, 2018, and it is yet another example of the absorption of smaller optical networking equipment vendors happening in the market today, although at a scale not seen since Ciena acquired the optical assets of Nortel in 2009. This Active Insight report examines the post-acquisition opportunities and challenges in depth.

Third Generation Coherent Technology (Presentation)

The transition to the latest coherent WDM technology is underway and its effects are rippling through the optical market. This presentation summarizes the history of the coherent market and outlines the technology’s expected evolution over the next 4 years.

Cignal AI Welcomes Scott Wilkinson as Lead Analyst for Optical Hardware Segment

Addition Will Expand Coverage of New Applications for Optical Hardware and Custom Research Capabilities

LIGHTWAVE: Cignal AI boosts 2018 coherent 200G, 400G port shipment forecast

Lightwave writes about our 2Q18 Optical Application report and changes to the 2018 200G & 400G forecast.

Inphi: Sampling Small Form Factor 64GBaud Quad Coherent TIA and Driver

Prior to ECOC 2018 Inphi introduced the industry’s smallest form factor, lowest power and highest performance 64GBaud quad coherent TIA and driver.

Compact Modular Optical Equipment Market on Track to Break $1 Billion in 2018

Cignal AI Raises CY18 200G and 400G Coherent Forecasts

2Q18 Optical Applications Report

Cignal AI’s 2Q18 Optical Hardware Applications Report has been issued.

Australia should reverse its Huawei 5G ban

Hong Kong Paper publishes an editorial from a security consultant.
Read full article >>

Ericsson Strengthens End-to-End Transport Solutions for 5G

Partners with ECI for metro transport and Juniper for routing. Both companies’ equipment will work with Ericsson management software. These partnerships usually don’t move the needle and it is hard to see why this one might be different.
Read full article >>

Cignal AI Reports 2Q18 EMEA Optical Spending Offset Weakness in North America

Huawei Reports Record Revenue in China During ZTE Shutdown

2Q18 Optical Hardware Report

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2022. It is released once results for the current quarter (2Q18) are complete. Clients have been able to see company results as they were released during the quarter via the Optical Hardware Tracker, a service unique to Cignal AI.

Cable MSO Spending Increases Sharply in North America

Ciena and Infinera Continue to Take Share in Cloud Market

2Q18 Optical Hardware Tracker

The Cignal AI 2nd quarter 2018 (2Q18) Optical Hardware market share tracker is now complete. This tracker allows clients to download a real-time view of industry results as companies report. Updates are made continuously and are reflected in the tracking table below.

LIGHTWAVE: Coherent 400G, edge 100G future growth catalysts

Lightwave covers our 1Q18 Optical Application report and documents our boost of the 100G coherent market forecast in 2022.

Third Generation Coherent Technology

The transition to the latest coherent WDM technology is underway and its effects are rippling through the optical market. It’s time to take a step back and sort out where things are, what worked, who benefitted, and what happens next. In this Active Insight report, Cignal AI outlines several generations of coherent WDM deployments and examines the catalysts and keys to market success for the third generation of coherent.

Optical Market Trends Now: ADVA

On August 2, 2018 Cignal AI hosted its first webinar Optical Market Trends Now: ADVA

Lead analyst Andrew Schmitt joined Ulrich Dopfer, ADVA CFO and Stephan Rettenberger, ADVA Senior VP of Marketing and Investor Relations to provide their various perspectives on the optical industry.

Cloud Spending on Optical Hardware – 1Q18 Update

In October 2017,  Cignal AI analyzed the occurrence of a slowdown in spending by cloud & colo operators and quantified the magnitude of its impact (see Analysis: 1H17 Cloud and Colo Spending Slowdown).

1Q18 Optical Customer Markets Report

Cignal AI has issued the 1Q18 Optical Customer Markets Report. Similar to the recent Optical Applications release, this report will now be updated quarterly; previously the report was published every six months.

Cignal AI Increases 100G Forecast as Low-Cost Pluggable Module Demand Expected to Soar in 2021

Optical Applications Report Provides In-Depth Analysis of Coherent Port Shipments by Speed

Packet Pushers Hosts Cignal AI

Andrew Schmitt was invited by Packet Pushers and Scott Wilkinson of ECI to participate in one of its weekly podcasts. While not well known in the service provider world, it is popular among the network engineers of small to large Enterprises. Each podcast has about 10,000 downloads per episode.

1Q18 Optical Applications Report

Cignal AI’s 1Q18 Optical Hardware Applications Report has been issued. Its arrival marks the first quarterly release of this report, which will now be standard practice; previously the report was published every six months.

