Ciena: Changing bandwidth on the fly

Ciena has announced its latest coherent chipset that will be the foundation for its future optical transmission offerings. The chipset, dubbed WaveLogic 3, will extend the performance of its 100 Gigabit links while introducing transmission flexibility that will trade capacity with reach.

Feature: Beyond 100 Gigabit - Part 1


"We are going to be deployed, [with WaveLogic 3] running live traffic in many customers’ networks by the end of the year"

Michael Adams, Ciena

 

 

 

"This is changing bandwidth modulation on the fly," says Ron Kline, principal analyst, network infrastructure group at market research firm, Ovum. “The capability will allow users to dynamically optimise wavelengths to match application performance requirements.”

WaveLogic 3 is Ciena's third-generation coherent chipset that introduces several firsts for the company. 

  • The chipset supports single-carrier 100 Gigabit-per-second (Gbps) transmission in a 50GHz channel.
  • The chipset includes a transmit digital signal processor (DSP) - which can adapt the modulation schemes as well as shape the pulses to increase spectral efficiency.  The coherent transmitter DSP is the first announced in the industry.
  • WaveLogic 3's second chip, the coherent receiver DSP, also includes soft-decision forward error correction (SD-FEC). SD-FEC is important for high-capacity metro and regional, not just long-haul and trans-Pacific routes, says Ciena. 

The two-ASIC chipset is implemented using a 32nm CMOS process. According to Ciena, the receiver DSP chip, which compensates for channel impairments, measures 18 mm sq. and is capable of 75 Tera-operations a second.

Ciena says the chipset supports three modulation formats: dual-polarisation bipolar phase-shift keying (DP-BPSK), quadrature phase-shift keying (DP-QPSK) and 16-QAM (quadrature amplitude modulation). Using a single carrier, these equate to 50Gbps, 100Gbps and 200Gbps data rates.  Going to 16-QAM may increase the data rate to 200Gbps but it comes at a cost: a loss in spectral efficiency and in reach.

"This software programmability is critical for today's dynamic, cloud-centric networks," says Michael Adams, Ciena’s vice president of product & technology marketing.

WaveLogic 3 has also been designed to scale to 400Gbps. "This is the first programmable coherent technology scalable to 400 Gig," says Adams. "For 400 Gig, we would be using a dual-carrier, dual-polarisation 16-QAM that would use multiple [WaveLogic 3] chipsets."

 

Performance

Ciena stresses that this is a technology not a product announcement. But it is willing to detail that in a terrestrial network, a single carrier 100Gbps link using WaveLogic 3 can achieve a reach of 2,500+ km. "These refer to a full-fill [wavelengths in the C-Band] and average fibre," says Adams. "This is not a hero test with one wavelength and special [low-loss] fibre.”

 

Metro to trans-Pacific: The different reaches and distances over terrestrial and submarine using Ciena's WaveLogic 3. SC stands for single carrier. Source: Ciena/ Gazettabyte

When the modulation is changed to BPSK, the reach is effectively doubled. And Ciena expects a 9,000-10,000km reach on submarine links.

The same single-carrier 50GHz channel reverting to 16-QAM can transmit a 200Gbps signal over distances of 750-1,000km. "A modulation change [to 16-QAM] and adding a second 100 Gigabit Ethernet transceiver and immediately you get an economic improvement," says Adams.

For 400Gbps, two carriers, each 16-QAM, are needed and the distances achieved are 'metro regional', says Ciena.

The transmit DSP also can implement spectral shaping. According to Ciena, by shaping the signals sent, a 20-30% bandwidth improvement (capacity increase) can be achieved. However that feature will only be fully exploited once networks deploy flexible grid ROADMs.

At OFC/NFOEC. Ciena will be showing a prototype card that will demonstrate the modulation going from BPSK to QPSK to 16-QAM. "We are going to be deployed, running live traffic in many customers’ networks by the end of the year," says Adams.

 

Analysis

Sterling Perrin, senior analyst, Heavy Reading

Heavy Reading believes Ciena's WaveLogic 3 is an impressive development, compared to its current WaveLogic 2 and to other available coherent chipsets. But Perrin thinks the most significant WaveLogic 3 development is Ciena’s single-carrier 100Gbps debut.

Until now, Ciena has used two carriers within a 50GHz, each carrying 50Gbps of data. 

"The dual carrier approach gave Ciena a first-to-market advantage at 100Gbps, but we have seen the vendor lose ground as Alcatel-Lucent rolled out its single carrier 100Gbps system," says Perrin in a Heavy Reading research note. "We believe that Alcatel-Lucent was the market leader in 100Gbps transport in 2011." 

Other suppliers, including Cisco Systems and Huawei, have also announced single-carrier 100Gbps, and more single-wavelength 100Gbps announcements will come throughout 2012.

Heavy Reading believes the ability to scale to 400Gbps is important, as is the use of multiple carriers (or super-channels). But 400 Gigabit and 1 Terabit transport are still years away and 100Gbps transport will be the core networking technology for a long time yet.

"The vendors with the best 100G systems will be best-positioned to capture share over the next five years, we believe," says Perrin.

 

Ron Kline, principal analyst for Ovums network infrastructure group.

