NXTcomm08

Fujitsu Expands Packet Optical Portfolio to Target Metro Access

| Jun 11, 2008 | Optical Infrastructure | Show Update

| Analyst: Jason Marcheck

Current Perspective: Positive/Neutral Vendor Importance: Moderate Market Impact: High

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Event Summary

June 10, 2008 – Fujitsu announced the availability of the FLASHWAVE CDS Packet Optical Networking Platform aimed at enabling the migration from TDM-based services to connection oriented Ethernet services in metro access networks. The new platform will support PBB-TE-based connection oriented Ethernet as well as traditional SONET and TDM emulation services.

Analytical Summary

• Current Perspective: Slightly positive on Fujitsu’s introduction of the FLASHWAVE CDS, a packet optical platform geared toward metro access networks. The small form-factor optical transport platform should provide a greater degree of deployment options and cost savings for operators that need to increase transport flexibility throughout their networks in support of advanced carrier Ethernet services. At the same time, the market is just beginning to demand limited packet capabilities in the metro access, such as Ethernet aggregation. As such, the extent to which carriers will need to tap into all that the CDS brings to the table might well be limited for the next couple years.

• Vendor Importance: Moderate to Fujitsu, because the move fills out its next-generation optical transport portfolio with a packet optical platform aimed at metro access networks. Already very successful in selling its metro core DWDM solution (FLASHWAVE 7500) to large carriers in North America, the FLASHWAVE CDS would seem to be a natural fit for existing Fujitsu customers looking to extend advanced optical capabilities into the metro access portion of the network. At the same time, beyond a few very large network operators, the need for such a full-featured access solution might be overkill at this point.

• Market Impact: High on the optical infrastructure market, because while the FLASHWAVE CDS is not the first platform of its kind to hit the market – it bears some similarities to the Tellabs 7100 Nano OTS – Fujitsu has a significant embedded base of metro core DWDM platforms that the FLASHWAVE CDS should complement nicely. As such, can leverage an installed base that rivals, such as Tellabs and smaller vendors like ADVA and OpVista, cannot claim. To this end, if Fujitsu can establish some early momentum for the FLASHWAVE CDS with its large carrier customers, it should put Fujitsu in good position to win additional business once demand for this type of platform blossoms in Tier 2/3 markets.

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