otn chalk talk

© Ciena Confidential and Proprietary

OTN Chalk Talk

Steve Alexander–CTO Rick Dodd–SVP, Global Marketing Tom Mock–SVP, Corporate Marketing and Communications December 15, 2011

2 © Ciena Confidential and Proprietary

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.


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

The content of this deck is not for further distribution or use.


OTN and Control Plane Heritage

1996 2011 E V O L U T I O N



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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http://images.google.com/imgres?imgurl=http://www.techshout.com/images/reliance-logo-long.jpg&imgrefurl=http://www.techshout.com/mobile-phones/2007/19/reliance-lifetime-validity-recharge-at-rs499-launched-in-india/&h=157&w=273&sz=16&hl=en&start=1&usg=__WujI7lhKApHRQkn72_mpFu11Ia0=&tbnid=97HqgeFZwPA9mM:&tbnh=65&tbnw=113&prev=/images?q=reliance+communications+logo&gbv=2&hl=en&sa=X


Path to Next Generation Optical Networking



Optical Network for Multi-Layer Services



Multiple Networks over OTN



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



Virtual Optical Network C

Link bundle

Virtual Optical Network B

Virtual Optical Network A

Virtualize the Network: Many from One



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



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



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



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



Ciena Differentiation:

Competitive Advantage

Ciena Competition



Ciena Differentiation: Network Automation


Ciena

Control Plane

Competition



Ciena Differentiation: Range of Configurations


Ciena

Control Plane

Competition



Ciena Differentiation: Design and Planning Tools


Ciena

Control Plane

Competition



Ciena Differentiation: Integration with Coherent Transport


Ciena

Control Plane

Competition



Bandwidth Efficiency: OTN Enables Bandwidth Grooming

Bandwidth efficiency up to 50%

Intelligent Infrastructure Dumb Pipe Network



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.


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



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

Source: Dell’Oro Group The content of this deck is not for further distribution or use.


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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