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7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
TOP TAKEAWAYS: OTN SWITCHING POISED TO GO MAINSTREAM ............................................................ 1 INTRODUCTION ..................................................................................................................................... 1
Background .................................................................................................................................................1 Methodology and Demographics Overview.....................................................................................................2
OTN AS A TRANSPORT OR SWITCHING TECHNOLOGY .............................................................................. 2 OTN SWITCHING—WHY NOT?................................................................................................................ 4 WHO WANTS PACKET OPTICAL VERSUS STANDALONE OTN ..................................................................... 4 BUILDING THE PERFECT WDM MACHINE ................................................................................................ 5 THE IMPORTANCE OF INTEGRATED WDM AND OTN SWITCHING ............................................................... 7 NODE PENETRATION OF OTN SWITCHING ................................................................................................ 9 OTN SWITCH NODE SIZES ...................................................................................................................... 9 APPROACHES AND MOTIVATION FOR NETWORK PROTECTION .................................................................. 12 OPTICAL TRANSPORT TOPOLOGY ........................................................................................................... 13 BENEFITS OF SHARED OPTICAL MESH PROTECTION ................................................................................ 15 BOTTOM LINE ....................................................................................................................................... 17 METHODOLOGY AND DEMOGRAPHICS ..................................................................................................... 17
Respondents Are Influential in the Purchase Decision ...................................................................................17
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
TOP TAKEAWAYS: OTN SWITCHING POISED TO GO MAINSTREAM
OTN switching is gaining in popularity, and the number of carriers planning to use it is rising: this year,
86% of respondents, even higher than the 76% last year, are planning to deploy OTN switching. Only 3 of
21 respondents this year have no interest.
The results show a stronger preference for OTN switching in general and greater emphasis on integrating
OTN switching with WDM interfaces in the same hardware platform. By 2016, 86% of respondents plan to
use OTN switching in the core, and only 1 of them prefers to have the WDM transport equipment
separate from the OTN switching equipment. This indicates that the OTN switching market and the WDM
transport market are in the process of combining, which will result in an even larger market size for OTN
switching than we currently anticipate.
Today, interest in systems that combine OTN circuit switching and layer 2 packet switching is lower thanfor standalone OTN equipment. It appears service providers are still figuring out this concept. But by
2016, interest in this architecture rises dramatically, with 89% of respondents planning to deploy this type
of equipment in their networks. This packet optical architecture is far more popular in the metro than in
the core—almost half of service providers (44%) still plan to use standalone OTN in the core. Overall, it is
clear that spending will expand from the 9% of the market this category currently represents.
Penetration of OTN switching as a percentage of nodes in the network is mostly unchanged from last
year, with the exception of the future metro. By 2016, the number of respondents planning to deploy OTN
switching in the metro rose from 20% in last year’s survey to 48% this year.
Finally, interest in OTN shared mesh protection is rising, primarily because of the better economics it
provides. Though only 24% of respondents use this architecture in existing networks, this rises to 71% by2016—a 47% gain. This surge in interest is network wide but concentrated in the core—95% of
respondents are planning to use partial or full mesh protection as the primary protection method there.
INTRODUCTION
Background
In 2012, our OTN and WDM service provider survey added questions that sought to identify the number
of operators planning to deploy OTN switching. We also wanted to understand to what degree these
operators wanted layer 2 functions (defined as packet optical or P-OTS) integrated and to what degree
this function would be used in networks. We also wanted to know what percentage of operators planned
to bypass OTN switching altogether. These questions are still equally relevant in 2013, and we asked
them again to see if things had changed.
This year, we added some questions regarding protection methods in the optical layer which apply to
carriers that may or may not be using OTN switching.
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
We also wanted to understand to what degree OTN switching and WDM interfaces need to be combined
in the same equipment as this is important for our own work in forecasting the potential size of the OTN
market. If OTN switching is ubiquitous and includes WDM interfaces, it is a vital function for systems, and
the size of the OTN switching market may be much larger than we believed.
Methodology and Demographics Overview
Using a panel of qualified service provider decision-makers, we conducted a survey via telephone and
web in March and April of 2012 with 21 organizations that have deployed OTN transmission or switching
equipment or equipment with G.709 interfaces, or that plan to do so by the end of 2013. This is a good
sample as it represents 34% of worldwide 2011 telecom capex.
To qualify, respondents must have detailed knowledge of and purchase decision influence for their
organizations’ OTN transmission and switching equipment. 76% of respondents are either the primary
decision-maker or have a lot of influence.
