Adva, Ciena and Nokia see uptick in optical sales from cloud and colocation providers, research firm says

cloud

Adva, Ciena and Nokia are three optical vendors that are finding fortune in the cloud and colocation market, selling their wares to a set of customers whose bandwidth needs continue to rise, says Cignal Al in a new study.

Ciena reported in its fiscal second-quarter 2017 earnings that converged packet optical performed well, with $502.1 million in revenues, up from $435.2 million in the same period a year ago. During the second quarter, Ciena added six new customers to its 8700 platform for a total of 49.

But the research firm noted that Adva’s cloud and colocation revenues grew over 40% in 2016, faster than any other vendor.

SPONSORED BY GOOGLE CLOUD

Webinar: Remote Post Production In The Cloud

Video production companies across the world have traditionally been tethered to physical facilities, but with the advent of covid-19, remote post production capabilities are more important than ever. Join this webinar to learn more about how video producers can utilize Google Cloud infrastructure, along with partner applications, to develop a remote post production suite that brings your artists and editors together, no matter where they are.
Cignal Al
Optical spending growth by customer market. Cignal Al

The research firm noted that the growth in the optical market is being fueled by strong demand from cloud and colocation providers as well as incumbent telcos in China.

“The composition of optical equipment demand has changed dramatically over the past five years, as cloud companies such as Amazon, Google and Microsoft have become the predominant source of growth in optical transport equipment purchasing,” said Andrew Schmitt, lead analyst for Cignal AI, in a release.

Schmitt added that this year “we expect cloud and colo customer demand in North America to exceed that spent by all the cable MSOs.”

Cignal Al said that cloud and colocation growth is centered in North America, but will extend into the EMEA and APAC markets in 2017 and beyond.

Suggested Articles

C Spire is installing more than 33 miles of fiber across four counties in Mississippi in order to provide faster broadband speeds to rural areas.

There's no doubt that SASE has picked up steam this year after Gartner coined the phrase last year, and now MEF has joined the SASE fray.

The deal includes delivering managed network services to over 700 sites in 91 countries.