Moska: "Another question in this regard is: why would customers buy 100g at all if 400g was around the corner?"
It's a good question Moska and one that Suresh touched on at the last AGM:
01:53:54 – Q: You mentioned coming to the 100G market at a time, maybe at the middle of the market, and then getting to the 400G more towards the beginning of that market rise. Will companies go ahead and buy your 100 when the 400 is coming soon thereafter, or will they just wait?
01:54:22 – Suresh Venkatesan: I mean we’re … it’s your traditional S-curve, right? So as the volume goes up, ASPs come down, so there’s always a need for a solution that can provide better margins. So we do believe that there’s an opportunity over the next several years to be competitive in the 100G space as well, right? But obviously, I mean, there will be a transition from 100 to 400, and we want to be well-positioned for that transition to occur by having capability and prototypes out next year, but that ramp is not expected till 2020 – 2021. In the meantime, the growth of all 100G … there’s a nuance, the initial ramp of 100G was on a protocol that’s called PSM4, that’s parallel quad-lane, as opposed to the new growth is intended and expected to be in what is called CWDM, or coarse wavelength division multiplexing, which is where we add a lot of value, because we’re incorporating the de-multiplexer and multiplexer into the interposer. So that’s where the next wave of 100G growth is, it’s moving away from PSM and into WDM, and so that’s where our opportunity is for both long-reach as well as medium-reach in data communication. So, long answer, but in short, yes there is an opportunity at 100G.