For Ron Kline, Ciena's announcement was less of a surprise. Ciena showcased WaveLogic 3's to analysts late last year. The challenge with such a technology announcement is understanding the capabilities and how it will be rolled out and used within a product, he says.

"Ciena's WaveLogic 3 is the basis for 400 Gig," says Kline. "They are not out there saying 'we have 400 Gig'." Instead, what the company is stressing is the degree of added capacity, intelligence and flexibility that WaveLogic 3 will deliver. That said, Ciena does have trials planned for 400 Gig this year, he says.

What is noteworthy, says Ovum, is that 400Gbps is within Ciena's grasp whereas there are still some vendors yet to record revenues for 100Gbps. 

"Product differentiation has changed - it used to be about coherent," says Kline. "But now that nearly all vendors have coherent, differentiation is going to be determined by who has the best coherent technology."


Boosting the 100 Gigabit addressable market

Alcatel-Lucent has enhanced the optical performance of its 100 Gigabit technology with the launch of its extended reach (100G XR) line card. Extending the reach of 100 Gigabit systems helps makes the technology more attractive when compared to existing 40 Gigabit optical transport. 

 

"We have built some rather large [data centre to data centre] networks with spans larger that 1,000km in totality"  

Sam Bucci, Alcatel-Lucent

 

 

 

 

Used with the Alcatel-Lucent 1830 Photonic Service Switch, the line card improves optical transmission performance by 30% by fine-tuning the algorithm that runs on its coherent receiver ASIC. The system vendor says the typical optical reach extends to 2,000km. 

When Alcatel-Lucent first announced its 100 Gigabit technology in June 2010, it claimed a reach of 1,500-2,000km. Now this upper reach limit is met for most networking scenarios with the extended reach performance. 

"By announcing the extended reach, Alcatel-Lucent is able to highlight the 2,000km reach as well as draw attention to the fact that it has many deployments already, and that some of those customers are using 100 Gig in 1,000km+ applications," says Sterling Perrin, senior analyst at Heavy Reading.

Market research firm Ovum views the 100G XR announcement as a specific evolutionary improvement.

"But it is significant in that it makes the case for 100 Gig versus 40 Gig more attractive for terrestrial longer-reach applications," says Dana Cooperson, network infrastructure practice leader at Ovum. “The higher the performance vendors can make 100 Gig for more demanding applications - bad fiber, ultra long-haul and ultimately submarine - the quicker it will eclipse 40 Gig.” That said, Ovum does not expect 40 Gig to be eclipsed anytime soon. 

 

100G XR

The line card's improved optical performance equates to transmission across longer fibre spans before optical regeneration is required. This, says the vendor, saves on equipment cost, power and space. 

More complex network topologies can also be implemented such as mesh networks where the signal can encounter varying-length paths based on differing fibre types as well as multiple ROADM stages. Alcatel-Lucent says it has implemented a 1,700km link with 20 amplifiers and seven ROADM stages without the need for signal regeneration.

The improved optical performance of the 100G XR has been achieved without changing the line card's hardware. The card uses the same analogue-to-digital converter, digital signal processor (DSP) ASIC and the same forward error correction scheme used for its existing 100 Gigabit line card. 

What has changed is the dispersion compensation algorithm that runs on the DSP, making use of the experience Alcatel-Lucent has gained from existing 100 Gigabit deployments. 

"We can tune various parameters, such as power and the way it [the algorithm] deals with impairments," says Sam Bucci, vice president, terrestrial portfolio management at Alcatel-Lucent. In particular the 100G XR has increased tolerance to polarisation mode dispersion and non-linear impairments.

Cooperson says Alcatel-Lucent has adjusted the receiver ASIC performance after 'mining' data from coherent deployments, something the company is used to doing with its wireless networks. She says Alcatel-Lucent has also worked closely with component vendors to achieve the improved performance. 

Perrin points out that Alcatel-Lucent's 100 Gig design uses a single laser while Ciena's system is dual laser. "Alcatel-Lucent is saying that over an identical plant the two-laser approach has no distance advantages over the one laser approach," he says. However, other system vendors have announced distances at and beyond 2,000km. "So Alcatel-Lucent's enhanced system is not record-setting," says Perrin.

 

100 Gigabit Market 

Alcatel-Lucent says it has more than 45 deployments comprising over 1,200 100 Gig lines since the launch of its 100 Gigabit system in 2010.

"It appears that Alcatel-Lucent has shipped more 100G line cards than anyone," says Cooperson. "Alcatel-Lucent has a good opportunity to make some serious 100 Gig inroads here, along with Ciena, while everyone else gears up to get their solutions to market in 2012." 

Cooperson also says the 100G XR announcement dovetails nicely with Alcatel-Lucent’s recent CloudBand announcement. Indeed Bucci says that its deployments of 100 Gig include connecting data centres: "We have built some rather large [data centre to data centre] networks with spans larger that 1,000km in totality."

The 100G XR card is being tested by customers and will be generally available starting December 2011.


CTOs: One year makes all the difference

 

 A Gazettabyte column published in Light Reading, click here


Q&A: Ciena’s CTO on R&D

Gazettabyte spoke with Steve Alexander, CTO of Ciena, about optical technology and R&D. In Part 1 of the Q&A, Alexander shares his thoughts about the practice and challenges of R&D.

