Gigabit Ethernet vs. Next-Generation SONET: Which Technology Will Win?

📅 November 19, 2001 - The limitations of traditional SONET technology are well known. They include high-cost, long provisioning cycles and poor data transport efficiency. In response to these limitations, Next-Generation SONET and Gigabit Ethernet are emerging as replacements and thus also as technological rivals in the battle for marketplace acceptance.

A newly released report by Pioneer Consulting (pioneerconsulting.com) asks,Which technology will win this battle? Will most SONET-based serviceproviders migrate to "Next-Gen" SONET? Or will "Gig-E" achieve a competitiveadvantage by combining the much-touted cost-effectiveness of Ethernet withcarrier-class reliability?
Pioneer's report, entitled Gigabit Ethernet: Equipment and ServiceOpportunities in Multiple Markets, addresses these questions by examiningGig-E technology from both a technological and marketing perspective. As theGigabit Ethernet report points out, the technological battle between Gig-Eand Next-Gen SONET is far from won and will play out over a number of years.According to Pioneer, further penetration of the MAN and WAN marketssegments will require Gig-E to undergo additional technologicalimprovements. However, at the same time, Next-Gen SONET will also continueto evolve.
As Paul Kellett, senior director of market research for Pioneer explains,"Development of Next-Gen SONET is not standing still. Given that both Gig-Eand Next-Gen SONET are evolving, another important question is whichtechnology will evolve the fastest to satisfy or exceed the specific needsof network operators."
"Gig-E may have to evolve faster than Next-Gen SONET in order to overcomesome important advantages already being enjoyed by Next-Gen SONET," addsDoug McEuen, senior market analyst, optical networking at Pioneer. "Theseadvantages include the ability of Next-Gen SONET equipment suppliers toaddress a large installed base of SONET equipment users and to positionNext-Gen SONET as the natural migration path from legacy SONET."
According to Pioneer Consulting, a winner-take-all outcome may not occur andboth technologies may realize a peaceful co-existence in the marketplace.This is indicated by Pioneer's finding that Gig-E will at least find a nichein the marketplace with a worldwide market opportunity of $44 billion by2005.
The Gigabit Ethernet report can be purchased in both hard copy andelectronic formats. A table of contents and abridged version of theexecutive summary are available at Pioneer's Web site or by contactingPioneer Consulting at (617) 424-5200.