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Optic Impairments and Coherent Optics: Explained

What are impairments and why do they matter?

When link distances and data rates increase, the physical limitations of light transmission over optical fiber cable becomes an inhibiting factor. These limitations are called impairments and become significant at longer distance and higher data rates.

How have impairments have been compensated to date?

The digital signal processor (DSP) chip within the coherent optic is the key to solving these complex problems. Because impairments are the result of the physics (the interaction of glass and light) they can be modeled with mathematical formulas. The DSP can mathematically compensate and adjust the transmission and reception of light in a few ways that mitigate impairments and thereby increase link reach and data rate.

Over the decades many technologies have been developed to compensate for impairments, these include:

  • Dispersion compensation filters
  • Dispersion shifted fiber
  • Amplifiers
  • Attenuation devices
  • Other tools that require significant time and expense to integrate into networks

Coherent optics can eliminate much of this equipment and can help to reduce these issues by solving these impairments with software algorithms in the DSP.


Dispersion

There are several dispersion issues on optical networks including:

  • Chromatic dispersion (CD)
  • Phase mode dispersion (PMD)
  • Polarization-Dependent Loss (PDL)

Dispersion arises because the shape of the light wave spreads as it travels along the fiber. In addition, wavelengths of different frequencies travel at slightly different speeds. Both effects make it difficult for the receiving optic to differentiate where signals stop and start. Since these characteristics are consistent, mathematical formulas in the DSP can be used to compensate for them. This is more efficient than compensation with the physical devices used in prior generations of optical equipment.

Attenuation

This is probably one of the easiest impairments to understand because it is consistent with our everyday experience of light. Attenuation is the progressive dimming of light as it travels through the fiber. This is like a flashlight that brightly illuminates the area immediately in front of it but farther away the illumination is much weaker. At a certain distance in the fiber light is too weak for the receiver to detect it. The opposite effect can also occur. If the light is too bright, then the receiver cannot distinguish between on and off signals. This can happen when the laser light source is too close to the receiver.

Optical Signal to Noise Ratio

There is always noise present in a link. It can arise from or be affected by the characteristics of the optical module electronics, the fiber itself and even environmental conditions. The optical signal must always be significantly stronger than the noise or again the receiver cannot detect the information being transmitted. This is like static on a radio broadcast. At a certain point the broadcast becomes ineffective due to amount of noise (static) that is mixed with the music.

FEC and Programmability

The presence of a DSP dedicated to optical transmission enables other benefits for coherent transmission. Forward Error Correction (FEC) is a method of detecting bit error rates (BER) in an optical signal without a reverse path signal for comparison. FEC can enable some correction to transmission errors and therefore it: 1) helps guarantee signal integrity and 2) can enable greater signal distances. FEC works by injecting redundant bits into the data stream at transmission and analyzing the redundant bits at the receiving end. Algorithms are used to compare the bits and determine if the data can be corrected or must be re-transmitted.

Conclusion

The presence of a DSP in a coherent transceiver helps overcome impairments. Software, that can be controlled remotely or set to default parameters, is able to adjust the amplitude, phase and polarization characteristics to meet the application need or match the limitations of the optical fiber.

CD, PMD and PDL can all be detected and corrected within the DSP. Attenuation and the Optical to Signal Noise Ratio (OSNR) are also enabled for compensation via the DSP. This enables better signal integrity at higher bit rates over longer distances. Doing this processing in the DSP eliminates significant work in link planning and link budgeting for optical networks. At ProLabs we understand how to use coherent technology to reduce capex and opex costs for access, edge, metro and long-haul optical links. Today, up to 400G can be transmitted on fiber that could not support 10G using the older direct detect technology.

This means that coherent optical transceivers can be used for a wide variety of network applications. At the 2019 Optical Fiber Communications (OFC) Conference Andrew Schmitt Directing Analyst with Cignal AI predicted that by 2022 or 2023, the "modularization" of coherent technology will begin to cannibalize the optical hardware market.

At ProLabs we understand the changes taking place in this market and how coherent technology can be applied to network problems. Cost efficiencies gained with coherent optics enables lower cost, high performance optical links. As the functionality increases and the cost decreases coherent optics are displacing other transceiver solutions and other optical equipment and gaining popularity for more link applications. Our experts are on the forefront of these developments.

