ZR and Cloud expansion Drive 400 Gbps to a Record; Data Center Switching Expands Into Strong 400 Gbps Upgrade Cycle; 800 Gbps in Optical Transport Remains Key to Overall Growth
A newly released report by 650 Group, a leading Market Intelligence Research firm for communications, data center, and cloud markets, indicates that the Data Center Interconnect (DCI) Market grew over 10% Y/Y in 3Q21 to over $1.5 B. The report also revealed significant regional differences in vendor performance with many records set.
“Ethernet-based Routers and Switch continue to make up an increasing portion of the DCI market as ZR modules and 400 Gbps platforms begin to ramp in volume,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “Cloud service provider network topologies favor the use of Ethernet systems. As these operators continue to carry a growing proportion of Internet traffic, Ethernet based systems are transporting a growing amount of all Internet and 5G traffic. ZR and ZR+ will play an important role in defining boundaries between edge and core data centers as well as the backhaul of 5G traffic.”
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The Quarterly DCI report indicates that the top four western Ethernet DCI vendors were Juniper, Cisco, Arista, and Nokia. The top four Optical Transport DCI vendors were Ciena, Cisco, Infinera, and Nokia. In addition, the report highlights how Cloud providers, especially Hyperscalers, adopt technology differently than traditional SPs.
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