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Interview with Mr. Siraj Elahmadi, Founder, President and CEO, Menara NetworksOverviewMenara Networks, founded in 2004 and based in Dallas, Texas, is a developer of 'system-in-a-module' optical transceivers based on the company's proprietary high-speed ICs designed to simplify the architecture of transport networks. Menara offers pluggable modules with integrated optical transport network (OTN) and forward error correction (FEC) functionality that bring optical transport capabilities to the MPLS and Ethernet services network layer. Menara markets its solution to both networking equipment vendors and direct to service providers. IntroductionMenara was established by staff experienced in WDM systems and high-speed analogue/mixed-signal IC designs from companies such as Nortel/BNR, Siemens, Qtera and Multilink/Vitesse, based on the conviction that network convergence - the transition of all services to packet-based transport, promised for several years - was finally taking place. In order to fully exploit this shift, the company believed that the network core needed to adopt a converged architecture in line with the higher layers. BackgroundBack in the early 1990s, Mr. Elahmadi observed, Pirelli and Ciena 'were' WDM, when the network comprised a WDM layer, underlying a SONET add-drop multiplexer (ADM), in turn beneath a digital cross-connect (typically from either Tellabs or Lucent), with ATM, Frame Relay or perhaps IP switches, on top. WDM technology then moved up to the ADM and subsequently to the digital cross-connect system, which became known as a broadband cross-connect (and now might also include ROADM functionality), "However, WDM stopped moving up the layers at the cross-connect/multi-service transport platform (MSTP) and the technology was not integrated into the IP or ATM switches. A key reason for this was that the developers of SONET ADMs, digital cross-connects and WDM transponders traditionally work in and understand the transport network space, while companies offering switches, such as Juniper, do not have expertise in WDM". A second factor, Mr. Elahmadi noted, was system density. A router is a high-density, compact system with very little spare space for additional components, and in the '90s adding a WDM capability to a router would involve a large LiNbO3-based modulator requiring significant power to run it. Even Cisco, which purchased optical technology and expertise in this area, took a long time to accomplish such capability, and then only on its high-end platform. WDM had not moved into Layer 2/3 systems and for this reason, Mr. Elahmadi said, Menara decided to develop pluggable optical modules that would enable this, "Menara believed there was no operational or network-level reasons preventing the addition of WDM transport functionality (which is not just WDM transmission but also OTN framing, and optical transport layer OAMs) into routers and switches, but rather technological ones". "Moreover, it seemed logical and efficient to add the capability to these systems as the bulk of the services that generate revenue for carriers today - basically Ethernet services - rely on these routers and switches". "This is what the 'Network' wants and in fact demands if one is to accept that minimising the number of arbitrary interfaces and cross-layer signalling is the most efficient way to build networks. This is the challenge we took upon ourselves". Product developmentCommenting on the layered nature of the core network, Mr. Elahmadi said this architecture made sense for delivering TDM circuits and when service restoration and protection switching, grooming and aggregation were all performed in the SONET/SDH layer. In such a set-up, traffic from the routers is aggregated with TDM traffic for transport over the network. However, with routers now supporting 10 and 40 Gbit/s and in the future 100 Gbit/s, the need to aggregate traffic from multiple routers no longer exists, while protection switching can be achieved within 50 ms - as with SONET/SDH technology - using MPLS. Such factors mean that the functionality still required of the SONET/SDH network is basically connecting together the high-capacity routers, for which a WDM/optical solution is the most effective and cheapest method. Menara therefore set out to provide this capability on switch/router systems while at the same time overcoming the limited payload capability and crisp granularity inherent in SONET/SDH. The highly compact switch/router systems have hot-pluggable interfaces that are small and represent one of their key features. Mr. Elahmadi explained this meant that Menara could not compromise the system density by simply adding modules as this would affect the size and power requirements of the switch. Therefore it was necessary to hide the complexity of the physical layer of the product - the WDM/optical part - and site it outside the switch. Such a requirement presented challenges relating to product size and optical channel impairment and to address these issues Menara opted to utilise integration efficacy of electronics to both handle the impairment and to minimise the overall size of the product. Leveraging its unique expertise in advanced communications and signal processing techniques, the company designed several analogue and mixed-signal ASIC devices. Menara's VP of IC Engineering, Dr. Matthias Bussmann, was the founder of Multilink Technology, a developer of high-speed electronics for optical communications systems acquired by Vitesse Semiconductor in 2003, and has extensive experience in this area. Even with its chips in-hand, Menara had to wait another year for a prototype due to software complexity. Mr. Elahmadi stated that one challenge related to the fact that with an XFP module there is no RAM available and therefore no room for extra memory. This meant fitting the necessary code into less than 100 Kbytes of Flash memory, which was no quick or easy task. However, the end result was a complete WDM system with OTN framing, rate adaptation and multi-clocking domains, FEC, and just as important, full OTN overhead processing, in a 100% MSA-compliant XFP transceiver module capable of up to 2,000 km transmission over existing DWDM infrastructure. This is a new concept in the market, supporting a new network architecture, and Menara therefore has to explain to customers where it fits with regards to their existing solutions, "Overall the product is designed to offer carriers a better, more efficient network architecture. Even so, the novel nature of Menara's solution inevitably means that convincing