Having closed the chapter on 2024, it’s clear that last year was pivotal for the widespread adoption of coherent pluggables. These innovative technologies have not only revolutionized the way we think about network infrastructure, but have also set new standards for efficiency, scalability, and cost-effectiveness.
Market Adoption and Use Case Expansion
Coherent pluggables have seen remarkable market adoption, with 400G ZR/ZR+ coherent optics becoming the most widely adopted coherent technology in history. While some in the industry predicted early on that 400ZR pluggables would only be a small portion of the coherent market, Acacia has been laser focused on bringing these solutions to its customers to deliver the architectural change needed to transform networks to meet ever-growing bandwidth demands. As a result, Acacia is a market leader in shipments of 400G+ coherent pluggables.
During 2024, Acacia expanded this market-leading portfolio with the introduction of 800ZR and 800G ZR+ pluggables with Interoperable PCS in QSFP-DD and OSFP form factors. These solutions have already been proven in field trials, with Colt being the first provider to successfully trial enhanced performance 800G ZR+ coherent pluggable optics. These 800G router-based optics provide the capability to double Colt’s packet core capacity per link while reducing power per bit by 33.3%.
Acacia also introduced a 400G Ultra Long Haul QSFP-DD module for expanding 400G applications from DCI/metro to long haul applications. The 400G UHL has been proven in field trials, with Arelion announcing that it completed a live network field trial on its route from Chicago to Denver that demonstrated successful IP transmission at a spectrum of 112.5 gigahertz over 2,253 kilometers, with healthy margins, providing longer transmission distances and greater cost savings than currently deployed transponders. Acacia’s 400G ULH pluggables enable Arelion to reduce CAPEX by 35 percent and OPEX costs by 84 percent when expanding its network, providing wider reach with high capacities that support customers’ AI/ML and cloud applications.
The Terabit Era is Going Strong
According to Cignal AI, in 2025, 1.2T+ performance optimized solutions will contribute significantly to bandwidth growth as those solutions continue to be introduced. Acacia’s 1.2T Coherent Interconnect Module 8 (CIM 8), powered by the Jannu DSP, has proven its outstanding performance with multiple record-breaking field trials across Metro, Long Haul and Subsea with Microsoft, Verizon, Windstream, and others. Acacia is also engaged with multiple webscale customers and expects CIM 8 to continue its ramp in 2025.
Looking Ahead…..Artificial Intelligence, 1600ZR/ZR+ and More!
AI certainly was a hot topic during OFC and ECOC in 2024 and Acacia believes it will continue to be in 2025. While a year ago, the industry was focused on single-site AI clusters, we will begin to hear more about methods for distributing AI training over different locations in 2025. And while there is still a lot of work to happen in this area, the optics industry is well positioned to be at the forefront of this evolution since higher speed optical interconnections will be necessary to mitigate bandwidth constraints within an AI networks. Read this recent blog for more information on future proofing your network for AI.
Router-based Coherent Optics
The proliferation of router-based coherent optics is paving the way to a converged IP+Optical network architecture. The benefits in 2024 were clear. Infrastructure provider Colt Technology Services reported a stunning 97% energy savings, and Arelion saved 64% in CapEx and 76% in OpEx. In 2025, we can expect to see more providers leveraging this architecture to achieve increased capacity, reduced energy consumption, and lowered network costs, complexity, and footprint.
1600ZR and 1600ZR+ Standards Agreement
The OIF launched efforts last year on 1.6T coherent optical interconnect solutions and is making progress towards interoperable 1600ZR and 1600ZR+ implementation agreements. In 2025, the industry will be looking at ways to advance this migration using advanced technologies for high baud rate modulation and smaller CMOS nodes.
Looking to the Future
Acacia is looking forward to another year of industry-wide innovation. Helping to solve some of our customers’ most challenging problems has been part of our DNA since Acacia was founded in 2009 and as you can see from this historic timeline, we have continued to set new benchmarks for performance and efficiency. These innovations are not only addressing the current demands of high capacity networks, but are also paving the way for future growth and scalability. Key to this success has been listening to our customers and designing the products and features that they need to be successful. We look forward to continuing that tradition.
