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Technology Stocks : Frank Coluccio Technology Forum - ASAP

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To: Frank A. Coluccio who wrote (123)10/28/1999 12:48:00 PM
From: Frank A. Coluccio   of 1782
 
re: intelligence versus optical bandwidth

As if to respond to my uplinked post [# 123], the following comes to us courtesy of Ray Smith, Jr. on the SCMR thread.

I've copied what I consider to be the relevant parts of the text and cleaned it up, making it ready for easy reading, below, for posterity.

Note, for some good chart information on the topic derived from the same report, go to the Yahoo! message directly, or to the CRI site, both urls shown below.

Regards, Frank Coluccio
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From:http://biz.yahoo.com/prnews/991027/va_cir_opt_1.html

Wednesday October 27, 7:31 am Eastern Time

Company Press Release

SOURCE: Communications Industry Researchers, Inc.

Intelligence, Not Bandwidth the Key to Success in the Optical Networking Market, Says New Report from Communications Industry Researchers

CHARLOTTESVILLE, Va., Oct. 27 /PRNewswire/ -- The announcement on Monday by a major Japanese equipment vendor that it will introduce a 160-channel DWDM system late next year, highlights the difference between hype and reality in the optical networking market, according to Communications Industry Researchers, a market research company based here. CIR believes that, while all optical equipment vendors will continue to boast about the capacity of their systems, the key to success in the optical networking market for the near term will be the ability to supply the software that sits above SONET/DWDM layers and which provide end-to-end service management and network management.

This is a critical point made by CIR's new report, Wave Division Multiplexing, Photonic Switching and the Coming of All Optical Networks 1999- 2000, Volume 1, North American Market Opportunities, which says that Terabit systems will be needed in a year to 18 months by some of the world's largest service providers. However, the report stresses that success in the optical networking market over the next few years will have less to do with the ability to supply huge chunks of bandwidth than it will with managing that bandwidth to provide end users and service providers with value added features based over an optical physical layer.

The features that CIR says will be required by such internetworks are shown in the chart below. CIR's report suggests that factors such as restoration times, protection, performance monitoring, and the provisioning and billing for optically provisioned services will be a major source of competitive advantage for optical networking firms, as the next generation of intelligent optical internetworks emerge. And the new CIR report also singles out some companies as being particularly strong in this area.

These include Ciena, Lucent, Nortel, Optical Networks Incorporated, and Sycamore Networks. It notes, however, that other optical networking companies that have narrow market focus can also be expected to do well. These include ADVA in the enterprise segment, and Chromatis and Sirocco in optical edge/access segment. CIR also believes that once it has digested its recent acquisitions of Cerent and Monterey Networks, Cisco will play a major role in the IP-over-optical layer business.

The Table of Contents for Wave Division Multiplexing, Photonic Switching and the Coming of All Optical Networks 1999-2000, Volume 1 is available at CIR's Web site (http://www.cir-inc.com). The Executive Summary for Wave Division Multiplexing, Photonic Switching and the Coming of All Optical Networks 1999-2000, Volume 1 is available for members of the press. An abridged version is available for those interested in evaluating the report for purchase.

Volume 2 of this report, which will cover markets outside of North America, will be available in December 1999. Each volume is priced at $2,995, or $5,000 for both volumes. CIR reports are also available in PDF, Microsoft Word or HTML format at an additional charge. Further details of this and other CIR studies can be obtained from Robert Nolan at 617-923-7611 or e-mail to: rob@cir-inc.com.

Based in Charlottesville, Virginia, Communications Industry Researchers, Inc. was founded in 1979. The company publishes market studies and carries out demanding custom market research assignments on the commercial aspects of new communications technologies. CIR specializes in the areas of broadband access, voice/data consolidation and core networking. It provides objective expertise for the vendor, service provider and user communities that is client focused but not client directed.
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