Optimism highlights tech markets
 
The Worldwide Packet Optical Transport Market has seen typical 1Q seasonality, declining 16.1% sequentially but growing 21.0% year over year, according to ACG Research. The total Worldwide Optical Networking market declined 18.1% sequentially but grew 3.7% year over year in Q1 2011.
 
Cisco has regained the number one position with 19.9% of total market share in Packet Optical Transport, bumping Alcatel-Lucent down to the #2 spot. In an interesting market shift,Fujitsu has jumped to the third spot, because of strong North American shipments. According to Eve Griliches, managing partner, "The optical market continues to recover from the recession; however we expect significant delays in 100G deployments as vendors struggle to bring product to market. This bodes well for Ciena, which already has 100G product shipping, but most operators are looking for a second source, and the options for those positions are still wide open."
 
ACG is optimistic about the future outlook of the packet transport market. "We see service providers and content providers spending on their backbone networks as well as making significant architectural plans to change their metropolitan networks.  Vendors that execute on their packet transport strategy stand to gain significant market share in this segment."

QUARTERLY TREND and DRIVER HIGHLIGHTS
 
The packet transport market is wide open to router vendors with optical platforms if they can deliver on 100G and ROADM technologies.
 
OTN architecture is clearly resonating with operators, but adoption of OTN standalone platforms within major carriers involves a long selling  and new certification cycle.

MPLS-TP, a source of contention in the standards bodies, is seeing slow adoption outside of specific networks in China and Europe. The rapid deployment of Ethernet technologies may, in fact, eclipse or delay MPLS-TP solutions.

For more information about ACG Research's syndicated services, contact sales@acgresearch.net.

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