Simply follow the links below to see our full series of coherent articles:

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All You Need To Know About Coherent Detection Transceivers

In this article we will take a deeper look at coherent detection transceivers as they are one of the most important developments supporting optical data communications. It is not a new technology, but recent advancements are so profound that it's the primary enabler of higher data rates and longer reach on today's networks.

At a fundamental level coherent optics apply a technique that uses modulation of the amplitude and phase of the light, as well as transmission across two polarizations, to enable the transport of considerably more data through a fiber optic cable.

Advances in material science for CPUs, lasers and photonic integrated circuits (PIC) enabled coherent detection. These developments have helped to form the basis for the longer reach and higher bandwidth applications, e.g. transcontinental and subsea applications. Experience gained in these high value, high cost applications is now transforming the economics of coherent detection and bringing the benefits of coherent optics to shorter reach, cost sensitive applications.

Encoding & Decoding
There are two primary methods for encoding and decoding optical links for data networks, direct detection and coherent detection. Both techniques share some fundamental properties. An optical transceiver consists of a transmitter and a receiver, among other components. The transmitter and receiver are encoding 0s and 1s as pulses of light. For example, the absence of laser light (off) would represent 0 and the presence of light (on) would represent 1. In a direct detect transceiver the transmitter state is either on or off.

This on or off state is decoded at the receiver as a 1 or a 0. To transmit more data, the laser must flash on or off faster. This works well, except as distances and data rates increase, it becomes progressively more difficult for the receiver to determine if the transmitting laser is on or off. This occurs for several reasons, including dispersion and the ability to modulate the laser at higher data rates. The need for longer distances and higher data rates is clear and they are driving innovation in coherent detection.

Increasing demand for higher bandwidth has also led to the creation and adoption of Dense Wave Division Multiplexing (DWDM). Originally, DWDM networks used detect transceivers, each of these transceivers is assigned a unique wavelength. Multiple wavelengths can be carried on the same fiber without interfering with one another. This approach has been a primary method of adding bandwidth to city and regional long-haul networks.

As data rates increase and wavelengths are added to fibers, there is a point at which the limitations of faster laser transmitting/receiving and increased DWDM wavelength packing per fiber reaches the limitations of physics. Coherent detection helped solve this challenge by increasing the bandwidth available on each wavelength. They are now the primary technology for increasing bandwidth on DWDM networks for short and long-haul links.

Three characteristics of light used to increase bandwidth

Coherent detection enables both higher data rates and longer transmission distances. To understand why, we need to look at how direct detection operates. The short answer is that coherent transmission enables more bits per symbol. To carry more than a single 1 or 0 coherent detection employs three dimensions of light, 1) amplitude, 2) phase and 3) polarization. Using these three variables it is possible to send more bits (1s, 0s) per time period. This enables much greater throughput:

1. Amplitude
Amplitude can be imagined as a wave. The wave will have a height and a depth as measured from a central point between the height and depth. The high point of the wave might signal a 1 and the low point a 0. Also, waves can be large or small and the relative height or depth of the wave can represent a different symbol. For example, a small height might represent a 11 and a small depth a 00. So, by varying the amplitude (height or depth) of the wave multiple bits (symbols) can be transmitted (encoded) per time period. A limitation of this method is that only one symbol at a time is transmitted.

2. Phase

The phase of the wave is used to add more symbols per time period. Phase divides the wave into sections, like slicing a cake. Each section of the wave can represent a different symbol. Using the wave analogy, the peak of the wave might be a 11 and the next slice down might be a 10 and the slice below that a 01 and the bottom of the wave a 00. In this way, one wave can represent four symbols, thereby increasing the data rate or bandwidth available on the link.

3. Polarization
Polarization is the third characteristic of light used to increase the symbol rate per time period and thereby increase the bandwidth. Polarization can be thought of as the directions on a compass, north, east, south west. The waves can be aligned so their peaks and troughs are in one of these four directions. Each direction represents a separate bit stream and each carries information independent of the other. The key point is that all four polarization's can be present at the same time which increases the number of symbols per second. The compass has 4 cardinal directions and it makes a simple analogy to envision light polarization. However, there is no reason to limit polarization to 4 directions. Many implementations of coherent transceivers use 8 or 16 or more polarizations to transmit even more symbols per second.

