The growth in telecommunications, data storage and data processing is driving fiber optic data communications to progress at a breathtaking rate. At the "edge" of the network, outside the dense wavelength division multiplexed long-haul core, is the "fine-grained" portion of the information infrastructure. This is where dense fiber optic links transport information across backplanes of central office switches and along high-bandwidth backbones between switches, routers and high-volume memory in storage area networks. These high-performance data links require speeds of gigabits per second and faster, small physical volume, low heat dissipation and high-volume manufacturability because of the sheer number of products required in the fine-grained region. The vertical-cavity surface-emitting laser (VCSEL) is the ideal transmit element for these requirements. It made its commercial debut in 1-Gb/s short-distance datacom links and is poised to enable higher-capacity, more complex interconnect tasks. Advanced VCSEL-based products for communications will emerge in 2001 and beyond.