1Q18 Optical Hardware Report

This report finalizes our full optical equipment market share analysis and has updated forecasts for the industry through 2022. It is released once results for the current quarter (1Q18) are complete, as tabulated in our Optical Hardware Tracker.

Optical Hardware Revenue by Region (1Q18)

Optical Hardware Spending Grows in Europe, Asia Pacific in 1Q18, While North America Falls Flat

Cignal AI Enhances Quarterly Optical Hardware Reports with New Market Tracker Offering Real-Time Visibility into Individual Vendor Results

1Q18 Optical Hardware Tracker

The Cignal AI 1st quarter 2018 (1Q18) Optical Hardware market share tracker is active. This tracker allows clients to download a real-time view of industry results as companies report results. Updates are made continuously and are reflected in the tracking table below.

Ciena – Why the Secret Behind Strong Early Adoption of 400G Technology is … 200G

Ciena references data from the most recent 4Q18 Optical Application report in a blog post that outlines its opinions on how 400G is being deployed.

Acacia 1Q18 Conference Call

Acacia mentioned data from our Optical Applications report during its calendar first quarter conference call with investors on May 3, 2018. The company referenced our extensive work following the development of the coherent 400G ZR market.

4Q17 Optical Customer Markets Report

The 4Q17 edition of the Optical Customer Markets report has been released. It provides insight into how much optical equipment different network operators purchase.

Impact of US Technology Ban on ZTE

On April 16, the United States Department of Commerce announced that ZTE would no longer be allowed to import American technology products. While there is no shortage of media coverage of the ban, Cignal AI aims to provide you with unique insight. We have assembled our observations and conclusions on this remarkable event, and we share answers to some common questions we’ve received as it has transpired.

Cignal AI Increases 400G Forecast, Citing Flexibility of Technology and Expanding Applications

Compact Modular Optical Hardware Outpaces Projections as Adoption Extends Outside Cloud and Colo Customers

OFC 2018 Post-Show Report

Each year, OFC showcases the most noteworthy developments in the optical industry, and this year was no exception. Companies utilized OFC as a venue to announce and demonstrate new products and solutions such as coherent technology, hardware disaggregation, and 400G inside the data center.

Cignal AI was honored to be selected by the organizers of…

4Q17 Optical Applications Report

The 4Q17 edition of the Optical Hardware Applications report has been released. The report contains details on the following areas:

OFC 2018 – Operator Perspectives

Each year at OFC, we have the valuable opportunity to hear from the network operators themselves to better understand their vision for the future network. This year, there were some excellent presentations and discussions involving operators from several network verticals – Incumbents, Cable MSOs, and of course the ever-expanding cloud and colocation operators.Continue Reading

OFC 2018 – 400G Inside the Datacenter

When the conversation at OFC turned to short reach client optics, faster speeds were the central focus.  Several companies announced products and gave demonstrations of 400G capable technology. The 100G speeds and production ramp that had been such a hot topic at OFC 2017 had little follow-on during 2018.Continue Reading

OFC 2018 – Coherent Technology

Trends in coherent technology generated enthusiasm among the participants at OFC 2018, and 400G ZR applications were of particular interest. Nokia and Infinera outlined next-generation coherent roadmaps, and Acacia and NTT Electronics showcased silicon fresh back from the fab. Many component companies announced smaller, lower cost devices to enable new WDM applications. In this report,…

OFC 2018 – Compact Modular Equipment

Compact Modular Equipment took center stage at OFC 2018. News included speed upgrades to existing systems, the emergence of new switch/router variants, and open line systems designed to address the growing interest in optical hardware disaggregation.Continue Reading

Nokia PSE-3 Coherent Chipset

On March 6, 2018, Nokia announced its fourth generation coherent optical technology, the PSE-3, which continues the company’s strategy of developing coherent DSP processors in-house.

Nokia is betting that these chips will differentiate the performance, price, and availability of its optical hardware products.

This…

OFC 2018 – Consolidation

Each year, there is at least one announcement at OFC which surprises the industry. In 2016, the announcement was the introduction of Inphi’s ColorZ, while in 2017 it was news of Ciena choosing to license the Wavelogic DSP to module vendors. And yet, OFC2018 delivered a surprise that exceeded both: Lumentum will acquire Oclaro.Continue…

Nokia PSE-3 Coherent Chipset

On March 6, 2018, Nokia announced its fourth generation coherent optical technology, the PSE-3, which continues the company’s strategy of developing coherent DSP processors in-house. Nokia is betting that these chips will differentiate the performance, price, and availability of its optical hardware products.

