DWDM INDUSTRY MARKET SHARES - Wintergreen Research Inc.

Applications for DWDM in the United States and North America 1

3.1 U.S. DWDM Value Added Applications 1

3.2 High-Performance Optical Interconnection of Supercharged Servers via 10 Gigabit Ethernet Technology 1

3.3 IBM Global Services Outsourcing Model 3

3.3.1 Lucent Technologies / IBM Global Services 4

3.4 Hewlett Packard And Nortel Networks E-Services 5

3.4.1 Integration of Servers and Optical Networks 6

3.4.2 DWDM Reducing Networking Complexity 6

3.4.3 Operating as a Single Data Center 9

3.4.4 Interconnection to Servers and Storage Across Optical Networks 10

3.4.5 Cisco / LightWave 11

3.5 Cisco Offers DWDM Change in the Local Services Market 12

3.6 All Services from One Cisco Platform 12

3.7 Cisco Optical Service Configuration 13

3.8 Rapidly Scalable Rings 13

3.9 New Market Opportunities With Native Ethernet 15

3.10 Ciena / Cable & Wireless Deploy 10G Metropolitan Optical Transport Solution 15

3.11 Ciena / Williams Communications Network Intelligence 16

3.12 Ciena / Qwest Communications 17

3.13 Protel Optical Internet Across Mexico with Intelligent Optical Solutions 18

3.14 Nextlink Optical Systems Light Next-Generation North American Backbone Network 19

5. DWDM Company Profiles 1

5.1 Alcatel 1

5.1.1 Alcatel Revenue 1

5.1.2 Alcatel Market Outlook 3

5.1.3 Carrier Networking 4

5.1.4 Optics 4

5.1.5 Space & Components 5

5.1.6 Alcatel Optronics 5

5.1.7 Alcatel Optronics Revenue 5

5.1.8 Optical Subsystem Production 6

5.2 Ciena 7

5.2.1 Ciena Corporation Intelligent Optical Networking 8

5.2.2 Ciena All-Optical / Opto-Electronic Approach 10

5.2.3 Grooming Bandwidth 11

5.2.4 Ciena Customers 13

5.2.5 Ciena Revenue 14

5.3 Cisco Systems 15

5.4 Corning 17

5.4.1 Corning Cable Systems Integrates Omega One Communications 17

5.4.2 Corning Cable Systems 18

5.4.3 Corning Fiber Optic Customers 18

5.4.4 Fiber Optic Products 19

5.4.5 Corning $50 Million Upgrade Optical Fiber Manufacturing Facility 19

5.4.6 Corning Expansions 21

5.4.7 Corning Acquisitions 21

5.4.8 Corning Strategy 21

5.4.9 Corning Frequency Control 22

5.5 Fujitsu Network Communications 22

5.6 JDS Uniphase 23

5.6.1 JDS Uniphase Customers 23

5.6.2 JDS Uniphase Products 23

5.6.3 Company Strategy 24

5.6.4 Acquisitions 27

5.6.5 JDS Uniphase Revenue 27

5.7 Lucent Technologies 27

5.7.1 Lucent Microelectronic Division 28

5.7.2 Lucent Products 29

5.7.3 Lucent Switching Solutions 29

5.7.4 Lucent Optical Networking 31

5.7.5 Networking Industry 33

5.7.6 Lucent Revenues 33

5.7.7 Revenues by Segment 2001 35

5.7.8 Lucent Technologies Revenue 1997-2000 37

5.7.9 Lucent Acquisitions 37

5.7.10 Ortel Corporation Acquisition 37

5.7.11 Spring Tide Networks Acquisition 38

5.7.12 Avaya 39

5.7.13 Sale of Power Systems 39

5.7.14 Bell Labs 39

5.8 Marconi plc 41

5.8.1 Marconi Digital Switch 42

5.8.2 Marconi Strategic Positioning 42

5.8.3 Marconi Optical Product Offerings 43

5.8.4 Marconi Revenue 44

5.8.5 Marconi Customers 45

5.8.6 Marconi Acquisitions 45

5.8.7 Marconi Divestiture 46

5.9 Nortel Networks 46

5.9.1 Optical Internet with Nortel Networks Optical Networks Solutions 46

5.9.2 Nortel Networks Customers 47

5.9.3 Nortel Networks Open Optical Dense-Wavelength Division Multiplexing (DWDM) System 49

5.9.4 IP-Ready Open Optical Interfaces 50

5.9.5 Nortel Networks Optical Packet Network Solution 51

5.9.6 IP Data Services 52

5.9.7 SONET/SDH 53

5.9.8 Optical IP Network Backbones 53

5.9.9 Acquisitions 54

5.9.10 Focus on Solutions 54

5.10 Optical Micro-Machines 55

5.10.1 OMM Products 55

5.10.2 OMM Revenue 55

5.10.3 OMM Customers 56

5.10.4 OMM Strategic Positioning 56

5.10.5 OMM Solution 57

5.10.6 OMM Products 59

5.10.7 OMM Customers 60

5.11 Ocular Networks 61

5.12 PacketLight Networks 62

5.12.1 SiteLight 63

5.12.2 CentraLight 63

5.12.3 BrowseLight 64

5.12.4 ControLight 64

5.13 Redback Networks 65

5.13.1 Redback Networks Products 66

5.13.2 Redback Customers 66

5.13.3 Redback Revenues 68

5.14 Samsung / Corning Micro-Optics 68

5.15 Sycamore Networks 69

5.15.1 Sycamore Products 69

5.15.2 Sycamore Vision 70

5.15.3 Sycamore Acquisitions 70

