ICE5 FROM CC:
Michael E. Genovese - MKM Partners LLC
Great. Thanks very much. It seems like this revenue delay is caused by customers trying to figure out your roadmap, and I'm also trying to figure out sort of what you're thinking in terms of internally home-grown technology versus merchant technology going forward. If you could talk about the timing of ICE5, what you're seeing with ICE5 and just generally how you're thinking – how you're talking (00:48:57) to customers about ICE, new generations of ICE versus products that use emerging (00:49:04) technology?
David W. Heard - Infinera Corp.
Yeah, Mike, I understand the question, I think. I'm going to answer and I'm going to ask Dave to answer on top of it. First, I'm going to talk strategically. Yeah. Strategically, we are committed to continue to provide a leading edge vertically integrated DSP technology, particularly for long-haul and subsea. ICE4 continues to win us opportunities because we have a differential value proposition around spectral performance, and we are winning deals today because we actually are more efficient than any other DSP in the market for the subsea opportunities.
I think from a commercial side, we're always going to explore opportunities to complement our strategy with appropriate commercial technologies. We have used the external DSPs for ICE5. We are using external DSPs for part of our XTM strategy. Clearly Coriant uses external DSPs for Groove. I don't think that having a strategy of having both internal capability complemented with external capability is orthogonal. So I think we are going to continue – you'll continue to see us use both wherever we can create the most advantageous solution for our customers and our shareholders. Dave?
David F. Welch - Infinera Corp.
Yeah, just could add a couple comments, ICE4 has demonstrated that its clear leadership in the long-haul and subsea applications for spectral efficiency. We've seen a number of significant subsea wins as of late as that ICE4 technology gets into the XT-3600, et cetera. We've demonstrated that the higher baud rate technologies for ICE5, for a 66 gigabaud generation or an 80 gigabaud to 100 gigabaud generation requires the integral connectivity between a DSP and the PIC. What you'll find is a lot of these technologies that the indium phosphide technologies perform better at higher baud rates.
And so it's not just as the DSP engine drives to the dollar per gigabit benefits the higher baud rates. It's not just the DSP; it's the DSP and the optics coming together. That gives us a strong position on why our technology is favored. What technology we choose and what platform, whether it be a short-reach DCI metro, or whether it's a subsea, i.e., is all dependent on what the opportunity, what the platform is capable of, and we're open to whatever technology serves that purpose best. However, in the long run, we do believe that our core technologies continue to expand their application base differentially.
Michael E. Genovese - MKM Partners LLC
And then just as a follow-up, the timing on ICE5, when do we expect (00:52:00)?
David F. Welch - Infinera Corp.
You know I hate to say it but your phone is breaking up kind of on that. If you're asking when do we expect to see our technologies (00:52:11), we'll expose that as we get in the future quarters. We've talked about today about demonstration of live 66 gigabaud traffic over networks both using internal technology as well as Coriant and using external technology. |
