"The agreement is a good endorsement of ADVA's product range... and Siemens is facing competition from Nortel, ONI, and Ciena and needs to have an offering in the metro space," says Douglas Smith of Credit Suisse First Boston in London. He feels ADVA offers a significant cost advantage and European focus compared to these competitors.
Since June 2000, Siemens has resold ADVA's FSP-I and FSP-II optical DWDM systems to customers on a standalone basis. Now, Siemens will actually modify ADVA's products, while tapping its full range of gear, including ADVA's higher-end product, the FSP (Fiber Service Platform) 3000. This optical networking product offers 160 Gbit/s of capacity over 64 protected wavelengths at distances up to 300 kilometers. It handles a range of interfaces, including Sonet/SDH, gigabit Ethernet, ESCON, and Fibre Channel.
Until now, Siemens has held fast to its claims on the long-haul DWDM space, while watching the metro market sail past. It hasn't had a metropolitan optical product of its own in general shipment, though it claims to be developing one.
Siemens says it will use the ADVA deal to augment its product line, instead of halting development of its own metro prototype. But it's clear the company is looking to ADVA to solve some of its problems and possibly speed up development. For one thing, the transponder that Siemens plans to install in the ADVA gear was the same component being developed with its own metro prototypes.
"We want to combine this [component] with ADVA's DWDM gear, which has support for ESCON, SANs, and Ethernet for the metro space," says a Siemens spokesperson.
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