Ciena to sell its own coherent modules
The systems vendor is expanding its offerings to include WaveLogic modem chips and coherent optical modules.
Ciena is developing its own coherent modules to sell to the telecom and datacom markets.
The system vendor has set up the Optical Microsystems Division business unit to promote its WaveLogic coherent modem technology to the marketplace. Until now it has licensed its WaveLogic Ai digital signal processor (DSP) to module makers Lumentum, NeoPhotonics and Oclaro. But now it is planning to sell its own coherent modules.
In a job advert for a head of sales channel development, Ciena says the Optical Microsystems Division's goal is ‘to develop and productize electro-optic components and modules for sale to global systems integrator customers to be incorporated in their products for sale to telecom and data network customers’.
And at the recent European Conference on Optical Communication (ECOC) held in Rome, a network equipment manufacturer said it was approached by Ciena enquiring if it was interested in buying coherent modules from the company.
Ciena would not comment when asked if it will sell its own coherent modules. Instead, the company pointed to statements it made during its fourth quarter 2017 earnings call that outlined the creation of the Optical Microsystems Division with the stated goal of generating $50 million annual revenues by year-end 2020.
[At ECOC], a network equipment manufacturer said it was approached by Ciena enquiring if it was interested in buying coherent modules from the company
Optical Microsystems Division
Until Ciena announced in early 2017 the licensing of its 400-gigabit WaveLogic Ai to Lumentum, NeoPhotonics and Oclaro, systems vendors kept their coherent DSPs in-house. And with good reason. These are the chips that power their leading optical platforms and enable product differentiation.
Ciena’s announcement at the time showed a willingness to pursue a different business model. By licensing its DSP to optical module makers, Ciena could break into important new markets such as China even though the move would benefit its competitors using its advanced DSP for their platforms.
But the market has changed since Ciena made the announcement and now the company is deciding how best to proceed, says Mike Genovese, managing director and senior equity research analyst at MKM Partners.
“At the time of the announcement it seemed there was a big opportunity selling the [coherent] modem into Chinese OEMs,” says Genovese. “But that seems less likely now because Chinese OEMs want to assemble their own modules out of components they buy and make.”
The result is that the opportunity has shifted to data centre interconnect. “But there are decisions that need to be made,” says Genovese. “For example, does Ciena want to make its modem product a [pluggable] 400ZR solution?”
It is a view shared by Sterling Perrin, principal analyst, optical networking and transport at Heavy Reading.
“It [the licensing of its DSP] was originally built around breaking into the China market. That strategy now looks must riskier than it did originally, so I’m certain they are looking at every alternative,” says Perrin. ”The main goal is to get the most return-on-investment on the money they put into building a WaveLogic generation, and using that money to fund the next generation of DSP investment.”
At the time of the announcement it seemed there was a big opportunity selling the [coherent] modem into Chinese OEMs. But that seems less likely now.
Pluggables are going to become an important opportunity for coherent technology, says Andrew Schmitt, founder and directing analyst at Cignal AI. Schmitt says the next stage of coherent’s development - what he calls the fourth generation of coherent - will be pluggable from the start and more standards-based than any wavelength-division multiplexing (WDM) pluggable that has preceded it.
“It will address a large portion of the overall market - not just cloud operator data centreinterconnect,” says Schmitt. “Equipment vendors will need to adjust their strategies as many standalone optical hardware applications will be displaced by pluggable coherent.”
Ciena also has all the required technologies. As well as its WaveLogic modem technology, it has high-speed optical component expertise that it gained with the 2016 acquisition of Teraxion’s photonics division. The Teraxion group had indium phosphide and silicon photonics technologies.
All change
The agreement between Ciena and the three optical module makers also included an option where future WaveLogic DSPs would be made available to the three for applications such as 400-gigabit pluggables.
NeoPhotonics says that Ciena’s general strategy of bringing its WaveLogic Ai technology to a larger market and application space has not changed.
Equipment vendors will need to adjust their strategies as many standalone optical hardware applications will be displaced by pluggable coherent
Is Ciena going straight to market with future WaveLogic-based modules?
“How the modules are marketed may follow different models in the future; there is always an evolution in business models as the market shifts,” says Ferris Lipscomb, NeoPhotonics’ vice president of marketing. “Our intention is to continue to be a partner and bring value to the Ciena Microsystems business wherever possible.”
Lumentum would not comment on what the status was regarding using future coherent DSPs, nor would it say whether Ciena is to sell its own modules. Lumentum did say that it has a close relationship with Ciena and that it continues to support partnership opportunities.
But the possibility of Ciena selling modules to the marketplace is not ruled out by Ciena’s third optical module partner, Oclaro.
