future proofing optical networks with next-gen …...2008/04/20 · bandwidth demand they need to...

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Future proofing optical networks with next-gen ROADMs

Future proofing networks with next-Gen ROADMs

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Contents

Introduction 2

Data rich applications drive network growth 3

Next-Gen ROADMs 4

Expanding spectrum for increased capacity 6

The role of SDN and network automation 7

Bottom line 8

To learn more 9


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Introduction

Several data rich apps are coming online: 5G upgrades with millions of users demanding high definition content and video anywhere and anytime, distribution of 4K video and gaming. Information is the currency of business and we expect the demand for it will continue to grow over the next 5 years at a rate similar to what we have seen over the past 10 years.

Optical networks are evolving to support the insatiable appetite for information driven by video streaming, mobile applications and the digital transformation of businesses utilizing the cloud. Optical networks transport most of this information, to keep pace with bandwidth demand they need to continue to add capacity.

To cost effectively keep up with network bandwidth demand, operators have traditionally moved to higher data rate transceivers. In the coherent era, from 2010–2015, this worked very well as advances in coherent modem technology was able to keep pace with bandwidth demand and the cost/bit decreased by 30% per year. The rate of reduction in cost/bit started slowing in 2016, while bandwidth demand continued unabated. This has led to an increased spend on optical networks from 2016–2019. In the meantime, revenues for network operators has not kept pace with bandwidth demand.

Exhibit 1: Deployed bandwidth, cost per bit and optical capex history

Moving forward, the industry is facing some fundamental limitations, including the Shannon limit and the slowing of Moore’s law. Because of these challenges, we expect that amplified spectrum will increase in value and solutions that maximize the capacity and efficient use of the amplified spectrum will be rewarded.


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Data rich applications drive network growth

Coherent modem deployment can be used as a proxy for data center interconnect, metro, regional, long-haul and subsea optical network growth. Omdia tracks the use of these transceivers for trend analysis and to forecast future use. During the coherent era, annual growth rates have been between 25–50% CAGR, with some year to year and regional variation. Our conservative forecast model projects future growth rates between 25% and 35% from 2020 to 2024. By 2023 we expect that 50% of the deployed bandwidth will use 400G+ coherent modems. ROADM networks employing 400G+ modems will require flexible grid capabilities to be compatible with these higher data rate modems.

Exhibit 2: Deployed bandwidth forecast by maximum data rate and growth rate


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Next-gen ROADMs

Next generation ROADMs will play an important role in maximizing capacity and the efficient use of amplified spectrum. We expect many network operators will expand the use of L-band to increase the amplified spectrum for their high capacity nodes. Use of L-band enables operators to double the capacity of their networks, delaying the need to deploy and light new fiber.

DWDM networks are evolving from single ring architectures to interconnected mesh networks. Reconfigurable Optical Add/Drop Multiplexers (ROADMs) are the key network element enabling these advanced mesh networks, along with the key technology enabler the Wavelength Selective Switch (WSS).

ROADM architectures enables networks to maximize available system bandwidth by adding dynamic reconfigurability at the individual wavelength level, ideal for network applications in which wavelength planning is difficult due to uncertain traffic projections. As a result, changes in the network can happen on demand without affecting other wavelengths and services.

Because there is a wide array of ROADMs ranging from fixed channel to full colorless, directionless and contention-less CDC ROADMs, this offers the flexibility to optimize the physical layer for cost based on the needs of each node. Lower cost ROADMs can be used for spur type links, colorless directionless can be used in some hub sites and major hub site benefit from having CDC capability. OTDR can be a very useful tool in high capacity nodes especially when traffic is dynamically being managed at the wavelength level.

Higher levels of integration at the WSS level have resulted in both shrinking the footprint and adding more integrated functionality. We expect this trend to continue, decreasing the cost per bit while also enabling higher capacity networks. Contention-less MxN WSS provide a path to higher capacity CDC ROADM based mesh networks with improved performance and lower total cost of ownership. With dynamic programmability of these ROADMs, individual wavelengths can be added, dropped and traffic grooming dynamically as new services come online. This lowers operational cost as these functions are programmable via SDN with open API's.

Future proof ROADM networks must be compatible with evolving high capacity coherent modems without incurring constraints on channel bandwidth and optical power. Adding L-band capacity to the network needs to be realized in a seamless and hitless fashion.


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Exhibit 3: Revenue forecast for optical switches used in ROADMs


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Expanding spectrum for increased capacity

For high capacity networks that do not have extra fiber pairs, the best way to add capacity is to add L-band. The addition of L-band doubles the amplified spectrum, doubling the capacity of each fiber pair. We expect this approach to be well received by service providers, giving them the tools to delay lighting new fiber in brownfield networks.

