Even today, many data center operators still believe that sourcing optical components from a small pool of Network Equipment Manufacturers (NEMs) can help streamline operations. However, while sole-sourcing may simplicity, it can quickly create a dependency on one vendor, leaving operators at a disadvantage.
While many operators may believe the trade-off is worthwhile, there are also a significant number of other issues that arise when this strategy is applied to modern and AI-led data centers.
Why Can’t Single-Source Vendors Keep Up with Demand
In today’s market, AI infrastructure that is built around a narrow set of NEMs is structurally incapable of meeting the growing, explosive demand seen within the sector. When an operator’s entire capacity is dependent on a sole or limited number of NEMs, even minor production constraints can add to major development delays.
This is especially true in AI environments, where workloads require unprecedented levels of compute, bandwidth and thermal energy. AI racks often exceed 50-100 kW per rack, compared to 8-10 kW in traditional enterprise environments1. A bottleneck at the optics or switching layer doesn’t just slow procurement, but the entire AI pipeline.
Traditional procurement cycles further compound this issue. The sheer velocity that AI projects now demand ensure that legacy negotiation processes, multi-round approvals and rigid vendor frameworks are often no longer fit for purpose.
By the time equipment is delivered, the workload profile may already have shifted, leaving operators constantly behind the curve. It’s no surprise that many industry forecasts predict significant delays in AI infrastructure buildouts due to supply chain constraints2.
How Can I Avoid Vendor Lock-In?
These also have a knock-on effect on the total cost of ownership. When there’s no competitive pressure, prices will remain artificially inflated, and organizations risk locking themselves into long-term commercial and technical dependencies.
Once these ties are in place, operators are limited in their ability to adopt new architectures, pivot to the latest standards, or integrate next-generation technologies.
Thankfully, it appears that the industry is realizing these issues. A 2025 survey of 1,000 IT leaders found that 88.8% of businesses now believe no single provider should control their entire stack, and that 45% advised vendor lock-ins have hindered their ability to adopt better tools.
Instead, operators should consider a hybrid, multi-source model in order to break this cycle. By incorporating alternative suppliers within your system, alongside traditional NEMs, operators are empowered to introduce newer, more efficient solutions as soon as they become available, as opposed to waiting for when the NEM chooses to adopt.
This agility and compatibility is essential for keeping pace with aggressive AI-driven requirements, especially in areas where performance gains are measured in days and weeks, not months and years.
AddOn Networks and the Multi-Source Advantage
The economics of using alternative solutions are equally compelling, since NEM optics are typically around 70% more expensive than the equivalents offered by AddOn Networks. Considering premiums accumulate rapidly when developing AI data centers, avoiding overheads that directly erode margins is crucial, this is a crucial selling point to operators.
Simply put, a hybrid sourcing strategy allows operators to redirect that spend into capacity expansion, innovation or accelerated deployment instead, rather than paying for NEM-driven mark-ups.
To counteract this competitive behavior, an NEM may imply that using alternatively-sourced optics could cause technical issues or void warranties, but this is a scaremongering tactic designed to preserve long-standing relationships. In reality, many regions have clear legal protections that prevent this kind of anti-competitive behavior.
For example, the Treaty on the Functioning of the European Union (TFEU)3 explicitly prohibits warranty tying in Europe under Articles 101 and 102, ensuring operators are free to integrate alternative optics without jeopardizing service agreements. These regulations are essential for maintaining fair competition and giving operators the flexibility to choose the most cost-effective components.
Market behavior is also shifting, with some major NEMs like Cisco now acknowledging the role of alternative suppliers, with the leading manufacturer openly supporting them in sales engagements since 2023. This trend reinforces the growing acceptance of hybrid optical ecosystems and the value of AddOn Networks as a partner.
Unlocking Next-Generation Data Centers
As AI infrastructure continues to accelerate, operators can no longer afford the risks, delays and inflated costs that come with relying on a single-source vendor model. A hybrid, multi-supplier strategy will not only protect against bottlenecks, but unlock greater flexibility and faster deployment while maximizing cost efficiencies.
Only by embracing alternative optical providers and partners like AddOn Networks can build AI-ready data centers that scale at the speed the market now requires.
Contact AddOn Networks to explore how a hybrid optical sourcing strategy can accelerate your AI data center deployment and reduce TCO.