Yves LeMaitre, chief strategy officer at Oclaro says that Ciena’s recent announcements could point to a new strategic direction. “At this point, it is unclear how they are going to do this,” he says. Oclaro also does not know yet if it will gain access to new WaveLogic designs.
LeMaitre views the options with Ciena’s coherent technology as part of a broader debate as to how systems vendors should adapt their business models in an environment of change brought about by software-defined networks and open design frameworks.
The fact that internet content providers purchase optics directly, as do certain service providers, creates a dilemma for the systems vendors. “How are they going to go to the market to address this?” says LeMaitre. “Are they going to rely on a partnership with module makers or are they going to address the market on their own?”
Oclaro says it remains ‘very interested’ in working with Ciena if it is willing to give the module maker access to future DSP designs for pluggables.
Ciena launches the 8700 metro Ethernet-over-WDM platform
- The 8700 Packetwave is an Ethernet-over-DWDM platform
- The 8700 is claimed to deliver double the Ethernet density while halving the power consumption and space required.
Source: Ciena
Ciena has launched the 8700 Packetwave platform that combines high-capacity Ethernet switching with 100 Gigabit coherent optical transmission.
The platform is designed to cater for the significant growth in metro traffic, estimated at between 30 and 50 percent each year, and the ongoing shift from legacy to Ethernet services.
Brian Lavallée
Analysts predict that by 2017, 75 percent of the overall bandwidth in the metro will be Ethernet-based.
"In the major markets we compete in, our customers are telling us that Ethernet has already surpassed 75 percent," says Brian Lavallée, director of technology & solutions marketing at Ciena.
"What you're seeing is a trend towards convergence," says Ray Mota, managing partner at ACG Research. "The economics make sense and it should have happened but organisational issues have caused the delay."
Many service providers have two separate groups, one for packet and another for transport. "Now, many service providers are merging the two groups, feeling the time is right, so you will see more and more converge products get more penetration," says Mota.
The 8700 can be viewed as a slimmed-down packet-optical transport system (P-OTS), tailored for Ethernet. The platform's packet features include Ethernet and MPLS-TP for connection-oriented Ethernet, while optically it has 100 Gigabit coherent WDM.
"This is a more specialised machine hitting this target spot in the aggregation networks," says Michael Howard, co-founder and principal analyst, carrier networks at Infonetics Research. "It doesn't need much MPLS, it doesn’t need OTN switching, and it doesn’t need SDH/TDM."
The main applications for the 8700 include aggregation of telcos' business services, data centre interconnect, wireless backhaul, and the distribution of cable operators' Ethernet traffic. "It [the 8700] is a good product for edge aggregation, where the bandwidth is getting cranked up," says Howard. "I see it as an Ethernet-over-DWDM platform, performing the aggregation on the customer side and the fan-in on the upstream side."
Ray MotaTwo Packetwave platforms have been announced: an 800 Gigabit full-duplex switching capacity platform and a 2-Terabit one. The platform's line cards support 10, 40 and 100 Gigabit client-side interfaces while a line-side card has two 100 Gigabit coherent interfaces based on Ciena's WaveLogic DSP-ASIC technology.
Ciena says the platform will support double the capacity when it introduces WaveLogic devices that deliver 100 and 200 Gig rates. "It has been tested," says Lavallée. "It is just a matter of changing the cards."
The 8700 is claimed to deliver double the Ethernet density compared to competing platforms, while halving the power consumption and space required. "Given it is a new category of product, we don't have a direct competitor," says Lavallée. "But when we say half the power and space, that is the average across these multiple products from competitors."
Lavallée would not detail the competitor platforms used in the comparison but Mota cites Alcatel-Lucent's 7450 and 7950 platforms, Juniper's MX and PTX platforms and Cisco's ASR 9000 as the ones likely used.
Using merchant silicon for the Ethernet switching has helped achieve greater density, as has using Ciena's own WaveLogic DSP-ASIC. "The further development we have done on our [WaveLogic] coherent optical processor does give us significant savings, not just in power but also real-estate," says Lavallée.
Being a layer-2 platform, the 8700 has none of the packet processing and specialist memory hardware requirements associated with layer-3 IP routers, also benefitting the platform's overall power consumption.
Michael HowardCiena stresses that P-OTS is not going away and that it will continue to deliver significant value for certain customers. "The biggest concern of customers is complexity," says Lavallée. "There are a lot of ways of reducing complexity in your network and some customers believe that is Ethernet-over-dense WDM."
ACG's Mota sees the launch of the 8700 as an important move by Ciena. "The metro is the hot area that needs transitioning," he says. "Many of the traditional core requirements are moving to the metro so the timing of Ciena playing in this space with a converge platform could be strategic, providing they partner well with companies like Ericsson and the network functions virtualisation software providers."