For other high capacity networks that have plenty of extra fiber pairs but need more capacity, in some cases it is easier and more cost effective to lite a new fiber in C-band.

Future proof optical line systems and ROADMs need to expand amplified spectrum, be compatible with coherent modem evolution and use the expanded spectrum as efficiently as possible, delaying the need for new fiber. Next generation ROADMs will play an important role by improving the use and management of fiber spectrum. Next-gen ROADM networks are a transition from fixed 50 or 100 GHz grid to use flexible grids needed by 400G+ coherent modems. Future proof networks should have the ability to add L-band and evolve to higher speed modems seamlessly and hitlessly.


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The role of SDN and network automation

Service velocity, cost, flexibility and capacity are key differentiators for optical networks as the industry transitions from static, fixed grid to dynamic, flexible grid architectures and service providers have an opportunity to differentiate services and increase connectivity using these new tools afforded by next-gen ROADMs and multi-rate coherent modems. Effective use of these tools creates additional complexity in network management as modulation formats, symbol rates and routes need to be carefully selected, monitored and controlled to achieve desired reach, spectral efficiency, noise characteristics, latency and other parameters.

Managing this complexity will be a key driver for the adoption of adaptive control and optical network automation supported by SDN control and orchestration. These tools also offer network operators the ability to reduce operational expenses and increase service velocity by eliminating the need for truck roll and human intervention to setup or change individual wavelengths, data rates and routes. This can now all be done via the SDN controller with a few simple commands.

It is insightful to compare WDM networks with radio networks in cellular applications. Radio networks employ variable modulation formats and data rates which are dynamically controlled to optimize link parameters such as quality of service, reach, spectrum, latency and other parameters using adaptive technologies. 400G+ multi-rate coherent transceivers offer similar flexibility and we expect increased use of adaptive technologies. Automated control of next-gen ROADMs will be used to manage, add, drop and groom traffic in telecom and web scale applications.


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Bottom line

Optical transport networks have been increasing data rates to scale network bandwidth over the past 45 years. With the latest coherent modem technology, commercially available transport technology is now only 1.5 dB from the Shannon limit. Going forward, gains in spectral efficiency will be limited and performance improvements will be more incremental, especially longer reach applications. The most cost-effective path forward is to increase capacity by increasing the baud rate and employing the additional capabilities that new DSPs and coherent optics provide. This is expected to be a key contributor to reducing the cost per bit.

The transition from fixed grid statically provisioned to adaptive flexible grid networks with dynamically programmable connectivity will drive further investment in fiber infrastructure including CDC-ROADMs and the expansion into L-band. We forecast strong demand for MxN WSS modules and next-gen ROADMs over the period of 2020–2025. The growth rate of this infrastructure equipment is forecast to be greater than 90% CAGR over this time period.

NEMs and service providers are developing network automation, monitoring and control solutions which are needed to manage increased network complexity and to increase service velocity when adding or changing services. This has become increasingly important as networks are needing to be increasingly adaptable due to constantly changing data patterns and quick spikes or changes in demand. Network operators with the ability to make these changes in an automated fashion are able to realize big operational savings while offering customers very fast provisioning times to add, reduce, reroute or change the transport services. The pace of network transition and the proliferation of next gen ROADMs is accelerating as network operators are beginning to understand the benefits of using wavelengths dynamically, adding amplified spectrum with L-band and using the amplified spectrum as efficiently as possible.


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To learn more

Watch this free webinar

“Future proofing optical networks with next-gen ROADMs”

presented by Omdia and our partners:

The webinar can be accessed at: https://bit.ly/39CIxqI

For additional Omdia events, visit: https://technology.informa.com/Events

Follow the conversation @OmdiaHQ

Author

Timothy Munks Sr. Principal Analyst, High Speed Optics and Optical Network Technology [email protected]

https://bit.ly/39CIxqI


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Get in touch Omdia consulting

www.omdia.com [email protected]

Omdia is a market-leading data, research, and consulting business focused on helping digital service providers, technology companies, and enterprise decision-makers thrive in the connected digital economy. Through our global base of analysts, we offer expert analysis and strategic insight across the IT, telecoms, and media industries.

We create business advantage for our customers by providing actionable insight to support business planning, product development, and go-to-market initiatives.

Our unique combination of authoritative data, market analysis, and vertical industry expertise is designed to empower decision-making, helping our clients profit from new technologies and capitalize on evolving business models.

Omdia is part of Informa Tech, a B2B information services business serving the technology, media, and telecoms sector. The Informa group is listed on the London Stock Exchange.

We hope that this analysis will help you make informed and imaginative business decisions. If you have further requirements, Omdia’s consulting team may be able to help your company identify future trends and opportunities.

http://www.omdia.com/


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future proofing optical networks with next-gen …...2008/04/20 · bandwidth demand they need to...

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