Adva’s Overture buy helps it surpass Ciena in Ethernet access revenue

Image: IHS Markit

Adva may have only acquired Overture in January, but it is clear that the deal has already had an effect as the Germany-based vendor has surpassed Ciena as the revenue market share leader in the Ethernet Access Device (EAD) market.

By acquiring Overture, Adva enhanced its FSP 150 product line with an Ethernet over Copper (EoC) platform, a programmable white-box network interface device (NID), a virtualized NID and an orchestration platform. By gaining these functions, Adva can deliver Carrier Ethernet-based cloud services in a hybrid or network functions virtualized (NFV) pure-play environment. 

Trailing Ciena, which is now the number two EAD leader, are RAD, Actelis and MRV.

Sponsored by Ciena

Because you asked. Adaptive IP™

There’s a new way to modernize and expand your IP-based networks—from access to metro—that’s automated, open, and lean.

Adva’s movement comes at a time when the EAD market revenue, according to IHS Markit, grew 4 percent year-over-year to $516 million. The research firm attributes the growth in EAD revenue to the ongoing adoption of Ethernet for wireless backhaul, broadband, business and carrier wholesale applications.

RELATED:
ADVA, Cisco, Ericsson, Nokia, others to tout solution-based approach to NFV, SDN at MWC
ADVA creates NFV Ensemble division from ashes of Overture acquisition

From a segment perspective, IHS Markit noted that while fiber-based EAD access grew 4 percent and Ethernet in the first mile (EFM) increased 4 percent, Ethernet over time-division multiplexing (EoTDM) declined by 3 percent.

North America remains the largest market for EADs, consisting of 58 percent of EAD revenue in the first half of 2016, trailed by EMEA, Asia Pacific and CALA.

IHS Markit forecast the EAD market to grow through 2020, when it will reach $1.35 billion, achieving a 2015 to 2020 compound annual growth rate (CAGR) of 7 percent, largely driven by business, broadband and building applications, the largest market segment by that point, overtaking mobile backhaul.

Suggested Articles

BT Ireland and Huawei are laying claim to the first 1.2 Tb/s transmission real-time trial based on a commercial product platform in a live network.

Google Fiber announced this week it was pulling the plug on its 100 Mbps service to new customers in order to just offer its gigabit service.

MEF outlined an ambitious roadmap at last month's MEF19 conference that included deeper partnerships with cloud providers using the LSO Sonata APIs.