 Part 1: R&D

"The R&D model has shifted a lot. Time has marched on and there are newer ways of doing things"

Steve Alexander, Ciena CTO 

 

Q: Industry R&D has changed in the last decade. The optical boom of 1999-2000 resulted in venture capital (VC) money funding hundreds of start-ups. There were vibrant operator labs while system vendors had tightly-coupled optical system/component teams. Now system and optical component vendors must use hard-earned cash to fund R&D. Given the financial constraints of the optical industry, is sufficient R&D being done?

A: The marketplace in general is still a little smarting from what happened ten years ago. So when someone from the component industry warns, the market looks at it and says: ‘Here we go again’.  But a great question to ask is: What is different this time from last time?

What is different this time is broadband apps. It's a great time to be a bandwidth company and that is fundamentally what Ciena is.

The first wave of networking was about connecting locations. This was the wireline phone service. That scales at a certain rate; there are so many locations on the planet and while estimates vary, there are about 500 million locations you want to interconnect. 

The next wave is people connecting to people with handheld wireless devices. Well, guess what? There are a whole lot more people then there are places - about 5 billion.

Now you are at the point where machines talk to machines. Again there are ten times the machines as there are people - 50 billion things that can talk to each other.

If you sum all these inflection points, you get this phenomenal hockey stick in terms of capacity.  That is what is different this time. And capacity bandwidth determines an end-user’s experience in a way that it never did in the past.

Now let's talk R&D. 

The R&D model has shifted a lot. There was all this influx of VC money which created lots of new ideas and new entrants. Time has marched on and there are newer ways of doing things.

I'll point you to coherent optics: Why is coherent a good thing?  A lot of the R&D in the components space went after things such as polarisation mode dispersion compensation. Lots of companies sprang up, lots of approaches were proposed, all targeted at introducing more photonics complexity to solve the problem. But you can solve that problem with basic maths if you do it with a coherent receiver and digital signal processing.  It just completely changes the game. And there are other examples - the emergence of pluggable optical transceivers.

So where the R&D goes, changes.

Could the industry benefit from more overall R&D, more VC money? Sure it could.

 

But will we get to the stage where optical problems need to be solved and there are insufficient resources?

There is always that risk.

You have seen a reduction in the large national labs - partially funded by industry and sometimes by government - those labs, their role in the marketplace has been reduced dramatically.  

Also there isn’t that attractiveness to hardware-based ventures any more. There are some here and there but by and large, if a VC is weighing putting money into something where you can get to first revenue with software, you can do it in a year or two, and with tens of millions of dollars versus first revenue which might be hardware-based, might take three to five years, and require several hundred million dollars; the calculus there is a problem.  

VCs will typically fund more of the smaller [software] ones with the expectation that some of them will meet their objectives. 

The specialist companies - which Ciena represents - are fortunate in that we are not trying to be everything to everybody. Ciena is focussed on the sweet spot where the bandwidth of photonics and service deliver attractiveness of Ethernet play. We focus our R&D very specifically on places where we think we can drive differentiation.

What you have seen is people focussing their R&D.

 

There is significant R&D being conducted in Asia Pacific. Engineers’ wages are cheaper in countries like China while the scale of R&D there is hugely impressive. How can established companies such as Ciena compete?

For a North American homegrown - which is where Ciena originated - you have to play on a world stage. That translates into being willing to step out and be a little bit uncomfortable at times in terms of going into other territories and using other ideas.

We have the Gurgaon facility in India to develop a capability to take advantage of these new emerging markets. You get the benefits of wage rate but you also get exposure to new markets and different ways of thinking.

The problem statements in certain of these countries are much different. If they are building infrastructure for the first time they'll typically have a different approach than you might have from North America and Western Europe, where you are building infrastructure that must work with the last three or four generations of infrastructure. You get a different approach which you could argue is another view of innovation and creativity.

At the same time you are mindful of what do you put where.  You try to line up complexity and risk with the folks who you think are best at mitigating those; if cost is the issue you align that with the workforce that will get it done at the lowest cost. If you absolutely have to hit a release window, you'll approach it differently compared to whether you have some flexibility in time but you must hit a specific performance or cost point.

You optimise the selection of where work gets done accordingly.

 

'I'm not sure there is any one industry that if we looked more like them, we would be better off.'


Any sense that Ciena must work smarter because of the scale of competition from other markets that can call on more engineers that you can hope for?

From a Ciena perspective, I wouldn't say it is a new challenge.

Ciena came to market in the mid-90s and the first competitors were behemoths: the Alcatels, Lucents, NECs and Fujitsus. We looked at the resources they had and they were ten times or a hundred times bigger. We have always been the smaller, faster, nimbler start-up.

I'm not sure we view it dramatically differently now other than some of the geographies might have changed. 

 

How do you choose what R&D to perform? Product lines have their own evolutions driven by customer demands but how do you ensure you don't miss important developments?

This is probably the problem in R&D in some cases.

The way I describe it is the white space problem: you sit in a room and you throw up all your ideas, and you throw up all the customer-asks and you stare at them and say: What did we forget? That is the white space: What didn't you remember to put up there?

