Will Photonic Computing Save the Datacenter?

Earlier this week I was reading an article in the Technology Review describing the first complete photonic communication system developed by chip manufacturer Intel's photonics lab. This development will lead to some tectonic changes in enterprise computing.
Instead of using copper or other electrical conductors to transmit electrical signals to the processors, Intel developed technology that can encode and decode optical signals natively on the processor, which means there is no more performance hit converting optical signals into electrical impulses or vice versa.
The immediate benefit is a serious performance boost. According to the article, the four-laser system the Intel lab staff demonstrated has the capability to carry data at a rate of 50 gigabytes per second compared to the 10 gigabytes per second achievable over copper wiring. This performance is also scalable depending on how many lasers with varying wavelengths are used to transmit data. The article's author reports that a system could handle up to 1,000 gigabytes per second.
The second benefit, which I think is a little more exciting, is the fact that the computer is no longer tethered to the physics associated with copper wiring. The system memory could be housed separately from the processor, maybe a foot away, according to Intel officials. By doing this, not only will it reduce datacenter cooling costs, but it is likely to be the last step in completely deconstructing the concept of the beige box server that we know and love.
For the past several years, the industry has gone from individual rack-mountable servers to blade servers housed in a common chassis. Now with this ability to separate memory from the processor, the datacenter becomes the chassis. Instead of having individual servers, the industry will see processing fabrics interfacing with memory fabrics and connecting with storage fabrics.
Of course, this is quite a ways down the road, since the enabling technology is still in its nascent stages. However, it will be interesting to watch how fast the financial services industry will embrace the new technology once it is available. Considering the stark performance difference between the current and new technologies, I'm not sure if the typical adoption curve will apply.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
M&A activity, syndicated loans, a new tariff tool, and more
The Waters Cooler: LSEG and LeveL Markets partner for new order type, QuantHouse gets sold to Baha Tech, and Fitch Ratings has a new interactive tool in this week’s news roundup.
Nasdaq, AWS offer cloud exchange in a box for regional venues
The companies will leverage the experience gained from their relationship to provide an expanded range of services, including cloud and AI capabilities, to other market operators.
Bank of America reduces, reuses, and recycles tech for markets division
Voice of the CTO: When it comes to the old build, buy, or borrow debate, Ashok Krishnan and his team are increasingly leaning into repurposing tech that is tried and true.
Crypto exchange EDX takes its tech into its own hands
The crypto exchange and clearinghouse, founded in 2022 by industry heavyweights, has built out its technology to meet the needs of the institutional market. In the process, it has learned important lessons about partnering with vendors, building in-house, and, ultimately, control.
FCA sets up shop in US, asset managers collab, M&A heats up, and more
The Waters Cooler: Nasdaq and Bruce ATS partner for overnight market data, Osttra gets sold to KKR, and the SEC takes on DOGE in this week’s news roundup.
EMS vendors address FX options workflow bottlenecks
Volatility is driving more buy-side interest in automating exercises and allocations.
BNP Paribas explores GenAI for securities services business
The bank recently released a new web app for its client portal to modernize its tech stack.
Treasury selloff challenges back-office systems, datafeeds
FIS and Trading Technologies suffered downtime during peak activity.