Digital Signal Processors
Combining amplitude, phase and polarization offers the ability to encode a greater number of symbols per time period. However, encoding and decoding this light requires significant computational power. Digital Signal Processors (DSP) developed to fill this need. The speed and complexity of these calculations required the development of these specialized chips. The chips themselves use the latest in 7nm chip technology. Just as important are the algorithms used to encode and decode the light. One of the key intellectual properties of optical vendors are the complex algorithms that combine amplitude, phase and polarization in unique ways, to enable higher symbol rates per time period.

Conclusion
Developments in coherent detection brings greater complexity to optical transceiver technology. At ProLabs we specialize in making them productive for our customers. Optical performance capable of reaching these data rates and distances makes testing and quality control more important to suppliers and end users alike. The team at ProLabs invests significant resources and manpower to ensure our customers have the highest performing solutions for their applications. In the world of coherent transceivers, one size does not fit all. Fiber characteristics, network applications, incumbent vendor equipment, e.g. Cisco, Nokia, Edgecore, network design, and other factors all play a role in determining what coherent transceivers fit the requirement. ProLabs understands these requirements to bring our customers solutions that work today and into the future.

Simply follow the links below to see our full series of coherent articles:

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Coherent Optics: The Beginning of a Wider Approach

Coherent transceivers are evolving at a rapid pace. Not long ago they required part of a card on a chassis to host them. Today they are available in pluggable form factors packing the laser, DSP, transmitter, receiver, modulator, and other components into a standard pluggable form factor, while minimizing power draw and heat generation. This is an astounding technical achievement and is a driving factor behind much of the bandwidth increase on optical networks.

Encoding Schemes

Encoding is the method of changing data from one form to another, encoding data to light is called modulation. The primary encoding schemes used in these devices are:

  • Quadrature Phase Shift Keying (QPSK)
  • Quadrature Amplitude Modulation (QAM)

QAM is a signal in which two carriers shifted in phase by 90 degrees (i.e. sine and cosine) are modulated and combined. As a result of their 90° phase difference they are in quadrature and this gives rise to the name. Often one signal is called the In-phase or “I” signal, and the other is the quadrature or “Q” signal. QPSK is a form of phase modulation technique, in which two information bits (combined as one symbol) are modulated at once, selecting one of the four (0, 90, 180, 270 degree) possible carrier phase shift states.

Baud

This is another common term associated with coherent modulation. Baud rate means the number of pulses per time period measured in seconds. A simple way to conceptualize baud is to think of it as frequency. How often the signal is sent is measured in baud. Some of the fastest DSPs can operate at 64Gbaud and 64QAM. A transceiver sending 64 Gbaud pulses per second (64 billion pulses per second) and operating at 64QAM is sending 600 billion bits per second.


Packaging

The presence of a chip on an optical link also presents new challenges as well as benefits. The main issues with putting a DSP at each end of an optical link are:

1) Space

2) Power usage

3) Heat generation

Coherent optical modules are engineered to address these challenges. The CFP2 format was the first industry standard pluggable optical module. This format comes in two types, the Analog Coherent Optic (ACO) and a Digital Coherent Optic (DCO). In the CFP-2ACO module the DSP is placed on the host line card to address heat issues. The ACO module passes analog signals to the DSP which is located on the host line card. In a CFP2-DCO the DSP is located within the optical transceiver. Having the DSP within the CFP2-DCO transceiver provides more flexibility because the module can be used with any line card. Whereas a CFP2-ACO may only be used in a system that has the matching DSP on the host line card.

Standardization work will soon be complete on new and even smaller pluggable form factors including.

QSFP28 100G ZR/ZR+, QSFP56-DD-ZR/ZR+. These developments will enable coherent detection for more optical transport applications due to their smaller footprint, lower power consumption, higher data rates, and longer reach.

Applications

Standards groups and optical vendors are working to expand the addressable market by creating specifications for coherent optics that meet the industry needs of:

  • Data center operators
  • Cable MSO’s
  • Telecommunication service providers
  • Science and research networks

Today there are coherent transceiver solutions for intra-data center, inter-data center, access, metro, and long-haul links. Packaging options include pluggable form factors which broaden the usefulness of coherent optics and enable their usage in a wider variety of equipment. Interoperability is also becoming more feasible as vendors create components and modules that meet standards, MSAs and Implementation Agreements.