What you have to do is have an environment, a culture that rewards innovation. It is acknowledging that innovation can come from everywhere and anywhere. It can come off the factory floor, out of R&D, from the CTO, out of sales, customers and marketing.  It just happens and you have to have a process by which you rapidly identify ideas, you discuss them, flesh them out and put them into buckets: Is this an incremental extension of the product? Is this taking me into an adjacent space that I hadn't thought of before? Is this going to change the world?

If you are smart about how you do R&D, you purposefully fund a little bit in each. You have to be diligent about making sure that you have got that balance of investment.

 

Ciena is a select member of AT&T’s Domain programme. How that is influencing your approach to R&D?

Clearly it is still early days in the life of the programme because the design cycles are anywhere between six months for simple things to 24-36 months for complete new platforms.

I think the opportunity in one of focus. Because the landscape is different, you are not sitting there with ten other people at the table, there is typically you, the customer and one other.  That gives you the chance to focus and dialogue differently.

It has created more of a spirit of collaboration because we are all trying to solve the customer's problem or produce more value for them.  It is early days though.

 

Any sign that this domain experience will benefit your other customers?

It is still too early to say other than if you look at AT&T’s network, the scale, scope, richness of service and the size, that will over time be a model that other networks would like to look at. At the same time they are going to try to differentiate their offerings in the marketplace.

It is a balancing act as to what is generally applicable in the marketplace and what is specific to AT&T's needs.

 

How do you ensure you keep abreast of developments?

I've always said the CTO job is a technology job, but it also has talking, travelling, troublemaking, trouble-shooting pieces to it.

I get my compass set by being out in the marketplace with customers, with analysts, at industry forums and talking to peers. There is value in technical journals and meetings but I get a lot more from standing at a whiteboard with the CTO of one of our customers, or talking to their engineering groups or product managers, discussing what if? Have you thought of this? How do we solve this problem? What are your issues? How can we help?

I get a lot more out of that, and it is valuable to me as one of the folks that help steer the ship.

 

Have you studied R&D in other industries and learnt something useful?

I have looked at big pharmaceuticals and how the automotive industry does R&D - the platform-based approaches and such. Where appropriate I've tried to adopt those things into my thinking.

I'm not sure there is any one industry that if we looked more like them, we would be better off.

You have to look at the collaboration tools certain industries use, the multi-platform models, the consistent design reuse in certain industries; those have all been helpful to us in understanding what the infrastructure business has to look like.

 

In Part 2, Steve Alexander discusses optical networking and technology trends 

 


LightReading Market Spotlight: ROADMs

Click here for the market spotlight ROADM article written for LightReading. See also the comment discussions.


AT&T domain suppliers

Date

Domain

Partners

Sept 2009

Wireline Access 

Ericsson

Feb 2010

Radio Access Network

Alcatel-Lucent, Ericsson

April 2010

Optical and transport equipment 

Ciena

July 2010

IP/MPLS/Ethernet/Evolved Packet Core

Alcatel-Lucent, Juniper, Cisco

 

The table shows the selected players in AT&T's domain supplier programme announced to date.

AT&T has stated that there will likely be eight domain supplier categories overall so four more have still to be detailed.

Looking at the list, several thoughts arise:

  • AT&T has already announced wireless and wireline infrastructure providers whose equipment spans the access network all the way to ultra long-haul. The networking technologies also address the photonic layer to IP or layer 3.
  • Alcatel-Lucent and Ericsson already play in two domains while no Asian vendor has yet to be selected.
  • One or two more players may be added to the wireline access and optical and transport infrastructure domains but this part of the network is pretty much done.

So what domains are left? Peter Jarich, service director at market research firm Current Analysis, suggests the following:

  • Datacentre
  • OSS/BSS
  • IP Service Layer (IP Multimedia Subsystem, subscriber data management, service delivery platform)
  • Voice Core (circuit, softswitch)
  • Content Delivery (IP TV, etc.)

AT&T was asked to comment but the operator said that it has not detailed any domains beyond those that have been announced.

Date

Domain

Partners

Sept 2009

Wireline Access

Ericsson

Feb 2010

Radio Access Network

Alcatel-Lucent, Ericsson

April 2010

Optical and transport equipment

Ciena

July 2010

IP/MPLS/Ethernet/Evolved Packet Core

Alcatel-Lucent, Juniper, Cisco


Still some way to go

Briefing: Dynamic optical networking 

Part 1: The vision .... back in 2000

I came across this article (below) on the intelligent all-optical network. I wrote it in 2000 while working at the EMAP magazine, Communications Week International, later to become Total Telecom.

What is striking is just how much of the vision of a dynamic photonic layer is still to be realised.  Back then it had also been discussed for over a decade. And bandwidth management, like in 2000, is still largely at the electrical layer.

And yet much progress has been made in networking technology. But the way the network has evolved means that a more flexible photonic layer, while wanted by operators, is only one aspect of the network optimisation they seek to reduce the cost of transporting bits.

The second and third parts of the dynamic optical networking briefing will discuss how often operators reconfigure their networks and what is required, as well as developments in reconfigurable optical add-drop multiplexer (ROADM) and control plane technologies that promise to increase the flexibility of the photonic layer.

