Archive for August 2016

Fiber Optics Proving a Valuable Investment for the Data Center

Fiber-optic connectivity is on the rise in the data center as cloud uptake grows and a services-based technology climate becomes pervasive. Service providers are looking for ways to simplify deployment and delivery of new services and fiber optics offer a fast and efficient way to handle the onslaught of traffic and services.

According to ACG Research, the global market for optical data center interconnect (DCI) technology is set to reach $4.7 billion by 2019, growing at an accelerated 44.9 percent CAGR from 2014. Fueled by new and expanded data center deployments along with the need to automate and virtualize a host of functions, high-speed optical DCI connections meet demands for increased capacity, better resiliency and versatility.

Fiber-optic modules and cable types are also evolving to meet the unique needs of the data center. While the SFP module format is a standard for 1 GbE, the SPF+ module has evolved to support speeds up to 10 GbE, in the same small form factor as the original SFP module. And many switches support both SFP and SFP+, offering scalability and flexibility for data center operators.

Most fiber optic cables now include digital diagnostic monitoring or digital optical monitoring, which provide information about the optics to the platform the cable is connected to. Switches pull critical information like receive light level, transmit power and transceiver temperature in real time and report it to data center administrators. This enables quick and easy troubleshooting for a variety of optical link issues while also ensuring the cable and transceiver are operating up to capacity.

Two major data center fiber-optic announcements within the past week signify the massive uptake within the data center sector. U.K.-based cloud and hosting provider BSO announced a fiber-optic network between the New York City financial district and Chicago’s financial district, connecting several Equinix data centers along the way. Amazon is also exploring the best route for a planned fiber-optic cable system across the Pacific Ocean, which will connect data centers in the US, Australia and New Zealand. The cable is expected to go live in 2018.

25 billion connected devices by 2020 will ignite global fiber-optic connector demand

“The global telecom sector is growing immensely in emerging countries,” notes Asif Gani, a lead embedded systems research expert from Technavio. “Data traffic and the use of mobile broadband will increase in African countries such as South Africa, Botswana, Ghana, and Nigeria due to factors such as a beneficial environment for investment and customer services, during the forecast period. Latin American mobile network operators are also increasing their investments in network infrastructure due to burgeoning customer demand for mobile data.”

Moreover, the fiber-optic connector market in APAC is estimated by Technavio to grow at a CAGR of more than 12% during the forecast period. An increase in internet penetration in emerging APAC countries such as China and Japan, along with the need for high-speed internet connections, is driving the demand for cables and connectors in the region.

Similarly, the fiber-optic connector market in North America is estimated to grow at a CAGR of close to 12% during the forecast period. North America is expected to increase its adoption of fiber-optic connectors in data centers, enterprises, and security sectors. According to the analyst, the outlook for network equipment spending in North America remains robust and “is mostly driven by the move to cloud architectures and the never-ending quest to make IT infrastructure more secure.”

Finally, the fiber-optic connector market in Europe is estimated to grow at a CAGR of close to 13% during the forecast period. The report sees Europe making progress in FTTH penetration. “By September 2015, there were more than 35.9 million FTTH/B subscribers in Europe,” notes Technavio. “In 2015, there was continued structural growth in fiber rollout throughout Europe, which is expected to grow during the forecast period with increasing penetration rate.”

Global Fiber Optic Attenuators Market Drilldown

VOA( Variable Optical Attenuator)From QY Market Research, the Global Fiber Optic Attenuators Consumption 2016 Market Research Report is a professional and in-depth study on the current state of the fiber-optic attenuators market.

The report projects the growth rate of the fiber optic attenuators market during the forecast period, estimates the size and valuation of the industry in the coming years, and states the key drivers and restraints affecting the growth of the market, as well as current trends and opportunities.

The study’s analysis of key manufacturers analysis includes the following companies: DiCon Fiberoptics, Corning, AFL, OZ Optics, Alliance Fiber Optic Products (AFOP), Newport Corporation, EXFO, Amphenol Fiber Optic Products, Fibertronics, TE Connectivity, L-com, Thorlabs and EigenLight Corporation.

The report segments the worldwide fiber optic attenuators market on the basis of product type, market application, and end user segments. Relevant data gathered from regulatory authorities has been compiled to determine the growth of the segments.

