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.
Equinix has tapped Infinera and its DTN-X to provide optical networking connectivity between three locations, including Frankfurt, Toronto and Singapore, a move that it says will enable it to offer 10, 40 and 100G data center interconnect services.
While Infinera may still have room to grow in the optical market, CEO Tom Fallon is not worried about the spending patterns of AT&T and Verizon, but rather on how the broader industry is purchasing optical products.
Infinera reported fourth-quarter 2014 revenues of $186 million, up from $173.6 million in the third quarter of 2014 and $139.1 million in the fourth quarter of 2013, due to ongoing customer wins of its DTN-X platform.
Windstream is taking the next step in its 100G journey, selecting Cyan's Z-Series packet-optical hardware to upgrade its regional and metro networks to 100G.
Infinera sees the next frontier for 100G optical networking taking place in the data center interconnection market segment, one that the company's leader says will be driven by the rise in server-to-server traffic to accommodate the growth of cloud and content services.
As more service providers deploy 100G optical across their networks, it is driving up optical transport network (OTN) and packet optical transport system (P-OTS) revenues for Alcatel-Lucent, Ciena and Infinera, the industry segment's key suppliers.
Windstream has started work on the second phase of its 100G long-haul optical network covering nearly 4,100 miles that's set to be completed by the end of the year.