Report: Falling component costs to drive wider 40G adoption

AUGUST 8, 2008 -- Prices for 40-Gbit/sec components continue to fall, a development that will drive more telecom equipment manufacturers to bring 40-Gbit/sec products to market soon rather than wait for maturation of 100-Gbit/sec technologies, according to the latest edition of Light Reading's Components Insider, a paid research service of TechWeb's Light Reading.

"The cost of 40-Gbit/sec interfaces is falling, with semiconductor and optical component vendors introducing new products that deliver better performance and greater integration," notes Simon Stanley, research analyst for Light Reading's Components Insider and author of the report. "There is now a clear market need for higher-capacity links. There is a limited deployment of 40 Gbits/sec today, but this will change as the cost of 40-Gbit/sec components including optical/physical layer devices and packet processing falls."

The window of opportunity for 40-Gbits/sec could still be limited by the expected development of 100-Gbit/sec technologies, Stanley says. "Vendors must position themselves and agree on common form factors and electrical specifications because 100-Gbit/sec interfaces are on the horizon," he explains. "This is a demanding market with high development costs, and few vendors can offer complete solutions across the varied technologies."

Other key findings of the report, entitled 40-Gbit/sec Technologies: Lower Costs Will Drive New Demand, include:

• 40/100-Gbit/sec Ethernet systems are in development, with first products expected within 12 months
  
• High development costs are likely to lead to some vendor consolidation in the 40/100G sector
  
• Some telecom equipment vendors will continue to wait for 100-Gbit/sec Ethernet before committing to new product development
  
• High-speed backplane interconnect is on the horizon with the inclusion of the 40GBase-KR4 standard.
  

40-Gbit/sec Technologies: Lower Costs Will Drive New Demand details and analyzes 40/100-Gbit/sec technologies, identifying the key advantages they hold for equipment manufacturers. It also surveys component availability, and profiles and analyzes products from 17 different suppliers in these product sectors: data center components (including Infiniband), "40G in a box" systems, and long-haul components. The report is available as part of an annual subscription to Light Reading's Components Insider, priced at $1,295. Individual reports are available for $900.

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