Point2 Technology’s innovative cloud-based software is poised to transform the way operators run their data centers. Its proprietary cable technology will significantly improve efficiency while minimizing costs and energy usage by over 80%. The company’s creative approach should make it a dark horse in the cutthroat hyperscaler space. Point2 Technology is the missing link between long-haul optical fibers and silicon photonic chips. This new and creative solution stands to transform the intersection of data and transmission.
Founded almost nine years ago by veterans from Marvell, Nvidia, and Samsung, Point2 Technology has been turning some exciting heads. The company used that early momentum to raise a $55 million venture round, largely led by Molex. The announcement comes on the heels of some notable company progress that has the potential to impress hyperscalers. These behemoths are in a constant pursuit of performance improvements and operational cost reductions.
Innovative Technology and Design
Point2 Technology’s proprietary e-Tube cables are made with eight Specialized Fibers. Each fiber strand is capable of carrying more than 200 billion bits of data every second! This design increases efficiency by a factor of three. The system operates at one-third the energy consumption of existing optical solutions. Point2 Technology’s system is three times less expensive than typical optical systems. This relative affordability makes it an attractive choice for data center operators looking to cut costs.
The performance metrics of Point2 Technology’s offerings are just as astonishing. The system features latency of 1000 times less than optical communications. The e-Tube cable features a slim design, using as little as half the space of a 32-gauge copper cable. It can amplify its influence by a staggering 20 times! David Kuo is a vice president of product marketing and business development at Point2 Technology. His focus on these developments is incredibly timely.
“We call it the copper cliff.” – David Kuo
The company’s goal is to extend radio technology into the data center, an innovation that could dramatically change the way data is sent. One waveguide in the cable supports a remarkable 448 gigabits per second. It does so with the help of dual frequencies — 90 gigahertz and 225 gigahertz. These unique capabilities have made Point2 Technology a leader in high-speed data transmission solutions.
Addressing Market Needs
Point2 Technology’s uncompromising dedication to solving customer pain points just right is the major differentiating factor from the competition. As industry veteran Dave Welch pointed out at a recent MEMO meeting, most customers now want fiber optics. They do so with great reluctance, under the burdens imposed by the difficulty of working with photonics.
“Customers love fiber. But what they hate is the photonics.” – Dave Welch
This same sentiment is mirrored by Alberta labour activist Don Barnetson, who advocates for the necessity of slowly moving off of passive copper connections.
“You start with passive copper, and you do everything you can to run in passive copper as long as you can.” – Don Barnetson
Point2 Technology’s solution is arriving at a crucial time. At the same time, the data center industry is failing to keep up with the increasing demand for faster and more reliable connectivity solutions. The company’s technology is helping them do more than just keep pace with these demands. It’s helping them push the boundaries of what’s possible under legacy infrastructures.
Future Prospects and Applications
Point2 Technology is looking forward to deploying Advanced Electronic Components (AECs) for the first time. These components will mostly stitch together large numbers of discrete Graphics Processing Units (GPUs) to network switches, producing scale-out networks. This application will continue to improve data centers’ performance and reliability.
Welch emphasizes the fundamental benefits of electronic systems in comparison to optical solutions, explaining that electronics are much more reliable.
“Electronics have been demonstrated to be inherently more reliable than optics.” – Dave Welch
The appetite for high-speed data transmission just continues to increase. Point2 Technology’s unique customer-focused mindset has quickly made the company a driving force behind the evolution of data center technology. The latter the company does very well, usually over 10-20 meters with no drop in distance. This unique capability highlights its superior performance compared to copper alternatives.

