Dcmd99. It sounds like they can manufacture those AOC straps for the same cost as it takes to make the copper cables. But the saving on energy is tremendous Each copper jumper takes 6 watts, AOC takes 1 watt. Apply that saving to every strap in every data center and the saving figures will blow your mind. What's that about 600% greater cost to use copper than AOC.

05:50 – Data centers today, as we’ve discussed last time, are enduring an excruciating pain point in terms of power. There is an entity called the National Resources Defence Council and they track energy management costs of data centers particularly, and in the US alone, data centers approached almost 9 billion dollars in 2013 for energy costs and that is forecast to drive to 13.7 billion by 2020. I mean, these are big numbers.

06:25 – Each watt of heat or energy that does not have to be rejected in a data center or in a rack can be worth a lot of savings and not just direct energy costs, but also indirect energy related to cooling costs in these data centers.

06:40 – Let’s take a look at some numbers here. A single copper direct-attached cable consumes about three watts of power per end, so the total link is about six watts of power. An optical solution can effectively provide the same capability in about a watt of power. So you save about five watts of power when making that transition.

07:02 – A single mega data center has anywhere between 10,000 and 100,000 servers. So just roughly estimating that there are potentially 100,000 copper links, I mean, we are talking about half a million watts of power that you can save through a reasonable conversion of copper cables to optical cables. And that is a fairly significant savings on OPEX. So data communications, from that perspective, is really primed for what we consider to be an integrated opto-electronic device and process platform, something that can really enable low power, minimize size and minimize components costs in any solution.

07:43 – And this is really the opportunity that we laid out last time and the opportunity that POET is targeting to address with this patented process that integrates digital, high-speed analog and optical devices on the same chip. We believe that this process, appropriately incorporated in a manufacturing environment that has competitive cost structures, can enable the speed of light at the price points of copper.