Nokia buys Elenion for its expertise and partnerships
Nokia will become the latest systems vendor to bolster its silicon photonics expertise with the acquisition of Elenion Technologies.
The deal for Elenion, a privately-held company, is expected to be completed this quarter, subject to regulatory approval. No fee has been disclosed.
“If you look at the vertically-integrated [systems] vendors, they captured the lion’s share of the optical coherent marketplace,” says Kyle Hollasch, director of optical networking product marketing at Nokia. “But the coherent marketplace is shifting to pluggables and it is shifting to more integration; we can’t afford to be left behind.”
Elenion Technologies
Elenion started in mid-2014, with a focus of using silicon as a platform for photonics. “We consider ourselves more of a semiconductor company than an optics company,” says Larry Schwerin, CEO of Elenion.
Elenion makes photonic engines and chipsets and is not an optical module company. “We then use the embedded ecosystem to offer up solutions,” says Schwerin. “That is how we approach the marketplace.”
The company has developed a process design kit (PDK) for photonics and has built a library of circuits that it uses for its designs and custom solutions for customers.
A PDK is a semiconductor industry concept that allows circuit designers to develop complex integrated circuits without worrying about the underlying transistor physics. Adhering to the PDK ensures the circuit design is manufacturable at a chip fabrication plant (fab).
But developing a PDK for optics is tricky. How the PDK is designed and developed must be carefully thought through, as has the manufacturing process, says Elenion.
“We got started on a process and developed a library,” says Larry Schwerin, CEO of Elenion. “And we modelled ourselves on the hyperscale innovation cycle, priding ourselves that we could get down to less than three years for new products to come out.”
The “embedded ecosystem” Elenion refers to involves close relationships with companies such as Jabil to benefit from semiconductor assembly test and packaging techniques. Other partnerships include Molex and webscale player, Alibaba.
Elenion initially focussed on coherent optics, providing its CSTAR coherent device that supports 100- and 200-gigabit transmissions to Jabil for a CFP2-DCO pluggable module. Other customers also use the design, mostly for CFP2-DCO modules.
The company has now developed a third-generation coherent design, dubbed CSTAR ZR, for 400ZR optics. The optical engine can operate up to 600 gigabits-per-second (Gbps), says Elenion.
Elenion’s work with the cloud arm of Alibaba covers 400-gigabit DR4 client-side optics as well as an 800-gigabit design.
Alibaba Cloud has said the joint technology development with Elenion and Hisense Broadband covers all the production stages: the design, packaging and testing of the silicon photonics chip followed by the design, packaging, assembly and testing of the resulting optical module.
Bringing optics in-house
With the acquisition of Elenion, Nokia becomes the latest systems vendors to buy a silicon photonics specialist.
Cisco Systems acquired Lightwire in 2012 that enabled it to launch the CPAK, a 100-gigabit optical module, a year ahead of its rivals. Cisco went on another silicon photonics shopping spree more recently with the acquisition of Luxtera in 2019, and it is the process of acquiring leading merchant coherent player, Acacia Communications.
In 2013 Huawei bought the Belgium silicon photonics start-up, Caliopa, while Mellanox Technologies acquired silicon photonics firm, Kotura, although subsequently, it disbanded its silicon photonics arm.
Ciena bought the silicon-photonics arm of Teraxion in 2016 and, in the same year, Juniper bought silicon photonics start-up, Aurrion Technologies.
Markets
Nokia highlights several markets – 5G, cloud and data centres – where optics is undergoing rapid change and where the system vendor’s designs will benefit from Elenion’s expertise.
“5G is a pretty obvious one; a significant portion of our optical business over the last two years has been mobile front-haul,” says Nokia’s Hollasch. “And that is only going to become more significant with 5G.”
Front-haul is optics-dependent and requires new pluggable form factors supporting lower data rates such as 25Gbps and 100Gbps. “This is the new frontier for coherent,” says Hollasch.
Nokia is not looking to be an optical module provider, at least for now. “That one we are treading cautiously,” says Hollasch. “We, ourselves, are quite a massive customer [of optics] which gives us some built-in scale straight away but our go-to-market [strategy] is still to be determined.”
Not being a module provider, adds Schwerin, means that Nokia doesn’t have to come out with modules to capitalise on what Elenion has been doing.
Nokia says both silicon photonics and indium phosphide will play a role for its coherent optical designs. Nokia also has its own coherent digital signal processors (DSPs).
