Ciena Adds to Its Carrier Ethernet Line to Enable Carriers to Expand Service Delivery

| Apr 21, 2009 | Carrier Infrastructure | Competitive Update

| Analyst: Glen Hunt

Current Perspective: Positive
Vendor Importance: Moderate
Market Impact: Moderate

Event Summary

April 20, 2009 -- Ciena announced an expansion of its Carrier Ethernet Service Delivery portfolio, with new service delivery and aggregation switches that enable service providers to expand their market for carrier Ethernet services by meeting the needs of network locations that require higher-bandwidth user connections and a broader set of aggregation and switching capabilities, such as enterprise locations, mobile backhaul, multi-tenant unit buildings, and outside plant cabinets.

Analytical Summary

• Current Perspective: Positive on Ciena’s newly announced extensions to its carrier Ethernet portfolio, since they broaden its ability to satisfy a wider range of service delivery models for carriers that are deploying new, high-bandwidth services while keeping a close eye on the overall CapEx and OpEx associated with new service deployments. The extensions to the portfolio enable more granular sizing of platforms while preserving common features available across other members of the product line, such as zero-touch provisioning. The new MPLS/H-VPLS software option simplifies router handoff to improve end-to-end service delivery.

• Vendor Importance: Moderate to Ciena, since the three new hardware platforms and newly added software capabilities better position it to address the full range of carrier Ethernet applications with a broader range of scalable platforms. Expanding the CN 3900 series with the CN 3960 and CN 3940 addresses the need to offer 10 GigE and higher-density GigE services. The new CN 5140 addresses aggregation needs under tough environmental conditions such as outdoor enclosures and cell sites. Adding MPLS capabilities supports better integration with existing edge routers.

• Market Impact: Moderate on the carrier Ethernet access and aggregation market as well as the mobile backhaul market, since the new platforms strengthen Ciena’s carrier Ethernet portfolio and will enable it to meet the needs of an expanded range of carrier Ethernet services that require higher bandwidth, greater aggregation scale, and hardened enclosures. As carriers continue to address the challenges of rolling out new services while balancing CapEx and OpEx, platforms that are right-sized for particular locations often enable them to accelerate their deployments. The ability to interwork between multiple encapsulation schemes enables carriers to deploy carrier Ethernet transport models that best match the services being delivered.

CLIENTS ONLY

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Carrier Infrastructure | More information

Recommended Competitor Actions

• Competitors should highlight their environmentally hardened systems for applications such as cell site and xDSL aggregation and note that their solutions, in many cases, were launched much earlier than Ciena’s new offer.

• Alcatel-Lucent should note its full range of carrier Ethernet solutions and architectures such as its META framework for mobile backhaul and its carrier Ethernet framework, which identifies the capabilities offered at the transport, services, and application layers. The company could also highlight its significant market share in markets such as carrier Ethernet, carrier Ethernet access and aggregation, and the multiservice edge.

• Cisco and Juniper should highlight their carrier Ethernet solutions (ASR/7600 series and M-/MX-/BX-series, respectively) as having significant customer traction based on their leading routing and switching capabilities. Both companies should show how their end-to-end MPLS-based solutions can deliver a diverse suite of carrier Ethernet solutions.

• ECI and Tellabs should highlight their fully integrated carrier Ethernet and optical solutions. ECI should also tout its end-to-end capabilities based on its LightSoft network manager and Shade Tree provisioning system. Tellabs should show how its 8800 management system provides a complete integrated solution for its new carrier Ethernet lineup plus its routing and optical platforms. Both should also insure that carriers know they provide strong professional service support for their solutions.

• Ericsson should highlight its leading position in broadband mobile networking and its full control over all aspects of its end-to-end solutions based on its SM 480 metro Ethernet switch, SmartEdge routers, mobile backhaul, and radio access network portfolio. Ericsson can also tout its global reach and extensive professional services offerings to assist service providers in designing, building, and operating next-generation networks.

• Nokia Siemens Networks should outline its strategies related to enabling service providers to deliver a broader range of high-value services by leveraging its carrier-grade Ethernet platforms such as the hiD6600 and A-series Ethernet access and aggregation switches, its leadership in forging third-party partnerships to deliver best-of-breed integrated solutions, and its evolving IMS initiatives that further the adoption of standards-based applications such as VoIP and other critical enterprise services. NSN should also highlight that its service provider customer base is strong in wireline, wireless, and cable operators.

CLIENTS ONLY

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Carrier Infrastructure | More information

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