Ciena

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

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

The market slides ex-china as service provider spending stalls.

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

Worldwide DWDM deployed bandwidth declined YoY for the first time.

Datacom revenues are recovering from the Q1 drop and are poised to explode along with 800GbE shipments in 2024. Telecom revenue continues to lag, as deployed bandwidth declined YoY for the first time this quarter.

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

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

Cignal AI is tracking announcements of Gen120 (120+ GBaud, 1+Tbps) optical trials and deployments.

800ZR, debate on Linear Pluggable Optics and IPoDWDM, and progress in 200G/lane modules

Optical revenue grew 27% as its large backlog is turned into revenue.

Datacom revenue and module shipments plummeted as inventory adjustment hit hard this quarter.

Bandwidth growth and compact modular sales slow as Hyperscalers take their foot off the gas.

Optical sales slowed due to inventory absorption and macroeconomic concerns, but routing sales continued to grow.

Supply chains loosen up and revenue ramps, some service providers express hesitation.

The best technical customer conference is back up and running.

The Bandwidth Must Flow: Up 39% YoY

Datacom revenue and module shipments plummeted as inventory adjustment hit hard this quarter.

North American Cloud operators were the growth engine for optical and packet transport sales.

Supply chains loosen up and revenue ramps, some service providers express hesitation.