Disaggregated WDM DCI Market Grows 225% Y-o-Y

Created August 31, 2017
News and Business

According to a recently published report from Dell’Oro Group, disaggregated WDM systems are hitting a sweet spot for Data Centre Interconnect (DCI). “Disaggregation isn’t a new concept, but the strong adoption is,” according to Jimmy Yu, Vice President at Dell’Oro Group. “We estimate that in 2Q17, disaggregated WDM systems reached an annualised run rate of $400 million, growing 225% year-over-year.”

Dell’Oro found that in most – if not all – purchases, the new systems were being employed in DCI across both metro and long haul spans. Based on second quarter results, disaggregated WDM systems represented nearly one-third of optical DCI equipment purchases. In this second quarter of 2017, three manufacturers – Ciena, Cisco, and Infinera -captured the bulk of the disaggregated WDM systems market with a combined 85% share.

Other Dell’Oro findings include:

  • The total WDM market, comprising WDM metro and DWDM long haul, grew 2% year-over-year in 2Q 2017. Growth was driven by strength in the Asia Pacific region, especially China and India.
  • The share of 100 Gbits/s-plus WDM wavelength shipments going to DCI was 14% in the quarter.

“So far, the largest consumers have been Internet content providers that appreciate the platform for its simplicity, capacity, and power savings,” observes Yu.




This article was written
by John Williamson

John Williamson is a freelance telecommunications, IT and military communications journalist. He has also written for national and international media, and been a telecoms advisor to the World Bank.