A massive infrastructure of hyper-scale data centers is required globally for processing data needs of people, and a massive network of optical interconnections rapidly and accurately move these huge volumes of data around and between these data centers. This infrastructure, i.e. the “Cloud”, is still in the early stages of transforming our way of life.
Over the last decade the rapid expansion of the required optical networks has evolved greatly in complexity and size, which has resulted in a proliferation of connections and related connection distances. With the emergence of large data centers, rapidly changing technology and available solutions in turn are introducing new network topologies with specific interconnection needs that rely on ultra-pure light lasers and the highest speed over distance components to achieve the performance, capability and capacity required of these networks.
There are more than 500 hyper-scale data centers, each housing 100,000 or more micro-processors. Each hyper-scale data center is surrounded by many more enterprise level data centers. New applications requiring massive data manipulation are emerging continually, such as autonomous cars, virtual reality, smart homes, tele-medicine, genomics, artificial intelligence and machine learning. Such vast proliferation of data applications will continue to drive growth in hyper-scale and enterprise data centers for decades to come.
The ability to generate and process data would be for naught if the data could not be transported to where it is needed. Thus, the second major element of the Cloud is the communications interconnections between data centers and consumers and between the data centers themselves.
Total data traffic is forecast to double every three years, with nearly all of this data being carried over fiber optic data links. Optical communications is becoming the bottleneck in the growth of the Cloud. NeoPhotonics has been a pioneer for new technology of “Coherent” communications powered by its lasers and Photonic Integrated Circuits, or PICs, which are restoring balance to the Cloud while transforming telecommunications.
Networks operating at 400G and beyond data rates have adopted coherent transmission technology because of its ability to increase data rates and lower costs. These high speed networks are among the highest growth segments of the optical communications market, and support the rapid expansion of telecom backbone, hyper-scale data center and content provider networks, accommodating increased mobile traffic. We expect growth in the 400G and beyond segment to be driven primarily by increased adoption of our high speed products in the much larger Cloud infrastructure market, the Metro market sector and in the high speed data center interconnect, or DCI, market.
NeoPhotonics offers a complete suite of high bandwidth, high volume components, modules and optical switches to enables high speed transmission solutions to serve the range of data center markets and applications. For intra data center infrastructure, NeoPhotonics component solutions are based on high volume lasers, including both EML and CW DFB, and corresponding optical semiconductor Drivers that are designed to optimize efficiency and performance. For the inter data center infrastructure, NeoPhotonics offers vertically integrated module solutions with internal coherent high speed components and using fully interoperable digital signal processors (DSPs).