“There is an increasingly widening application space for silicon photonics,” says Hollasch. “Initially, silicon photonics was looked at for the data centre and then strictly for metro [networks]; I don’t think that is the case anymore.”
Why sell?
Schwerin says the company was pragmatic when it came to being sold. Elenion wasn’t looking to be acquired and the idea of a deal came from Nokia. But once the dialogue started, the deal took shape.
“The industry is in a tumultuous state and from a standpoint of scenario planning, there are multiple dynamics afoot,” says Schwerin.
As the company has grown and started working with larger players including webscales, their requirements have become more demanding.
“As you get more into bigs, they require big,” says Schwerin. “They want supply assurance, and network indemnification clauses come into play.” The need to innovate is also constant and that means continual investment.
“When you weigh it all up, this deal makes sense,” he says.
Schwerin laughs when asked what he plans to do next: “I know what my wife wants me to do.
“I will be going with this organisation for a short while at least,” he says. “You have to make sure things go well in the absorption process involving big companies and little companies.”
Elenion's coherent and fibre-to-the-server plans
- Elenion’s coherent chip - an integrated modulator-receiver assembly - is now generally available.
- The company has a silicon photonics design library that includes over 1,000 elements.
- Elenion is also developing an optical engine for client-side interfaces.
Elenion Technologies has given an update on its activities and strategy after announcing itself eight months ago. The silicon photonics-based specialist is backed by private equity firm, Marlin Equity Partners, which also owns systems vendor, Coriant. Elenion had already been active for two and a half years and shipping product when it emerged from its state of secrecy last December.
Larry SchwerinElenion has since announced it is selling its telecom product, a coherent transceiver PIC, to Coriant and now other companies.
It has also progressed its optical engine design for the data centre that will soon be a product. Elenion has been working with Ethernet switch chip maker, Cavium, and data centre player, Microsoft, as part of its datacom work.
“We have moved forward,” says Larry Schwerin, the CEO of Elenion.
Coherent PIC
Elenion’s integrated modulator-receiver assembly is being used by Coriant for two CFP2 Analogue Coherent Optics (CFP2-ACO) modules as part of its Groove G30 platform.
The first is a short-reach CFP2-ACO for point-to-point 200-gigabit links that has a reach of at least 80km. The second is a high-performance CFP2-ACO that has a reach of up to 4,000km at 100 gigabits and 650km at 200 gigabits.
Schwerin says the company is now selling the coherent PIC to “a lot of people”. In addition to the CFP2-ACO, there is the Digital Coherent Optics (DCO) pluggable market where the PIC and the coherent digital signal processor (DSP) are integrated within the module. Examples include the CFP-DCO and the smaller CFP2-DCO which is now being designed into new systems. ADVA Optical Networking is using the CFP2-DCO for its Teraflex, as is its acquisition target MRV with its 200-gigabit coherent muxponder. Infinera’s latest XTM II platforms also use the CFP2-DCO.
We have got a library that has well over 1,000 elements
Using silicon photonics benefits the cost and performance of the coherent design, says Schwerin. The cost benefit is a result of optical integration. “You can look at it as a highly simplified supply chain,” says Schwerin. Coupling the electronics close to the optics also optimises overall performance.
Elenion is also targeting the line-card market for its coherent PIC. “This is one of the reasons why I wanted to stay out of the pluggable business,” says Schwerin. “There are a lot more customers out there if you stay out of pluggables because now you are selling an [optical] engine.”
The company is also developing a coherent PIC design that will support higher data rates such as 400- and 600-gigabit per lambda. “Without being too specific because we do remain stealthy, we have plans to support these applications,” says Schwerin.
Schwerin stresses that the real strength of the company is its design library used to develop its silicon photonics circuits. Elenion emerged out of a silicon photonics design-for-service company. “We have got a library that has well over 1,000 elements,” he says. Elenion says it can address custom design requests of companies using its design library.
Datacom
Elenion announced at the OFC show held in Los Angeles in March that it is working with Jabil AOC Technologies, a subsidiary of the manufacturing firm, Jabil Circuits. Elenion chose the contract manufacturer due to its ability to address both line-card and pluggable designs, the markets for its optical engines.
The two firms have also been working at the chip level on such issues as fibre attach, coupling the laser and adding the associated electronics. “We are trying to make the interface as elegant and streamlined as possible,” says Schwerin. “We have got initiatives underway so that you don't need these complex arrangements.”