This Cignal AI report explores what makes the new PSE-3s different from…

Fujitsu Accelerates Path to 5G with Next-Generation Variable Optical Transport

Fujitsu announced its new 1FINITY T500 and T600 products, adding to its family of compact modular transponders and optical common equipment. The T600 is capable of 600G per wavelength coherent operation using the NTT Electronics DSP.

Inphi Announces World’s First 400Gbps PAM4 Platform Solutions

Inphi announced its 16nm 400Gbps 56GBaud Porrima Single-Lambda PAM4 chip platform. This silicon is required to hit cost points for QSFP56-DD modules that will enable high volume adoption of 400GbE inside data centers.

Nistica launches wavelength management products for data center and 5G mobility applications

This was an announcement for Nistica’s new WSS module, code-named Bernoulli, which is designed for use in compact modular optical open line systems. It fits in the size of a CFP2 module and comes in different versions to perform critical monitoring, power balancing, or optical switching functions.

Microsemi Enables Terabit OTN Switching Cards for Flexible Optical Networks

Microsemi (Acquired PMC-Sierra) announced announced a 1.2 Terabit capacity OTN framer/processor chip, no doubt designed to pair with the flood of 1.2T DSPs hitting the market during 2018. The device can support 400GbE clients as well as Flex-E and has onboard encryption.

Nokia pushes optical network capacity to theoretical limits with Photonic Service Engine 3 chipset

Nokia announced it’s third generation coherent in-house DSP family. AMopng support for higher modulations and baud rates supporting up to 2x600G transmission, it added probabilistic constellation shaping (PCS) which maximized channel capacity.

4Q17 Optical Hardware Forecast

On February 14th, Cignal AI issued full optical equipment market share analysis for 4th quarter 2017 (4Q17). This second report extends our analysis and summarizes forecasts and outlooks for the industry through 2022.

Investor Call – Piper Jaffray Optical Event

Andrew Schmitt was the featured speaker on an investor call hosted by Troy Jensen of Piper Jaffray on February 21st. Forty-four participants listened in and posed their questions as Andrew gave his perspective on the latest events in the optical component and equipment market.

Topics during the call included:

Anticipated impact of China’s MIIT…

Optical Hardware Revenue by Region (4Q17)

2017 Optical Hardware Spending Ends on High Note in APAC and EMEA

 Cignal AI Quarterly Optical Hardware Report Also Reveals Lower-than-Anticipated North American Sales

4Q17 Optical Hardware Results

Cignal AI has released its 4th quarter 2017 (4Q17) optical hardware market share analysis, which includes a summary of revenue results for the quarter as well as the entire calendar year 2017 (CY17).

Ciena 4Q17

Ciena released its 4Q17 results followed by a 10-K with supporting information last month. Cignal AI’s summary and analysis follow.

China’s 5 Year Optical Component Plan

China’s Ministry of Industry and Information Technology (MIIT) released a five-year plan in December 2017 outlining a roadmap for commercial and technological progress in a broad set of optical technologies. The 63-page document is in Chinese. The following Cignal AI report is based on a professionally translated version of the document and summarizes the section of…

Cignal AI Cuts 2018 EMEA Forecasts in Optical Hardware Report

Quarterly Shipments of Coherent 100G+ Ports Exceed 100,000 Units for the First Time

3Q17 Optical Hardware Forecast

On November 21st, Cignal AI issued full optical equipment market share analysis for 3rd quarter 2017 (3Q17). This second report extends our analysis and summarizes forecasts and outlooks for the industry through 2021.

3Q17 Optical Hardware Results

Cignal AI has released its 3rd quarter 2017 (3Q17) optical hardware market share analysis, which includes a summary of revenue results for the quarter.

Netflix Accelerates Global Video Streaming with Infinera Cloud Xpress 2

Infinera announced that Netflix deployed the Infinera Cloud Xpress 2 to expand their delivery capacity for streaming videos.

Acacia 3Q17 Conference Call

Acacia mentioned data from our Optical Applications report during its third-quarter earnings conference call with investors on November 3, 2017. The company highlighted our unique work to measure and forecast demand for 100G+ coherent deployments at the edge of the network.

Inphi 3Q17 Conference Call

Inphi mentioned adjusting internal forecasts for 100G port growth during its third-quarter earnings conference call with investors on October 31, 2017.

