The future looks bright for optical networking as new products and services come to market in the year 2001. Speeds at the network core could read 100 terabits per second. VPNs and VoIP could finally fulfill their promise.

by Randall Anzalone of ARS, Inc. [February 16, 2001]

How close are we to seeing end-to-end optical lines throughout the networking industry? What is holding the technology back, and where are we likely to see this stunning growth take place?

1. One of the biggest growth opportunities for the widespread implementation of the optical protocol is in the Metropolitan Area Network (MAN). The 20-year-old Synchronous Optical Network (SONET) standard is still being implemented in MANs, and Ciena, Sycamore, and Redback have invested billions in order to keep the SONET protocol firmly in place. SONET will prove to be a difficult obstacle as optical networking manufacturers attempt to solidify their place within the MAN market.
   
   
2. Interoperability among manufacturers is also a barrier to optical growth. IT managers are in no rush to implement costly optical networking equipment that might be incompatible with existing infrastructure. As the year progresses, ARS expects more manufacturers to release interop standards for new products. For example, Riverstone, Sycamore, and Foundry Networks have recently announced interoperability between optical networking platforms.
   
   
3. Finally, QoS problems with other standards will prove to be an opportunity for optical products because optical products provide a low packet drop-ratio and easily implemented ultra high-speed service. However, QoS problems in general are holding back the deployment of several types of broadband services.

At the core, or epicenter of the Internet, optical hardware and software is already in demand. Companies such as start-up Caspian Networks have already begun working on switches capable of handling up to 100 terabit/sec at the Internet's core. However, transmissions still slow down considerably when reaching the edge of the network.

At the edge, new initiatives, such as the recent ONS 15327 Metro Edge Optical Transport Platform rolled out by Cisco, as well as comparable products by Juniper and Redback Networks, are fast becoming the norm. Intelligent switches (OSI layer 4-7) are able to replace costly terabit switch-routers without requiring changes to other networking devices, thus seamlessly adding strength and mobility without having to reconfigure the entire network.

The future is light
As the year progresses, slow circuit edge switches will be replaced by new optical multi-layer switches with help from the new Resilient Packet Ring (RPR) optical standard. Though many manufacturers are still counting on the ability of the old SONET standard to carry their products into the market, IP optical superswitches running on a SONET-enabled network have the intelligence to log and consequently speed up routing throughout the network, while automatically setting up alternative routes in case of failure.

Alternatively, optical switches on an RPR system will be able to instantaneously switch ring traffic between both rings, as well as in both directions. This combination of RPR and optical switches will serve to route traffic through the ring to edge servers without creating bottlenecks—preserving seamless voice and data connections.

Value-added services need light to grow
Data storage and security are increasingly important. Optical networking will provide high-speed, low-cost connections. Optical connections allow companies to build multiple site storage areas, rather than a single data center. Look for companies such as Entrada, TrueSAN, and Cervada Networks to capitalize on this demand for storage-driven optical networking services as they develop and deliver a range of storage area network or SAN products over the coming year.

In 2001, Storage Service Providers (SSPs) will extend storage services to increasingly smaller companies, and SSPs will also offer wholesale storage services to application service providers. Companies that have large storage requirements will put together their own storage networks as the price of optical connections decreases.

As companies begin to focus on the meshing of IP services, voice over Internet Protocol (VoIP), and optical networks, traditional brick-and-mortar companies are expected to begin providing all of the services comprising an all-optic network. Manufacturers such as Alcatel and Unisphere have recently announced plans to rollout so-called "next-generation" telecommunications equipment.

Though VoIP has been around for some time, the quality of calls placed over the Internet has been dubious. The lack of maturity in this sector has been holding back wide-scale adoption of VoIP services, however this sector is expected to become more and more ingrained into traditional and optical networking infrastructure in the coming year. Though AT&T has shown that bundled cable, telephony and data services are difficult to provide, more customizable hosting, IP, and Virtual Private Network (VPN) services are expected to become more available. Companies will attempt this more "customizable" approach in an attempt to distinguish themselves from competitors in light of the recent DSL shakeout.

Conclusion
Optical Networking is a nascent industry, and end-to-end operability if far from achieved. The year 2001 will be an exciting year, as new products and services arrive, and as the sector as a whole continues to grow.

— End

 

Based in La Jolla, California, ARS Inc. provides business-to-business Competitive Market Intelligence. ARS specializes in the daily tracking and analyzing of the e-commerce, PC, and Networking markets. ARS is a comprehensive resource for competitive market intelligence about you company's products, pricing, margins, marketing activities, promotional campaigns, and channel programs.