Three Smart Transceiver Strategies to Drive Network Efficiency…and Savings

The volume of data we’re generating annually is mind boggling. According to Statista, the world is on track to create, capture, copy, and consume 182 zettabytes of data this year. By 2028, that figure will reach an astounding 394 zettabytes. 

Evolving network architectures to maximize optical network efficiency in response to the exponentially growing volume of data is already a complex task for MSOs, MNOs and other network operators. However, in our modern climate of economic uncertainty, the pressure is on to reduce the total cost of ownership while unlocking scalable, future-proof growth. At the center of this challenge lies the optical transceiver: a critical component whose strategic deployment can unlock significant financial advantages.

In this blog, we will discuss how embracing vendor diversity, multi-platform transceiver standardization, and the thoughtful use of tunable optics in dense wavelength division multiplexing (DWDM) environments can help network operators reduce capital (CAPEX) and operational expenditures (OPEX) while enhancing network performance and resilience. 

Vendor Diversity: Leveraging Third-Party Optics for Cost and Supply Chain Optimization

As we’ve discussed in previous blogs, network equipment manufacturers (NEMs) often utilize fear, uncertainty and doubt (FUD) tactics to convince network operators to procure their transceivers from a single source. However, going this route often leads to inflated costs (for both CAPEX and OPEX), increased vulnerability to supply chain disruptions, and a severely hampered ability to innovate and customize your network architectures as needed. The answer lies in vendor diversity – integrating high-quality, third-party optics to mitigate supply chain disruption risks, vastly improve your agility to drive optical network efficiency, innovate in response to evolving market demands and reduce the total cost of ownership.

At Precision OT, we provide a compelling alternative to NEM solutions. Engineered and rigorously tested for 100% interoperability with existing big-brand solutions, our optics enable operators to unlock immediate cost savings (we’ve seen customers pay 10 to 20 times more with other providers) while procuring custom-engineered solutions that meet their unique requirements. In other words, we help network operators avoid vendor lock, so they have the freedom to innovate on their terms. 

Going the third-party route isn’t just about pricing, however. It’s also about mitigating the risk of relying exclusively on one provider’s supply chain. Our deep relationships with our Tier-1 suppliers and proactive approach to long-term forecasting ensure we’re able to meet demand for all the product lines our customers depend on. 

Learn about how vendor diversity can help eliminate transceiver procurement risks

Multi-Platform Transceivers: Streamlining Inventory and Reducing Operational Complexity

Managing extensive inventories of platform-specific transceivers is one of the most pressing challenges facing today’s network operators. Traditional NEM optics are not designed to function across multiple platforms. Yet, modern network system deployments typically feature a wide range of NEM host platforms. As network operators evolve their networks into multi-vendor environments, it becomes increasingly difficult to track multiple part numbers and stock keeping units (SKUs) across procurement, warehouses and in the field. The result is heightened CAPEX and OPEX, increased risk of inventory obsolescence, and slower, more complex deployment cycles.

To counter this, network operators can turn to multi-platform optics, transceivers that are designed to be compatible with the hardware and platforms of multiple vendors. At Precision OT, our multi-platform optics are custom engineered to meet the requirements of our customers’ network designs. We work closely with our customers to understand their unique network needs and then custom code the internal memory maps of our transceivers so that they can interact seamlessly with multiple host platforms as necessary.  

Key benefits of procuring multi-platform optics include:

• Cost Savings: Network operators can reduce the number of different transceivers required in their networks, lowering the need for transceiver sparing and reducing the costs associated with managing SKU inventory.
• Simpler Deployments: Acquiring optics that are optimized for plug-and-play operation in whatever platforms are required means simplified logistics, enhanced optical network efficiency, and maximized operator agility. 

Read more on how we ensure transceiver compatibility and how you can benefit

Tunable Transceivers in DWDM Deployments: Balancing CAPEX with Long-Term Flexibility

As demand for 5G, the IoT and AI continues to heat up, network operators are increasingly choosing Dense Wave Division Multiplexing (DWDM) over Coarse Wavelength Division Multiplexing (CWDM). It all boils down to capacity and scalability. After all, DWDM supports up to 96 channels with 50GHz spacing (or 48 channels with 100GHz spacing) on a single fiber pair, while CWDM only offers up to 18 channels in the 1270-1610nm range , with truly only 8 channels for long reach deployments in the range 1470-1610nm. There are already transceiver DWDM solutions that can support bandwidths of up to 800G while pluggable optics for CWDM can only offer 100Gbps. From a distance perspective, CWDM reaches its upper limit at around 160km (depending on the data rate) while DWDM can reach much longer distances once combined with amplification and dispersion compensation techniques.

By offering significant advantages in terms of fiber utilization and long run cost efficiency, DWDM networks are a go-to choice for network operators building high-capacity, long-haul, scalable networks. They are so popular, in fact, that we recently released a tunable 100ZR coherent tunable DWDM transceiver in a QSFP28 form factor that can reach 80km of transmission distance on unamplified DWDM links or up to 300km on DWDM amplified links. This groundbreaking technology overcomes the challenges imposed by alternative solutions available on the market today, including the use of expensive transport equipment or higher cost switches and routers.

Another key aspect of DWDM transceivers is that they come in both fixed-wavelength and tunable types. Traditionally, network operators have purchased fixed-wavelength DWDM transceivers for their operations. However, this requires operators to not only purchase optics for immediate use but stock spare ones for each wavelength leveraged within the network. When using fixed channel DWDM transceivers and only NEM optics, an operator might need to stock several of the same channel optics for each and one of their host platforms. This approach significantly inflates both CAPEX and OPEX, going against the modern goal of enhancing performance and scalability while reducing expenditures. 

In this regard, tunable DWDM transceivers provide an optimal solution to this challenge. Capable of dynamically adjusting to any wavelength on demand, tunable transceivers can help network operators simplify network management, reduce inventory costs and enhance scalability.  While such optics can carry higher upfront costs compared to their fixed channel counterparts, their long-term financial and operational benefits are significant. Our tunable transceivers (SFP, SFP+, XFP, SFP28, QSFP28, QSFP-DD) paired with our TN100-series tuning box and Remote Assistant app make it simple for customers to improve their network agility while reducing OPEX. 

Making These Strategies Work for You

By embracing vendor diversity with high-quality third-party optics, multi-platform transceivers and tunable DWDM optics, network operators can significantly reduce their CAPEX and OPEX while adapting their networks to meet the needs of today and tomorrow. However, truly evolving optical network efficiency requires more than just hardware. It requires a true partnership. That’s where we at Precision OT excel. We not only listen and customize solutions to your needs, but we also rigorously test them in our labs to ensure they will work as you envision. With deep seated expertise in systems integration and interoperability, as well as our commitment to BABA, we’re ready to support you in driving efficiency, reducing costs and enabling sustainable growth.