Compact Modular Hardware Introduction Timeline

Analysis: 1H17 Cloud and Colo Spending Slowdown

Cignal AI’s recent Optical Customer Markets Report discovered an unexpected weakness in 2017 optical transport equipment spending from cloud & colo operators (see Cignal AI Reports Unexpected Drop in Cloud and Colo Spending). This surprising trend was then further supported by public comments later made by Juniper and Applied Optoelectronics, prompting us to examine the situation in greater detail.

Infinera Sets Two Industry-First Milestones for Optical Transport Technologies

Infinera published two papers at ECOC 2017 that set new milestones in terms of baud rate (100Gbs) and modulation density (1024 QAM). While these technologies are years away from commercial reality and deployment Infinera is demonstrating a continued commitment to the in-house development of photonic integration and the results it believes this can achieve.

ECOC 2017 – China Observations

This is Cignal AI’s second ECOC 2017 brief, focused on news out of China.

Topics include:

China Inventory and 2018 Demand Ciena Wavelogic AI Licensing Update China ROADM Deployment Outlook Huawei 100G+ Coherent Technology Roadmap

Our first brief, issued on October 3rd, focused on coherent 100G+ technology updates.

Continue Reading

Cignal AI Reports Unexpected Drop in Cloud and Colo Provider Spending

Optical Customer Market Report Finds Ciena and Cisco Outperforming Peers in Cloud & Colo Market

ECOC 2017 Market Focus Presentation

Andrew Schmitt’s presentation, entitled “Mapping the Future of Optical Deployments,” was one of several featured during this years ECOC Market Focus sessions in Gothenburg, Sweden September 18-20th.

The presentation highlights Cignal AI’s perspective on how different sectors of the market increasingly demand more specialized solutions. It also highlights the weaknesses of the much-discussed “Optical Whitebox”…

1H17 Optical Customer Markets Report

We’ve released the 1H17 edition of the Optical Customer Markets report. It provides insight into how much optical equipment different segments of network operators purchase.

ECOC2017 – Coherent 100G+

ECOC is one of the most significant conferences in optical networking worldwide. This year’s conference was held in Gothenburg, Sweden, and the event was well attended by the engineering community, as the conference trends heavy on technology and light on marketing. We at Cignal AI like ECOC because it gives us another opportunity to converse…

Inphi samples 16nm Polaris™ PAM4 DSP Product Family with Integrated EML and VCSEL Driver

Inphi announces samples of its latest Polaris PAM-4 DSP for inside the data center which. This is the PAM-4 engine that powers optical modules such as 200G QSFP28s and 400G CFP8s running FR8 signaling. The chip also integrates both single and multi-mode laser drivers, further reducing cost.

Semtech and Multiphy Demonstrate Single Lambda 100G Chipset for the Datacenter

Semtech and Multiphydemonstrate a single-lambda 100G solution at ECOC for DR4 modulation in a QSFP28. This included a single channel PAM-4 DSP from Multiphy, and modulator driver and TIA from Semtech.

Cignal AI Issues Industry’s First Forecast for 400G Coherent WDM Shipments

Optical Applications Report Reveals Market Share for Coherent 100G Shipments and Rapid Growth in Compact Modular equipment for Second Half of 2017

1H17 Optical Applications Report

Our 1H17 edition of the Optical Hardware Applications report has been released.

2Q17 Optical Hardware Forecast

On August 20th, Cignal AI issued full optical equipment market share analysis for 2nd quarter 2017 (2Q17). This second report extends our analysis and summarizes forecasts and outlooks for the industry through 2021.

Infinera 2Q17

Infinera released its calendar 2Q17 results on 8/3/2017, and Cignal AI’s summary and analysis follows.

2Q17 Optical Hardware Results

Cignal AI has released its 2nd quarter 2017 (2Q17) optical hardware market share analysis, which includes a summary of revenue results for the quarter.

Cignal AI Report Examines Growing Demand for Optical Equipment in China

Quarterly Optical Hardware Report Details Record Shipments of 100G Coherent Ports and North American Market Share Growth for Ciena and Cisco

Huawei logo

Huawei 2Q17

Huawei’s results for 2Q17 are now available; our summary and analysis includes:

Overview of Quarterly Results
100G+ Port Shipment Detail

Nokia 2Q17

Nokia released its 2Q17 results on July 27th 2017. Cignal AI’s summary and analysis includes:

Overview of Quarterly Results
Cloud & Colo Business Update

Fujitsu 2Q17

Cignal AI summary and analysis of Fujitsu 2Q17 results includes:

