Structured Cabling Essay Example
Structured Cabling Essay Example

Structured Cabling Essay Example

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Assessment of the Market and Structured Cabling Technology - January 13, 2013

Several months ago when we began our examination of the structured cabling market, it appeared as though there had been minimal changes over the preceding three years. This perspective was shared by some respondents we collaborated with for this analysis. However, it's now evident that substantial alterations have occurred in the marketplace. The economic recession resulted in reduced financial commitments and a number of projects were discontinued. Those that persisted operated under tight budget constraints.

Along with the evolution in IT technology, manufacturers are experiencing a shift in the demand for product mixes needed by end-users. This has pushed them to reevaluate their offerings and strategies towards the market. One sector witnessing incessant growth is the data center marke

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t, initially propelled by internet expansion and currently amplified by worldwide usage of smartphones and video-on-demand services. These conditions have led to an escalating need for more data center facilities. Seeing this potential, several structured cabling makers have developed programs specifically designed for this flourishing market.

The burgeoning of the data center market is driving a heightened demand for fiber-optic products. The small form-factor LC connector, along with its laser-optimized multi-mode fiber (LOMF), has become the norm and is expected to continue growing in popularity. The compound annual growth rate (CAGR) for the LC LOMF plug is projected to be 11%, while OM3/OM4 LOMF's CAGR is forecasted at an average of 30.2%. However, due to budget constraints, persuading customers to upgrade to the premium OM4 fiber remains challenging for manufacturers. Most data centers do not require the enhanced optical reac

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that OM4 fiber offers (from 300m to 550m at 10G), which acts as its main attraction.

The cost for the upgrade is difficult to justify, but there is a need for a fiber-optic solution that spans the gap between the 40/100G reach of 125 meters for OM4 multi-mode and 10 kilometers for OS2 single mode fiber. A cost-effective solution for campus installations could be an OM4+ fiber solution with a reach of 300 meters, which would also allow for the use of less expensive transceivers. Another option is the development of a less expensive SM transceiver that can reach approximately one kilometer.

Pre-terminated fiber optic cable assemblies are replacing field-terminated ones in data centers and campus environments (Figure 1). Project managers favor these assemblies because they can be installed quickly and are factory-tested by the manufacturer, relieving them of one task. However, this is detrimental to installers who have honed their skill in field-terminating fiber optic connectors, as it eliminates a significant source of their income.

Fiber optic cables, custom-built to various lengths and fitted with diverse connectors such as LC and SC, are designed according to the equipment they pair with. The LC connector is increasingly becoming popular in the industry due to its compactness and capacity for high-density applications. Meanwhile, there's substantial growth observed in the MPO connector as it focuses on enhancing density, simplifying termination, and supporting emerging applications like 40 and 100 Gigabit Ethernet. Bishop's forecast depicted in Table 1 below anticipates these connectors' Compound Annual Growth Rate (CAGR) will exceed 170% within the coming five years.

The prevailing economic conditions present short-term hurdles for the growth

opportunities of fiber-optic products in the colocation data center sector, due to some customers' hesitance to meet their premium costs. However, high-bandwidth shielded items such as CAT6A F/UTP and CAT7 S/FTP provide an avenue for expansion, with expected CAGRs exceeding 25%. Despite copper's reducing supremacy in the structured cabling market, predictions indicate that fiber-optic merchandise will gradually elevate their market presence at the expense of copper over the forthcoming five years. The total five-year CAGR projected for fiber is likely to be above 17%, while it is anticipated to be negative for copper. Moderate development is also foreseen in CAT6A U/UTP with a CAGR of 5.5%. These fiber-optic products are compatible with 10-Gigabit Ethernet and their demand is on the rise because manufacturers like Arista recommend using these items concurrently with their RJ45-based products.

The recommendation is made from the perspective of fulfilling FCC emission regulations rather than internal constraints like alien crosstalk. The market has started to accept 10GBASE-T after overcoming issues related to power and cost. Nevertheless, it was a slow process for this application to penetrate the market. Throughout this time, several technologies such as Top-of-Rack (ToR) design and SFP+ Direct Attach Copper (DAC) cables have found their place in data centers. These innovations are crucial because they remove the need for a patch panel at each rack's top, an essential element of the traditional structured cabling system.

Despite manufacturers educating customers about the increased installation flexibility provided by patch panels, it is unlikely that IT managers will abandon their familiar point-to-point wiring within the rack. SFP+ DAC is a competing technology for 10GBASE-T that also supports 10-Gigabit Ethernet. One

advantage of SFP+ DAC is its modular design, allowing users to switch between copper and fiber as needed. However, it has a larger form factor compared to the RJ45. Currently, SFP+ holds a significant portion of the ToR server market at approximately 86%.

Bishop anticipates that it will not vanish. Table 2: Overall Components by Media Type Despite the fact that the overall market for Category 6 (Figure 4 left) cabling will decrease in the next five years, manufacturers can still benefit from this well-established product and it will remain a source of income. The structured cabling industry has always been highly competitive, and the recession has further intensified market commoditization, adding strain on manufacturers due to the decline in new installations; competition for each project is intense.