Conclusion

The development of interoperable standards for coherent transceivers and packaging in pluggable form factors is now bringing coherent benefits to a wide range of networking applications. ProLabs is a leader in the adoption of these new technologies to solve network problems.

We understand the trade-offs between cost, performance, reach, labor, network equipment, and power requirements. All these factors must be considered when selecting which coherent transmission approach is best for your network. We work with our clients to understand their network and their goals so we can specify the right coherent solution for the network requirement. At ProLabs, our knowledge of the applications and experience with existing and developing standards and equipment makes us a trusted partner for coherent optics with networks across the globe.

Simply follow the links below to see our full series of coherent articles:

Contact us to find out more.

NEBS Testing and Compliance Explained

The North American telecom industry requires optic solution providers to be Network Equipment-Building System (NEBS) compliant to ensure network integrity, compatibility, and safety. By being NEBS compliant, this indicates that the products and equipment operate at optimum capacity, as network operators need to invest in optics suppliers who ensure their performance through rigorous testing.

The combination of rapid network expansion and the experience of carriers in managing their infrastructure during extreme weather events is likely to only increase the demand for NEBS-compliant devices.


Different Levels of Compliance

NEBS is made up of various levels that distinguish certain aspects of testing. Each one verifies a different performance specification with operational requirements.

  • NEBS Level 1: Addresses safety measures of the equipment and requirements for GR-63-CORE and GR-1089-CORE standards. Typically used by service providers for early deployment into their central offices and/or laboratories
  • NEBS Level 2: Addresses equipment operability that in controlled environments like data centers. Level 2 includes all requirements of Level 1 with some added level of operability reliability.
  • NEBS Level 3: Determines that the equipment meets all the requirements of GR-63-CORE and GR-1089-CORE. This provides the highest assurance of product operability. Most TCGs require Level 3 prior to acceptance/installation on the networks.


What ProLabs NEBS Certification means for you:

ProLabs SFP, XFP, and QSFP transceivers have undergone NEBS testing criteria for standards GR-63-CORE and GR-1089-CORE. The compliance test involves testing the products in extremities to ensure that they can resist maximal temperature, vibration, and humidity, while also protecting the safety of the personnel who operate it. All ProLabs' products are rigorously tested and coded in its global, state-of-the-art facilities to ensure the highest levels of performance with 100% application testing in end-use conditions.

GR-63-CORE

GR-1089-CORE

  • Fire resistance
  • Temperature and Humidity
  • Shock, vibration, & earthquake (operating and storage)
  • Airborne contaminants
  • Acoustic
  • Lighting
  • Altitude
  • Floor loading, physical, & spatial requirements
  • Electrical safety
  • EMI emissions
  • EMI immunity
  • ESD
  • Bonding and grounding
  • Lighting immunity

Required by the Telecommunications Carrier Group (TCG), NEBS testing confirms the reliability, safety, and quality of a vendor’s telecommunications equipment. As those standards continue to evolve, each requirement will become more demanding. Being NEBS compliant ensures system integrity and performance.

At ProLabs, we understand the need for optics to be operating in the most extreme conditions.

Contact us today to learn more about our testing certifications and requirements.

ProLabs unveils high-performance, low-cost CWDM4-LITE solutions to upgrade data center speeds and reliability

Tustin, California, US, June 16, 2020 – ProLabs, a global leader in optical networking and connectivity solutions, has today released its latest portfolio of transceiver solutions that allows data centers to achieve 100Gb/s speeds with unparalleled reliability.

Demand for high speeds and around the clock reliability continues to drive data center operators to invest in their infrastructure. ProLabs’ new low-cost, high-performance solutions – the QSFP28 CWDM4-LITE transceivers – vow to future-proof networks while minimizing upgrade costs and investments.

“With consumer needs rising exponentially, the costs of future-proofing networks can prevent much-needed upgrades for those with limited budgets. For example, data centers cabled with OM3 multi-mode fiber designed to reach 100 meters with 100Gb/s must contemplate whether to re-cable to OM4 multi-mode fiber or make the leap to single-mode fiber in order to meet the rising demands,” explained Ray Hagen, Global Product Line Manager at ProLabs.

