According to IDC, a global market intelligence and advisory firm, the next wave of change in telecommunications transmission, infrastructure, and services-called optical cross connects (OCC)-is upon us. Although only a handful of players have announced OCC products and only a few early adopters have deployed them in their networks, the market is poised for rapid growth. IDC reports that revenue will swell from $76 million in 2000 to $5.7 billion in 2005, a 137 percent compound annual growth rate.
Optical cross connects will perform three major functions in carrier networks: bandwidth management for the massive amounts of bandwidth enabled by dense wave division multiplexing (DWDM); network protection and restoration; and rapid service provisioning. "Although the speeds and feeds as well as the high-capacity functions are impressive today, these initial value propositions are only a shadow of what next-generation OCCs will offer," said Sterling Perrin, an analyst for IDC's Optical Networks program. "Ultimately, the value proposition for optical cross connects is the furtherance of the all-optical networking concept, in which information traverses cities and nations entirely in the optical domain, with no need for costly and inefficient electrical conversions along the way."
IDC believes North America will command the dominant share of the OCC market in 2005; however, other countries will steadily gain share to reach 35 percent of the total market. OCC adoption in Asia will lag.
IDC's new report, "Optical Cross Connects: Market Analysis and Forecast" (IDC #B23529), provides an in-depth overview of the emerging market for optical cross connect equipment in carrier backbone networks. This report describes the functionality of OCCs and their applications and analyzes the major players and their strategies. It also outlines the opportunities and challenges ahead for the key players and the industry as a whole.
IDC, a division of IDG, is a global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in- depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. IDC's customers comprise IT suppliers and organizations, ebusiness companies and the financial community. For more information, or to purchase the report, visit www.idc.com.