Post on 04-Jan-2022
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OTN Chalk Talk
Steve Alexander–CTO Rick Dodd–SVP, Global Marketing Tom Mock–SVP, Corporate Marketing and Communications December 15, 2011
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Notes to Investors
We will not be discussing company-specific financial information, expectations, or economic conditions.
Information presented and related comments of presenters may contain forward-looking statements. Forward-looking statements include statements regarding Ciena’s expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words.
These forward looking statements, based on information, expectations, prospects, forecasts and assumptions available to Ciena as of the date of this event, involve inherent risk. Ciena’s actual results could differ materially from those stated, forecasted or implied, due to a number of risks and uncertainties associated with Ciena’s business, operations and markets, including those risk factors disclosed in Ciena’s Form 10-Q filed with the SEC on September 8, 2011.
Ciena assumes no obligation to update the information presented today, whether as a result of new information, future events or otherwise.
© Ciena Confidential and Proprietary
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Complete OTN Transport across the portfolio
Proven Optical Switching Portfolio
Robust, feature-rich, scalable Control Plane
OTU
Efficiency Robustness Intelligence
5410 5430 CoreDirector FS CoreDirector 6500 4200 5200
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OTN and Control Plane Heritage
1996 2011 E V O L U T I O N
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The largest ASON networks on earth
With the most global coverage
In the most challenging conditions
• 100K+ circuits • 700+ nodes
• Three “Round the World” networks
• 15-30 Fiber Cuts a Day • 1000+ Restorations per Day
With the Best Overall Availability
And Performance
99.9999% Millisecond Restoration
Options
Pedigree earned through robust global deployments
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Path to Next Generation Optical Networking
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Optical Network for Multi-Layer Services
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Multiple Networks over OTN
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Evolution of Network Cores
1 Tb/s OTN channels
Network Peers
Service tribs
Fully pack the optical spectrum - Maximize spectral efficiency
Create Virtual Wavelengths & Networks
Fully pack the 10GbE, 100GbE or OTN frames
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Virtual Optical Network C
Link bundle
Virtual Optical Network B
Virtual Optical Network A
Virtualize the Network: Many from One
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Single Logical Network
Simplify and Consolidate: One from Many
Core
Metro A
Single I-NNI (1,000+ NEs)
Intelligent Tails (10,000 NEs)
Access & Aggregation
Subsea
End-to-end Services
Distributed Software Control
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Planned Maintenance
Migrated Traffic
OSS Initiated
OSS Initiated
Auto-Restore Traffic
Auto-Discover Topology 1
Automated self-inventory
2 Automated connection management
3 Efficient planning & operations
4 Self-healing network
An Intelligent Multi-Layer Control Plane is the Key
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Predictive failure scenario planning:
Tied to real-time network
configuration
Context: Ciena’s 10-year Development in Switching and Control Plane
Latency-aware circuit routing:
30% average reduction
in latency
Rapid restoration without dedicated protection
20-30% bandwidth savings
Nodes Links
Diversity Latency
Per-circuit priorities & service qualities
Features competitors
can’t match Choose Priority
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Ciena’s End-to-End Packet OTN Switching Portfolio
6500/4200
14-Slot (600G) 32-Slot (1.6T)
5400
10-Slot (1.2T) 30-Slot (3.6T)
5410
UNIFIED NETWORK AND SERVICES MANAGMENT
7-Slot 2-Slot
Blade-based switching Fabric-based switching
Intelligent OTN switching from the customer edge to the core
Common control plane
6500
Intelligent adaptive coherent optics
Capacity and Configuration Flexibility for Different Customer and Network Needs
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Ciena Differentiation:
Competitive Advantage
Ciena Competition
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Ciena Differentiation: Network Automation
Competitive Advantage
Ciena
Control Plane
Competition
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Ciena Differentiation: Range of Configurations
Competitive Advantage
Ciena
Control Plane
Competition
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Ciena Differentiation: Design and Planning Tools
Competitive Advantage
Ciena
Control Plane
Competition
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Ciena Differentiation: Integration with Coherent Transport
Competitive Advantage
Ciena
Control Plane
Competition
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Bandwidth Efficiency: OTN Enables Bandwidth Grooming
Bandwidth efficiency up to 50%
Intelligent Infrastructure Dumb Pipe Network
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IP Core Optimization: Cost-reduced IP Layer
CapEx savings of 25-40% vs. IPoDWDM architecture The content of this deck is not for further distribution or use.
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March 11th, 2011 - Japan The Value of Mesh Control Plane “Talking a little bit about the smarts or the IQ of the network… this is an area where we’ve been collaborating with Ciena for a very long time.”
“The core of the network is a [Ciena] mesh control plane capable network, and we’ve had global deployment of mesh for many years. We have eight-way diversity across the Atlantic ocean, another eight-way diversity across the Pacific. And that is tremendous, when you built the network with the physical capabilities, with all the submarine cable investment we have and fibers across the global, as well as the control plane, you really can achieve six-nines availability on a sustainable basis.”
“So during the last Japan disaster, many cable systems were cut. Even if it’s a seven or eight cable system, these cable systems had 15, 20 cuts. And it wasn’t just one event, we had multiple aftershocks. If you remember, every two days or three days there was another aftershock. Well the [Verizon] network survived all of those within 50 milliseconds. We have not lost a single circuit for any customer, or dropped a packet during the whole situation.”
“That is owed half to the physical network diversity, but also the dynamic mesh network’s ability to see all these paths and restore dynamically within milliseconds.”
“In fact, the new fundamental customer expectation is that events like that are seen in a small latency fluctuation, not an outage. So that’s the new expectation in the marketplace. That’s what people need for their applications.”
- Ihab Tarazi, Verizon’s VP of Global Network Planning, June 15th, 2011
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Global Switching – Steady Share Gain
0%
10%
20%
30%
40%
50%
3Q10 4Q10 1Q11 2Q11 3Q11
Glob
al S
witc
hing
Mar
ket
Shar
e
ALCATEL-LUCENT CIENA HUAWEI ZTE
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OTN switching opportunity framework
Mesh, control plane utilization well-established but increasingly important as rings de-emphasized
Customers are migrating to OTN switching as 40G/100G adoption accelerates
Private line remains critical to many of our customers’ service offerings
End-to-end
IP Core Optimization
Submarine networks
Metro-to-core solutions improve time-to-market, bring consistency to customers’ service portfolios
Economic advantages of IP core optimization acknowledged by customers, competitors
Submarine operators placing greater value in resiliency, control enabled by OTN switching
Mesh, control plane
OTN migration
Private Line Continuation
UPSIDE: Incremental Revenue Opportunity
ESTABLISHED: “Optical Switching” market defined today
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