ProLabs’ cutting-edge solution offers a cost-effective alternative for data centers of all sizes to upgrade their networks to meet the ever-increasing data demands. The QSFP28 CWDM4-LITE transceivers can be adopted by large-scale and hyper-scale data centers for intermediate and short reach applications up to 500m but are equally applicable to smaller configurations that only require shorter reaches.

Designed to meet the relaxed Open Compute (OCP) specification in contrast to the more stringent CWDM4 (Coarse Wave Division Multiplexing 4) standard, its new range of transceivers offers a more accessible price point for data centers and providers of all sizes, helping reduce inventory holding and upgrade expenses – while ensuring they are ready to meet the demands of the future.

“Our CWDM4-LITE transceivers are not only capable of expanding a network’s reach and high-speed capabilities, but they are also available when you need them,” Hagen at ProLabs. “Offering complete interoperability and compatibility with leading Original Equipment Manufacturer (OEM), this solution has been proven to minimize lead times and effectively upgrade networks without sacrificing capabilities – providing fully interoperable, high-quality, low-cost CWDM4-LITE solutions for data centers short reach needs.”

For more information about ProLabs’ CWDM4-LITE transceivers, please visit the ProLabs website.

Media Contact
Proactive International PR Ltd
prolabs@proactive-pr.com


ProLabs’ 1G and 10G Transceivers Aid Essential Retailers in Maintaining Suitable In-Store Networks

ProLabs’ 1G and 10G Transceivers Aid Essential Retailers in Maintaining Suitable In-Store Networks

With the COVID-19 pandemic causing a mandatory lockdown for millions of people worldwide, many have been hesitant to revert to traditional shopping behaviors. Large retailers and grocers like Target, Walmart, and Ralph’s who sell essential goods have acquired new shopping etiquette to ensure the safety of their customers and employees. This includes mandatory face coverings to be worn at all times in the store, maintain physical distancing, rigorous cleaning procedures and implementing plexiglass at kiosks throughout stores.

As retailers encourage these new safety behaviors, they still want to ensure their customers are having an optimal shopping experience. To guarantee this experience, stores have been:

  • Adding more self check-out kiosks to decrease person-to-person contact
  • Increasing their WiFi bandwidth to support both associate and guest mobile use
  • Ensuring reliance on real-time data from cloud-based systems for employees to check inventory and price information for their customers

These provisions help customers have a tip-top brick-and-mortar experience while supporting safe shopping habits. This is a trend that may change the retail world forever. That said, how will retailers compete for the best in-store networks to win over customers?

The most frequent in-store network investments have been LAN upgrades:

To current copper infrastructure:

To diminish network bottlenecks:


Contact us today to see how our expert team can help maximize connectivity at the retail store level.

The Fed Supports its IT Initiatives through GSA Contracts

As the fiscal year quickly comes to a close, agencies within the Federal Government find themselves in a familiar position. Unable to spend the entirety of its “use it or lose it” budget and running the risk of facing harsh budget cuts next year. As of 2019, the Federal Government is required to allocate 23% of its $500 billion annual contracting budget on small businesses (approximately $115 billion). With FY20 ending September 30th, many government agencies including the Department of Defense, Federal Law Enforcement Agency, and The Department of Homeland Security are actively looking for small business prime and sub-contractors to fill their needs. But what federal initiatives can small businesses play a role in?

The Fed refocuses on IT Initiatives

As COVID-19 quickly progresses from an isolated issue to full-scale pandemic, both public and private sectors have had to alter spending to fit their new needs. Early federal spending was primarily focused on initial emergency response efforts such as purchasing ventilators, treatments, and constructing emergency medical facilities. But, as the healthcare system begins to stabilize, the Federal Government has readjusted its spending and is now looking to the technology industry to supply them with products that can fulfill their new needs.