  --+++--

 

Seeing the light (April 17th, 2000)

The next generation of networks is coming, with abundant bandwidth and flexible services available on-demand, and intelligent management and provisioning at the optical layer. Roy Rubenstein finds out what's in store and who's set fair in this optical future.

For all its air of novelty, all-optical networking is actually a mature idea. Discussed for the best part of a decade, all-optical networks have perennially promised to deliver the next generation of “intelligent” services, yet besides the stir caused by the arrival of dense wavelength division multiplexing (DWDM), forcing greater capacity over fiber networks, there has been little in the way of tangible development.

Now, with limited ceremony, optical networking is reasserting itself, and the signs are that you could reap the benefits sooner than you think.

What excites operators most is the prospect of bandwidth on demand: high-speed links set up with little more than a few mouse clicks. But the technology is creating dilemmas as well as opportunities. On the one hand, the newer operators can enter the market with a sleeker network - fewer layers and fewer nodes - accompanied by the latest billing and management software. On the other hand, incumbent operators are facing the dilemma of when to embrace the technology and how to integrate it with their legacy equipment.

“Most of the network planners agree this is the way to go,” says Barry Flanigan, senior consultant at Ovum Ltd., of London. "The question is the precise technology and timing."

 

Flexible bandwidth

Flexible bandwidth provisioning will enable a range of services that have not been practicable until now. For example, network planners in corporations will no longer have to guess - and live with the consequences - each time they budget their capacity requirements and agree horribly rigid contract terms.

In fact all manner of on-tap services become possible when bandwidth is set up and collapsed on an hourly or minute-by-minute basis. One example is bandwidth trading between carriers, enabling operators with their own networks to grab business such as voice services while demand is there, and off load capacity when it is not.

A further example is the broadcasting of sporting events. Instead of satellite coverage, a TV company could set up a cheaper terrestrial network link to each sporting venue, but provision capacity only for the duration of the event. And content providers can offer services locally. Opening pipes, a provider can download and store video on demand on a country-by-country basis ready for delivery, before closing the links.

“That way the service seems a lot quicker,” says Andy Wood, chief technology officer at Storm Telecommunications Ltd., based in London.

 

Adding intelligence

The key to this flexible bandwidth provisioning is optical switches, which introduce “intelligence” to the optical layer. An optical switch-whether electrically based or all-optical-routes complete wavelengths of light packed with up to 10 megabits of data.

“The scenario today is that bandwidth management is at the electrical layer,” says Richard Dade, director for industry liaison, optical networking group, at Lucent Technologies Inc., Murray Hill, New Jersey. “By the end of this year-2001 it will transition into the optical layer.”

This is also the view of Nick Critchell, product marketing manager for core optical internetworking products at San Jose, California-based Cisco Systems Inc. “Looking forward two years to the core routing, it will provide intelligent switching and intelligent restoration,” he says.

But others question the impact such technologies are having on the awareness of the underlying optical network. “Intelligence may be too strong a word for it,” says Dr. David Huber, chief executive of Corvis Corp., the Columbia, Maryland-based optical networking technology start-up.

What interests him is the sheer data traffic-handling capabilities--transporting terabits of data--and network efficiencies that all-optical switches promise. For example Huber predicts network utilization will exceed 80% using all optical switches. Current network utilization figures are below 50%.

When it comes to the operators, it seems the newer breed is keenest to embrace the technology. For them, adopting intelligent optical switching provides a simpler network, removing the need for Sonet/Synchronous Digital Hierarchy (SDH) transmission equipment. They also gain in reduced operating costs and system efficiencies through the use of the latest network operating system, billing and management systems.

Established operators, in contrast, have an enormous legacy of network equipment. “Different telecoms operators have different levels of awareness [in adopting intelligent optical networks],” is the view of Margaret Hopkins, principal analyst at Cambridge, England-based consultancy Analysys Ltd.

And Hopkins is quick to stress that whatever the merits of the latest optical switching, it will not cause more established technologies to disappear any time soon. “Sonet gives you very fast reconfiguration [if a fiber is cut],” says Hopkins, pointing out that optical networks have some way to go before assuming this role. “For other users, SDH performs functions such as mixing different types of traffic - pulse coded modulated voice and IP - on the one wavelength. This is important, because a wavelength is an awful lot of capacity."

 

Some way to go

The future of Sonet/SDH is also secure while voice-over-Internet protocol (VoIP) traffic remains low, particularly as a proportion of all voice traffic. “With voice on packet networks, growth has been modest from a European perspective,” says Eric Owen, London-based senior director for European telecommunications at International Data Corp., Framingham, Massachusetts. “When asked about VoIP - medium-to-large enterprises across Europe - only 4% to 5% are doing it,” he says.

But operators are aware that they cannot afford to ignore intelligent optical switches, and several are already trialing the technology including MCI WorldCom Inc. and Williams Communications Inc.

One next-generation carrier has been bolder still. “The first indication of an optical switching network is the announcement from Storm,” says Chris Lewis, managing director of research and consulting at the Yankee Group Europe, of Watford, England. “Storm is basing its case on being able to switch in bandwidth pretty quickly,” he adds.