Please see “Methodology and Demographics” at the end of this document for details on the sample.
OTN AS A TRANSPORT OR SWITCHING TECHNOLOGY
OTN transport equipment is already widespread, and carriers are familiar with it—all 21 carriers we
interviewed have deployed OTN transport equipment. We asked respondents whether they have already
deployed OTN equipment or plan to do so by the end of 2014 to ensure respondents are familiar with the
technology.
We then asked if they plan to deploy electrical OTN switching (OTN digital crossconnects) or if they will
deploy OTN only for point-to-point transport (with G.709 FEC and performance monitoring). The resultsare decidedly lopsided, with 86% (18 of 21 responses) planning to deploy OTN switching. This is even
higher than the 76% recorded last year. This is also higher than the market consensus that only a handful
of carriers use OTN switching.
When we weighted responses by the capex of the responding carrier, 93% of the dollars spent by
respondents are from carriers that planned to deploy OTN as a switching technology. Another way to look
at it: of the capex totals of the 21 respondents, 93% of that investment came from 18 of 21 (86%) carriers.
Last year, the capex percentage was slightly lower at 90%. The carriers avoiding OTN switching tend to
have capex below the average capex of respondents.
The same conclusion as last year applies: carriers that plan to deploy OTN switching typically have
greater capex than those that do not. More importantly, the year-to-year trend shows an even higher
adoption rate for OTN switching. It used to be said there was a sizeable minority who would bypass OTN
switching, but this year’s sample shows that minority is dwindling.
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
Exhibit 2 OTN Switching and Packet Switching in the Same Platformn=18, 18
44%
89%
56%
11%
0%
20%
40%
60%
80%
100%
2013 2016
OTN and Packet Switching in Same Platform
P e r c e n t
o f R e s p o n d e n t s P l a n n i n g
t o
U s e O T N S w i t c h i n g
Yes
No
There is a major divergence between what operators are doing today and what they expect to do in 2016.
The majority of companies that are deploying OTN switching are doing so without integrating packet
switching in the same chassis. But by 2016, almost all respondents (16 of 18, or 89%) expect to combine
OTN switching and packet switching in the same platform. This would indicate that though vendors’
systems need not support comprehensive Ethernet or MPLS switching functions today, the expectation
within 3 years is that almost everyone will need them.
Unfortunately we did not ask this question last year, so these results cannot be compared with 2012 to
look at trends. It’s a good question for next year!
BUILDING THE PERFECT WDM MACHINE
We asked the 16 respondents who plan to deploy packet switching and OTN switching in the sameequipment platform by 2016 which functions should be combined into the WDM/ROADM hardware
platform. We allowed different responses for the metro and regional/long haul to determine if those
seeking packet and OTN switching integration planned to do so only in one or the other.
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
THE IMPORTANCE OF INTEGRATED WDM AND OTN SWITCHING
Some equipment vendors are building WDM interfaces into OTN switching platforms, but it isn’t clear
whether carriers, which have traditionally separated some switching functions from transport, plan to usethis functionality. We wanted to determine what proportion of carriers that use or plan to use OTN
switching want WDM interfaces on that equipment, and where and when in the network this approach is
preferred.
Nearly half of the OTN switching respondents (44%) prefer to have the WDM interfaces combined with
the OTN switch in the metro, rising to 83% by 2016. This is not surprising as service providers strongly
prefer integration when possible in metro systems. The answers also provide insight into the adoption
rate for OTN switching in the metro: of the 18 OTN switching respondents, the percentage not deploying
OTN switching in the metro drops from 39% now to 17% by 2016.
Exhibit 4 WDM Interfaces on OTN Switch Equipment: Metron=18, 18
39%
17%
44%
83%
0%
17%
0% 20% 40% 60% 80% 100%
Not deploying OTN
switching in this portion
of the network
Keep OTN switch
equipment separate
from WDM transport
equipment
WDM interfaces are built
into OT N switch
O T N a n d W D M
E q u i p m e n t
Percent of Respondents Planning to Use OTN Switchi ng
2016
Now
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
We asked respondents to benchmark their networks by estimating the percentage of nodes that have
OTN switching installed in metro and long haul networks today and in 2016. Again, the core is the area of the greatest activity. These numbers are average responses across all 18 providers—some are 0% and
others are 100%.
Exhibit 6 Nodes with OTN Switching Installedn=13, 18
54%
19%
76%
48%
0%
20%
40%
60%
80%
Now 2016
Nodes with OTN Switching Install ed
P e r c e n t o f R e s p o n d e n t s P l a n n i n g
t o U s e O T N S w i t c h i n g
Metro nodes
Regional/long haul nodes
We asked this same question last year, and the results were about the same with the exception that the
number of respondents planning to deploy OTN switching in the metro rose from 20% to 48%, a
significant increase illustrating that there is greater interest in deploying OTN switching in metro nodes.