Users' budget constraints have led to the commoditization of the structured cabling market. Manufacturers used to differentiate themselves by claiming enhanced network performance. They competed based on decibel (dB) ratings, aiming to specify their products to end-users and exclude competitors by demonstrating superior performance on specification sheets. However, dB ratings have become less important, and it is becoming harder to secure exclusive bid positions. Furthermore, previously closed bid positions are being opened up for competitive bidding.

All manufacturers are feeling the pressure from this situation. However, they have successfully convinced their customers to use Category 6. Apart from distances less than 55 meters, which no manufacturer recommends, there is no specific application that necessitates the use of Category 6. Category 5e is sufficient for the prevalent application in data centers, which is 1000Base-T. Despite this, suppliers have persuaded end-users to install Category 6 as

a means of "future-proofing" and for the extra capacity it provides beyond the standard.

With the shift in focus of IT managers from structured cabling to other strategic aspects, cabling companies have revamped their approach to attract customers. Instead of solely emphasizing cables and connectors, these companies now incorporate marketing strategies that highlight important factors like cooling. To tackle this issue, vendors have introduced various products that optimize airflow within the rack or cabinet. Moreover, companies like Panduit have created pre-configured rack systems specifically tailored for a particular switch.

This kind of value-added service minimizes the time spent on design, planning, procurement and setup. Customization is possible for many supplied racks to meet specific customer requirements. This approach complements the notion of standardizing data centers and integrating PODs at a rack or row level. Such support has become commonplace, with CommScope being recognized for its long-standing reputation in providing reliable advisory services to clients. Over time, manufacturers such as Panduit, Leviton and Siemon have also increased their application-engineering personnel to advise customers on product choice and specification creation.

They can also provide support in design and optimizing the productivity and efficiency of their company’s products in every installation. These value-added services will be expanded by companies and they will continue to create standard configurations that are tailored to support the products of leading equipment manufacturers. This can put manufacturers without a wide range of products at a disadvantage in terms of competition. For instance, cable manufacturers may not have the necessary product range to meet their customer’s primary needs.

Despite the marked increase in bandwidth requirements within data centers, the desktop

environment has stayed relatively static for many years. A lot of users find that 1000BASE-T suffices their needs, which is backed by Category 5e and Category 6 cables. Currently, there's a limited need to expand 10GBASE-T to desktops as server and switch manufacturers primarily focus on expanding their presence in the data center market. In the past, it was common practice to install four connections per workstation; however, this has been reduced to cut expenses.

Emerging technologies like Bring Your Own Device (BYOD) are increasing the need for in-building wireless infrastructure. The next five years are anticipated to introduce substantial shifts in the array of devices used within workplaces and the organized wiring systems implemented to support them. It is expected that there will be a decrease in demand for Category 5e, with a projected Compound Annual Growth Rate (CAGR) of -23% during this time frame. This type is likely to be predominantly utilized in simpler installations such as homes or auxiliary structures like building automation, security, and lighting.

The subject of IP-based infrastructure automation and security systems has been on the table for a while now, with implementation currently ongoing in upscale buildings. Though IP security cameras have had market presence for several years, the coax-based analog ones continue to be purchased in bulk and are still lucrative for their makers. These analog models often become part of hybrid systems that link them to IP-based networks. The common practice is to use LED lighting for exterior building illumination, indicating potential opportunities to substitute conventional fluorescent light fixtures with LED alternatives.

Redwood Systems, a firm that produces structured cabling systems, asserts that

an office space of around 250,000-square-foot typically demands more than 6,000 RJ-45 connectors, nine racks, 70 patch panels and half a million feet of cable. Figure 5 presents the proportion of copper cabling projected to be implemented in the forthcoming five years. This piece offers a summary of crucial elements within the structured cabling industry. For comprehensive data on this topic, Bishop & Associates' Structured Cabling Technology and Market Assessment by Lisa Huff is recommended.

Telecom Director, Bishop & Associates Inc., Lisa Huff, has over 25 years of experience in the electronics industry as a Certified Data Center Professional and electrical engineer. Her work in connector and market research includes managerial roles at Nexans Inc. North American Competence Center and Berk-Tek, A Nexans Company. She has also worked as an optical components analyst for Communications Industry Researchers (CIR), a communications marketing manager at FCI, and a development engineer at AMP Incorporated (now TE Connectivity).

Her specialization is in data centers, data communications cabling and connectivity, networking equipment, and optical components. Lisa has authored over 20 publications, including market research reports, industry Webinars, articles, short courses, and white papers. Tom Debiec is responsible for structured cabling and other connectivity projects at Discerning Analytics. With an engineering background, Tom possesses more than two decades of technical and marketing proficiency in the premise cabling market.

Tom has had a successful career in the cabling industry, taking on roles in product development, design, technical support, and program management. He has been actively involved in industry standards such as NEMA, TIA, and IEEE. With his technical expertise and experience in product development, Tom is able to provide

valuable insights into the technologies that shape the market. Additionally, his marketing knowledge enables him to effectively analyze and communicate trends with clarity and authority. |

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