Specific DCI Strategies

As mentioned in my last post, data center interconnect (DCI) is a growing market for the entire optical value chain – from carriers to optical component suppliers. Standard OTN, DWDM, Carrier Ethernet or legacy SONET/SDH platforms alone cannot address the high-bandwidth, low-power, low-cost and high-density demands of DCI. As a result, many network equipment manufacturers (NEMs) have developed specific solutions to address it. Some of the most common solutions are described below.

Just like other data center products, there is now a one-size-fits-all solution. Small and medium-sized enterprises are tending to stick with the less expensive Layer 2 Ethernet over DWDM solution, while larger enterprises, IDCs and colocation data centers are transitioning to one or more of the other solutions. Whether to use new technology or stick with the status quo, DCI equipment is a growing subsector of the transport market, expected to increase to more than $5 billion worldwide by 2020.