Sonet/SDH equipment will remain the dominant metropolitan optical technology for the foreseeable future.
This type os statement makes me avoid jumping into the optical bandwagon.
Market Strategies: Sonet set to rule for another decade
By Roy Rubenstein
14 August 2000
Broadband global IP (Internet protocol) networks were meant to simplify and standardize fast communications for the user and network operator alike. Yet, judging by the metropolitan optical network arena, what has resulted is a complexity that the market is only now waking up to.
In a recent report, Optical Edge Networks, Scott Clavenna, principal analyst at Boston, Massachusetts-based Pioneer Consulting Inc. says that the metropolitan market is really crowded with over 30 entrants developing next-generation equipment. These vendors want to exploit the base of metropolitan optical networks - based on Sonet/ SDH transmission equipment - and develop systems that cut through network layers.
Networks typically comprise Internet Protocol, ATM/multiprotocol label switching, Sonet/SDH and dense wavelength division multiplexing (DWDM) layers. Next-generation metro start-up systems aim to migrate carriers to two-layer networks that cover data and optical.
The report finds that, while next-generation metro entrants may be the center of attention Sonet/SDH equipment will remain the dominant metropolitan optical technology for the foreseeable future. Transport is still the key value of the metropolitan optical network, said Clavenna.
Concentrating on North America, Pioneer predicts that spend on Sonet metro equipment will total $6.09 billion, while spend on emerging equipment will be $2.59 billion. Pioneer says next-generation metro carrier spend will not overtake Sonet spend for 10 years.
Langley, Berks-based Inter Digital Networks Ltd. is an SDH-based metropolitan network operating in London that recently raised finance to expand across England. Its chief technology offier, Adrian Hobbins says, Sonet/SDH is still very much the bread-and-butter technology. But maybe it is not the future bandwidth of choice for ISPs and ASPs.
New York-based Metromedia Fiber Networks Inc., operates metropolitan networks in the U.S. and is working on 16 European cities, and agrees with Pioneers findings. They dont want Sonet, said Scott Berry, Metromedias director, product marketing. What interests them are services based on Gigabit Ethernet and Fiberchannel.
Since Sonet is optimized for voice, capacity is typically wasted when data is also transported. There are several technologies coming together (for next-generation Sonet), said Clavenna.
Next-generation Sonet equipment sales this year are expected to be $0.93 billion. Its dominated by Cisco, said Clavenna. But new entrants now include Sirocco Systems, Cyras and Mayan.
Another sector is integrated metro DWDM. This high-capacity system combines services such as ATM and Sonet on one platform. This is attractive to new carriers, said Clavenna. Vendors include Astral Point Communications Inc., Alidian Networks and Chromatis.
But next-generation SDH equipment will only be available next year, said Clavenna, resulting in a stronger metro DWDM in Europe. DWDM-backer Inter Digital Networks argues that DWDM caters for SDH and emerging services such as fast and Gigabit Ethernet.
The metro optical IP market is moving away from Sonet to evolve Ethernet as the platform. Not only is Ethernet now as scalable as Sonet, it has much cheaper interface costs, said Clavenna.
This market has limited appeal to incumbent carriers, he added, but it could completely change the dynamics in the metro due to its support for low-cost IP switching. Metro optical IP players include Lantern Communications Inc., Extreme Networks Inc. and Tropic Network Inc.
- Metromedia says it will remain neutral. We want our customers to put in any equipment they want. And its enterprise customers want Fast and Gigabit Ethernet, Fiberchannel and Sonet.
Integrated metro DWDM and optical IP sales will each total $0.11 billion this year, said Pioneer. |