5.15.4 Sycamore Products 71

5.15.5 Sycamore Customers 71

5.15.6 Sycamore Strategy 72

5.15.7 Sycamore OMM Strategy 74

5.15.8 Sycamore Target Customer Base 75

5.15.9 Sycamore Networks Revenue 75

5.15.10 Sycamore Revenue 2000 76

5.15.11 Acquisitions 77

5.16 Telect 77

5.17 Tellium 78

5.17.1 Tellium Aurora Switch 78

5.18 Terabeam 78

Figure 2-1 2

DWDM Segment Revenue, 2000 2

Figure 2-2 3

DWDM Segment Revenue, 2001 3

Figure 2-3 4

DWDM Segment Revenue, 2006 4

Table 2-4 5

Global DWDM Market Shipment Forecasts By Application, Dollars, 2001-2006 5

Figure 2-5 7

Application Integration Broker, Market Forecast, 2000-2006 7

Table 2-6 8

Summary Application Integration Broker Industry Market Segment Forecast, 2000-2006 8

Figure 2-7 10

DWDM Market Shares, 2000 10

Table 2-8 11

Global DWDM Landline Market Shares, 2000 11

Figure 2-9 12

DWDM Market Shares, First Half 2001 12

Table 2-10 12

Global DWDM Landline Market Shares, First Half 2001 12

Figure 2-11 13

DWDM Market Forecasts, Dollars, 2000-2006 13

Table 2-12 14

Global DWDM Market Shipment Forecasts, Dollars, 2001-2006 14

Table 2-13 15

Global DWDM Market Shipment Forecasts, Dollars, By Region, 2001-2006 15

Table 2-14 16

Global DWDM Landline Market Shares, North America, 2000 16

Table 2-15 17

Global DWDM Landline Market Shares, Europe, 2000 17

Table 2-16 18

Global DWDM Landline Market Shares, Japan, 2000 18

Table 2-17 18

Global DWDM Landline Market Shares, China, 2000 18

Table 3-1 2

Service Provider and Enterprise Optical Interconnection of Servers Innovation 2

Table 3-2 4

Lucent Data Networking, Optical, and Wireless Solutions 4

Table 3-3 6

DWDM Integration of Servers and Optical Networks 6

Table 3-4 7

DWDM Leveraging Distributed Computing Power 7

Table 3-5 8

Hewlett Packard and Nortel Networks Cooperative Aims 8

Table 5-1 24

Key Elements JDS Uniphase Strategy 24

Table 5-2 25

JDS Uniphase Strategies To Develop Modules To Improve Customer Time-To-Market 25

Table 5-3 26

Key Elements of JDS Uniphase Strategic Positioning 26

Table 5-4 28

Lucent Markets 28

Table 5-5 30

Lucent Primary Switching Solution Products 30

Table 5-6 32

Lucent Primary Optical Networking Products 32

Table 5-7 47

Nortel Networks Acquisitions 47

Table 5-8 47

Nortel Networks Customers 47

Table 5-9 57

OMM Strategic Objectives 57

Table 5-10 58

OMM MEMS Design, Optics, Opto-Electronic Benefits 58

Table 5-11 60

OMM Customers 60

Table 5-12 61

OMM Partnerships 61

Table 5-13 71

Sycamore Key Market Segments 71

Table 5-14 72

Key Elements of Sycamore Strategy 72

WinterGreen Research, founded in 1985, provides strategic market assessments in telecommunications, communications equipment, health care, and advanced computer technology. Industry reports focus on opportunities that will expand existing markets or develop major new markets. The reports assess new product and service positioning strategies, new and evolving technologies, and technological impact on products, services, and markets. Market shares are provided. Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years.

Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries. Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services. She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration. She is the author of recent studies on worldwide telecommunications markets and the Top Ten Telecommunications market analysis and forecasts.

Susan Eustis, President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications. She holds several patents in microcomputing and parallel processing. She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, Internet equipment, a study of Internet Equipment, Worldwide Telecommunications Equipment, Top Ten Telecommunications, Digital Loop Carrier, Web Hosting, and Application Integration markets. Ms. Eustis is a graduate of Barnard College.

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DWDM INDUSTRY MARKET SHARES, MARKET OPPORTUNITIES, AND MARKET FORECASTS, 2001 - 2006

REPORT NO. S80510003452 135+ PAGES 40 TABLES AND FIGURES 2001

DWDM Market Forecast Industry Analysis

DWDM Market Application Forecasts

Photograph by Joseph Neustadt