BLOG

Big Need for MPLS-TP?

August, 2014

At the service providers across the globe, the most widespread and native selection is MPLS and not MPLS-TP. The former has broader acceptance, superior interoperability, and operational intimacy for the engineering folks. In Asia, particularly China, MPLS-TP has taken off in a big way. While some industry observers view that part of the world as exceptionally unpredictable and may suggest that “TP” could even be replaced, it seems that at least one of the large Chinese operators has such a critical mass of deployment that such a move is not imaginable. On its face, one would think customers should want to go with MPLS-TP over MPLS because the former is a newer version. Ordinarily, any supplier that would happen to start product development from scratch would definitely be inclined to begin in the “TP” direction. Theoretically,...

Read More

Optical Hardware Innovation Permanently

February, 2015

At the OFC 2015 show next month, the Rump Session is entitled, “Is it 'Game Over' for Hardware?” The discussion will be about “[s]ome industry trends like SDN appear[ing] to make optics hardware engineering and innovation irrelevant and shift innovation into software-based network control [while] [o]ther industry trends like [s]ilicon [p]hotonics appear[ing] to create great new opportunities for hardware innovation.” Of course, while around the world, all kinds of fantastic developments in fiber optic gear continually take place in laboratories, the really important focus should be on actual implementation of new solutions in the telecom space, which has historically tended to be driven by events or needs that were unpredictable in nature. Just the specific network requirements of one...

Read More

Surviving in a 10G World

February, 2015

Given that the lion’s share of the discussion in telecom forums is about vaporware, it is not surprising that a lot people in the industry would probably be amazed to hear that R&D spending on 10G devices is still happening. While the really compelling drama within suppliers is occurring with mature or even declining market situations, including on 1G and on VCSELs, in which substantial revenue is on the line, the obsession on analyzing the accounts of the various futuristic, sexier solutions can sound repetitive, and at the end of the day, they have a tendency to be quite boring. In contrast, the struggle for 10G transport equipment vendors to survive is a captivating narrative involving a data rate, which will remain a mainstay in public and enterprise networks for a very long time -- in which there is still an overabundance of participants (partially because financing going back...

Read More

Monetizing Older Networks: An Overreach?

March, 2015

Although one of the most thought-provoking panels at OFC 2015 will be on the monetization of optical networks, which will include seasoned experts who are vigorously involved in building new revenue models, it is not easy to imagine the kind of cultural metamorphosis that would be required for incumbent service providers to change their long-standing, bureaucratic behavior. In addition, while it is only commonsense to switch from a model that requires a lengthy period of time to install a circuit with a long-term commitment to more of a cloud-driven, network-on-demand paradigm, in which files can be loaded for say, a couple hours to be analyzed, we have discussed the very legitimate structural...

Read More

Ciena Probably Overpaying for Cyan

May, 2015

A prima facie case can be made that the $400 million price tag on Cyan is out of line. In effect, Ciena should have problems justifying it is worth at almost half as much as Nortel’s Metro Ethernet Networks business (adjusted for inflation) and about four times Cyan’s revenues in 2014 – in an optical environment in which it has been recently difficult sometimes to command even 1x sales on an acquisition. Also, with the prospects for SDN in the public network space increasingly getting dimmer, the purchase at a premium is even more of a head scratcher. With the exception of the buyouts of the Nortel assets (a necessity to keep revenues up sufficiently) and the pickup of Lightera Networks, which led to the successful CoreDirector (a steal at the 1999 price of a little over $450 million), Ciena has in general not had a good track record on buyouts of companies. Since its...

Read More