Tag: DWDM Multiplexer

Profitability of the Optical Component Business Improved Last Year and It May Set a New Record in 2016

The average profitability of optical passive 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

May 25, 2016 News_Release_Profitability of the Optical Component Business Improved Last Year and It May Set a New Record in 2016

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.

However, the average profitability is likely to stay in the single digits for a while. This industry is very competitive and it is likely to remain so for the next several years. Demanding customers, shorter product lifecycles and investments required to support development of new products are a heavy burden for suppliers. There are close to 40 vendors in the race to offer 100GbE optics to the cloud companies building mega-datacenters. Not many of these vendors will be successful in the long term, but they will continue to put pressure on the profitability of larger publicly traded companies in the industry.

Many start-up companies, betting their future on supplying high-speed optics to cloud vendors, develop products based on silicon photonics and expect that this new technology will give them a sustainable cost advantage. LightCounting’s report on Integrated Optical Devices offers detailed analysis of the opportunities for silicon photonics technology, and recognizes the potential advantages of this technology. However, we expect that a majority of high-speed Ethernet optics used in mega-datacenters will still be based on more established InP and GaAs based optics even in 2021.

Despite all the risks, developing new manufacturing technologies offers a path to sustainable competitive advantage and long-term profitability. Silicon photonics holds a promise for being such a technology. High-valued acquisitions of silicon photonics companies and the recent IPO of Acacia offered much needed success stories for investors. However, the risk remains high. Many other vendors, starting just to ship silicon photonics based products now, will have to prove themselves in 2016-2018.

DK Photonics – www.dkphotonics.com  specializes in designing and manufacturing of high quality optical passive components mainly for telecommunication, fiber sensor and fiber laser applications,such as 1064nm High Power Isolator,1064nm Components, PM Components, (2+1)x1 Pump Combiner,Pump Laser Protector,Mini-size CWDM,100GHz DWDM,Optical Circulator,PM Circulator,PM Isolator,Fused Coupler,Mini Size Fused WDM.

Field-Terminated Fusion Splice-On Connector-North American Market Forecast

According to ElectroniCast, the quantity of field-terminated fiber optic splice-on connectors in North America will increase at an explosive annual rate of 41.9% …

ElectroniCast Consultants, a leading market research & technology forecast consultancy addressing the fiber optics communications industry, today announced the release of a new market forecast of the consumption of field terminated fiber optic fusion splice-on connectors in North America.

Fusion_Splice_on_Connector

Field terminated fiber optic fusion Splice On Connectors (SOC) are installed for rapid repairs or for limited space situations where pre-terminated fiber cabling may be difficult, such as when the cable assembly needs to pass through small openings such as conduit.  The splice-on connectors are an option when the precise length of the optical fiber link is not pre-determined and a field-installed termination solution is required, such as in Fiber to the Home (FTTH) and other communication applications.

Last year, 306-thousand field-terminated fiber optic fusion splice-on connectors were installed in non-OEM applications in North America.  The number of connectors is forecast to increase at an explosive rate of 41.9% per year, reaching 2.49 million units in 2020.  Market forecast data in this study report refers to consumption (use) for a particular calendar year; therefore, this data is not cumulative data.

The Telecommunications application category is forecast to maintain the leadership in relative market share through the year 2018, until the Premises Networks application category is set to capture the lead.  Telecommunication use is forecast for 35.5% annual growth in quantity (2014-2020), mainly driven by access optical fiber deployment.  The Cable TV application is also driven by the use of connectors for FTTH (Home) and FTTB (Building/MDUs – Multiple Dwelling Units).

The market forecast segments the connectors by single-mode and multimode optical fiber, as well as into the following types: MPO, LC, FC, ST, SC, and other.  The use of single mode fiber optic field-terminated fusion splice-on connectors in North America is forecast to increase from 173.8-thousand units in 2014 to 1.49 million in 2020.  Multimode fiber is best suited for use in short lengths, such as those used in datacom and specialty networks and in 2020, multimode connectors are expected to reach 1-million units.

“In 2014 in North America, 4.3-thousand new fusion splicers were brought into Premises Datacom, and the use of field terminated fusion splice on connectors is a major market driver for the use of fiber optic fusion splicers used in premises network applications, the data center (DC) and longer link length datacom cable installations,” said Stephen Montgomery, Director of the ElectroniCast market study.

“The SOCs are emerging as a viable alternative to pre-terminated fiber optic cables (pigtail and cable assemblies/ patch cords).  Also, based on primary research interviews with network planners and installers, we are finding that field terminated fusion splice-on connectors are rapidly being accepted as a go-to solution.  With SOCs, communication network technicians can install reliable cable links with exact lengths, eliminating cable shortness or excess slack that is typically a result with the pre-terminated cable solution,” Montgomery added.

