Optical Connections Magazine Summer 2024

GEORGE ASHWIN THIRD PARTY COMPONENTS

HERE’S WHY YOU SHOULDN’T BE No matter the industry or market, every business is looking to get a competitive advantage over its rivals. Whether directly or otherwise, the vast majority of market-leading corporations have, at some point, exerted their influence to maintain or grow their customer base. The issue is when these companies take a step too far. George Ashwin , UK Channel Director at AddOn Networks, looks at the issues around using third-party components in the data centre. AFRAID OF THIRD-PARTY COMPONENTS?

W ithin the past year, there have been several lawsuits across the globe relating to anti- competitive acts. Major conglomerates in the mobile and broadband sectors, for example, have been accused of controlling the behaviour and innovation of third- parties in order to better protect itself from competition. Yet threatening behaviour and scaremongering are not unique to those sectors alone. In fact, the same attitude can be seen in the data centre world. Many Network Equipment Manufacturers (NEMs) convey to customers that integrating third-party components could lead to technical issues or a voided warranty. It comes as no surprise that for many, these NEMs are seen as the only option. This is a misconception however. The same operators reliant on NEMs now have greater opportunity to explore third-party components, such as transceivers, that are offered by reputable suppliers like AddOn Networks. These components not

only provide a compelling alternative to NEM products in terms of cost savings but also give operators the tools to overcome proprietary constraints. CHOOSING THE RIGHT COMPONENTS The need for open standards and interoperability in networking equipment is clear. By embracing third-party optics, businesses are empowered to select components from different vendors. This fosters a more competitive, yet collaborative market environment, to the benefit of all. This desire for competition is reflected by the growing position of third-party suppliers within the market. By 2023, the third-party optical transceivers market was estimated to be worth US$2.56 billion, up from US $2.32 billion the previous year. By 2030, experts now predict the same market to reach a value of US$5.10 billion. This market growth serves to highlight consumers’ growing awareness of the options available to

them. There are now cost-effective, versatile alternatives that can help overcome the ever-increasing demand for high-speed connectivity and seamless data transmission. It is still essential that operators select the right solution however. When evaluating third-party optical solutions, there are a number of considerations to process. These include compatibility with NEM switches, data rates, and maximum reach. They should also obtain components that adhere to technical specifications such as DOM Tx and Rx values, as these ensure the transmissions and receipt of optical signals fall within the correct tolerances. These features can all be found in third-party optical transceivers, yet businesses have been reluctant to use these for their data centre infrastructure. Despite bringing greater compatibility and affordability to the market, one pressing concern remains: does the use of third-party components void any warranties or service agreements associated with NEMs?

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| ISSUE 37 | Q2 2024

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