Saturday, July 27, 2019

Data Center Interconnect: Trends, Transitions and How Cisco’s Intent to Acquire Acacia Is a Game Changer for the Future of DCI Technology

In the current blog, I’ll address the trends in Data Center Interconnect (DCI) and Wide Area Systems (WAN) for Metro and Lengthy Haul distances covering 10km to 10,000 km, and just how the Acacia Communications, Corporation. acquisition might help drive the shifts happening within this space.

Pluggable optics (also known as optical transceivers) are broadly deployed within the data center, campus, enterprise, or company central office, where:

  • Fiber is plentiful: Every router or switch port features its own dedicated fiber. If your new switch or router is added, additional fiber is put into terminate the brand new ports.
  • Distances are short: These distances are usually under 10km. We make use of the term “short reach” of these distances.


Once we think about the features of the atmosphere outdoors the information center - within the DCI and WAN for Metro and Lengthy Haul distances, we have seen different characteristics:

  • Fiber is scarce: Deploying fiber across a town, or across a rustic needs a huge capital expenditure and could take many several weeks to organize and deploy. Within this sense, fiber is recognized as scarce, and also the technical challenge will be to provide just as much capacity as you possibly can onto just one fiber pair - mixing many signals together in creative methods to leverage the entire theoretical capacity from the fiber.  Through the use of technologies like Dense Wave length Division Multiplexing (DWDM), we are able to deliver more than 25 Terabits/s on one fiber pair today (the same as 250 100G signals combined)
  • Distances are lengthy: Typically greater than 40km, but could range to many 1000 km for lengthy haul applications (e.g. New You are able to to La). Challenges in transmitting high bit-rate signals over lengthy distances require coherent transmission technology, instead of “direct detect” technology that's sufficient in a nutshell achieve applications.


The Cisco Global Cloud Index projects those visitors between data centers keeps growing quicker than either visitors to finish users or traffic inside the data center, by 2021, traffic between data centers will take into account almost 14 % of total data center traffic, up from 10 % in the finish of 2016. Our prime development of this segment is a result of the growing prevalence of content distribution systems, the proliferation of cloud services and the necessity to shuttle data between clouds, and also the growing amount of data that should be replicated across data centers.



Bandwidth demands require technologies that offer scalable, reliable and-performance connectivity between data centers. This is achieved by utilizing DCI technology - a growing industry trend and transition.

The main challenges within this atmosphere are:

  • Boost the capacity around the “existing” fiber infrastructure. This is accomplished typically by growing the part rate of every individual wave length, and/or by growing the amount of wavelengths which may be concurrently transmitted.
  • Drive lower the priceOrlittle bit: This really is typically made by growing the wave length capacity and/or by growing the space that the signal may travel before getting to become regenerated.
  • Automate: OPEX costs generally dwarf CAPEX costs for purchasers. We are able to help drive lower OPEX costs by automating a lot of manual processes, and therefore eliminating causes of human error


The important thing trend that people see within this segment is really a migration from chassis-based methods to pluggables.

Functions which were typically delivered in separate chassis-based solutions will be accessible inside a pluggable form factor. It has potentially significant benefits for network operators when it comes to operational simplicity. With time, with ongoing enhancements in ASICs and optics, we've pointless to think this won’t include cover a broader selection of applications.

A week ago, we announced our intent to get Acacia. Acacia provides a complete portfolio of connectivity solutions that address the entire selection of applications within the DCI and WAN segments for Metro, Regional, Lengthy Haul and Underwater links. Cisco will leverage this portfolio in ongoing to grow its optical systems offering for purchasers who've already deployed DWDM systems. Importantly, from your optics/pluggables perspective, Cisco will drive the transition from chassis-based systems to pluggable DWDM technology for purchasers who wish to simplify operations and lower the complexness of managing multiple layers within the network.

Within my next blog, I’ll address trends within the data center and just how our solutions might help customers manage individuals transitions once we progress to 400G and beyond.

Forward-Searching Statements


This web site contains forward-searching statements which are susceptible to risks, uncertainties along with other factors that may cause actual leads to differ materially from individuals known within the forward-searching statements. All statements apart from statements of historic fact (including statements that contains the language “believes,” “plans,” “anticipates,” “expects,” “estimates” and other alike expressions) are statements that may be considered forward-searching statements, while not all forward-searching statements contain these identifying words. For instance, statements regarding integration plans and also the expected advantages to Cisco, Acacia, as well as their particular customers from finishing the purchase are forward-searching statements. Risks, uncertainties and assumptions include individuals described within the joint pr release announcing our suggested purchase of Acacia as well as in Cisco’s SEC reports (including although not restricted to its newest reports on Form 10-Q and Form 10-K filed using the SEC on May 21, 2019 and September 6, 2018, correspondingly). These documents can be found totally free in the SEC’s website at world wide web.sec.gov or by visiting Cisco’s Investor Relations website at https://investor.cisco.com. If these risks or uncertainties materializes or these assumptions proves incorrect, Cisco’s results could differ materially from the expectations during these statements. Cisco undertakes no obligation to revise or update any forward-searching statement unconditionally.

More Information and How to locate It


Regarding the the suggested acquisition and needed stockholder approval, Acacia will file using the Registration an initial proxy statement along with a definitive proxy statement. The proxy statement is going to be mailed towards the stockholders of Acacia. Acacia’s stockholders are advised to see the proxy statement (including all amendments and supplements) along with other relevant materials once they become available simply because they contains information. Investors may obtain free copies of those documents (when they're available) along with other documents filed using the SEC at its website at https://world wide web.sec.gov. Additionally, investors may obtain free copies from the documents filed using the SEC by Acacia by visiting Acacia’s Investor Relations page on its corporate website at http://ir.acacia-corporation.com or by contacting Acacia Investor Relations at (212) 871-3927.

Acacia and it is executive officials and company directors might be considered to become participants within the solicitation of proxies from Acacia’s stockholders with regards to the acquisition. Details about Acacia’s company directors and executive officials, including their possession of Acacia securities, is placed forth within the proxy statement for Acacia’s 2019 Annual Meeting of Stockholders, that was filed using the SEC on April 3, 2019, Form 8-K filed using the SEC on June 3, 2019, and Acacia’s other filings using the SEC. Investors may obtain more in depth specifics of the indirect and direct interests of Acacia and it is particular executive officials and company directors within the acquisition by studying the preliminary and definitive proxy statements concerning the transaction, which is filed using the SEC.

Additionally, Cisco and it is executive officials and company directors might be considered to possess took part in the solicitation of proxies from Acacia’s stockholders in support of your application from the transaction. Information concerning Cisco’s company directors and executive officials is placed forth in Cisco’s proxy statement because of its 2018 Annual Meeting of Shareholders, that was filed using the SEC on October 24, 2018, annual set of Form 10-K filed using the SEC on September 6, 2018, Form 8-K filed using the SEC on May 22, 2019, and Cisco’s other filings using the SEC.

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