As the largest procurer of IT hardware, the Federal Government needs small business’s assistance in the transition to:

  • Enhance telework security
  • Improve overall IT network and storage infrastructure

To combat the economic downturn caused by COVID-19, government entities have been increasing their commitment to infrastructure development. This includes IT development in the form of a far-reaching 5G network, standardization of advanced ConTech (Construction Technology) practices, and modernizing existing federal IT systems. The Federal Government plans to spend more than $90 billion on information technology this upcoming fiscal year. The Government Accountability Office claims that this monetary response acts as a way to improve federal interaction with citizens online, mitigate risk associated with outdated IT, and improve the response to COVID-19. As the pandemic continues to create turbulent economic conditions, many small business owners are looking to GSA Schedule Contracts to return their business to normalcy.

What are GSA schedules?

General Services Administration (GSA) Contracts are long-term federal contracts with commercial firms to supply government agencies with a wide variety of products at discount pricing. There are GSA Schedule contracts for a wide variety of products including information systems software, IT hardware, office supplies and even consultants. A full list of all products on the GSA Schedule can be found here.

The Small Business Administration requires a variety of steps that need to be completed prior to accepting GSA Schedule bids. These steps include providing proof of your company’s prior experience, financial records, and company practices. Also, an additional prerequisite to contracting with the Federal Government is ensuring your products are TAA compliant. More on TAA compliance can be found here.

ProLabs dedication to providing scalable solutions

ProLabs is the world’s largest independent manufacturer of optical transceivers and high-speed cabling, offering the latest in TAA compliant products designed to scale your existing network. ProLabs can provide your enterprise with a broad range of upgrades including memory, network connectivity, fiber optic cabling, optical network transceivers, and more.

Why Choose ProLabs?

  • ProLabs remains at the forefront of the latest fiber optic technologies, providing our customers with cutting edge technology to support any initiative.
  • ProLabs offers TAA compliant products that are ready to be supplied to any federal agency.
  • Over 20 years of experience supplying connectivity products for schools, hospitals, and federal infrastructure projects.
  • We offer competitive prices on all our products, resulting in up to 70% savings compared to the leading OEM.

In uncertain times, it pays to have a partner who won’t compromise on product quality. Our world-class customer service and technical support teams are available 24 hours a day, 7 days a week to ensure that our customers are never left guessing.

Contact us today!

ProLabs SFP28 25G transceivers lower cost of entry for 5G wireless networks

Tustin, California, US, and South Cerney, Goucestershire, England, Sept. 30, 2020 - ProLabs, a global leader in optical networking and connectivity solutions, has launched its new SFP28 25G transceiver line today, reducing the cost challenge of 5G wireless deployment using existing 10G cabling.

By leveraging already deployed cabling, ProLabs 25G solutions are efficient for upgrading wireless network links with single-mode LC connectors at reaches from 100m to 40km. With full feature compatibility assured, they are interoperable in environments equipped with Original Equipment Manufacturer (OEM) switches from Arista, Cisco, Dell, Intel, Juniper, and Mellanox.

"As 5G wireless rapidly becomes the new standard for mobile users, providers have been searching for cost-efficient link upgrades in their SFP28 ports," said Jon Eikel, Chief Strategy Officer at ProLabs. "With that in mind, we designed this transceiver line to empower providers large and small to help bridge the gap, whether that gap is 100m, 10km, 20km, or beyond."

With 5G speeds promising up to 10x current LTE services, the SFP28 25G line relies upon fiber-fed cells located closer to the subscriber. The single lane format also performs in 100G QSFP28 architectures, effective in scaling 1G and 10G fiber backhaul and fronthaul connections to meet 5G data rate requirements.

About ProLabs

ProLabs is a leading provider of optical networking infrastructure solutions. For over two decades, it has delivered optical connectivity solutions that give customers freedom, choice, and seamless interoperability. It serves a diverse range of industries including enterprises, governments, and the largest worldwide service providers.

By championing higher standards for technology, products, and service, ProLabs is changing the mindset of data center and network operators the world over. It supplies solutions that are 100% compatible in form and functionality across 100 OEM manufacturers, covering more than 20,000 systems and platforms.

Media Contact
Robin Fairchild
Robin.Fairchild@prolabs.com

ProLabs Expands Operations in Europe and India to Meet Increasing Demand for its Fibre Optic Solutions

CIRENCESTER, England, Dec. 7, 2020 /PRNewswire/ -- ProLabs, the world's largest independent supplier of fibre optic transceivers and high-speed cabling is expanding their European & India operations as a result of significant new business across UK, Germany, France, and India.