Schwerin highlights the disparity between the unit volumes needed for the telecom and datacom markets. According to forecasts from market research firms, the overall coherent market is expected to grow to 800,000 and 1 million units a year by 2020. In contrast, the interfaces used inside one large-scale data centre can be up to 2 million. “To achieve rapid manufacturing and yield, you have got to simplify the process,” he says.
This is what Elenion is tackling. If 1,000 die can be made on a single silicon wafer, and knowing the interface volumes required and the yields, the total number of wafer runs can be determined. And it is the overall time taken from starting a wafer to the finished transceiver PIC output that Elenion is looking to shorten, says the CEO.
We ran that demo from 7 AM to 2 AM every day of the show
At OFC, Elenion hired a hotel suite near the convention centre to demonstrate its technologies to interested companies. One demonstration used its 25Gbps optical engine directly mounted on a Cavium QLogic network interface card (NIC) connecting a server to a high-capacity Cavium Xpliant Ethernet switch chip. The demo showed how 16 NICs could be connected to the switch chip for a total capacity of 400 gigabits. “No more direct-attached cables or active optical cables, literally fibre-to-the-server,” says Schwerin. “We ran that demo from 7 AM to 2 AM every day of the show.”
Elenion’s on-board optics design was based on the emerging Consortium of On-Board Optics (COBO) standard. “The Microsoft folks, we work with them closely, so obviously what we are doing follows their intent,” says Schwerin.
The optical engine will also support 56Gbps links when used with four-level pulse-amplitude modulation (PAM-4) and the company is even eyeing 100Gbps interfaces. For now, Elenion’s datacom optical engine remains a technical platform but a product will soon follow.
The company’s datacom work is also benefiting its telecom designs. “The platform technology that we use for datacom has now found its way into the coherent programme, especially around the packaging,” says Schwerin.
* The article was changed on July 25th to mention that Elenion's PIC is being used in two Coriant CFP-ACOs.
Reflections on OFC 2017
Mood, technologies, notable announcements - just what are the metrics to judge the OFC 2017 show held in Los Angeles last week?
It was the first show I had attended in several years and the most obvious changes were how natural the presence of the internet content providers now is alongside the telecom operators, as well as systems vendors exhibiting at the show. Chip companies, while also present, were fewer than before.
Source: OSA
Another impression were the latest buzz terms: 5G, the Internet of Things and virtual reality-augmented reality. Certain of these technologies are more concrete than others, but their repeated mention suggests a consensus that the topics are real enough to impact optical components and networking.
It could be argued that OFC 2017 was the year when 400 Gigabit Ethernet became a reality
The importance of 5G needs no explanation while the more diffuse IoT is expected to drive networking with the huge amounts of data it will generate. But what are people seeing about virtual reality-augmented reality that merits inclusion alongside 5G and IoT?
Another change is the spread of data rates. No longer does one rate represent the theme of an OFC such as 40 Gigabits or 100 Gigabits. It could be argued that OFC 2017 was the year when 400 Gigabit Ethernet became a reality but there is now a mix of relevant rates such as 25, 50, 200 and 600 gigabits.
Highlights
There were several highlights at the show. One was listening to Jiajin Gao, deputy general manager at China Mobile Technology, open the OIDA Executive Forum event by discussing the changes taking place in the operator's network. Gao started by outlining the history of China Mobile's network before detailing the huge growth in ports at different points in the network over the last two years. He then outlined China Mobile's ambitious rollout of new technologies this year and next.
China's main three operators have 4G and FTTx subscriber numbers that dwarf the rest of the world. Will 2017 eventually be seen as the year when the Chinese operators first became leaders in telecom networking and technologies?
The Executive Forum concluded with an interesting fireside discussion about whether the current optical market growth is sustainable. The consensus among representatives from Huawei, Hisense, Oclaro and Macom was that it is; that the market is more varied and stable this time compared to the boom and bust of 1999-2001. As Macom’s Preetinder Virk put it: "The future has nothing to do with the past". Meanwhile, Huawei’s Jeffrey Gao still expects strong demand in China for 100 gigabits in 2017 even if growth is less strong than in 2016. He also expects the second quarter this year to pick up compared to a relatively weak first quarter.
OFC 2017 also made the news with an announcement that signals industry change: Ciena's decision to share its WaveLogic Ai coherent DSP technology with optical module vendors Lumentum, Oclaro and NeoPhotonics.