Lavallée says that with the advent of software-defined networking and the applications that make use of the technology, there is an underlying shift from the hardware towards software. But he dismisses the notion that hardware is becoming less important.
"What is lost in this whole discussion is that if you don't have a programmable piece of hardware below, you can't write these apps," says Lavallée. The 8700 hardware is programmable and there are open interfaces to access it, he says: "We have a lot of knobs and switches that the software can use."
Further reading
Paper: Ciena 8700 Packetwave platform, click here
The capacity limits facing optical networking
Ever wondered just how close systems vendors are in approaching the limits of fibre capacity in optical networks? Kim Roberts, senior director coherent systems at Ciena, adds some mathematical rigour with his explanation of Shannon's bound, from a workshop he gave at the recent Layer123's Terabit Optical and Data Networking conference held in Cannes.
Part 1 Shannon's bound
Source: Ciena
One positive message from Kim Roberts is that optical networking engineers are doing very well at squeezing information down a fibre. But a consequence of their success is that the scope for sending yet more information is diminishing.
"The key message is we are reaching that boundary," says Roberts. "We are not going to have factors of 10 improvement in spectral efficiency."
Shannon's bound
The boundary in question - the green line in the chart above - is based on the work of famed mathematician and information theorist, Claude Shannon. The chart shows how the amount of information that can be sent across a fibre is ultimately dictated by the optical signal-to-noise ratio (OSNR).
To understand the chart, the axes need to be explained. The y-axis represents the Gigabits-per-second (Gbps) of information to be communicated error free in a 50GHz ITU-defined channel. The second, right hand y-axis is an alternative representation, based on spectral efficiency: How many bits/s are transmitted, error free, per Hertz of optical spectrum. For example, 100Gbps fitted within a 50GHz channel (see 100Gbps black dot) has 2bits/s/Hz spectral efficiency.
The horizontal axis is the OSNR, measured as the total power in the signal divided by the noise in a tenth of a nanometer of spectrum.
The curve, in green, shows where communication is possible and where it is not, based on Shannon's bound. "Shannon described that for a given bandwidth - 50GHz in this example - based on the amount of noise present, specifically the signal-to-noise ratio - is the limit of the amount of information that can be communicated error free."
Roberts points out that Shannon's work was based on a linear communication channel with added Gaussian noise. Fibre is a more complex channel but the same Shannon bound applies, although some assumptions must be made. "There are certain assumptions for the non-linearities in the fibre," says Roberts. "If you make reasonable assumptions, you can draw this [Shannon] bound which shows where it is possible - and where it is not - to operate."
The dots on the chart represent the different generations of Ciena's optical transmission systems based on its WaveLogic coherent ASIC technology. The 10Gbps black dot is the performance of Ciena's first generation WaveLogic silicon. The black dot at 40Gbps and 100Gbps represent the performance achieved using Ciena's WaveLogic 2 40 and 100Gbps ASICs, shipping since 2009.
The two blue dots - at 100Gbps and 200Gbps - represent the performance achieved using Ciena's latest WaveLogic 3 silicon shipping this year. The 100Gbps is achieved using dual-polarisation, quadrature phase-shift keying (DP-QPSK) and the 200Gbps using DP-16QAM (quadrature amplitude modulation). The 200Gbps data after forward error correction in a 50GHz channel achieves 4bits/s per Hertz of spectrum.
The 100Gbps WaveLogic 3 (blue dot) delivers improved performance compared to the 100Gbps WaveLogic 2 (black dot) silicon by shifting the performance to the left, closer to the bound.
"Moving to the left means tolerating more noise, which can be translated to longer reach or higher-noise bands or more tolerance for imperfections in the network." Just how this improved performance - in terms of gained decibels (dBs) - is used depends on whether the network deployment is a long-haul or metro one, says Roberts.
What next?
Moving to faster data rates - vertically on the graph - raises its own issues. A Terabit - 1,000Gbit/s - in a 50GHz channel requires an OSNR in excess of 35dB. "That is not something that can be achieved in the network," says Roberts. "For a robust network you want to tolerate 20dB, or at least be left of 25dB." As a result, a practicable 1Tbps signal is not going to fit in a 50GHz channel.
The chart does imply that 400Gbps might be practicable in a 50GHz channel but as Roberts points out, while it might be theoretically possible, the closer you get to the theoretical limit, the harder it is to achieve.
"To increase capacity we need to find ways of reducing the noise on the line to move more to the right [on the chart]," says Roberts. "We [optical networking engineers] also need to push the data points to the left and vertically, but we are not going to push beyond the green."
Further Reading:
Capacity Trends and Limits of Optical Communication Networks, Proceedings of the IEEE, May 2012.
Part 2: Optical transmission's era of rapid capacity growth
Part 3: 2020 vision