Ribbon

The Optical and Routing markets show signs of recovery, and tariffs aren’t yet affecting business.

Uncovering who uses which DSP, and which DSP vendors ship the most volume.

Carrier caution has resulted in underinvestment, and networks are now running “hot” enough to require upgrades and expansion.

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

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

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

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

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

Mentioned: Kyle Hollasch on Ribbon’s announced interop testing with Cisco

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

Worldwide DWDM deployed bandwidth declined YoY for the first time.

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

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.

Companies indicate hyperscale and service provider weakness will persist through the rest of the year.

Despite is relatively small size, Ribbon offers a complete IP/optical solution and is a challenger for Tier 1 business.

The Bandwidth Must Flow: Up 39% YoY

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

Service provider spending remains solid while cloud operators look shaky.

Gen60C shipments slow, ROADM shipments in line with hardware as supply chain issues resolve