The announcement can be viewed several ways. One is that the initiative is a response to the success of Acacia as a supplier of coherent modules and coherent DSP technology. System vendors designed their own coherent DSP-ASICs to differentiate their optical networking gear. This still holds true but the deal reflects how the progress of merchant line-side optics from the likes of Acacia is progressing and squeezing the scope for differentiation.
The deal is also a smart strategic move by Ciena which, through its optical module partners, will address new markets and generate revenues as its partners start to sell modules using the WaveLogic Ai. The deal also has a first-mover advantage. Other systems vendors may now decide to offer their coherent DSPs to the marketplace but Ciena has partnerships with three leading optical module makers and is working with them on future DSP developments for pluggable modules.
The deal also raises wider questions as to the role of differentiated hardware and whether it is subtly changing in the era of network function virtualisation, or whether it is a reflection of the way companies are now collaborating with each other in open hardware developments like the Telecom Infra Project and the Open ROADM MSA.
Another prominent issue at the show is the debate as to whether there is room for 200 Gigabit Ethernet modules or whether the industry is best served by going straight from 100 to 400 Gigabit Ethernet.
Facebook and Microsoft say they will go straight to 400 gigabits. Cisco agrees, arguing that developing an interim 200 Gigabit Ethernet interface does not justify the investment. In contrast, Finisar argues that 200 Gigabit Ethernet has a compelling cost-per-bit performance and that it will supply customers that want it. Google supported 200 gigabits at last year’s OFC.
Silicon photonics
Silicon photonics was one topic of interest at the show and in particular how the technology continues to evolve. Based on the evidence at OFC, silicon photonics continues to progress but there were no significant developments since our book (co-written with Daryl Inniss) on silicon photonics was published late last year.
One of the pleasures of OFC is being briefed by key companies in rapid succession. Intel demonstrated at its booth its silicon photonics products including its CWDM4 module which will be generally available by mid-year. Intel also demonstrated a 10km 4WDM module. The 4WDM MSA, created last year, is developing a 10km reach variant based on the CWDM4, as well as 20km and 40km based designs.
Meanwhile, Ranovus announced its 200-gigabit CFP2 module based on its quantum dot laser and silicon photonics ring resonator technologies with a reach approaching 100km. The 200 gigabit is achieved using 28Gbaud optics and PAM-4.
Elenion Technologies made several announcements including the availability of its monolithically integrated coherent modulator receiver after detailing it was already supplying a 200 gigabit CFP2-ACO to Coriant. The company was also demonstrating on-board optics and, working with Cavium, announced a reference architecture to link network interface cards and switching ICs in the data centre.
I visited Elenion Technologies in a hotel suite adjacent to the conference centre. One of the rooms had enough test equipment and boards to resemble a lab; a lab with a breathtaking view of the hills around Los Angeles. As I arrived, one company was leaving and as I left another well-known company was arriving. Elenion was using the suite to demonstrate its technologies with meetings continuing long after the exhibition hall had closed.
Two other silicon photonics start-ups at the show were Ayar Labs and Rockley Photonics.
Ayar Labs in developing a silicon photonics chip based on a "zero touch" CMOS process that will sit right next to complex ASICs and interface to network interface cards. The first chip will support 3.2 terabits of capacity. The advantage of the CMOS-based silicon photonics design is the ability to operate at high temperatures.
Ayar Labs is using the technology to address the high-bandwidth, low-latency needs of the high-performance computing market, with the company expecting the technology to eventually be adopted in large-scale data centres.
Rockley Photonics shared more details as to what it is doing as well as its business model but it is still to unveil its first products.
The company has developed silicon photonics technology that will co-package optics alongside ASIC chips. The result will be packaged devices with fibre-based input-output offering terabit data rates.
Rockley also talked about licensing the technology for a range of applications involving complex ICs including coherent designs, not just for switching architectures in the data centre that it has discussed up till now. Rockley says its first product will be sampling in the coming months.
Looking ahead
On the plane back from OFC I was reading The Undoing Project by Michael Lewis about the psychologists Danny Kahneman and Amos Tversky and their insights into human thinking.
The book describes the tendency of people to take observed facts, neglecting the many facts that are missed or could not be seen, and make them fit a confident-sounding story. Or, as the late Amos Tversky put it: "All too often, we find ourselves unable to predict what will happen; yet after the fact, we explain what did happen with a great deal of confidence. This 'ability' to explain that which we cannot predict, even in the absence of any additional information, represents an important, though subtle, flaw in our reasoning."
