ECOC 2015: Reflections
Valery Tolstikhin, head of a design consultancy, Intengent
ECOC was a big show and included a number of satellite events, such as the 6th European Forum on Photonic Integration, the 3rd Optical Interconnect in Data Center Symposium and Market Focus, all of which I attended. So, lots of information to digest.
My focus was mainly on data centre optical interconnects and photonic integration.
Data centre interconnects
What became evident at ECOC is that 50 Gig modulation and the PAM-4 modulation format will be the basis of the next generation (after 100 Gig) data centre interconnect. This is in contrast to the current 100 Gig non-return-to-zero (NRZ) modulation using 25 Gig lanes.
This paves the way towards 200 Gig (4 x PAM-4 lanes at 25 Gig) and 400 Gig (4 x PAM-4 lanes at 50 Gig) as a continuation of quads of 4 x NRZ lanes at 25 Gig, the state-of-the-art data centre interconnect still to take off in terms of practical deployment.
The transition from 100 Gig to 400 Gig seems to be happening much faster than from 40Gig to 100 Gig. And 40 Gig serial finally seems to have gone; who needs 40 Gig when 50 Gig is available?
Another observation is that despite the common agreement that future new deployments should use single-mode fibre rather than multi-mode fibre, given the latter’s severe reach limitation that worsens with modulation speed, the multi-mode fibre camp does not give up easily.
That is because of the tons of multi-mode fibre interconnects already deployed, and the low cost of gallium arsenide 850 nm VCSELs these links use. However, the spectral efficiency of such interconnects is low, resulting in high multi-mode fibre count and the associated cost. This is a strong argument against such fibre.
Now, a short-wave WDM (SWDM) initiative is emerging as a partial solution to this problem, led by Finisar. Both OM3 and OM4 multi-mode fibre can be used, extending link spans to 100m at 25 Gig speeds.
Single mode fibre 4 x 25 Gig QSFP28 pluggables with a reach of up to 2 km, which a year ago were announced with some fanfare, seems to have become more of a commodity.
The SWDM Alliance was announced just before ECOC 2015, with major players like Finisar and Corning on board, suggesting this is a serious effort not to be ignored by the single mode fibre camp.
Lastly, single mode fibre 4 x 25 Gig QSFP28 pluggables with a reach of up to 2 km, which a year ago were announced with some fanfare, seems to have become more of a commodity. Two major varieties – PSM and WDM – are claimed and, probably shipping, by a growing number of vendors.
Since these are pluggables with fixed specs, the only difference from the customer viewpoint is price. That suggests a price war is looming, as happens in all massive markets. Since the current price still are an order of magnitude or more above the target $1/Gig set by Facebook and the like, there is still a long way to go, but the trend is clear.
This reminds me of that I’ve experienced in the PON market: a massive market addressed by a standardised product that can be assembled, at a certain time, using off-the-shelf components. Such a market creates intense competition where low-cost labour eventually wins over technology innovation.
Photonic integration
Two trends regarding photonic integration for telecom and datacom became clear at ECOC 2015.
One positive development is an emerging fabless ecosystem for photonic integrated circuits (PICs), or at least an understanding of a need for such. These activities are driven by silicon photonics which is based on the fabless model since its major idea is to leverage existing silicon manufacturing infrastructure. For example, Luxtera, the most visible silicon component vendor, is a fabless company.
There are also signs of the fabless ecosystem building up in the area of III-V photonics, primarily indium-phosphide based. The European JePPIX programme is one example. Here you see companies providing foundry and design house services emerging, while the programme itself supports access to PIC prototyping through multi-project wafer (MPW) runs for a limited fee. That’s how the ASIC business began 30 to 40 years ago.
A link to OEM customers is still a weak point, but I see this being fixed in the near future. Of course, Intengent, my design house company, does just that: links OEM customers and the foundries for customised photonic chip and PIC development.
As soon as PICs give a system advantage, which Infinera’s chips do, they become a system solution enabler, not merely ordinary components made a different way
The second, less positive development, is that photonic integration continues to struggle to find applications and markets where it will become a winner. Apart from devices like the 100 Gig coherent receiver, where phase control requirements are difficult to meet using discretes, there are few examples where photonic integration provides an edge.
Even a 4 x 25 Gig assembly using discrete components for today’s 100 Gig client side and data centre interconnect has been demonstrated by several vendors. It then becomes a matter of economies of scale and cheap labour, leaving little space for photonic integration to play. This is what happened in the PON market despite photonic integrated products being developed by my previous company, OneChip Photonics.
On a flip side, the example of Infinera shows where the power of photonic integration is: its ability to create more complicated PICs as needed without changing the technology.
