New CIR Report States that Sales of Active Optical Cables for the

Data Center To Reach $1.5 billion

According to a new report from Communications Industry Researchers, sales of active
optical cables (AOCs) for the data center will produce $!" billion in revenues by #$%!
Charlottesville, A, !SA "#$ne %&, %'1() -- According to a new report from Communications
Industry Researchers, sales of active optical cables (AOCs) for the data center will produce
!"# billion in revenues by $%!&" 'he report (Active Optical Cable )ar*ets - +ata Center
Applications,( is part of a two-volume set" CIR has also recently published an analysis and
forecast of the mar*et for AOCs for applications in personal computing, consumer electronics
and digital signage"
)ore details about this report can be found at, http,--www"cir-inc"com-reports-active-optical-
cable-mar*ets-and-opportunities-$%!.-to-$%$.-volume-i-data-c"
Abo$t the report*
'his report identifies and /uantifies opportunities for selling AOCs for the data center" AOCs in
this sector carry 0thernet, Infini1and (I1), 2ibre Channel and 3A3" 3pecifically, the report
provides coverage on AOCs supporting the C4., 325-3256, 7325, C45, C25, C+25, and
3A3-)in-3A3 )3As" In addition, the report provides detailed nine-year forecasts of data
center AOC mar*ets, with brea*outs by end-user application, interface standard, cable
lengths, type of cable and wavelength" 2orecasts are provided in units shipped and revenue
terms"
'his new CIR study also assesses the product-mar*et strategies of the leading AOC suppliers
including, 8), !%9'0:, A8C;10, Amphenol, Avago, 1rocade, Centera 5hotonics, Conn5ro,
0optolin*, 2CI, 2iberon, 2inisar, 2u<i*ura, 9igalight, 2u<itsu, =itachi Cable, I1), Inno>ight,
?+3;, ?uniper @etwor*s, >uAtera, )ellanoA, )oleA, )ultilane, 3amtec, 3iemon, 3opto,
3umitomo, '0 Connectivity, BoleA"
+ro, the report*
+ata centers are getting bigger and are re/uiring much higher data-rate pipes and
interconnects than ever before" )obile broadband and video applications are flooding data
centers with content and this creates a growing incentive to shift to fiber in at least part of the
data center" It is becoming increasingly difficult for data center managers to avoid fiber optics
and at the same time AOCs offer an eAcellent entry point for fiber optics to all but the most
structured-cabling savvy networ* managers"
Chinese AOC suppliers are showing that they can compete with the best ;"3", 0uropean and
?apanese AOC suppliers" 'hey are now able to supply .% 9bps cables with ease and a few
are offering !%%-9bps AOCs" A few years bac* CIR would have seen the whole optical engine
concept as beyond the capabilities of Chinese suppliers" 1ut today 9igalight is using optical
engines as the basis for its optical data center products, and other Chinese firms are eApected
to follow suit"
'he Chinese AOC challenge will re/uire a strategic response from established AOC firms" 'his
could ta*e the form of better branding, improved supply chains or upgraded products" 2or
eAample, the '0 Connectivity line was upgraded in $%!! with .%-9bps products that offered
reduced power consumption and lighter-weight cables and other leading AOC firms will follow
suit"
Ce also eApect to see more activity in AOCs that use the highest-performance modules" 3uch
AOCs are not easy to ma*e and this presents barriers to entry into the data center mar*ets for
smaller, less able AOC firmsD providing mar*et protection for the largest suppliers" 'he mar*ets
for such high-end AOCs are also not inconsiderable" C25 and C+25 together are eApected to
generate !&% million in revenues by $%!&" Indeed, we thin* that the proverbial (neAt big
thing( in the AOC space will be C+25 AOCs and eApect to see such products prominently
displayed at the O2C, 0COC and 3C trade shows in $%!#" 2or now, the three companies to
watch in this space are 2inisar, )oleA and '0 Connectivity, all of which have already
introduced C+25 AOCs"
@onetheless, throughout the period considered in this report, the (wor*horse( 7325 and C45
AOCs will be the biggest revenue earners, with combined sales of !"8 billion in $%!&" 'hese
)3As support both the 0thernet and I1 protocols that are core to any data center and at data
rates that are li*ely to be the ones most used in data centers over the neAt decade" 'he
earliest 7325 AOCs catered to the !%-9bps mar*et, but the 7325 AOC business is now
centered around the .%-9bps opportunity" C45 can support !%% 9ig0 or three .%-9ig0
channels" At this point almost every firm offering a range of AOCs includes C45 options"
Abo$t CIR*
Communications Industry Researchers has been publishing hype-free industry analysis for the
optical networ*ing industry for almost $# years" Ce have provided mar*et coverage of Active
Optical Cables (AOCs) for siA years" Our annual reports on this topic are widely regarded as
the most authoritative mar*et forecast and technology assessment in the AOC space"
Bisit http,--www"cir-inc"com for a full listing of CIREs reports and other services"
-e.ia Contact*
Robert @olan
Ilumatech
#88% 'win =ic*ory Rd
9len Allen, Birginia $8%#&
(F%.) &8F-%%8%
robGilumatech"com
http,--www"ilumatech"com