With the increasing demand for cloud-based applications, datacom providers are expanding their distributed computing networks. Therefore, they and telecom provider partners are looking for data center interconnect (DCI) solutions that are faster and more affordable than before to ensure that connectivity between metro and regional facilities does not become a bottleneck.
As shown in the figure below, we can think about three categories of data center interconnects based on their reach
Intra-data center interconnects (< 2km)
Campus data center interconnects (<10km)
Metro data center interconnects (<100km)
Coherent 400ZR now dominates the metro DCI space, but in the coming decade, coherent technology could also play a role in shorter ranges, such as campus and intra-data center interconnects. As interconnects upgrade to Terabit speeds, coherent technology might start coming closer to direct detect power consumption and cost.
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