Driven by an increase in IP traffic and the availability of higher capacity line cards, 2015 was a year when the core router industry saw a "significant increase" in 100 gigabit Ethernet (GE) port deployments, Dell'Oro Group said.
The rise in 100 GE port shipments is spurring growth in the core router segment, one that the research firm forecasts will reach $3.4 billion in 2020. Some of the contributing factors to 100 GE growth were related to 100 GE being installed on high-end core routers and relatively lower-priced edge routers. Additionally, the advent of advanced optics in CFP2 and CPAK has driven down 100 GE pricing.
"This reduction in pricing will lead to 100 GE selling at a price per bit transmitted below that of 10 GE in the 2018 time frame," said Alam Tamboli, senior analyst at Dell'Oro. "Going forward, CFP4 and QSFP28 will lead to denser optics and further price reductions. We expect 100 GE ports to shift from backbone core deployments and into metro core deployments, further driving demand, as the pricing points become less cost prohibitive." Release