Infinera's CEO is seeing continual demand for 100G optical equipment from its mix of traditional telco and emerging data center customers for its Cloud Xpress product line. Speaking to investors during its second-quarter 2015 earnings call, Tom Fallon said customers see 100G as a key requirement.
Although the optical equipment market is becoming increasingly fractured between companies that are focused on one of three markets--traditional service providers, competitive service providers or Internet content providers--three companies are leading the way. According to the 2015 IHS Infonetics Optical Network Hardware Vendor scorecard, which profiles the top vendors in this space, Ciena, Cisco and Infinera have the strongest market presence and momentum.
Infinera says a diverse customer base has helped it weather what has continued to be a tough carrier spending environment in the recent year.
Global optical network hardware spending rose 5 percent in the first quarter of 2015 as EMEA began to show signs of recovery and North American web-based companies continued to enhance their optical networks, according to IHS Infonetics Research.
TeliaSonera International Carrier (TSIC) is seeing more of its customer base scaling their demand for 100G optical wavelength services in North America.
TeliaSonera International Carrier's ongoing drive into the North American market has enabled it to increase its overall reach to 40 percent.
The metro cloud and data center interconnection markets may be still relatively nascent, but Infinera said during its first-quarter earnings call that it is seeing momentum in both segments.
Nokia has set off a new wave of consolidation in the telecom equipment market, reaching a deal to acquire Alcatel-Lucent for $16.6 billion. That move is now fueling speculation that Ericsson will make a similar move to round out its portfolio with more wireline capabilities by making a run for either Ciena, Infinera or Juniper.
Infinera has crafted a deal to acquire Sweden-based Transmode for $350 million, a deal that will help the vendor capitalize on the emerging growth in 100G metro aggregation deployments taking place at the largest service providers.
Ciena, Infinera and Adva are diversifying their businesses to include data center providers that are looking for high capacity gear to interconnect their facilities, according to a report from Infonetics Research.