Overview of Quarterly Results
Update on 1Finity Products
Open ROADM Deployment Outlook

ADVA 2Q17

ADVA released its 2Q17 results on 7/20/2017, and our summary and analysis includes:

An overview of quarterly results
Cloudconnect update
Cloud and colo customer markets spending trends
MRV merger update and observations

China ROADM Deployment Outlook

After much of the world already transitioned to all-optically switched ROADM networks, Chinese network operators are preparing to follow suit. Most networks outside of China used optical switching as early as a decade ago, yet China chose to deploy massive electrical OTN switches instead, powered by technology from Huawei and ZTE. But now the writing’s…

Infinera Delivers Industry-leading 19 Terabits of Capacity on Trans-Atlantic Route

Infinera completed a trans-Atlantic field trial with it’s new XTS-3300, slightly edging out the performance of previous announcements by Ciena and Nokia for trans-Atlantic links.

1Q17 Optical Hardware Forecast

On June 15th, Cignal AI issued full optical equipment market share analysis for 1st quarter 2017 (1Q17). This second report extends our analysis and summarizes forecasts and outlooks for the industry through 2021.

Next Gen Optical Networking 2017

Andrew Schmitt’s keynote presentation, entitled “Ways to Achieve Network Openness“, kicked off the 2017 Next Gen Optical Networking event in Nice, France on June 20th. The presentation, which highlights Cignal AI’s perspective on the various directions network operators can take as they deploy networks in the near term, was also given at a Huawei event…

1Q17 Optical Hardware Results

Cignal AI has released its 1st quarter 2017 (1Q17) optical hardware market share analysis, which includes a summary of revenue results for the quarter.

Infinera Unveils XTM II for Cloud Scale Metro Packet-Optical Applications

Infinera announced a major upgrade to its XTM chassis (Transmode acquisition) bringing 200G and 400G uplink capabilities to existing systems already deployed in the field.

Infinera Cloud Xpress 2 Now Generally Available

Infinera announced its new CX2 is GA and deployed in cloud and colo networks, a crucial strategic follow up to its successful first-gen Cloud Xpress, which the competition has now caught up to.

NGON Discussion on Optical Disaggregation vs. Integration

A compact summary of Cignal AI’s position in the debate:

Cignal AI Sees Demand for 100G+ Coherent WDM Shifting from China to Western Markets

Half of Worldwide Metro Deployments Expected to be 200G in 2017, Fueled by Cloud/Colo Providers and Increased Interest in DCI by Incumbents

2H16 Optical Customer Markets Report

Our 2H16 edition of the Optical Customer Markets report has been released.

OFC 2017 – Compact DCI Equipment

In our final OFC 2017 report we discuss new product announcements on purpose-built datacenter hardware and components, and share our thoughts on market developments.

2H16 Optical Applications Report

Our 2H16 edition of the Optical Hardware Applications report has been released.

OFC 2017 – Open vs. Closed Optical Networks

There was a new cult this year at OFC, the ‘Cult of Open.’ It formed from rising sentiment that the lack of interoperability of vendors in optical networks is a major problem and that the industry needs to embrace hardware dis-aggregation.

This is not a bad cult – it ignited a healthy debate that illuminates both…

OFC 2017 – Coherent Technology

400G Coherent and Beyond
Ciena had a blockbuster announcement at OFC 2017, but there was plenty of other interesting news to feast on. Cignal AI’s key takeaways concerning coherent WDM include:

The outlook for 200G and CFP2-ACO volumes in 2017 Opinions on Ciena WaveLogic Ai Licensing The roadmap review for 400G/600G & Acacia Pico…

OFC 2017 – Inside the Datacenter

100G and the Road to 400G

The transition to 100G network speeds inside the data center is underway at every major hyperscale operator simultaneously, creating major industry bottlenecks. Despite QSFP28 being supply constrained, component and equipment suppliers are also trying to align on the next generation format for 400G operation. Cignal AI’s key takeaways from OFC…

Investor Call – OFC 2017 Takeaways

Andrew Schmitt provided key OFC 2017 takeaways during an investor call hosted by Troy Jensen of Piper Jaffray. Sixty-seven investors participated. Topics of interest included:

Impact of Ciena’s Wavelogic AI DSP Licensing Outlook for Coherent Port Shipments in China During 2017 Market Outlook for CFP2-ACO/DCO and QSFP28 Markets Potential Vertical Integration by Intel or InPhi…

Inphi Coherent TIAs Surpass 25 Billion Successful Field Hours

Inphi is the market share leader for coherent driver and receiver electronics and wanted to highlight exactly how much of their product is in the field.