Storm, a carriers’ carrier, announced last month that it has acquired $100 million-worth of dark fiber to which it will connect optical equipment from Chelmsford, Massachusetts-based Sycamore Networks Inc. “It's the first example we've come across of concrete plans,” says Lewis.

The significance of Storm's announcement is the promise of bandwidth on demand. Mark Stewart, Storm Telecom's business development director, says its network users - carriers, large corporations and Internet service providers - can have the bandwidth they require, with costs based on usage. “A customer may need five STM-1, 155-megabit-persecond links one week and nine the next,” says Stewart.

Currently, an STM-16 (2.5 gigabits per second) link must be leased long-term to guarantee capacity, but through Storm users can buy the bandwidth they need in increments as small as 45 megabits per second, available for lease for “a short period,” according to the company. Storm has yet to finalize its service details, but claims 75% of its network will be up and running by the end of the summer.

The budding pan-European carrier is an example of what Analysys’ Hopkins refers to as a newer operator “configuring more interesting services more quickly.”

For “older” operators, meanwhile, expanding capacity involves adding overlays to their networks. Investing in the latest networking technology is seen as a strategic move, which needs to be taken, but which cannot be implemented in one fell swoop. “They have a share price - they don’t want to be seen to be a dinosaur,” says Hopkins.

And when they do add the latest IP technologies to their infrastructure, they “don’t get the simplification benefits,” she says.

 

Key stage

Equipment vendors, meanwhile, share the view that flexible switching is a key stage in the evolution of an all-optical layer.  “All vendors are working on this: not just to get capacity but to exploit these wavelengths,” says Ovum's Flanigan.

At present the bulk of the public network is still based on Sonet/SDH transmission technology, to which DWDM has been added to meet the demand for IP traffic. “[U.S. long-distance operator] Sprint now has 80% of their routes on WDM,” says Bill Anderson, director of optical networking research at Morristown, New Jersey-based Telcordia Technologies Inc.

Yet while it has fulfilled a need in addressing the steep demand for capacity in recent years, DWDM is some way from being the solution to flexible, “intelligent” bandwidth provisioning. “DWDM can be seen as large, relatively dumb pipes,” says Anderson.

The issue, according to Rick Dodd, director of marketing strategy at optical networking specialist Ciena Corp., of Linthicum, Maryland, stems from the nature of Sonet/SDH technology.

“A lot of human intervention has been traded for intelligence,” he says, referring to the economic realities when SDH technology was first introduced around 10 years ago. Then, the manual setting up of links made sense, but with a decade of improvement in the performance/cost of microprocessors and memory, this is no longer the case.

 

Economical touch

“It’s very economical to add software and application-specific integrated circuits to the optical infrastructure to deliver a whole new type of network,” says Dodd.

Sycamore Networks is one vendor seeking to exploit this shift. It describes itself as a developer of hardware and software for next-generation optical networks. “What we call intelligent optical networks,” says Jeff Kiel, Sycamore's vice president of product marketing.

Kiel points out that currently Sonet/SDH equipment converts the data into optical form and manages traffic across the network. Sycamore Networks, for one, argues that with intelligent switch technology operators no longer even have to buy SDH equipment.

“You can provide the SDH framing - the same functionality - but subsume it into the optical layer,” says Kiel. Instead of having an IP device connecting to SDH equipment, which in turn connects to DWDM and ultimately fiber, the number of layers in the network can now be limited to three: the IP device linking directly to the intelligent optical network, which in turn connects to the fiber.

Lucent's Dade agrees that SDH can be bypassed, but believes, like Analysys’ Hopkins, that its course has not been run just yet.

“Our projections are that there is still a long life for Sonet/SDH services,” he says. “There will be strong growth for Sonet/SDH and stronger growth for intelligent optical network equipment.”

Carriers and manufacturers alike are looking to collapse telecoms networks into two layers. At the upper, switched layer, asynchronous transfer mode (ATM) and IP are being consolidated and are pulling in certain core SDH functions. The challenge is to ensure that the reconfiguration at the optical layer matches the tried-and-tested reliability of the SDH layer.

Having intelligent switching devices at the optical level is a precondition of this, and raises the prospect of a network with the intelligence to adapt itself--what Dennis Jennings, Telcordia Technologies’ vice president for next-generation networks, calls a dynamic reconfigurable network.

The Optical Domain Service Interconnect (ODSI) initiative [the ODSI merged with the OIF’s signaling workgroup], set up in January [2000] by 50 vendors and service providers, is working to develop a signaling scheme to ensure better communication between the two layers. “In the next year or two carriers will replace networks with two layers,” predicts Jennings.

One consequence of the increasing awareness at the optical layer is that assigning bandwidth may no longer be the preserve of operators. If the ODSI initiative proves successful, an IP router will be able to request an extra wavelength from the optical layer whenever it detects congestion, and relinquish it once the data surge passes.

“Optical networking will enable the provisioning of bandwidth to be instantaneously available,” says Alan Taylor, consulting engineer for Europe at backbone router company Juniper Networks Inc., of Mountain View, California.

“The ODSI is focused on a very simple problem,” says Rick Thompson, senior product marketing manager at Sycamore Networks, one of the co-founders of the initiative. “[The problem] has been deliberately scaled down with the aim of a quick deployment.”

