MSSPs Rising Star in Optical Networking
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Describing it as a "particularly resilient" segment of the optical networking market, research firm IDC reports that the worldwide Synchronous Optical Network/Synchronous Digital Hierarchy (SONET/SDH) multiservice provisioning platform (MSPP) market posted a 25-percent revenue gain to reach $1.4 billion in 2002.
The gain is particularly impressive, IDC notes, because the overall optical equipment market continues to contract. In fact, according to a report by the Framingham, Mass.-based company, MSPPs could emerge as the largest segment in next-generation optical networking as early as the end of this year.
MSPPs are network elements built on next-generation SONET/SDH technology and are designed to replace older SONET/SDH add/drop multiplexers (ADM) in carrier networks.
IDC describes MSPPs as an evolutionary technology designed to add flexibility to the handling of emerging data services while preserving all of the time-division multiplexing (TDM) functionality of traditional SONET/SDH gear. IDC credits the evolution of MSPPs technology to Cisco's 1999 acquisition of start-up Cerent.
In Worldwide Multiservice Provisioning Platform Forecast and Analysis, 2003-2007, IDC forecasts that MSPP revenue will approach $1.6 billion in 2003 and will increase at an 18-percent compound annual growth rate to reach $3.2 billion by the end of 2007. IDC cites that several factors have converged to boost the acceptance of MSPP:
- A move away from CLECs and back toward incumbent carriers has favored MSPP growth.
- Continued growth in data traffic and increased strategic focus on data services are driving carriers to choose MSPPs over legacy SONET/SDH ADMs. Key to the MSPP value proposition, IDC reports, is its capability to handle data traffic more efficiently and more affordably than legacy SONET/SDH equipment.
- Traditional telecom vendors are bringing MSPPs to market, making the decision to move to MSPPs less risky for their existing carrier customers.
- Although MSPPs were initially launched during the North American telecom boom, MSPP vendors generated 64 percent of their revenue outside North America in 2002.
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