This is supported by qualitative conversations we have had with some carriers.
OTN SWITCH NODE SIZES
It is important to understand not just future penetration of OTN switching in metro and regional/LH (long
haul) nodes, but also what the size of these nodes will be. We asked respondents to estimate the
average equipped OTN switch node size and the maximum node size, and obtained values for metro and
regional/LH networks for today and 2016.
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
Specifically, we wanted to understand the level of interest in mesh protection schemes, as well as what
scheme operators identify as the architecture of their existing network. We asked service providers tocharacterize their network as being primarily point to point, ring based, partial mesh, or full mesh, and we
asked respondents to select only 1 answer.
Service providers view their networks as mostly point to point or ring based today, but ideally would like to
adopt some kind of mesh-based architecture in the coming years. This is particularly true in the core, with
52% of respondents looking to move from point to point or ring-based architectures to mesh-based
approaches. The metro shows a similar transition though fiber topology typically prevents a full mesh
approach in this domain.
Overall, the results of this and the previous question show a strong desire by service providers to migrate
to some degree of mesh protection in their networks.
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
There are multiple benefits associated with mesh protection, and equipment vendors like to market all of
them with equal gusto. We asked respondents what they see as the most important benefit of meshprotection; we offered the 3 most common reasons: economics, resiliency, and service differentiation.
Again, these responses include the 3 service providers who do not plan to deploy OTN switching.
In short, economics wins by a wide margin: to 62% of respondents, the greatest benefit of mesh
protection is providing shared protection bandwidth for better economics and lower capex. Network
resiliency is second with 29%. Only 2 service providers said that being able to offer different service
levels based on protection quality is the top benefit.
Exhibit 11 Shared Optical Mesh Protection vs 1+1 Protectionn=21
0%
62%
29%
10%
0% 20% 40% 60% 80%
No advantages, 1+1
protection is a better solution
Ability to price and providedifferent levels of service
Support for multiple failure
scenarios network wide
(end-to-end vs. local only)
Shared protection
bandwidth for better
economics and
lower capex
S h a r e d O p t i c a l M e s
h P r o t e c t i o n v s 1 + 1 P r o t e c t i o n
Percent of Respondents
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
OTN switching is clearly not a niche technology, and it is apparent that in the future this feature is a
requirement for most WDM transport platforms in the metro and virtually all higher-density systems for thecore. Packet optical equipment is still a niche today at 10% of all spending, but operators would like to
make it a technology of choice by 2016. Likewise, optical mesh protections plays a minor role today in
carrier networks, but if operators get their way it will be dominant by 2016.
METHODOLOGY AND DEMOGRAPHICS
In March and April 2013, using online, telephone, and in-person survey methods, we interviewed 21
service providers, representing 34% of the world’s telecom capex. To qualify, respondent organizations
must have deployed OTN transmission or switching equipment or equipment with G.709 interfaces, or
plan to do so by the end of 2014. Respondents must have detailed knowledge of the OTN transmission
and switching equipment their companies evaluated.
Respondents Are Influential in the Purchase Decision
Respondents must have influence in the purchase decision to participate; this is a key part of our
screening process to ensure that we’re talking to knowledgeable decision-makers in the buying process.
19% of respondents to this survey are the primary decision-maker, and another 57% have a lot of
influence in the planning and purchase decisions for OTN transmission and switching equipment.
Exhibit 13 Respondents Have a Lot of Purchase Influence
n=21
A lot of
influence
57%Primary
decision-
maker
19%
Some
influence
24%
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13
We have a good mix of incumbents (72%) and competitive carriers (14%), ranging from large incumbent
service providers to smaller fiber-based competitive carriers in North America and EMEA. Results are
skewed slightly in favor of EMEA carriers, but North American responses are a good blend of traditional
and competitive carriers. We have several responses from China, where OTN is in more advanceddeployment, and multiple responses from EMEA customers that have deployed Huawei OTN equipment.
Exhibit 15 Respondent Service Provider Types and Regional Distribut ionn=21, 21
Incumbent
72%
Competitiv e
14%
Independent
wireless
14%
CALA
10%
North
Ameri ca
19%
EMEA
52%
As ia
Pacific
19%
7/28/2019 OTN MPLS Control Plane Service Provider Survey 05-01-13