Infinera Introduces Instant Network and Leads the Way to Cognitive Networking

Infinera announced a major expansion of its Instant Bandwidth feature, making those features network wide and eventually paired with software-based network control.

Ranovus Announces Worlds First 200G Direct Detect Tranceiver

Ranovus announces a new direct detect solution in CFP2 DCO format, joining InPhi in offering solutions to the DCI marketplace.

Inphi: Industry’s First 64G Quad Linear Modulator Driver

Inphi announces a companion component to its 400G TIA, and now offers electronics to interface the latest 400G+ DSPs with coherent optics

4Q16 Optical Hardware Forecast

On February 27th, Cignal AI issued full optical equipment market share analysis for 4th quarter 2016 (4Q16). This second report, issued on March 9th, extends our analysis and summarizes forecasts and outlooks for the industry through 2021.

2016 Optical Hardware Spending Growth

Metro WDM Spending Growth to Surge in 2017

Chinese spending jumped 19% in 2016 and should surprise skeptics in 2017

4Q16 Optical Hardware Results

Cignal AI has released its 4th quarter 2016 (4Q16) optical hardware market share analysis, which includes a summary of revenue results for the quarter as well as the entire calendar year 2016 (CY16).

Lightreading: Infinera, Nokia Chase ‘Anyhaul’ Dollars

Andrew Schmitt comments on Infinera’s announcement of an upgraded mobile anyhaul (front/backhaul) optical transport system.

1H16 Optical Applications Updated

Our 1H16 edition of the Optical Hardware Applications report is updated and now includes a complete PowerPoint summary.

Wavelogic AI

Ciena Wavelogic Ai and 400G Roadmap

This past October, Ciena announced its new coherent DSP, dubbed Wavelogic Ai. Ciena used the announcement to convey its coherent 100G+ roadmap and support for 400G. Ciena also hinted at important changes to its 100G+ business model as Wavelogic Ai is introduced to customer networks. These changes also cascade into the 400G component supply chain.

Wavelogic Ai doubles…

3Q16 Optical Hardware Forecast

On November 16th, Cignal AI issued full optical equipment market share analysis for 3rd quarter 2016 (3Q16), to be followed by an adjunct report two weeks later. This second report, issued on November 30th, extends our analysis and summarizes forecasts and outlooks for the industry through 2020.

Optical Revenue Results by Region (3Q16)

Metro Coherent 100G Accelerates Optical Equipment Growth in 3Q16

High capacity data center interconnect platforms and speeds beyond 100G are a major catalyst

3Q16 Optical Hardware Results

Cignal AI has released its comprehensive 3rd quarter 2016 (3Q16) optical equipment market share analysis, which provides a summary of revenue results for the quarter.

LIGHTWAVE: Inphi to buy coherent DSP developer ClariPhy for $275M

Lightwave quotes Andrew Schmitt in its article regarding the acquisition of Clariphy Communications by Inphi:

Intel logo

Intel 3Q16

Intel’s financial results provide useful insight into the economic activities of the Cloud and Colo market. Effectively all of the CPUs (and now FPGAs) used in data centers come from Intel, and the company is slowly extending into other businesses via silicon photonics. The company reported results this week and digging through the numbers foreshadows…

Investor Call – China 2017, CFP2-ACO, Coherent DSPs

Andrew Schmitt gave an update on the optical equipment and component market during an investor call hosted by Troy Jensen of Piper Jaffray on Tuesday, October 4. Sixty-eight investors participated. An extended Q&A session followed Andrew’s presentation, and topics of interest included:

China 100G port volume trends for 2H16 and 2017 Huawei’s upcoming 100G technology…

Piper Jaffray Hikes Price Targets On China Optical Boom

An Investor Business Daily article summarized a research note from Piper Jaffray. The note was issued by Troy Jensen following a call held with Andrew Schmitt and 70+ buy-side investors.

ECOC 2016 Logo

ECOC 2016 Market Focus Interview (VIDEO)

Andrew Schmitt is interviewed after his presentation at ECOC 2016 in Dusseldorf where he presented an update on the use of 100G coherent in the data center interconnect and metro markets.

ECOC 2016 Logo

ECOC 2016 Notes and Observations

Andrew Schmitt presented at the ECOC (European Conference for Optical Communications) in Dusseldorf, Germany during the week of Sept. 19. No time was wasted during the trip as Andrew fit in well over 30 scheduled meetings with component and equipment suppliers and end users of optical hardware.

