Bullish on 850nm VCSELs; Avago Selling VCSEL Components

March, 2015

As we will demonstrate on an OFC 2015 panel, the data center VCSEL market will remain healthy for an extremely long time, especially in terms of steady revenues. The most shocking change is based on recent evidence that Avago Technologies is selling VCSEL components, possibly including as far down the food chain as bare die, to at least one interconnect solutions provider and at the request of a minimum of one very large enterprise. In even reading between the lines of a small portion of the transcript of the latest quarterly report from the vendor, it indicates a move in this direction: "...[W]hen you start talking about 25[G], you’re talking about having to drive short-reach or even longer reach native 25, which makes it very tough to produce laser, VCSELs, laser, so to speak, that does 25 gigabit. We are one of the few guys who can do it. And we happily sold it to guys who do 100...

Read More

Microsoft’s Network: Hitches with Quasi-Carrier Mindset

August, 2015

Microsoft has been caught in the undesirable middle with its Data Center (DC) infrastructure between striving to innovate with the lowest cost, state-of-the-art optical solutions as a huge enterprise player, and reconciling it with a historical propensity to use standard service provider equipment, which often has proprietary aspects that make it a more expensive proposition. The proclivity toward the latter seems to have also resulted in more of a carrier mentality in terms of a “pay-as-you-go” type of situation, constantly responding to bandwidth growth spurts throughout its global network, but there are apparently no signs of an effort to do a full redesign of its intra- and inter-data center build-out to really get out in front of accommodating the rising needs for data transmission. While such a move would be quite costly, it also adds up to an exorbitant amount with its...

Read More