One terabit receiver and transmitter chips developed by Infinera are examples of complex photonic circuits, simply undoable by means of an optical sub-assembly. As soon as PICs give a system advantage, which Infinera’s chips do, they become a system solution enabler, not merely ordinary components made a different way.
However, most of the photonic integration players - silicon photonics and indium phosphide alike - still try to do the same as what an optical sub-assembly can do, but more cheaply. This does not seem to be a winning strategy.
And a comment on silicon photonics. At ECOC 2015, I was pleased to see that, finally, there is a consensus that silicon photonics needs to aim at applications with a certain level of complexity if it is to provide any advantage to the customer.
Silicon photonics must look for more complex things, maybe 400 Gig or beyond, but the market is not there yet
For simpler circuits, there is little advantage using photonic integration, least of all silicon photonics-based ones. Where people disagree is what this threshold level of complexity is. Some suggest that 100 Gig optics for data centres is the starting point but I’m unsure. There are discrete optical sub-assemblies already on the market that will become only cheaper and cheaper. Silicon photonics must look for more complex things, maybe 400 Gig or beyond, but the market is not there yet.
One show highlight was the clear roadmap to 400 Gig and beyond, based on a very high modulation speed (50 Gig) and the PAM-4 modulation format, as discussed. These were supported at previous events, but never before have I seen the trend so clearly and universally accepted.
What surprised me, in a positive way, is that people have started to understand that silicon photonics does not automatically solve their problems, just because it has the word silicon in its name. Rather, it creates new challenges, cost efficiency being an important one. The conditions for cost efficient silicon photonics are yet to be found, but it is refreshing that only a few now believe that the silicon photonics can be superior by virtue of just being ‘silicon’.
I wouldn’t highlight one thing that I learned at the show. Basically, ECOC is an excellent opportunity to check on the course of technology development and people’s thoughts about it. And it is often better seen and felt on the exhibition floor than attending the conference’s technical sessions.
For the coming year, I will continue to track data centre interconnect optics, in all its flavours, and photonic integration, especially through a prism of the emerging fabless ecosystem.
Vishnu Shukla, distinguished member technical staff in Verizon’s network planning group.
There were more contributions related to software-defined networking (SDN) and multi-layer transport at ECOC. There were no new technology breakthroughs as much as many incremental evolutions to high-speed optical networking technologies like modulation, digital signal processors and filtering.
I intend to track technologies and test results related to transport layer virtualisation and similar efforts for 400 Gig-and-beyond transport.
Vladimir Kozlov, CEO and founder of LightCounting
I had not attended ECOC since 2000. It is a good event, a scaled down version of OFC but just as productive. What surprised me is how small this industry is even 15 years after the bubble. Everything is bigger in the US, including cars, homes and tradeshows. Looking at our industry on the European scale helps to grasp how small it really is.
What is the next market opportunity for optics? The data centre market is pretty clear now, but what next?
Listening to the plenary talk of Sir David Paine, it struck me how infinite technology is. It is so easy to get overexcited with the possibilities, but very few of the technological advances lead to commercial success.
The market is very selective and it takes a lot of determination to get things done. How do start-ups handle this risk? Do people get delusional with their ideas and impact on the world? I suspect that some degree of delusion is necessary to deal with the risks.
As for issues to track in the coming year, what is the next market opportunity for optics? The data centre market is pretty clear now, but what next?
OFC 2014 industry reflections - Part 1
T.J. Xia, distinguished member of technical staff at Verizon
The CFP2 form factor pluggable - analogue coherent optics (CFP2-ACO) at 100 and 200 Gig will become the main choice for metro core networks in the near future.
I learnt that the discrete multitone (DMT) modulation format seems the right choice for a low-cost, single-wavelength direct-detection 100 Gigabit Ethernet (GbE) interface for data ports, and a 4xDMT for 400GbE ports.
As for developments to watch, photonic switches will play a much more important role for intra-data centre connections. As the port capacity of top-of-rack switches gets larger, photonic switches have more cost advantages over middle stage electrical switches.
Don McCullough, Ericsson's director of strategic communications at group function technology
The biggest trend in networking right now is software-defined networking (SDN) and Network Function Virtualisation (NFV), and both were on display at OFC. We see that the combination of SDN and NFV in the control and software domains will directly impact optical networks. The Ericsson-Ciena partnership embodies this trend with its agreement to develop joint transport solutions for IP-optical convergence and service provider SDN.
We learnt that network transformation, both at the control layer (SDN and NFV) and at the data plane layer, including optical, is happening at the network operators. Related to that, we also saw interest at OFC in the announcement that AT&T made at Mobile World Congress about their User-Defined Network Cloud and Domain 2.0 strategy where AT&T has selected to work with Ericsson on integration and transformation services.