The meetings were very productive and we gained…

ECOC 2016 Market Focus Presentation

Andrew Schmitt has returned from a week of meetings in Europe including three days at the European Conference on Optical Communications (ECOC). He spoke to a capacity crowd at the ECOC Market Focus event and presented a summary of Cignal AI’s latest data. The presentation explored the latest developments in the optical DCI equipment and…

Infinera Introduces Cloud Xpress 2; Extends Leadership in Data Center Interconnect

Infinera announced a follow on product to it’s groundbreaking Infinera Cloud Xpress, including the integration of it’s GEN4 PIC technology.

Inphi Announces Quad Linear Driver

Inphi bet big and bet early on linear drivers, rather than limiting drivers, for coherent applications. As a result they dominate this market. It announced a product refresh at ECOC 2016.

1H16 Optical Hardware Applications

Our 1H16 edition of the Optical Hardware Applications report has been published.

2Q16 Optical Hardware Forecast

On August 22nd, Cignal AI issued full optical equipment market share analysis for 2nd quarter 2016 (2Q16), to be followed by an adjunct report two weeks later. This second report, issued on September 9, extends our analysis and summarizes forecasts and outlooks for the industry through 2020.

Optical Equipment Spending in China Up 25% Year over Year

100G technology makes China the largest global market for optical equipment for the first time

2Q16 Optical Hardware Results

Cignal AI has released full optical equipment market share analysis from 2nd quarter 2016 (2Q16). This report summarizes optical equipment revenue results for the quarter.

Nokia 2Q16

On August 4th, Nokia announced its quarterly results, and they included good optical results for 2Q16. While optical accounts for less than 10% of Nokia’s corporate revenue, this specific business unit is poised to benefit from the oncoming ramp up in metro coherent 200G.

Ciena 2Q16

Cignal’s Active Insight promises real-time information, and with that in mind, we are providing an update on Ciena. Ciena reported results for its April-2016 quarter on June 2nd. Corporate results were decent from an overall revenue perspective, but performance in the optical equipment area was slightly disappointing.

Acacia 2Q16 Preview

Acacia is scheduled to report earnings on August 11th, and this will be the company’s first quarterly report since completing its recent IPO. In April 2016, Cignal AI examined Acacia’s business and S-1 filing in detail and provided our analysis on the company (see Acacia Communications – IPO Analysis).

ADVA’s recent quarterly results hint…

ADVA 2Q16

ADVA released excellent quarterly results on Thursday, July 21th and its optical business is hitting on all cylinders right now. The company expects to sustain its current revenue surge through the coming quarter as it continues to ship an impressive amount of 100G ports.

Infinera 2Q16

Infinera held it’s Q2 Earnings Call on Wednesday, July 27th, and it was surprising to say the least. The company conveyed expectations for an exceptional slowdown in demand for Q3. Cignal AI has analyzed Infinera’s 2Q16 results and we present both company comments and our own opinions on what caused this major shift in expected demand and the forces behind it.

Next Gen Optical Networking 2016

Andrew presented the keynote presentation to kick off Next Gen Optical Networking in Nice, France on June 29th. His presentation was titled “Making Technology Decisions in a Challenging Environment”, and used Cignal AI’s recently released optical equipment market data to support observations of the market.

A few notes on the presentation:

The past few years…

2H15 Optical Hardware Applications

Our initial set of optical equipment results and forecasts for Datacenter Interconnect, Advanced Optical Switching, as well as detailed 100G+ Coherent and non-coherent port shipments have been published in Excel format.

1Q16 Optical Hardware Results

Full results and updated forecasts for 1Q 2016 have been published in Excel format. Subscribers can download the full excel file here.

Investor Call – China, CFP2-ACO, ROADMs & More

Andrew Schmitt created some excitement when he spoke about optical component and equipment market trends on a Piper Jaffray investor call on April 22. 83 investor clients were on the line, and some insightful questions were posed to Andrew as he gave his observations on a wide range of topics. The following is a full…

Metro DCI – What’s Next

Andrew presented “Metro DCI – What’s Next?” at the annual OSA Executive Forum before OFC 2016. His slides focused on the evolution of metro DCI and highlighted the opportunity for metro-access 100G, including coherent and non-coherent approaches.

Co-panelists included Arista and Microsoft. Microsoft used this opportunity to announce it’s intention to deploy InPhi’s ColorZ PAM-4…

Optical Whitebox – OFC 2016

Component and equipment vendors outlined the investments they are making in anticipation of some service providers adopting open line systems or fully dis-aggregated optical systems. This is a contentious technology trend in the industry; one which ignites opinions and whose conclusion is far from clear.

