Monday, March 14, 2022

IDC: Ethernet switch market grew 11.8% yoy while router market rises 7.0% yoy

The worldwide Ethernet switch market grew 11.8% year over year in the fourth quarter of 2021 (4Q21) with revenues reaching $8.5 billion, according to IDC's Quarterly Ethernet Switch Tracker and Quarterly Router Tracker.

Some highlights from IDC:

  • For the full year 2021, the Ethernet switch market recorded $30.7 billion in revenues for a year-over-year growth rate of 9.7%. 
  • The total worldwide enterprise and service provider (SP) router market recorded $4.6 billion in revenues in 4Q21, a 7.0% increase year over year. For the full year 2021, the router market finished with revenues of $15.9 billion, a 6.5% increase compared to 2020.
  • The higher-speed segments of the Ethernet switch market continue to see significant growth driven by hyperscalers and cloud providers. Market revenues for 200/400 GbE switches grew 40.4% from the third quarter to the fourth quarter of 2021, with port shipments increasing 22.9% on a sequential basis. 100GbE revenues increased 17.2% year over year in 4Q21, while port shipments rose 17.3%. 100GbE accounts for just under a quarter (24.7%) of the market's total revenues. 25/50 GbE revenues increased 21.8% year over year in 4Q21 while port shipments rose 2.6%.
  • From a geographic perspective, the Ethernet switch market experienced growth in most regions in both the fourth quarter and full year 2021. In the United States, Ethernet switch market revenues rose 12.2% year over year in 4Q21 and increased 7.0% for the full year. The market in Latin America grew 3.4% year over year in the quarter and rose 7.7% for the full year. And Canada's market grew 7.0% in 4Q21 but was down 1.0% for the full year.In Asia/Pacific (excluding Japan and China), the market rose 24.9% year over year in 4Q21 and grew 15.0% annually in 2021. The market in the People's Republic of China (PRC) grew 21.1% in the quarter and rose 17.5% for the full year. Japan's market declined 14.3% in the quarter and fell 0.8% for the full year.

"Organizations of all sizes around the globe are prioritizing connectivity as a critical component of their digital infrastructure strategies, and that's why we’re seeing solid growth in the Ethernet switch market," said Brad Casemore, research vice president, Datacenter and Multicloud Networks. "The Ethernet switch market faces challenges in 2022, most notably from component shortages impacting supply chains, but also from the economic uncertainty associated with geopolitical conflict. These headwinds will be counterbalanced by the continued buildout of high-speed datacenter network capacity at hyperscalers and other major cloud providers in the quarters ahead."

What's hot at OFC22? Nokia on IPoDWDM

The arrival of 400ZR and 400ZR+ optics will enable new network architectures, says Heidi Adams, Head of IP/Optical Marketing, Nokia, and the idea of IP-over-DWDM has popped up on the radar again.  

The hyperscalers, in particular, see a pathway for using these new optics to drive greater efficiencies in their networks.

At OFC, Nokia introduced a Coherent Routing solution for service providers that is enabled by 400ZR, 400ZR+, and, in the future, 800GZR.  Here is an overview.

Nokia shows its next-gen packet optical transport network (P-OTN)

 Nokia announced a series of upgrades for its next-generation packet optical transport network (P-OTN) solutions needed by CSPs offering wholesale services.Upgrades to Nokia’s 1830 PSS-x solutions include a doubling of switching capacity up to a market-leading 48 Tbps, new wavelength division multiplexing (WDM) uplinks based on Nokia’s fifth-generation Photonic Service Engines (PSE-V) and expanding the range of wholesale service options with...

What's hot at OFC22? GlobalFoundries on Co-packaged optics

The proof-point for co-packaged optics are here, says Anthony Yu, VP of Computing and Wired Infrastructure, GlobalFoundries. 

Yu discusses GlobalFoundries' newly unveiled next generation silicon photonics platform and active design wins with major customers, including collaborations with Broadcom, Cisco Systems, Marvell, NVIDIA, Ayar Labs, Lightmatter, PsiQuantum, Ranovus and Xanadu.

The Consortium for Onboard Optics (COBO) has been instrumental in letting people know the importance of actually placing the photonics chip in proximity of the ASIC. We're also seeing the proof point of putting chipsets of a switch or GPUs.

Lumentum and Ayar Labs target external light sources for CPO

Lumentum and Ayar Labs announced a strategic collaboration agreement to deliver CW-WDM MSA compliant external laser sources in high volume. “Co-packaged optics to replace traditional copper interconnects is a massive new market opportunity broadly recognized by the industry and one that Lumentum is well-positioned to address with our proven laser technologies and manufacturing scale,” said Walter Jankovic, Senior Vice President and General Manager...

GlobalFoundries unveils next gen silicon photonics platform

GlobalFoundries unveiled its next generation silicon photonics platform and active design wins with major customers, including collaborations with Broadcom, Cisco Systems, Marvell, NVIDIA, Ayar Labs, Lightmatter, PsiQuantum, Ranovus and Xanadu. The platform enables a high level of integration onto a photonics integrated circuit (PIC). It also supports innovative packaging solutions, such as the passive attachment for larger fiber arrays, support...