We will continue to watch the on-going deployment of SDN and NFV to control wide area networks including optical. We expect more joint developments agreements to connect SDN and NFV with optical networking, like the Ericsson-Ciena one.
One new thing for 2014 is that we expect to see open source projects like OpenStack and Open DayLight play increasingly important roles in the transformation of networks.
Brandon Collings, JDSU's CTO for communications and commercial optical products
The announcements of integrated photonics for coherent CFP2s was an important development in the 100 Gig progression. While JDSU did not make an announcement at OFC, we are similarly engaged with our customers on pluggable approaches for coherent 100 Gig.
I would like to see convergence around 400 Gig client interface standards
There is a lack of appreciation of the data centre operators who aren’t big household names. While the mega data centre operators have significant influence and visibility, the needs of the numerous, smaller-sized operators are largely under-represented.
I would like to see convergence around 400 Gig client interface standards. Lots of complex technology here, challenges to solve and options to do so. But ambiguity in these areas is typically detrimental to the overall industry.
Mike Freiberger, principal member of technical staff, Verizon
The emergence of 100 Gig for metro, access, and data centre reach optics generated a lot of contentious debate. Maybe the best way forward as an industry isn’t really solidified just yet.
What did I learn? Verizon is a leader in wireless backhaul and is growing its options at a rate faster than the industry.
The two developments that caught my attention are 100 Gig short-reach and above-100-Gig research. 100 Gig short-reach because this will set the trigger point for the timing of 100 Gig interfaces really starting to sell in volume. Research on data rates faster than 100 Gig because price-per-bit always has to come downward.
Optical components enter an era of technology-pull
Gazettabyte asked ADVA Optical Networking, Ciena, Cisco Systems and Ovum about their impressions following the recent OFC/NFOEC 2012 exhibition and conference.
OFC/NFOEC reflections: Part 2
"As the economy continues to navigate its way through yet another very difficult period, it was good to see so many companies innovating and introducing solutions."
Massimo Prati, Cisco Systems
Massimo Prati, Cisco Systems
For Cisco Systems, 100 Gigabit was a key focus at the show. "There were many system and component vendors, including Cisco, demonstrating newly available, economically feasible 100 Gig innovations," says Massimo Prati, vice president and general manager for Cisco.
Linking data centres was another conference theme. "Inter-data centre connectivity continues to focus on scalable and simple solutions in long-haul and metro networks connecting data centres worldwide." Cisco believes metro 100 Gigabit deployments will become prevalent in 2013 and 2014, especially if low‐cost coherent technology becomes available.
"A dedicated workshop focused on data centre architectures, held on the first day of the conference, was heavily attended," says Prati. "So certainly the link between cloud and optical is being established and is a key driver for high-speed transport networks."
Another conference theme was interconnect within the data centre, and the need for photonic integration for low‐cost, low‐power links, says Prati: "From a Cisco standpoint, several of our customers were pleasantly surprised by our recently completed acquisition of Lightwire, which develops advanced optical interconnect technology for high-speed networking applications." Lightwire is a silicon photonics startup that Cisco acquired recently for US $271 million.
What Cisco says it learned from OFC/ NFOEC was that service providers are planning 100Gbps deployments within the next 12 months and are looking at second- and third-generation solutions. "There is quite a bit of energy around future upgrades to 400 Gig and one Terabit transport solutions, but service providers continue to monitor if and how these solutions will operate within their existing fibre plants."
Prati expects more industry consolidation. "With the influx of 100 Gig solutions, it appears we may be ripe for further consolidation within the industry, particularly further down the technology food chain," he says.
He also remains optimistic about the industry's prospects.
"We believe that the excitement around high-speed, long-haul transport, combined with cloud and data centre innovation, continues to fuel a lot of new product solutions and architectures," he says. "Content providers like Google and Facebook have clearly expressed interest in optical technologies addressing their issues with bandwidth demands and need for high-speed interconnect for their data centres."
Joe Berthold, Ciena
Whereas last year there was much discussion about of the next rate for Ethernet - 400 Gig or one Terabit - this year 400 Gigabit had most mindshare, says Joe Berthold, vice president of network architecture at Ciena. "I barely heard any mention of one Terabit in the context of a contest with 400 Gigabit," he says.
"I could hear some rumblings about alternative form factors – which might lead to fragmentation of the market"
Joe Berthold, Ciena
400 Gigabit was given a boost with the line-side transmission component announcements. Ciena announced its WaveLogic3 and Alcatel-Lucent detailed its Photonic Service Engine.
Another noteworthy development was the buzz around silicon photonics, stirred in part by Cisco's Lightwire acquisition. "Silicon photonics has passed from a technology of research interest to one that has progressed to serious development," says Berthold. "Data centre interconnects look like a promising initial application."
