Brian Protiva, co-founder and CEO of ADVA Optical Networking believes the company is in good place. In 2010, the optical vendor reported that the company revenue grew 25 percent in 2010. However, Protiva says the company isn't going to rest on those laurels. FierceTelecom Editor Sean Buckley recently caught up with Protiva to talk about revenue growth and how ADVA will help its service provider customers address higher bandwidth consumer services, enterprise services and the burgeoning wireless backhaul market in 2011.
FierceTelecom: Now that we're moving along into 2011, let's take a look back for a minute about the highlights ADVA Optical saw in 2010.
Brian Protiva: In 2009, we grew 7 percent, which was an industry leading number where quite a few people were losing quite a bit of revenue, and then we followed that up with 25 percent growth in 2010 when you look at our guidance range. Once again, we outperformed the market well and we're looking forward to what we can show in 2011. I think we're very well positioned with some strong Tier 1 and Tier 2 telco customers and we're also moving into cable. To complement all of that we have always had an enterprise strategy that also allows us to differentiate into the carrier by being very application intelligent and being able to differentiate our product with managed services.
In general, there are the macro risks we all have like the European debt crisis and a number of other uncertainties. I think India and China lead the world in growth and I have enough confidence that we will not have another major economic crisis. With that assumption, we're forecasting growth in all areas. When we look at our areas and the end user groups, there are new residential video applications like Netflix online, YouTube and other things that are changing that business and driving real volume throughout the network. Video over the top is there in U.S., but it's really not available in Asia Pacific or Europe yet. The Hollywood control is letting their grips go from the standard broadcast and cable companies to letting Over the Top (OTT) video be part of our industry bandwidth. That's really good for us.
Then, in the enterprise space there's so much we would like to see. With cloud computing, you're no longer using the resources in the building, but rather you're attaching to data centers and service as a platform from Web 2.0 companies driving bandwidth. While providing products that provide low latency for financial companies is a huge business for ADVA, the cloud computing market will also need low latency infrastructure. The third area of growth is the mobile space. We have good technology available today for Ethernet backhaul, but we're also bringing a whole timing suite and management solutions that we think will differentiate ourselves for the guys that will transport that information.
FierceTelecom: You mentioned your enterprise strategy. How is that shaping up for ADVA?
Protiva: We sell indirect to enterprises through our partners or we sell indirect through our carrier customers. They are either building their own infrastructure or they are getting carriers to build that infrastructure or they are sharing that infrastructure.
FierceTelecom: Another big opportunity that service providers are converging on is cloud services. Do you have any initiatives targeting the cloud opportunity in 2011?
Protiva: There are three opportunities we are seeing with cloud services. Anything with a data center and bringing those data centers together and virtualization across data is all happening with the cloud driving it more aggressively than ever before. The second piece is the access network or the onramp. These enterprises have to be able to work as if the software application is hosted in their building. There can't be any latency or time delay because people will get frustrated so you need massive pipes. The answer there is low cost Ethernet connectivity and/or WDM-PON. The third area is the infrastructure itself as these enterprises use bandwidth to connect to data centers off of the map, which means they are driving more bandwidth in the core. That's an area we double down on with our next-gen ROADM, 100 Gbps coherent and low-cost 100 Gbps types of solutions. Then there's our control plane for WDM transport layer type of intelligence. The final piece is our service manager where a service provider can point and click connectivity and map services across complex networks within their NOC.
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