Transport Hardware

Optical spending by Cloud & Colo operators grew 7% worldwide, while spending by Service Providers declined -17%.

Revenue drops -15% YOY while Gen90P shipments continue at a rapid pace.

Service Provider sales continue to drop, but there are signs of an impending turnaround. 400ZRx optics show signs of success.

Optical sales fall -18% as carrier inventories take longer to deplete than anticipated.

Nokia announced its intention to acquire competitor Infinera and shed its ASN subsidiary. Optical sales fell -23%.

IP-over-DWDM deployments of 400/800/1600ZRx optics and adoption across market segments

Sales were down in 2Q due to inventory absorption at North American carriers, and a pause in Cloud spending.

The combination creates a company with an enviable regional balance, providing a buffer from regional geopolitical and economic instability.

Revenue drops -26%, but the company highlights a huge pipeline of potential business.

Ex-China, revenue drops as service provider spending continues to stall.

The company has been an innovator in Compact Modular transport hardware for more than 20 years.

Optical hardware sales shake off a depressed 2023; Acacia 400ZR shipments resume growth

Nokia’s optical sales fell -40% YoY as Service Providers tapped the spending brakes worldwide.

Ciena leverages relationships with hyperscalers to push into Europe.

This report provides historical information, industry context, and product examples of our classification of Compact Modular systems.

Driven by sales to Cloud operators, full year 2023 revenue came in at a record $1.3B.

Cloud Spending on Optical Transport Jumps 46% in 4Q23, Traditional Service Provider Spending Remains Weak

Optical and routing results point to growing weakness in North American carrier capex.

Sales to Cloud operators powered $3B in optical revenue for 2023.

The optical market grew 4% – cloud operators continue to invest in transport and vendors are still shipping against large backlogs.