After silicon photonics, this was the area of the most interesting…

Acacia Communications – IPO Analysis

The optical networking world finally gets a close up view of Acacia’s performance as the company is filing for an IPO. The most recent S-1/A filing by Acacia includes 2015 financial details, which we review through the lenses of Cignal AI’s customer and market knowledge in order to create a fine-grained view of the company’s performance and qualitative outlook. This analysis includes a detailed projection of customer composition for 90%+ of revenue, market share within entire 100G market, and estimates of ASPs beyond what is included in public documents.

Silicon Photonics – OFC 2016

The optical component industry is changing from one in which existing InP and discrete designs are replicated in SiPho to a new approach under which the unique benefits of SiPho are better exploited. Several announcements made recently at OFC 2016 underscore that companies are beginning to migrate to these key applications for silicon photonics.Continue…

Fujitsu Announces Modular Blade Families in 1FINITY™ Platform

Fujitsu Network Communications rolled out its new 1FINITY Platform, aimed at service providers interested in dis-aggregated optical network architectures.

100G Inside the Datacenter Goes Prime Time

Andrew Schmitt wrote an article sent to all OFC 2016 attendees foreshadowing what would be the big themes for the show and what trends would follow throughout the year.

ClariPhy First 16nm Coherent Optical Networking Platform

Clariphy announced a new 16nm silicon platform designed to be the foundation for future 400G coherent DSP designs.

Ciena Announces 6500 T-Series Packet-Optical Platform

As part of it’s impending rollout of equipment in Verizon’s metro WDM network, Ciena announced a new 6500 platform for this application.

LIGHTWAVE: Component suppliers brace for ZTE export ban effects

Lightwave summarizes the news that the US Dept. of Commerce has blocked all exports to ZTE in China.

USA Stops All Exports to ZTE

The US Commerce department just dropped a bomb on ZTE, requiring all US companies to obtain an export license if they wish to do business with the company. Article updated continuously as more information filters in.Continue Reading

OFC 2016 Preview

OFC is just a few short weeks away now, and some key themes are coming into focus for the conference. Registered users may read this article, no subscription required.
Continue Reading

Interview with XKL’s Chad Lamb, Dir. of Engineering

XKL was the original pure-play data center interconnect company and this is a good summary of their business.

LinkedIn Designs Own 100G DC Switch

LinkedIn joined the cool kids and built its own 100G switch based on Broadcom Tomahawk.

Lumentum 4Q15 Earnings Call

Lumentum is the second largest optical component supplier and like Finisar, a bellwether of demand for both telecom and datacom equipment. We look at why their ROADM business is ramping as well as their strategy for CFP2-ACO and QSFP28.

Clients log in to access full report

Nokia Expands Mobile Fronthaul Offerings

Nokia (Alcatel-Lucent, really) announced its first integrated mobile fronthaul transport system. Happy to say it also was the first quote for Cignal AI.

Apple will decrease usage of Amazon AWS

Apple is currently building 2.5mm square feet of data center space, which is nearly 40% of Amazon’s existing datacenter square footage at the end of 2015. DCI expenditure is one of the main drivers of 30% YoY capex growth at Apple.

Morgan Stanley estimates Apple will spend about $1B on Amazon AWS in 2016, which…

The Unspoken Benefits of Open Networking

You don’t have to be Facebook or Google to benefit from open networking.

Intel logo

Intel 4Q15 Earnings Call

Virtually all of the CPUs used in data centers come from Intel, therefore the Data Center group sales are a useful macro barometer for the growth and outlook of data center spending.

Clients log in to access full report

Adtran 4Q15 Earnings Call

Adtran has a small optical transport business, but it’s strength in access makes it a good bellwether for tier-1 spend.

Clients log in to access full report

Verizon 4Q15 Earnings Call

Verizon talks mobile fronthaul and datacenter business sales.

Clients log in to access full report

Ciena buys TeraXion InP Modulator Assets for $32M

Ciena applies for membership to the exclusive Indium Phosphide club.Continue Reading

MultiPhy pivots to PAM-4 silicon, takes Semtech investment

Everyone is getting aboard the PAM-4 train.

Welcome

When you’re finished changing, you’re finished.Benjamin Franklin

I’ve tracked the networking market for a number of years, and I am convinced there is room for improvement in both process and product. With this in mind, I’m excited to be starting a new market research company, Cignal AI.