I met with Dr. Paul Voohis, CEO of ClariPhy last week at OFC/NFOEC for interesting conversation regarding the progress of SFP+. Although LRM is getting lots of buzz right now, Voohis says that SFP+ will make headway this year for such reasons as: it shrinks modules, reduces power and cost while improving density. Cisco has been very verbal with its request to bring the cost of the 10G PHY down--and SFP+ is the most promising solution to do so.
The market focus of high speed interconnects includes the 10 GbE Enterprise backbone (300m) served by fiber only, and the 10 GbE Datacenter (100m), served by fiber and copper. Given that with SFP+ all electronics are outside the module, the cost goes down while the interface remains the same. In the future, 4xSFP will address the low cost of copper beginning in 2007.
It will be interesting to watch.