Telco Systems on Heavy Reading: CESR vendors target efficiency worldwide
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Telco Systems on Heavy Reading – CESR vendors target efficiency worldwide

CESR vendors target efficiency worldwide

By Steve Koppman
December 8, 2014

(Below is the overview of this analyst report in which Telco Systems is profiled.)

Energy efficiency has long been vital to service providers because of its large and growing effect on their bottom lines. Carriers are urgent to reduce their cost per bit as revenues, let alone profits, fail to rise in tandem with dramatically escalating network demands placed upon them.

Data centers have acquired something of “a black eye” in the public mind in terms of power utilization. Carrier network electric power can’t grow steadily at over 30 percent a year as bandwidth has on average. There have been estimates that 30 to 40 percent, and growing, of data center costs may be for electric power. Data centers are requiring so much, and such rapidly growing increments, of electricity that utilities sometimes find its procurement problematic. Electricity issues often become determining factors in constructing new data centers that may cost over a billion dollars. Data centers are often built in relatively remote locations where securing adequate power is inherently somewhat problematic in any case.

There is something of a dichotomy between lower-end carrier Ethernet switch router (CESR) platforms with small form factors that customers may buy thousands of at a time on a very price-sensitive basis and larger chassis-based platforms with high costs. Smaller routers extend almost all the way to the network edge for business services and may be colocated at customer sites in wireless networks or at digital subscriber line access multipliers (DSLAMs) in residential networks. The next step up are various levels of aggregation switches, closer to the core network, a service edge router and finally core routers. As one moves closer to the network core, routers become larger and more complex with multiple line cards and central switching.

The importance of energy efficiency to carriers and vendors has grown with the great expansion of network demand not matched by accompanying growth in revenues or profits. Service providers have seen radically expanded demand on their networks for Internet, IP and over-the-top (OTT) services and more without corresponding revenue growth. This is a model that they see as endangering them if nothing is done about it. So there is great focus by service providers on cutting cost per bit.

The push for energy efficiency, meanwhile, also contributes to other related carrier priorities. Cutting back on power consumption for energy efficiency, likewise, helps vendors make their products smaller and more economical. Improved performance and density simultaneously helps vendors lowering overall TCO while improving energy efficiency.

CESR Vendors Target Energy Efficiency Worldwide reviews how vendors worldwide are specifically addressing energy efficiency, focused particularly on CESR products. It reviews significant multiple strategies vendors are using to improve their energy efficiency. The report is built around status reports exploring those strategies, derived from recent interviews with 13 major vendors worldwide, and how they plan to further improve their own energy efficiency into the future.

To view more information about this analyst report, please click here.

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