Xelerated Xpress

Ethernet Backhaul Is Here and Now. What’s Next?

New statistics from Infonetics research shows a rapid transition to IP/Ethernet-based mobile backhaul. The momentum towards IP/Ethernet is very strong; 89% of all backhaul spending was on IP/Ethernet equipment in 2010. With a net addition of 1.6 billion mobile broadband subscribers between 2011 and 2015, we can expect continued healthy growth in this market.

The transition towards IP/Ethernet has been foreseen. We are in a catch-up phase to deliver on the strong demand for streaming content down to mobile smartphones and tablets. Mobile TV and video drive bandwidth demand, implicating mobile backhaul infrastructure as well as to content distribution sites. One example is radio streaming providers in the Nordics, that recently had to scale up their bandwidth towards mobile networks as radio is going narrowband. To send a live signal in unicast is not necessarily the most effective distribution method, but the trend towards individual content consumption can’t be held back.

The industry is learning how to engineer the always-on-society. Mobile backhaul is now Ethernet/IP. What is next? There will be a significant portion of ‘more of the same’, but with the many implementation options (microwave vs fiber vs copper, Ethernet vs MPLS, P2P vs MP2MP, PTP vs Synchronous Ethernet vs legacy sync), there is also plenty of room for optimization.

We are just at the beginning of the mobile broadband era, and best practice is still to be defined.

by Per Lembre on Apr. 13th, 2011

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100GE, Now Please!

The market pull for 100GE is getting stronger and stronger.  Matthew Finnie, Interroute’s CTO, gave a couple of hard messages to the vendor community at the ongoing Ethernet Expo Americas: “cheap 100GigE now please”, and “sort it out!”  His words are echoed by others in the service provider panel, according to Light Reading.

While 100GE is still in trial phase, large-scale backbones and data centers are now hitting the limits of the 10GE technology. The demands for merchant 100GE optics and network packet processing are required to enable the technology shift.

While analyst firm Infonetics projects a mass-market for 100GE in 2015, the demand is here and now. Let’s put in another gear to shorten the time to the 100 GE mass-market.

by Anders Ericsson on Nov. 4th, 2010

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Mobile Backhaul Equipment: On the Rise

No other segment in the networking industry can report as steep growth rates as mobile backhaul. Infonetics recently reported a 36% yearly growth rate for mobile backhaul equipment in 2009, and the market research firm expects this year to spike again.

While the industry had some debate last year on how to migrate to Ethernet-based backhaul, the transition is likely to be faster and simpler than anyone expected. Because challenges with packet-based synchronization services have been solved with PTP and Synchronous Ethernet, operators can now modernize networks quickly. Once all mobile traffic runs on IP/Ethernet, operators can stop spending on legacy equipment, and further cut operational expenses. According to Michael Howard, more than 100 operators are now deploying ‘a single IP-Ethernet backhaul.’

Infonetics’ findings are in line with what Xelerated sees in the market place. In China for example, the move to Packet Transport Networks (PTN) represents an even more aggressive backhaul investment than seen elsewhere. Here in Sweden, fiber is deployed to cell sites and Ethernet is the transport protocol for all services; they are now in the second phase of the roll-out.

I wonder: Will other markets learn from this model, and if so, what impact will we see on the market figures?

by Per Lembre on Oct. 19th, 2010

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The Need for Speed

The market for 10G and faster network ports is at a tremendous growth pace right now. According to the latest Infonetics Report, the uptake in 10G, 40G and 100G is expected to tenfold by 2014.

And interestingly enough it is not a tenfold from very low levels, which tends to be the case when we see booming markets numbers being touted. No, the 10G and above market in the enterprise and service provider segments was already in 2009 north of $10 billion ($11.1 to be exact according to the report).

So what drives this insatiable demand for bandwidth?

For the Service Provider segment it is clear that the growth stems from the build-outs of new Fiber Access networks. They are architected for service delivery over Ethernet, and generate traffic in high volumes that is aggregated by switches and routers. In turn, they need interface speeds that are several magnitudes higher than the access side of the network. Already in this early phase of the market, the interest for Gigabit access is real, and growing through for instance the Googles initiative “Fiber for Communities”. Also new products are arriving to meet the new demands. The recently announced high-density gigabit access switch developed jointly by Accton and Xelerated, is perfectly aimed to this market.

The 10G growth is not limited to the service provider segment. Also enterprises are inevitably migrating to 10G interface connectivity. End-users consume more bandwidth, and require that data centers scale in parity with that growth.

Some philosopher said “the best way to predict the future is to create it”.  At Xelerated we make the fastest and most flexible chips for this new market. We are part of the creation. But does this mean we know where future networking will be in 20 years? Sure – let me just take out my crystal ball from the drawer…

by Anders Wirkestrand on May. 12th, 2010

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Booming Carrier Ethernet Market

Projected spending in Carrier Ethernet equipment. Source: Infonetics Research.

Michael Howard‘s latest research on the Carrier Ethernet market is yet another proof point that service providers continue to migrate their networks to Carrier Ethernet. According to the latest Infonetics Research report investments in Carrier Ethernet gear are expected to go from US$21.6 billion in 2009 to over US$32 billion in 2014.

As previously noted here at Xelerated Xpress, the market for Carrier Ethernet gear continues to outpace investments in other technologies. We may debate over the exact numbers – future projections always need to be considered with a pinch of salt – but the trend is unquestionable; service provider networks are turning Ethernet.

by Per Lembre on May. 6th, 2010

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Carrier Ethernet defies Economic Down Time

Michael Howard, Infonetics Research principal analyst, just announced his latest projections on Carrier Ethernet expenditure for the carrier market. As been the case now for a few quarters, investments in Carrier Ethernet continues to outblow other types of investments in telecom infrastructure.

According to Infonetics, Carrier Ethernet equipment manufacturer revenue is projected to grow to $34 billion by 2013.

This is a good place to be.

by Per Lembre on Sep. 30th, 2009

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