the customer to adopt it may take time". Menara's innovative technology is now protected, the company having been granted a patent for its system-in-a-module technology in March 2010. Market positioningWith regard to Menara's positioning in the vendor space, Mr. Elahmadi said the company is really a subsystem supplier, as its products are designed to interface with a switch system. However, because the products duplicate the functionality of a system solution, such as from Ciena or Infinera for example, it could also be seen as a systems supplier. In comparison to Infinera, which developed a system solution to validate the application of its innovative PIC product, Menara believes it has no need to do this as its product is designed to directly plug into system vendors' switches. Mr. Elahmadi commented that the PIC device cannot be plugged into another vendor's system and work as it requires various other features around it to enable it to function. Although Menara's product incorporates innovative technology that allows the company to compete on factors other than price, Mr. Elahmadi emphasised that Menara offers a solution based on an MSA that is backward compatible for 'frictionless' introduction with customers. This is important, he noted, as Menara cannot compete on cost against suppliers producing perhaps hundreds of thousands of units per quarter. Another key advantage of the converged solution that Menara is advocating is the re-occurring operation savings associated with the elimination of DWDM transponders from the network. Considering that close to 70 cents of every dollar spent by carriers is on operational expenditures such as space, power, cooling, spare parts inventory, etc., the elimination of the WDM transponder element from the network offers significant opex savings and does more towards achieving a 'green network' than the typical 20%-30% power saving achieved by adopting the latest generation in a given technology. Customer engagementsThough targeting both equipment vendors and service providers, Mr. Elahmadi cited Juniper Networks as a customer to which Menara provides OTN capability for its switches, and it is also working with Ericsson and ECI Telecom, among others. Juniper is focused on developing real-time software and highly complex ASICs, delivering functionality such as packet forwarding on its switches, and it is Menara's goal to augment Juniper's MPLS/Ethernet capabilities with optical capabilities in a seamless fashion For transport system vendors, Mr. Elahmadi stated that Menara is called upon to provide XFP modules that enable capabilities such as extended reach or OTN functionality on a third party company's system. The small supplier issueAs a small company targeting major vendors and carriers, Menara does face the problem of acceptance with regards to financial stability and long-term prospects, although Mr. Elahmadi believes his company has successfully addressed both issues with its customers. Menara's products have been deployed into several Tier-1 carrier networks and the company enjoys unequivocal and strong support from its long term investors who together manage over $1 billion in assets. According to Mr. Elahmadi, Menara is able to demonstrate to customers that its product is based on a mass producible silicon chip that is qualified and proven - representing the company's main differentiator in the market - together with reliable software. It was noted that Menara buys in the optical components used in its products and outsources manufacturing, "Concerns about long-term viability of the company can be addressed in several ways, such as via a security of supply agreement, whereby Menara will put a design in escrow. Alternatively, a customer might be permitted to buy products direct from Menara's contract manufacturers if the company could not fulfil a contract for some reason". On the possibility that Menara might seek to become a competitor to a company it was supplying by moving into the systems space, Mr. Elahmadi stated that this is effectively impossible as Menara does not have the necessary expertise, for example in GMPLS or packet-based technology. In addition he emphasised that the company has no interest in selling chassis-based products. PartneringPartnering with other companies is a possibility, Mr. Elahmadi confirmed, and Menara is open to such arrangements, including licensing its technology. Menara is well aware of customer concerns over supply and second-sourcing and is willing to work with them to address these issues. Ultimately, Menara would be prepared to enter a relationship with another vendor to facilitate the adoption of its solution, "It is not simply a matter of whether a partnership is necessary, it is first and foremost a case of finding the right partner, and Menara is currently talking with a number of companies. One option would be a partner able to provide scale and manufacturing capabilities, while Menara would focus on the chip, software and system design". Present position and prospectsConsidering Menara's particular areas of expertise, Mr. Elahmadi said the fact that the company's product is based on a complex, high-speed mixed-signal IC is believed to give it a lead over optical transceiver suppliers, as such vendors are not focused on chip design. Based on this factor, aside from the fundamental difficulties facing any company developing such a chip, he does not believe a competitor could produce a similar design in under three years. Furthermore, Menara is continuing to push the envelope by designing new enhanced ICs, offering more network-level features such as demarcation features for 10G Ethernet wavelength services and 8G Fibre Channel support, as well as more optical features, such as the full C-band tunability on ITU-T 50 GHz grid announced and demonstrated at OFC in San Diego last March. In conclusion, Mr. Elahmadi noted that as well as requiring time to gain acceptance with customers, Menara's innovative solution competes with products from a wide range of equipment suppliers, although this also means there is a huge potential market for the product, "Menara's products are deployed and carrying traffic in several networks across the globe. We continue to enjoy strong growth and are confident that our vision of the network will be adopted by a majority of carriers in the market place". "Our only concern, given our first mover advantage and high barrier to entry, is to secure our 'unfair' share of the pie and provide the strong ROI that our customers and shareholders rightfully expect from us".  |
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