Demand for rich media and OTT services to the home and
mobile devices are market trends that continue to pressure providers to move
DCs into the metro and enhance core infrastructures
The Worldwide Optical
Networking market rebounded slightly in Q4 2014 to $3.375 billion in
revenue, dipping 7.0 percent q-q but increasing 2.7 percent y-y. The year
closed with annual revenue of $13.1 billion, 0.9 percent y-y increase. Demand
for high-speed optical infrastructure remains steady, driven by increased sales
of 100G interfaces in the Metro and LH WDM segments. “The 4Q revenue jump has
been observed within the optical market for the last three out of four years.
The year-over-year growth indicates a slight increase of spending but not
necessarily a bullish market,” stated Dennis Ward, principal optical analyst,
ACG.
Regionally, APAC is the top producing region though revenue
declined 5.3 percent q-q. North America remained in the 2nd position,
increasing 7.8 percent q-q and up 25.4 percent y-y. EMEA remained a strong 3rd
at 11.4 percent q-q but showed a dip of 5.2 percent y-y. LAM improved with 6.3
percent q-q and 10.2 percent y-y growth.
The growth rate of 100G optical interfaces remains steady.
The trend to support 4G and mobile Internet with its rich services is driving
this as well as 400G trials in all regions. But 400G standards are still in
flux. Although the Tier 1 communication service providers gear up for 2015,
many of the optical equipment providers are finding a real market with the
content service providers (CSPs) as they migrate their data centers into the
metro closer to their customer bases. Some of these CSPs are looking for simple
high- capacity solutions via dark fiber across the metro; others want more
sophisticated long-haul solutions into the metro. “We see the demand for DCI
bifurcating into two distinct market segments of products, small slot versus
multislot solutions,” says Dennis Ward.
Service provider SDN and NFV in combination with P-OTS/Metro
WDM solutions are gaining traction in network infrastructure selection and
deployments. P-OTS segment saw a quarterly dip in its revenue contribution but
maintained its $.5 billion run rate, decreasing 7.9 percent q-q but increasing
an impressive 28.9 percent y-y. The top five worldwide players in 4Q were
Huawei, ZTE, Ciena, Infinera and Alcatel-Lucent, respectively.
Metro WDM maintained its quarterly $1 billion run rate but
decreased 0.7 percent q-q and 9.2 percent y-y. Metro traffic is predicted to
grow faster than backbone traffic as more regional data centers are located
closer to the user community. As much as 70 percent of the traffic is predicted
to stay within the metro from which it originated, bolstering east-west traffic
between data centers. The increase in DCI supports this trend and will drive
the need for additional capacity by the traditional service providers, MSOs,
cloud and data center operators.
For more information about ACG's optical
services, contact sales@acgcc.com.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.