Tags: CWDM Multiplexer, DWDM Multiplexer,19″ rack mount chassis CWDM, ABS plastic box, CWDM MUX/DEMUX Module,  LGX CWDM Module,8CH CWDM Module, 16CH CWDM Module

The Modern Data Center – Modular Data Center

The modern data center is a complex place. The proliferation of mobile devices, like tablets and smartphones, place an ever-increasing pressure on the IT departments and data centers. End-user and customers’ expectation levels have never been higher and the demand for data shows no sign of slowing down. Data center managers must manage all of these elements while also remaining efficient and keeping costs under control. So where does the data center go from here?Modular Data Center

One thing I have noticed in the evolution of the modern data center is that the facilities are gaining importance; improving energy efficiency and IT management have come to the forefront. Maximizing the organization’s resources is vital, and that means delivering more to facilities and equipment without expending more on staffing. IDC forecasts that during the next two years, 25 percent of all large and mid-sized businesses will address the power and cooling facility mismatches in their data centers with new IT systems and put a 75 percent cap on data center space used. So there again is the crucial challenge of doing more and innovating while keeping budgets and spend under control.

Another key part of the next generation data center mix is automation. Today’s data center manager is engaged in sourcing the right automation tools that will help them manage energy consumption and add new technology without disrupting normal operations. These are a few of the key challenges in the modern data center—so data center managers and IT departments must find ways to address them.

Where does the Data Center Go Next?

At the heart of data center evolution is the information technology sector’s rapid rate of change. Many new products and services must be implemented with much less time to value, and data centers need to be agile enough to assess and accommodate them all. If you examine enterprise data centers, then you might observe the ways that cloud computing and hyperscale innovations are displacing traditional enterprise systems, with new paradigms pioneered by innovators like Amazon and Google. With new options being developed, enterprises now have to chart strategies for cloud computing, including public, private or hybrid cloud. Gauging where the technology will go next is difficult to tell. Will the traditional vendors, such as Cisco and EMC, prevail or will new paradigms from Nutanix or Simplivity disrupt and displace these traditional data center dominators?

The race is on to manage the rapid rate of change while also staying agile, meeting end-user expectations and managing costs. For example, data center managers must handle the level of capacity their data center requires while ensuring they don’t overspend on unused capacity. This is where the focus on data center design comes into play.

Taking the Data Center Forward

These specific needs and challenges that the modern data center faces require working with the right tools and solutions. Modular, purpose-built data center infrastructure allows organizations to develop data center services based on need—when capacity rises and where capacity is needed. For example, we’ve observed in Singapore that most data centers operate slightly above 2.1 Power Usage Effectiveness (PUE). This means that companies spend more on cooling their data center rather than on operating and powering the IT equipment. It is a simple challenge—drive efficiency without impacting operations. You want to drive PUE down to approximately 1.06, regardless of where you need to operate, and reap huge energy savings while better serving customers. If done right, there is a positive environmental impact.

Changing the paradigm of the traditional data center enables organizations to reap these rewards. Assessing and establishing business objectives that reflect what is possible, rather than what always has been or what is easier and more comfortable, has led to innovative services and new business models that reset the competitive standards for everyone. Better PUE is a mandatory step in this process. The PUE journey continues as evidenced by Amazon, which had recently taken to harnessing wind to power its data centers. Modular data centers will play a major part in this PUE journey, thanks to more efficient use of energy and greater flexible support for resiliency and compute density.

How much do you know about CWDM Multiplexer and DWDM Multiplexer

CWDM multiplexer and DWDM multiplexer are two main products of WDM multiplexer. The full name of WDM, CWDM and DWDM are wavelength division multiplexing, coarse wavelength division multiplexing and dense wavelength multiplexing respectively. How much do you know about them? If you have no idea, the following introduction will help you a lot.

In the very first place, let’s get to know what the WDM is. Based on a single fiber optic transmission, many optical signals that are loaded with information and have different wavelengths can be synthesized into one single beam by WDM multiplexer. Then, a special communication technology will be adopted to separate those optical signals at the receiving terminal. On the basis of WDM technique, the CWDM device and DWDM device are two popular products in the current market.

CWDM device

When it comes to the CWDM multiplexer, first of all, it provides service for metropolitan area network access layer, whose working principle is in line with WDM multiplexer. However, it simplifies the structure largely. For example, the filter film layer number of CWDM is just 50, while the WDM is as many as 200 layers. That is to say, the rate of finished products has been improved and the cost has been reduced largely. Besides low cost, the CWDM device is also advantageous in small volume, small power consumption, convenient maintenance and large transmission capacity. The laser device in the system doesn’t need semiconductor refrigerator and temperature controller, which can lessen the power consumption obviously. However, the CWDM also has shortcomings. For instance, developing and simplifying the optical transceiver module and optical component is urgent to be solved.

DWDM device

As to the DWDM multiplexer, comparatively speaking, it makes the best use of fiber-optical bandwidth and enhances the message capacity of cellular system, which is well-known for simple dilatation and stable performance. Integrated system and open system are two dominant application systems of DWDM multiplexer, which are based on different wavelength conversion technologies. No matter which system is adopted, the free-running 1510nm wavelength will be chosen to carry OSC or optical supervisory channel so as to transmit information. Such an OSC is a comparatively independent subsystem, which offers maintenance and management information.

The last question is what advantages WDM technique has when compared with traditional transmission methods. Generally speaking, it includes such aspects as making best use of low-loss wave band, transmitting several optical signals in one optical fiber, good flexibility, low investment cost, excellent system reliability and fast and convenient recovery.

 

Tags: CWDM Multiplexer, DWDM Multiplexer,19″ rack mount chassis CWDM, ABS plastic box, CWDM MUX/DEMUX Module,  LGX CWDM Module,8CH CWDM Module, 16CH CWDM Module