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September 2, 2011
8:20 AM EDT

by  Bo Gowan

5 things from August

We start off the month of September by looking back at the five most important stories and topic lines from August. Of course, this is just my list. Did I miss any that you would have included? Let me know in the comments section.

 

1.) The rapid growth of 100G/40G was highlighted in new DWDN market data for 2Q.  Early in the month, I highlighted new research from both Dell’Oro Group and Infonetics Research that underscored the rise of 40G and 100G revenues.  Dell’Oro projected a 50% CAGR for combined 40G and 100G revenues over the next five years, and Infonetics predicted that that 100G line card revenues would significantly overtake both 10G and 40G revenues by 2014 (see chart below).

 

Those impressive growth rates were reinforced in separate reports from both firms later in the month focused on the overall DWDM market, with Dell’Oro showing a 30% YoY jump and Infonetics a 37% YoY increase in global DWDM revenues for Q2’11 (see New data shows sharp increase in Optical DWDM market).

 

 

2.) Online and over-the-top (OTT) video had an interesting month, with several industry events and new reports shining a light on the dilemma that service providers face due to the explosion of OTT video consumption. Rumors about the sale of OTT video service Hulu.com were rampant all month long.  At the same time, new figures from 2Q showed that the six largest pay-TV providers in the U.S. lost a record combined total of about 580,000 subscribers for the quarter.

 

Even so, I don’t subscribe to the idea that all is lost for traditional pay-TV providers.  As I pointed out in this blog post, even OTT subscribers seem to prefer to consume their content via the comfort of a living room TV set, which I believe gives pay-TV providers an inside track on developing a next-gen service that combines the best of traditional and OTT video.

 

3.) Ciena continued its global expansion with a new office in South Korea.  Ciena APAC head Anthony McLachlan was on-hand for the official office opening event that was attended by over a dozen local media.  The new facility in Seoul is considered a “full-service” office, covering sales, pre-sales engineering, post-sales support & engineering, and operations.

 

4.) Ciena CTO Steve Alexander talked R&D and future technology in an extended interview with Roy Rubenstein of Gazettabyte.  You can see part 1 here and part 2 here, and together the two posts give a great view into the insights of Ciena’s chief technology thinker.

 

5.) Ciena announced fiscal Q3’11 financial results on September 1st.  I realize that this isn’t officially August news, but it was close enough to make my list.  Here’s a link to the earnings release, and here’s a link to the archive of the conference call hosted by CEO Gary Smith and CFO Jim Moylan.  One of the interesting data-points from the conference call was the uptick in both customers and revenues for Ciena’s 5430 Packet-Optical Switching platform, which I talked about in this blog post.

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Tags: 40G, 100G, DWDM, Dell'Oro, Infonetics, WDM, 10G, OTT, Hulu, South Korea, Steve Alexander, Gary Smith, Jim Moylan, 5430

Categories: Asia-Pacific, Commentary, Corporate News, Packet-Optical Switching, Packet-Optical Transport

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