GEORGE ASHWIN THIRD PARTY COMPONENTS
THE WARRANTY ‘ISSUE’ The answer may surprise you. The use of third-party optical transceivers does not inherently void service contracts and warranties, and any implied ‘warranty tie’ with an NEM is considered illegal. There are legal frameworks in place to safeguard data centre operators. For example, the Treaty of functioning of the European Union (TfEU) protects
there have been a number of updates coming from NEMs that suggest a change in attitude regarding third-party components. In June 2023, one of the largest manufacturers in the market published some new collateral on its latest series of switches. Among the many benefits listed by the manufacturer is the fact its switches are ‘third-party transceiver enabled’; specifically, they support ‘a wide range of small form-factor pluggable (SFP) modules’. On the surface, this may not seem like much, yet this small concession should be music to the ears of data centre operators. The acceptance of third-party optics by NEMs hopefully indicates a broader trend towards greater flexibility and choice for customers. If other NEMs follow suit, businesses can avoid being confined to proprietary solutions. Instead, they will be able to select optical components from a variety of sources that align with their budgetary and operational requirements. This already benefits those operators deploying a mix of NEM and third-party components within their data centres. They can rest assured that the NEM will uphold their warranty in the event of a fault, so long as the third-party product isn’t found responsible for the issue. This is yet another reason why operators should not fear repercussions when looking to transition to third-party components, and we hope to see more NEMs embrace them going forward. OPTIMAL BENEFITS, MINIMAL RISK Once operators take that leap of faith, they won’t be disappointed. Choosing a third-party supplier that places their customers first can bring significant benefits to their data centre operations. However, selecting the right supplier is just as important as selecting the right component. The best third-party suppliers will ensure all their optics are programmed and tested in-house. Many of these top- tier suppliers now have best-in-class laboratory facilities that are constantly being updated with the latest NEM switches available on the market. It is in these labs that network transceivers are programmed to the exact NEM specifications and functionalities customers are used to. This is why it’s important to dispel common misconceptions about warranty and performance – these components are designed to work with, not outright replace, existing NEM solutions. One step the best third-party suppliers take that others may not is in-
environment testing. When customers send through their initial order, the premium suppliers will request information in order to set up the most suitable switch-to-switch connection. By doing this, the supplier is making sure that the customer’s products will work and perform at the level they need for their exact requirements and set-up. Customers then get the peace of mind that each module shipped to them is fully tested, and ready to be deployed. This is a level of assurance that many NEMs simply cannot provide.
businesses and their customers in European Countries if third-party
hardware outside of the NEM is used. According to European law, an explicit or implicit ‘warranty tie’ by a NEM would amount to illegal tying under Articles 101 and 102 of the TfEU and equivalent laws in each Member State. For businesses within the United Kingdom, a similar legal standing is ensured through the Competition Act of 1998. This prohibits any anti- competitive agreements between businesses, mitigating any potential abuse of a business in a dominant market position. There is also a federal law in the United States to ensure that a NEM - or any other company – cannot make a business commit to the exclusive use of its own upgrades. Additionally, they also cannot invalidate a warranty should the business look to obtain one from elsewhere. The Magnuson-Moss Warranty Act of 1975 (15 United States Code section 2302(c)) specifically prohibits a “tie-in sales provision” whereby network NEMs cannot void their warranty offering if a customer installs a third-party transceiver in the system. Considering the influence that many NEMs have on the global data centre market, these pieces of legislation are essential in protecting businesses in their local regions. They also serve to encourage greater competition for the benefit of the consumer, reducing
OVERCOMING THE MISCONCEPTIONS
It’s for these reasons that operators should not fear incorporating third- party components like transceivers into their existing data centre infrastructure. These solutions present a viable and advantageous option for businesses seeking to optimise their operations. The third-party transceiver market does continue to grow, yet the scaremongering carried out by the major NEMs – whether directly or indirectly – continues to put operators off switching. If all misconceptions surrounding warranties and performance can be cleared up, and operators can fully leverage the expertise of trusted suppliers, they will be in the best position to embrace cost-effective alternatives without compromising on quality or performance. With the industry continuing to shift towards greater openness and interoperability, the adoption of third-party optics can help businesses stay competitive in the evolving landscape of data centre management.
things like vendor lock-in while fostering choice in all markets.
A CHANGING INDUSTRY PERSPECTIVE
It goes without saying that third-party suppliers offer their own warranties as well. They offer quality, standards- tested product ranges, underpinned by lifetime warranties, and all coming at the fraction of the cost. These warranties are subject to the same legal requirements as those offered by NEMs. Compatibility and interoperability are essential in a modern data centre, and giving operators the power to interchange NEM and third-party components puts them in the best position to overcome the rising demands of the industry. However,
George Ashwin, UK Channel Director, AddOn Networks.
www.opticalconnectionsnews.com
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ISSUE 37 | Q2 2024
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