CeBIT 2008

BTI Systems Joins Packet Optical Fray with Small Form Factor Platform

| Mar 6, 2008 | Optical Infrastructure | Show Update

| Analyst: Jason Marcheck

Current Perspective: Positive Vendor Importance: High Market Impact: Low

Event Summary

March 4, 2008 -- BTI Systems unveiled its new packet optical edge platform: the BTI 7000 Series. The platform is slated to support C/DWDM, OTN, and carrier Ethernet, along with 10G multi-protocol muxponders and dual 10G transponders. The product comes in 1RU or 2RU form factors, and it can be stacked to support up to 400 Gbps of transport capacity. BTI will also offer an environmentally hardened unit for remote deployment. The company did not offer any date for general availability.

Analytical Summary

• Current Perspective: Positive on BTI Systems’ news that it is launching a microWDM platform aimed at the packet optical market segment, because by offering a smaller, low-density packet optical solution, BTI is promising to help operators handle increasing demands for sophistication in the metro edge in support of services such as E-LAN, HD VoD, and other high-bandwidth offerings. Going further, targeting the platform specifically at IOCs and alternative carriers in Tier 2/3 markets should help BTI avoid the brunt of competition from larger equipment vendors that, while being happy to supply Tier 2/3’s, are much more focused on landing larger accounts.

• Vendor Importance: High to BTI Systems, because the move is designed to address what arguably will be the hottest topic in optical networking over the next few years (i.e., packet optical). Doing so in a way that targets operators that might not have the network capacity requirements addressed by most of the competing metro core platforms should help BTI gain visibility from a group of operators looking for a more affordable packet optical solution. However, products such as Alcatel Lucent’s 1850 TSS-5 and TSS-40 platforms, the Tellabs 7100 OTS Nano, and the Ciena CN 4200 MC are arguably all relevant for this market segment, indicating that BTI is going to have to stake its claims of differentiation on more than just a small form factor.

• Market Impact: Low on the optical infrastructure market, largely because BTI Systems is a small company whose size will keep it from competing vigorously against Tier 1 competitor. Nevertheless, BTI’s new offer looks impressive on a slide deck. So, if the vendor can rack up a few early reference customers, it could become a strong contender among the Tier 2/3 vendor market and become an attractive acquisition target by any number of larger packet optical vendors that currently focus on the metro core.

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