Compact is Huge: The Growth of a DCI Subsegment

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  • Posted by PR on July 11, 2017

It’s safe to say that “DCI” has worked its way up the unofficial “top telecom acronyms” chart. Data center interconnect (DCI) was all the rage at this year’s Optical Networking and Communication (OFC) Conference & Exhibition, which has its finger on the pulse of the latest optical trends.

DCI is also one of the top five trends that “will shape the optical industry in 2017,” according to FierceTelecom’s Sean Buckley. The increasing demand for streaming video, cloud computing and other bandwidth-intensive activities is encouraging data center operators to use “high-density, low latency and low power DWDM links to connect multiple data centers,” he explains. ACG Research has estimated substantial growth in optical DCI equipment purchases from roughly $1 billion in 2015 to more than $4 billion in 2020, the article cites.

With service providers, enterprises and internet content providers (ICPs) actively expanding and adding to their data center locations, the numbers are on track. Global optical DCI hardware revenues skyrocketed by nearly 50 percent last year to $1.9 billion, according to a recent report from IHS Markit.

The Growth of Compact

An especially interesting phenomenon discussed in the IHS Markit report, however, is the burgeoning “compact” DCI subsegment. This space prompted $154 million in revenue last year, which represents 8 percent of the optical DCI market at large and 285 percent growth over 2015.

“The big story in 2016 was the emergence of a new compact DCI segment characterized by wavelength-division multiplexing (WDM) platforms designed and optimized for deployment in data center environments,” IHS Markit Senior Research Director Heidi Adams wrote in this analysis.

Indeed, many conversations at OFC surrounded pluggable transceivers for DCI applications in particular.

XKL’s Contribution
XKL’s DarkStar systems fit the bill.

Our low power, low latency, eVolocity platform is ideal for supporting ultra high-capacity workloads. Network administrators typically design their networks such that router and switch ports run between 15 and 50 percent of line capacity, but eVolocity reclaims this lost bandwidth, allowing you to run at true line rates.

According to Sean Buckley, “the ongoing need for more bandwidth means we’re heading into an era of practical rationality where bandwidth needs are calling for new ways of thinking about building networks.” We couldn’t agree more, so we’re constantly pushing the envelope and innovating the next optical networking technologies.

To learn more about XKL’s DCI solution, click here.

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