SYOPTEK’S One-Click Cleaner MU/LC (Cleans LC,MU connectors)

one click cleaner lc
SYOPTEK’S One-Click Cleaner LC is an easy-to-use option for cleaning connectors in adapters. Simply insert the One-Click Cleaner into an

adapter and push until an audible “click” is heard. The One-Click Cleaner uses the mechanical push action to advance an optical grade

cleaning tape while the cleaning tip is rotated to ensure the fiber end-face is effectively, but gently, cleaned.

The One-Click Cleaner  is a must-have for field technicians. Small enough to fit in a shirt pocket and a great addition to cleaning kits.

Save your wrist – no more twist!
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The Optical Component Business May Set a New Record in 2016

The average profitability of optical component and module suppliers was very close to zero over the last 5 years, despite strong demand for optics. Compared to every other level of the industry supply chain, profitability of the optical component manufacturers was the lowest by far.

Financial reports of several suppliers of optics started to show signs of improvement over the last 2-3 quarters. The average profitability of optical component and module vendors was 2% in 2015, compared to a loss of 1% in 2014. There is a good chance for reaching 5-7% profitability in 2016-2017 and setting a new record. The highest profitability achieved so far was 5.5% in 2010, preceded by more than ten years of heavy losses.

Net profit margins in the optical components value chain

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Source: Public financial reports

Several component vendors restructured their businesses in 2013-2014 and these efforts are starting to pay off now. Accelink, Applied Optoelectronics, Coadna, Neophotonics and Oclaro reported significant improvements in financial performance. Acacia joined the list of publicly traded vendors recently and holds the record with a 17% net margin for 2015. Finisar’s profits started to improve in the second half of 2015 and we expect this trend to continue.
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SYOPTEK’S One-Click Cleaner SC (Cleans SC,ST,FC,E2000 connectors)

one click cleaner sc

SYOPTEK’S One-Click Cleaner SC  is an easy-to-use option for cleaning connectors in adapters. Simply insert the One-Click Cleaner into an adapter and push until an audible “click” is heard. The One-Click Cleaner uses the mechanical push action to advance an optical grade cleaning tape while the cleaning tip is rotated to ensure the fiber end-face is effectively, but gently, cleaned.

The One-Click Cleaner is a must-have for field technicians. Small enough to fit in a shirt pocket and a great addition to cleaning kits.

Save your wrist – no more twist!

Features:
• Ergonomic, comfortable design with single action cleaning
• Precise mechanical action delivers consistent cleaning results
• Effective on a variety of contaminates including dust and oils
• Automatically advance ensures each clean is performed with fresh cleaning tape
• Low cost per clean
• Compliant with EU/95/2002/EC Directive (RoHS)

Applications:
• Cleans connectors on jumpers and in adapters
• Cleans a wide variety on connector types: SC, ST, FC, E2000

Sales of 100G Telecom Optics are off to a Strong Start in 2016

Suppliers of 100G optical components for telecom applications first reported a sharp increase in demand in Q4 2015 and set new sales records for these products in Q1 2016. Data on shipments of 100G DWDM ports by Huawei, shown in the figure below, illustrates the increased demand.

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Huawei shipped more 100G DWDM ports than five of its competitors combined in Q1 2016. Three of these five competitors also reported increased shipments of 100G optics with the remaining two posting seasonal declines, after a strong Q4 2015. Nokia (Alcatel-Lucent) leads the market in shipments of 200/400G DWDM ports.

Significant fraction of the 100G DWDM ports shipped by Huawei in Q1 2016 went to China Mobile, but demand from other customers is picking up as well. Bidding results for Q2 2016 indicate a sharp increase in orders for 100G DWDM ports from China Unicom.

It is interesting that demand for 100G optics from China is setting new records, while the capex of the Chinese service providers is expected to decline by 20% in 2016. Reduced spending suggests that the initial phase of major infrastructure upgrades is reaching completion, but deployments of DWDM optical ports tend to continue for many years after that. Large service providers tend to add capacity incrementally by lighting up more DWDM ports in response to increasing network traffic. Read more

Reports: Demand for Optics in China Continues to Surprise

The scale and speed of infrastructure projects in China is fascinating, whether they are roads, bridges, bullet trains, airports, or optical networking projects. With 120 million households enjoying fiber broadband connections, China is home to half of the world’s FTTH subscribers. More than 50 million of these FTTH connections were added in 2015 and another 40 million customers will be connected this year.

 projections for FTTH deployments in China and Worldwide
Figure 1, redrawn from a presentation by Leping Wei of China Telecom at Optinet China 2016, offers projections for FTTH deployments in China and Worldwide. In addition to China Telecom and China Unicom, China Mobile announced very aggressive targets for FTTH deployments in 2016.
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