The business has grown by over 100% year on year. Due to this success, they have just increased their manufacturing facilities to support growth projections of 200% and have recently taken on additional local staff. To keep pace with demand they are also planning to build on this expansion in 2021.


Jason Moate, Operations Director from ProLabs said, "During this year we have seen a high demand for our products across all the countries we serve in Europe and also in India. Although there is a greater need for our products in the current environment with many people and organisations working remotely, we have also gained market share as customers increase their demand for high quality, short lead times, and lower costs."

For more information contact clive.burr@prolabs.com

About ProLabs

ProLabs is a leading provider of optical networking solutions. For over two decades, it has delivered optical connectivity solutions that give customers freedom, choice, and seamless interoperability. It serves a diverse range of industries including enterprises, governments, and the largest worldwide service providers.

By championing higher standards for technology and service, ProLabs is changing the mindset of data centre and service providers the world over. It supplies solutions that are 100% compatible in form and functionality across 100 OEM manufacturers, covering more than 20,000 systems and platforms. For more information, please visit www.prolabs.com


FinTechs Outgrowing Legacy Data Centers

Analyzing the status of the financial technology sector in 2020

Until recently, traditional financial institutions were the sole option for consumers to make marketplace transactions, manage their portfolio, and apply for loans. But as the market continues to develop more advanced and efficient financial technology, FinTechs like Stripe, SoFi, and Coinbase are presenting themselves as convenient alternatives. With over 12,000 FinTechs created since 2008, industry members are looking to differentiate themselves through frequent innovation and a consumer-oriented business model. By offering convenient service and highly personalized digital interfaces, there is no question why millions of consumers are making the switch to FinTech.

According to a 2018 study performed by KPMG, FinTechs received $52.5 billion in investments, making the financial technology industry among the fastest-growing in the U.S. While this increase in funding is positive news for FinTechs, it is also a cause for concern for many data center managers. As FinTech data centers continue to implement complex processes like artificial intelligence and blockchain into their infrastructure, network technicians are finding it increasingly difficult to keep up with rising consumer demand for their services.

To combat this, data center professionals are continuing to improve their server’s processing capacity by boosting density or even upgrading their networks interface to 100G/400G. Another potential solution often deployed by data center managers is ensuring their servers are connected to high capacity/low latency switches, with the proper density to support complex projects.

Why FinTech companies are outgrowing their legacy data centers:

  • Legacy data centers lack the bandwidth and latency that is crucial for FinTechs who specialize in services like high-frequency trading or P2P transactions.
  • Shortage of floor space in existing data centers prohibits additional servers from being installed.
  • Implementation of machine learning and artificial intelligence has pushed legacy data centers to their limits, due to the vast amount of data needed for the proper execution of these processes.
  • Low data center processing capacity restricts FinTechs from fully utilizing their servers when performing vital network functions

Top 4 solutions to increase network capacity, space, and lower latency:

  1. Parallel Series Module Transceivers – QSFP-type transceivers offer options to aggregate multiple 10G, 25G, 50G, or 100G fiber-optic connections to a single network port, providing data center space and power savings.
  2. Direct Attached Cables (DACs) – DACs offer low latency, connectivity for top-of-rack data center infrastructures, and support data rates of 10G to 400G. In addition to high performance, DACs provide significant power savings over standard transceivers solutions.
  3. Core and Leaf/Spine upgrades with QSFP-DD – Network elements designed QSFP-DD form factor offers the flexibility to support 400G, 200G, and even 100G data rates. The QSFP-DD ecosystem features a wide range of transceivers and network cabling for both direct connect and network aggregation applications.
  4. OM5 Fiber – Driven by multimode ‘bidirectional’ transceivers and network monitoring applications. OM5 is not only backward compatible with OM4 and OM3 infrastructure but offers higher performance with longer reach across links.

Why choose ProLabs for your data center upgrades?

ProLabs offers advanced upgrades for enterprises who want to future-proof their IT infrastructure. Whether your concern is connectivity, efficiency, or cost, ProLabs can provide you with reliable solutions covered by a comprehensive lifetime warranty.

Contact us today for a quote.