Current routers can view the bandwidth between points, but no signaling scheme is available to enable an extra wavelength to be requested. ODSI intends to extend the signaling of the Multiprotocol Label Switching protocol (MPLS), which is used by routers to establish a path through the network for a given packet stream.

“This signaling between the data and the optical layers promises dynamic self-reconfiguring networks rather than ones needing human intervention,” claims Telcordia's Jennings.

A framework document has been completed and was discussed at an ODSI meeting held in Chicago on 6 April. Completion of the signaling extension is expected within the next three months.

ODSI is not developing a standard, but rather an open framework which the initiative’s members will adopt. Interoperability testing will then ensue.

“You can expect large scale deployment in 2001,” says Thompson.

 

The equipment vendors

The latest optical switch from Sycamore Networks Inc., the SN 16000, illustrates how optical nodes are gaining in awareness. Switching wavelengths - a necessary requirement if bandwidth is to be provisioned ‘in Seconds’ - is just one of its attributes. The node can also discover a network’s topology, so that should a fiber linking two cities be cut, the traffic can be rerouted on a different path.

This “intelligence” can even take into account the dispersion characteristics of the fiber. Thus if the original path is based on a Sonet OC-192 link, the switch redistributes the data accounting for the fiber’s nature.

Williams Communications Inc., a carrier based in Tulsa, Oklahoma, is trialing an intelligent optical switch from Ciena Corp. in addition to adopting Sycamore’s equipment. Dubbed Multiwave Coredirector, Ciena’s switch is also network-aware, and through the use of the optical signaling and routing protocol (OSRP) can communicate with other Ciena optical switches to determine the network’s status as well as planning the best path for traffic.

“We are enabling optical carriers to deliver optical bandwidth very quickly. In a variety of sizes--wavelengths and fractions of wavelengths - and employed with a variety of priorities,” says Ciena's Dodd. According to the vendors this flexibility can boost carriers’ revenues and have an impact on the implementation cost. “If you look at where service providers are spending their money, for every $1 spent on equipment, $2 to $4 is spent making it run,” says Dodd.

Williams’ appetite for trialing technology is not confined to Ciena and Sycamore's electrical-based optical switches. It is also trialing an all-optical cross-connect switch from Corvis Corp.

According to the carrier not only will an all-optical switch ease the huge increase in expected traffic, it will also help meet the variable demand in bandwidth as traffic becomes increasingly unpredictable, with applications such as video broadcast across the Internet becoming commonplace.

Andy Wright, chief technologist for optical networking at Williams describes Corvis’ technology as suited to “ultra long-haul networking,” removing the need for regenerators as the wavelengths are routed from one end of the optical layer to the other.

Regeneration equipment for a channel can cost between $60,000 and $70,000, says Wright. For a typical 100-channel site the cost is $7 million. By eliminating regeneration, what is required is a $100,000 optical amplifier, “a scale change in prices.”

Qwest Communications Corp., meanwhile, believes all-optical networking will drive down its operating costs by as much as 70%.

Lucent Technologies Inc. is another vendor developing an all-optical switch. “In our view the optical-electrical-optical conversion when routing a wavelength should not happen,” says Dade. Having an all-optical implementation is not only intrinsically cheaper, he says, but extraordinarily flexible. Lucent's Lambdarouter switch is currently being trialled by a U.S. long-distance operator and will be in production by year end.

But the view of Cisco Systems' Nick Critchell is that all-optical switching has still to prove it is reliable enough to be deployed across optical networks. That said, he is in no doubt about the technology’s merit. “We are moving [to develop an all-optical switch] and will be in that space,” he says.

 

Other sections of this briefing:

Part 2: ROADMS: reconfigurable but still not agile

Part 3: To efficiency and beyond


Ciena post-MEN

Ciena has been busy since completing the acquisition of Nortel’s Metro Ethernet Networks (MEN) business back in March.

 

“The 40G and 100G technology were key to the deal and we made sure that the core team was still there”

 

Tom Mock, Ciena

 

 

 

The company has announced the CN 5150 service aggregation switch, added Nortel’s 40 Gigabit-per-seconds (Gbps) coherent transmission technology to its flagship CN 4200 platform, and announced 140 job cuts, mostly in Europe. US operator AT&T has also selected the company as one of two suppliers of its optical and transport equipment.

Ciena provides optical transport, optical switching and Carrier Ethernet equipment. “We were finding it difficult to fund the required R&D in all three segments,” says Tom Mock, senior vice president of strategic planning at Ciena. “We saw this [the MEN acquisition] as an opportunity to bring good technology on board and give the company the scale needed to execute in these technology areas.”

According to Mock, Ciena was one of several firms interested in the Nortel unit but that Nokia Siemens Networks was the main counter-bidder in the auction process.  Ciena won after agreeing to pay US $773.8 million, gaining MEN’s R&D group and associated sales and marketing.  

In particular, it gained the R&D for optical transport – Nortel’s Optical Multiservice Edge (OME) 6500 product line for 40Gbps and 100Gbps, the Optical Metro 5200 metro and enterprise platform, Carrier Ethernet, and the R&D for software and network management.  Most of these activities are based in Ottawa, Ontario. 

