TMCnews Featured Article
July 21, 2009
Demand for Broadband Services Is Growing: Sorrento
By Michael Dinan, TMCnet Editor
Bucking downward trends seen in other segments of telecommunications and IT, service providers are seeing more and more demand for broadband services, the head of a Centennial, Col.-based provider of metro optical access solutions told TMCnet in an interview.
According to Jim Nevelle, CEO of Sorrento Networks, Inc. – a company that offers an edge-to-regional CWDM, DWDM and ROADM (News - Alert) product portfolio to carriers and enterprises – one of the major bright spots of this down economy has been the resiliency of broadband services.
During an interview with TMC President Rich Tehrani (News - Alert) (printed in full below), Nevelle also said the he sees the broadband delivery market as the segment with the strongest potential.
“Gigabit Ethernet delivery continues to grow as the need for corporate networks infrastructure swells, IPTV services expand and data center-related connectivity increases,” Nevelle told Tehrani.
Nevelle – who is speaking during ITEXPO West 2009 in a session called “Deploying IPTV” – also said that he thinks broadband stimulus is helping all equipment providers by enabling service providers to think about providing broadband services in areas that would normally be overlooked.
Their full exchange follows.
Rich Tehrani: What has the economic crisis taught you, and how has it changed your customers?
Jim Nevelle (pictured left): The current economic crisis has taught many of us in the optics business that the demand for broadband services is a very resilient. Networks providing Gigabit Ethernet services are still being built and proposal generation by carriers to their customers is higher now than over a year ago. In fact, many of our service provider customers have seen the demand for broadband steadily increase over the past 18 months.
RT: How is this down economy affecting your decisions to reinvest in your company or market, if at all? Where will you invest?
JN: Companies should continue to reinvest during downtimes so they can reap the benefits when the entire market comes back even stronger. In the first half of 2009, Sorrento Networks launched its Optical Ethernet Transport platform, which has been very successful for us in the Gigabit Ethernet delivery space. All of our major customers either have already standardized on the OET or have lab time set up for it.
In the second half of 2009, we will continue to invest in our industry-leading storage area network interface suite, which is being heavily deployed worldwide in data center applications. In conjunction with our SAN interfaces, we will also announce our new encryption certifications and system security enhancements. As 2009 progresses, we plan to roll out a new amplifier and filter architectures for the new network deployments we are experiencing.
RT: What’s the strongest segment in the communications industry?
JN: From where Sorrento sits, we see the broadband delivery market as the segment with the strongest potential. Gigabit Ethernet delivery continues to grow as the need for corporate networks infrastructure swells, IPTV services expand and data center-related connectivity increases.
RT: With the rise of smartphones and netbooks, many wireless technologies, such as WiFi (News - Alert), appear to be poised for rapid growth. For example, we’re seeing more and more airlines add in-flight WiFi. In general, how widespread should WiFi be, in your view?
JN: Anyone in corporate America will attest to the notion that WiFi is almost a necessity now to function day to day due to email and the other online applications that drive our lives. As such, WiFi networks will continue to grow to meet that demand.
RT: Which nation or region of the world will present the largest opportunity for your company in 2009/10?
JN: We at Sorrento see North America as a considerable opportunity due to our very large embedded base here. But, Europe and Africa will be the main growth drivers for us because of the need to expand broadband offerings to regions that have few existing deployments.
RT: In what ways is President Barack Obama helping or hindering the technology markets? What more can he do?
JN: President Obama’s Broadband Stimulus Package is helping all equipment providers by enabling service providers to think about providing broadband services in areas that would normally be overlooked. Most of our customers are submitting proposals in some form for a piece of the Stimulus Package. And, we are currently involved in analyzing network designs in U.S. regions where, in normal circumstances, it would not have provided a positive ROI to deploy wavelength division multiplexing technology.
RT: What device or devices do you use, and what do you wish you used?
JN: I personally use the Apple iPhone and a Dell (News - Alert) computer for all my communication needs. To be honest, these two devices provide for all my needs.
RT: What has the iPhone 3G taught us? I know it’s very new, but what about the Palm Pre? What are we learning from the smartphones based on the open source Google Android (News - Alert) platform?
JN: All of the new PDAs and smartphones have taught us that people want to be connected and are willing to pay for it. The broadband demand for these wireless devices is one of the driving forces prompting service providers to invest in their infrastructure.
RT: I understand you are speaking during ITEXPO West, to be held Sept. 1 to 3 in Los Angeles. Describe your talk and tell us what companies or people should attend.
JN: I will be talking about IPTV and triple play migration plans using wavelength division multiplexing technology. The target audience should be those who have triple play network deployment plans, but are trying to figure out how optimize the network on a budget. The presentation will cover the economics and benefits of WDM infrastructure in conjunction with triple play networks.
RT: Why should customers choose your company’s solutions? How do they justify the expense to management?
JN: Customers have been selecting Sorrento Networks’ WDM solutions for years due to the reliability and features we offer. Our customers’ networks require extreme service level uptimes, which is why they turn to Sorrento. Additionally, by providing numerous interfaces on a single platform, we are allowing our customers to deploy one platform for all of their applications. Management actually looks forward to approving the purchase of our products due to the high ROI we provide for their network deployments.
Learn more about Sorrento Networks Inc. at ITEXPO West — the biggest and most comprehensive IP communications event of the year. ITEXPO West will take place in Los Angeles, Sept. 1 to 3, 2009, featuring three valuable days of exhibits, conferences, and networking opportunities you can’t afford to miss. Don’t wait. Register now.
Michael Dinan is a contributing editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Michael's articles, please visit his columnist page.
Edited by Michael Dinan