What's hot at OFC22? Lightriver on IPoDWDM

Hot trends at OFC22 include IPoDWDM, 400ZR, disaggregated networking, pluggable, next gen optical line systems, etc., says Travis Ewert, Chief Operating Officer, LightRiver Software.

What's not hot are all of the silos of disaggregated technology. LightRiver steps in with tools for bringing it all together. 

Lightriver supplies multi-vendor, Factory Built Networks and netFLEX vendor neutral, Optical Domain Control Software solutions.

What's hot at OFC22? Sabic on new resins for optical interconnects

Optical interconnects are hot at OFC, says Shawn Lee, Senior Manager, New Business Development, Sabic.

Key challenges with optical interconnects are efficiency and scalability.  Sabic has introduced a new resin that addresses these challenges thanks to its thermal properties and high refractive index. The resin is suitable for micro molding for optical interconnect components.

What's hot at OFC22? AOI's David Chen on CPO and NPO

 Two of the hot items at OFC22 were faster pluggable transceivers (800G and even 1.6T in the future) and Co-Packaged Optics (CPO), says David Chen, AVP, Strategic Marketing & Standard Office for Transceivers, AOI. 

There was a lot of activity at the OIF booth regarding CPO, external laser source modules -- all related to COBO's current working groups.  This video includes a diagram showing the evolution of COBO and NPO technologies.

Alphawave IP to acquire OpenFive Business Unit from SiFive for $210m

Alphawave IP Group plc agreed to acquire the entire OpenFive business unit from SiFive for US$210 million in cash.

SiFive is the founder and leader of RISC-V computing based in San Mateo, California. 

OpenFive, a SiFive business unit, has a high-speed connectivity system-on-chip (SoC) IP portfolio and a proven team based in India and Silicon Valley that has been delivering custom silicon solutions for over 15 years.  

The acquisition significantly increases Alphawave's customer base globally from 20 currently to over 75, especially in North America, and adds an additional hyperscaler customer based in North America.

This acquisition will nearly double the number of connectivity-focused IPs available to Alphawave customers from 80 to over 155 and will provide customers with a one-stop-shop for their bundled connectivity needs in the most advanced technologies at 5nm, 4nm, 3nm and beyond.  This will include an expanded die-to-die connectivity portfolio that will accelerate chiplet delivery capabilities to customers.  Alphawave has also licensed RISC-V processor IPs from SiFive as part of the transaction. 

Tony Pialis, President and Chief Executive Officer of Alphawave stated: "We have known and worked with the OpenFive team for many years as they have established their credibility in delivering leading-edge SoC IP and custom silicon solutions in the world's most advanced technology, and to the world's most advanced customers.  This acquisition is important for Alphawave, but also for our industry, as we will now be the leading pure-play provider of connectivity solutions in the world in whatever form-factor our customers need it – as silicon IP or in custom silicon solutions like chiplets.  As we look to the future, we expect to develop and acquire additional capabilities to further expand and accelerate our leadership in connectivity.  In our core business, the first quarter of 2022 is very strong and the outlook for 2022 is also strong. We expect this transaction to meaningfully impact revenues in H2 2022, pending regulatory approval of the transaction."

Patrick Little, Chairman and CEO of SiFive stated: "It has been a pleasure working with the Alphawave team on this transaction, and I am sure that we will continue to work together as SiFive focuses on its core RISC-V business.  We were also pleased that Alphawave licensed SiFive's RISC-V processor IP as part of the transaction, which further demonstrates the importance of SiFive RISC-V technology to high-end customers globally in a variety of end markets."

Gold Data partners with Arelion for Latin American coverage

Gold Data, a leading Latin American network provider, is working with Arelion to expand its reach and service portfolio throughout Latin America including customers in Mexico, Guatemala, Panama, Dominican Republic and Costa Rica.

As a result of collaboration with Gold Data, which will cover both data and Internet services, Arelion will be able to tap further into a rapidly growing market with direct access to 156 key PoPs and 76 data centers throughout the region. The Gold Data Network will facilitate Arelion's reach delivering services including Wavelengths (DWDM), Ethernet, Cloud Connect and IP Transit (AS1299).

"It is a great honor for Gold Data to have been chosen as a LATAM partner by the world's leading Internet backbone provider to empower their growth and success in such a promising, but complex region. This is a testament to the quality of our network and solutions, and our commitment to excellence. We are looking forward to accelerating Arelion's success in the region," said Renato Tradardi, CEO of Gold Data.

"Arelion is dedicated to delivering high-quality, reliable and secure connectivity to address the continued growth of bandwidth demand in the region. We are pleased to include Gold Data as one of our partners in Latin America so we can bring services closer to end-customers in this part of the world. This collaboration is part of our constant growth strategy, as we strive to better serve in-region customers and global partners wanting to address the fast-growing Latin American communication and media markets," said Edison De Leon, Regional Director LATAM & Caribbean, Arelion.