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Cignal AI
 
Welcome to TRANSMIT, Cignal AI’s monthly newsletter keeping you up-to-date on important news and trends in the optical industry, our latest research, and noteworthy upcoming events.
Strong EMEA Optical Spending Offsets 2Q18 Weakness in North America
We released our complete optical hardware report and forecast on August 22, although clients had early visibility to company results as they were compiled via our real-time optical hardware tracker.

Optical hardware spending growth continued in EMEA, rising 6 percent year-over-year. However, a soft market persisted in North America, impacted by slow incumbent spending that was not offset by cloud operators, whose spending remains flat, according to the most recent Optical Hardware Report.

“Spending on optical hardware in North America declined again in 2Q18, but the trend of big vendors performing relatively better continued,” Andrew Schmitt, lead analyst for Cignal AI, said in a press release. “During the past two years, the top three optical equipment vendors in the region consolidated 10 percent of the market at the expense of smaller competitors. It’s becoming a much tougher fight for smaller optical equipment vendors in North America.”
Other key findings in the report included:
  • Almost all vendors reported growth in EMEA, with Ciena achieving record-high revenue in the region during the quarter and Nokia reporting a notable increase.  
  • China had a sharp drop in revenue, marked by the absence of ZTE. However, Huawei reported all-time high revenue in the country.
  • Ciena and Nokia performed well in Japan, offsetting declines by traditional Japanese equipment vendors Fujitsu and NEC.
Full report details, as well as articles and presentations, are available to our clients who register for an account at our website.
 
Cignal AI’s Schmitt to Speak at OIDA Dinner on September 25
On September 25, Andrew Schmitt will be the featured speaker at the OSA Industry Development Associates (OIDA) market update dinner in Rome. Speaking about “The Opportunity for Third Generation Coherent Technology,” he will discuss the transition to the latest generation of coherent WDM technology, with a focus on what he expects to happen over the next 12 months. 

To attend, please contact Cignal AI to receive an invitation; please note “OIDA Dinner” in the subject line.
Meet with Cignal AI at ECOC 2018 
Lead Analyst Andrew Schmitt is attending ECOC 2018 in Rome, September 24-26. If you’d like to meet with him there, please get in touch with us as soon as possible, as his schedule is quickly filling. 

Immediately following ECOC, we're heading to Munich to host clients at Oktoberfest on September 27. If you are interested in joining us, please contact clients@cignal.ai to be added to the waitlist.
Interesting News
Ericsson Strengthens End-to-End Transport Solutions for 5G 
Partners with ECI for metro transport and Juniper for routing. Both companies' equipment will work with Ericsson management software. These partnerships usually don't move the needle and it is hard to see why this one might be different.

Intel Goes on Hiring Spree for Silicon Photonics Business Unit 
Doubling size of SiPho team and breaking into adjacent markets

Google Just Gave Control Over Data Center Cooling to an AI 
Energy savings of 40 percent when compared to human control.

Interview with Finisar's Michael Hurlston 
New CEO is ex-Broadcom. Takeaways: On-board optics are not a near-term opportunity, vertical integration matters more at 400G, and consolidation in the optical component business is hard.

Ciena Strengthens Presence in Japan with New Office 
Normally PR like this is meaningless, but in this case, Ciena has recently been taking market share in Japan.

Huawei and ZTE Handed 5G Network Ban in Australia 
Australia is one of the "Five Eyes," so this isn't surprising. The next question is how much longer Huawei stays in the U.K.

Arista - Cisco Lawsuit Settled 
Four years in, the lawsuit is settled and Arista pays Cisco $400 million. Arista was more vulnerable four years ago, but it isn't clear the lawsuit slowed the company's trajectory.
 
Upcoming Events
September 24-26
ECOC
Rome, Italy

September 25
OIDA Market Update Dinner
Rome, Italy

September 27
Oktoberfest
Munich, Germany 

October 9-11
Juniper NXTWORK 2018
Las Vegas

November 5-7
Nokia Analyst Day
Murray Hill, NJ

Contact us to set up a meeting.
Reports
Optical Hardware
Analyzes market share and size for entire optical equipment market according to hardware-based features and capabilities. Includes 10/40/100G+ client and line port shipment numbers.

Optical Applications
Examines market share and size for portions of optical market addressing specific functions or customer applications, including compact modular and Packet-OTN switching equipment. Details market size and share for the 100G+ coherent and non-coherent market across multiple technologies and reaches.

Optical Customer Markets
Tracks the size of optical equipment market by six end customer types, including incumbents, cloud and colo, and wholesale. Includes vendor market share of the cloud and colo customer segment.

All Cignal AI clients also receive access to Active Insight reporting and analysis on notable events in the optical network market.
Copyright © 2018 Cignal AI, All rights reserved.

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