There was no developments at the show that surprised Berthold. But he is concerned about the potential for proliferation of 100 Gigabit client-side form factors, especially for pluggable modules.
"I am going under the assumption that there is still broad industry support for the CFP progression - from the current CFP to a CFP2 followed by a CFP4 for single-mode fiber applications over metro distances," he says.
Even though there are a variety of technologies appearing in the CFP form factor, this common physical module has helped control system development cost. "I could hear some rumblings about alternative form factors – which might lead to fragmentation of the market," he says.
Berthold is encouraged by the broad base of development efforts underway, particularly for 100Gbps transceivers, but also lower-cost 10Gbps and 40Gbps client-side modules. He notes the progress in reducing the cost of 100 Gigabit client interfaces over the next year. "Their high cost has held back adoption of 100 Gig," says Berthold. "We have had very cost effective 10 Gig multiplexing technology to fall back on, but it looks like native 100G interfaces are poised for growth."
Jörg-Peter Elbers, ADVA Optical Networking
Jörg-Peter Elbers, vice president, advanced technology at ADVA Optical Networking, was struck by the wide range of hot topics discussed at the show.
These include software-defined optics based on programmable transceivers that use advanced DSP technology and flexgrid ROADMs as the basis of a new coherent express layer. He also notes that control plane technologies are becoming an essential asset in managing network complexity when unleashing untapped network capacity.
"Traffic and content keeps growing at exponential scale - the fundamental demand-drivers are intact"
Jörg-Peter Elbers, ADVA Optical Networking
Meanwhile, the rapid increase in end-user traffic, specifically mobile, is driving PON. As a result WDM is moving closer to the network edge, entering aggregation and access networks. He believes dense WDM-PON is gaining traction for mobile backhaul as fibre becomes the bottleneck when moving from Long Term Evolution (LTE) to the LTE-Advanced cellular technology.
Other trends to note, he says, are software-defined networking (SDN) and OpenFlow. "Originating from the campus and data centre world, network programmability is increasingly seen as key for tighter integration, more automation, and virtualisation of IT and computing services," says Elbers.
The industry increasingly sees the metro market as important to ramp up 100Gbps volumes, with different modulation solutions being promoted by vendors. These include performance reduced 100Gbps DP-QPSK (dual polarisation, quadrature phase-shift keying), 200Gbps DP-16QAM (dual polarisation, 16-quadrature amplitude modulation) and 4x28G direct-detection.
While some people expressed concerns about a fragmentation of the 100 Gig market, power consumption, footprint and cost are of primary importance in the metro, he says. "One analyst at the Ovum 100Gbps metro workshop at OFC said: 'Maybe, for a hammer everything looks like a nail…'," says Elbers. "With 4x28G optical duobinary being able to make use of 10Gbps T-XFP/SFP+, IEEE 802.3ba and CFP technologies, we believe there is a justification to differentiate."
ADVA demonstrated its 4x28Gbps optical duobinary direct-detection product at the show.
Elbers noted an interest in multi-core and few-mode fibres. "The next x10 in bandwidth is difficult to reach as additional gains from amplification, modulation, FEC and denser carrier spacing will be limited." he says. "The research community therefore is looking into new fibre types to add the spatial and modal dimensions alongside the current optimisation strategy." An area interesting to watch, but fundamental technical and economic challenges remain, he says.
He too is optimistic about the industry's prospects: "Traffic and content keeps growing at exponential scale - the fundamental demand drivers are intact." As a result, optical innovation will play an even bigger role in the future to keep pace with the bandwidth growth, he says.
Karen Liu, Ovum
"We're clearly in a technology-pull phase rather than technology-push phase with multiple system vendors doing 400Gbps-capable stuff instead of component guys showing demonstrations years in advance of system activity," says Karen Liu, principal analyst, components telecoms at Ovum.
"Optical burst mode switching may be crossing over from rather 'pie-in-the-sky' to practical"
Karen Liu, Ovum
It is not that that the components vendors aren't making innovative products, she says, just that they are not making announcements until there is real demand. "Corning, for example, showed a fiber that has already been shipping into Lightpeak," says Liu.
What surprised Liu at the show was Huawei's optical burst transport network prototype. "Optical burst mode switching may be crossing over from rather 'pie-in-the-sky' to practical," says Liu.
She notes how there isn't as much optics-versus-electronics positioning anymore but more a case of optics working with electronics. "Huawei's OBTN is an example," says Liu. "Instead of using optical burst mode to make an all-optical network, optics is part of a hybrid design."
Liu says there are now multiple relationships between silicon and optics including the two working together instead of in competition. "In networking, the term translucent networks seems to have gained popularity."