“We had pretty good solutions in optical switching and carrier Ethernet but we were looking for a stronger transport offering, which is what Nortel brought to us,” says Mock. The acquisition, which effectively doubles the company’s size, means that Ciena now plays in a “$18 billion sandbox” comprising optical networking and Ethernet transport and services, according to market research firm Ovum.

Did Ciena secure Nortel’s MEN’s key staff, given the lengthy period – over a year – to complete the acquisition?  “We agreed with Nortel that we would get 2000 staff out of a total of 2300 staff,” says Mock.  

Yet Ciena had no visibility regarding staff since Nortel remained a competitor until the deal was completed.  “We were very pleasantly surprised at the quality of the people who were in MEN,” says Mock. “When companies are in hard times the best people begin to leave, and because of the uncertainty I’m sure some people did leave.”

Ciena claims it secured MEN’s core 40 and 100Gbps team despite announcements such as Infinera's that it had recruited John McNicol, a senior engineer involved in the development of Nortel’s coherent technology. “The 40G and 100G technology were key to the deal and we made sure that the core team was still there,” says Mock.

He also dismisses the view that Nortel’s 100Gbps coherent technology market lead has been eroded due to the uncertainty. Mock claims it has a 12- to 18-month lead and points to Verizon Business’ deployment of Nortel’s 100Gbps system in late 2009 as proof that MEN continued to push the technology.

 

Strategy

Ciena’s primary focus is on what it calls carrier optical Ethernet, described by Mock as the marrying of the capacity scaling and reliability of optical transport with the ubiquity, flexibility and economics of Ethernet.

For Ciena this translates to three main product lines:

  • Packet optical transport, primarily optical transport with some aggregation.
  • Packet optical switching based on Ciena’s CoreDirector platform with its time-division multiplexing (TDM) and Ethernet switching, as well as control plane technology.
  • Carrier Ethernet service delivery.  

According to Ovum, Ciena is now the third “billion dollar club” optical networking vendor member with a 9% market share, behind Huawei and Alcatel-Lucent, with 24% and 19%, respectively. It also becomes the North American leader, with a 20% share while improving its standing in all other regional markets. In contrast, for Ethernet the combined company had only 3% share in 2009. “We are emerging as a leader in the Carrier Ethernet space,” claims Mock. “In 4Q 2009 we were leading in North America, according to Heavy Reading.”

Ciena sees optical transport and switching blurring but says that most of its customers still see these as separate products. “Both our packet optical switching and packet optical transport platforms can be used in these applications, for example the OME 6500 is looked at as a transport device but it has TDM and packet switching as well,” says Mock. But with time Ciena says optical switching and optical transport product families will increasingly consolidate.

 

What next?

Having completed the deal, one of the first things Ciena did was determine its product portfolio and tell its operator customers its plans.

Issues set to preoccupy Ciena for the next 12 to 18 months include the integration of Nortel’s 40Gbps and 100Gbps technology onto Ciena’s transport and switching platforms, getting the control plane of Ciena’s switching product integrated onto Nortel’s products, and bringing all the products under common network management.

At OFC/ NFOEC 2010 Ciena showcased Nortel’s OME 6500 transmitting over Ciena’s CN 4200 line system with both being overseen by Ciena’s OnCenter management software. “I wouldn’t point to the network management integration as a finished product but a step along the path,” says Mock.

According to Ovum, the demonstrations included 100Gbps over 1,500km of Corning ultra-low-loss fiber, 100Gbps over 800km in the presence of large and fast polarisation mode dispersion transients, and 40Gbps ultra-long haul transmission over 3,500km.

Ciena has said it expects its business to grow at least at the market rate: 10 to 12 percent yearly.

 

AT&T domain supplier

In April, AT&T announced that it had selected Ciena as a domain supplier.  AT&T's domain supplier programme involves the operator splitting its networking requirements across several technologies, choosing two players for each domain. AT&T plans to work closely with each domain supplier ensuring that AT&T gains equipment tailored to its requirements while vendors such as Ciena can focus their R&D spending by seeing early the operator’s roadmap.

Did Ciena acquire Nortel to become a domain partner? “We would not make an acquisition to win the business of any one carrier,” says Mock. “But we realised that if we going to be a significant player in next-generation infrastructure we needed a certain critical mass, in portfolio and market coverage globally.

“Did we get selected because of Nortel, it’s hard to say – I’m sure it didn’t hurt - but we've been a supplier to AT&T for 10 years,” says Mock.  He also highlights the operator’s own announcement to explain Ciena’s selection: “They talk about two technologies in particular – 100Gbps technology and Optical Transport Networking (OTN).”

Ovum argues in its “Telecoms in 2020: network infrastructure” report that the future prospects of specialist vendors will be as rosy as full-service ones. “We do view ourselves as specialists even though we’ve essentially doubled the size of the company, and there is absolutely a place for specialist companies as they are genuinely more agile,” says Mock.

Mock also expects further system vendor consolidation. “Optical transport remains fragmented so there are opportunities for further consolidation,” he says. Fragmented in what way? “If you look at the router space there are two dominant players, in optical transport there are 10 – no-one has a 40 to 50 percent market share.”


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