So, what to expect at OFC 2018? More of the same and perhaps a bombshell or two. Or to put it another way, greater unpredictability based on the impression at OFC 2017 of an industry experiencing an increasing pace of change.
Elenion unveiled as a silicon photonics PIC company
- Elenion Technologies is making silicon photonics-based photonic integrated circuits
- The company has been active for two and a half years and has products already deployed
A privately-owned silicon photonics company that is already shipping products has dropped its state of secrecy to announce itself. Elenion Technologies is owned by Marlin Equity Partners, the investment firm that also owns systems vendor, Coriant.
“We are in the [optical] engine business,” says Larry Schwerin, CEO of Elenion Technologies. “We are developing a platform leveraging silicon photonics but we have other capabilities.”
Larry SchwerinElenion’s expertise includes indium phosphide, radio frequency integrated circuits (RFICs), packaging, and driver and control electronics circuit design. The RFIC expertise suggests the company also plans to address the mobility market.
The company will detail its first products prior to the OFC show next March.
Telecom and Datacom
Elenion’s initial focus is the telecom market where its products are already deployed, with Coriant being a likely early customer. “We are also very active in datacom which has a different set of requirements,” says Schwerin.
Telecom is the harder 'trade space' of the two segments, says Schwerin. Telecom designs have to be outside-plant hardened and Telcordia-compliant. “Proving that world is a good place to get started and focussed,” he says.
In contrast, the datacom market has shorter equipment life cycles with optical designs deployed in a more controlled environment. Datacom customers also don't just want pluggables. “They want on-board solutions, parallel solutions, and they request a cost of $1-per-gigabit,” says Schwerin.
The company is targeting optical module makers, systems vendors and the cloud operators
The challenges facing the large-scale data centre operators are multifold: how they drive more bandwidth to the server, how they make the server more effective, how they scale their switching fabric, how they better use their fibre infrastructure and how they meet their optics cost targets.
Elenion says it has detailed data on the construction and costs of data centres and how they will scale. "You need to have that expertise in order to design the platform that they are trying to do today and going forward," says Schwerin. The company is working to deliver an optical engine that will help the data centre operators address the issues of distance, power consumption, space and signal integrity, and which will meet their $1-per-gigabit cost target.
We have developed a set of tools and a set of expertise that lets us design very complex integrated optoelectronic systems at the chip scale
Expertise
Elenion is limited in what it can say until its first products are unveiled. What is clear is that the silicon photonics company has a photonic integrated circuit (PIC) capability that it is using for on-board optics and for pluggable designs such as the CFP2.
Michael Hochberg
“We have developed a set of tools and a set of expertise that lets us design very complex integrated opto-electronic systems at the chip scale,” says Michael Hochberg, CTO of Elenion.
According to Hochberg, Elenion is pulling complexity out of other systems and putting it into silicon. The value of such PICs is that it avoids having to deploy discrete optics such as lenses. And silicon is the ideal platform for scaling complexity, says Hochberg: “All the areas that we have developed expertise are things that we believe will need to be co-designed with the PIC.”
In the electronics industry, you tape things out and you expect them to work. That is what we are replicating here.
The company says it is building up a capability that has long existed in the semiconductor industry. "In the electronics industry, you tape things out and you expect them to work," says Hochberg. "That is what we are replicating here."
For datacom applications, Schwerin says that in addition to the PIC’s function, the company has developed a wafer-scale approach to packaging. Here, devices are packaged while still on the wafer rather than having to dice the wafer first. “You have got to get into the volumes of millions, not tens or hundreds of thousands,” says Schwerin. “That forces you into that space.”
The company is targeting optical module makers, systems vendors and the cloud operators as customers.
Origins
Schwerin was formerly the CEO of Capella Intelligent Subsystems, a developer of wavelength-selective switch technology, that was sold to Alcatel-Lucent (now Nokia) in 2013.
Hochberg was a director at the Optoelectronic Systems in Silicon (OpSIS) foundry and was a co-founder of silicon photonics company, Luxtera.
The two first met at a conference when Hochberg was running Silicon Lightwave Services (SLS), a silicon photonics design-for-service company. Schwerin became CEO of SLS and the company was bought by Merlin two and a half years ago to become Elenion. The name Elenion means starlight, a nod to J.R.R. Tolkien’s novels.
“We are now introducing ourselves as we are getting enough requests that it seemed the appropriate time,” says Schwerin.