The migration to higher capacity 100 Gigabit Ethernet (100GE) is well under way as telecom carriers increase purchases and focus on enhancing service at the IP edge, IHS Markit highlights in a new research report about 100GE Port Purchases.
Based on survey responses, IHS Markit expects 100GE router port purchases will more than double from 2016-2018, accounting for nearly 4 in 10 of telecom carriers’ 10/40/100GE port purchases in 2018 (38%). 100GE accounted for 16 percent of 2016 telecom carrier 10/40/100GE router port purchases on average,
Nearly all carrier respondents (88-96%) said they expect to see 100GE-10GE cost parity or better across the three main areas of their networks this year, which means that they expect 100GE port prices will average 10-times that for 10GE ports.
Furthermore, 7 in 10 survey respondents said they are deploying packet-optical transport systems (P-OTS) or intend to do so come 2018. IHS Markit expects the percentage of P-OTS nodes to increase six-fold in core/long haul data transport and nearly double in access, aggregation, metro core and regional network transport.
This will dampen router sales over the period, IHS Markit points out. In addition, the market research firm sees little carrier demand for multi-layer data/transport control planes despite talks indicating the contrary in industry circles.
Seventy percent said they also plan to re-architect their central offices (COs) to create mini data centers (CORD) – 30 percent by end 2017 and another 40 percent in 2018 or later.
Nearly all respondents (95%) said their organizations would have smart COs that combine NFV and SDN software — deployments they expect will improve data center economics and cloud agility, according to the report.