SOURCE: LightCounting


June 21, 2016 09:00 ET

Infrastructure Spending of the Cloud Companies Sets a New Record and Deployments of 100GbE Optics in Mega Data Centers Pick up Steam

EUGENE, OR--(Marketwired - June 21, 2016) - LightCounting releases Quarterly Market Update Report, presenting analysis of the optical communications industry supply chain in the first half of 2016, including the market shares of the leading suppliers of 100G DWDM transport equipment.

LightCounting's Quarterly sales database, released along with the report, includes estimates for shipments and pricing of more than 100 optical components and modules in the first two quarters of 2016 and actual data for 2014-2015. More than 20 leading optical transceiver suppliers contributed data to this report.

Spending on property, plant, and equipment by 16 leading cloud companies grew by a whopping 54% in Q1 2016 compared to Q1 2015, after taking a breather in the latter half of 2015. While property, plant, and equipment includes a wide range of purchases outside data centers and networks, the upward trend carried over into optical networking. Increased DCI spending by the leading cloud players helped to drive record growth in 100G DWDM ports. Cisco and Juniper reported a significant increase in router sales to cloud companies, also contributing to very strong demand for client-side 10km reach LR4 100GbE optics.

Shipments of 100m, 0.5km and 2km 100GbE optics to cloud companies also picked up in early 2016, but sales remained modest in comparison with 100GbE LR4. Several suppliers interviewed by LightCounting reported a sharp increase in purchases of these products by cloud companies in June 2016 and expectations are very strong for the second half of the year.

"LightCounting's report on Mega Datacenter Optics, published in March 2016, forecasts that sales of 100GbE optics to cloud companies will reach $300 million in 2016" -- commented Dr. Vladimir G. Kozlov, CEO and Founder of LightCounting. "The latest market data supports these findings, but the product mix will remain volatile in 2016."

Detailed information on the report is available at: Market Update Report.

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