Ciena: Delivering Carrier Grade

Ethernet Transport Infrastructures

Roman Larisch

Senior Systems Engineer

8 March 2007

© Ciena Confidential and Proprietary

Ciena Partner Solutions and Applications
Agenda

Ciena’s FlexSelect Architecture

Building block for differentiatable solutions

Target Market Applications

1. Optical Network Solutions for Carrier

Infrastructure and Managed Services

2. Solving Wireless Backhaul OPEX

Growth

3. Optical WAN Solutions for

Enterprises, R&E, Government
Applications
Ciena Partner Solution Categories

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 FlexSelect Architecture Portfolio
Enterprise Access + Metro Service Edge Core
Gateways Aggregation
Business
Services

Voice
IP/MPLS

Internet
Ethernet
Broadband Video
Triple Play over
Ethernet
OTN SONET/SDH
evolving to OTN

Fixed/Mobile
Convergence

Integrated Services Management & Control Planes

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Target Application:

Service Provider Optical Network Solutions for

Tier 1 – Tier 2 – ISP Infrastructure and Managed Services

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Service Provider Optical Network Infrastructure –
What are Your Customers Struggling With?

Finding a practical approach to transition their TDM services and

infrastructure to an automated, packet-based network

Having the flexibility, adaptability and manageability necessary to

deliver any premium end-user service while protecting existing
network investments and reducing operational costs

Mitigating their (CAPEX / OPEX / technical / customer retention) risks as

they transform their networks

© Ciena Confidential and Proprietary 5

But . . . Their Existing Network Building Blocks
Are Not Up to the Challenge

Rigid design philosophy

OC-3
OC-12
Service specific line modules
OC-48
Fibre Channel Truck rolls for add/change/move
Gb Ethernet
Extensive planning & engineering

{
ESCON
Video Long provisioning cycle
Fast Ethernet

Increase risk of wasted resources

Existing solutions are too expensive and

don’t allow the Carrier to “be wrong”

© Ciena Confidential and Proprietary 6

 What Can You Offer Your Carrier Customer?
Ciena’s FSA Solutions Blocks with FlexiPort Technology

Any service, Any speed, Any port

On-Demand service delivery
. . . Any Time
Faster service provisioning
M ain6S
Card LEDs
Reset and

OC-3
OC-12 Faster packet migration
OC-48
Faster adds/moves/changes
}
(MGMT2, MGMT1, CNSL)

Fibre Channel
Management Ports

Service Ports (1-6)

and Port LEDs

Gb Ethernet
ESCON Less planning and engineering
Video
Fast Ethernet Fewer spares

Future services downloadable

Lower costs, higher profitability

Ciena’s FlexiPort Technology saves money,
mitigates risk and expedites revenue

© Ciena Confidential and Proprietary 7

Target Applications Sweet Spots for CN 4200 Family

Managed Wavelength Services

Business Services

Video Distribution in Triple Play Networks

Point-to-Point (Any Service) Connectivity

Fixed/Mobile infrastructure convergence

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Differentiating Your Offer for Carrier Optical Networks:
Use CN 4200 to Reduce Your Customers’ CAPEX + OPEX

78% reduction in wavelength usage

Reduce provisioning time by 95%

Eliminates man hours and truck rolls for

moves/adds/changes

Reduce equipment planning

Reduce spares by 66%

Built for “pay as you grow”-- CAPEX maps to

revenue growth

Over 60% reduction in total cost of ownership

© Ciena Confidential and Proprietary 9

Value Proposition for Your Ciena-based
Metro and Regional Network Solutions
Increases your Customers’ revenue

FlexiPort enables new services – Ethernet, Storage, sub-wavelength

On demand service provisioning reduces time to revenue

Helps protect their investment

FlexiPort allows line card reuse across entire transport infrastructure

Any service, any port & simple migration optimizes reuse & sparing plan

Optimizes their resource utilization

Sub-wavelength grooming inherent on CN 4200 - 78% better λ utilization

Control plane functionality optimizes network utilization

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Target Application:

Solving Wireless Backhaul OPEX Growth

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2G / 3G Radio Access Networks
Customer Air Interface Radio Access Network (RAN) Core Network(s)

2G BTS
Base-Stations Circuits:
E1/T1 TDM

Core Voice

BSC

Mobile Users MSC / SGSN Core Data

Voice
Data RNC
Video
3G NodeB Packets:
Base-Stations ATM, Ethernet, IP

Highest Percentage of OPEX (20 - 40% of total)

© Ciena Confidential and Proprietary 12

 OPEX Growth Pains in the Radio Access Network
More bandwidth

To support advanced 3G data/video/multimedia applications

More packet protocols

2G TDM  3G R99 ATM  3G R5  IP/Ethernet

More 3G base-stations

2x 2G for identical coverage

More RANs

2G and 3G RANs deployed in parallel

More reliability requirements

To maintain voice revenues & customer expectations

Building robust, high capacity, high efficiency networks is Ciena’s core competency

© Ciena Confidential and Proprietary 13

 Ciena’s FlexSelect Solutions for 3G Backhaul
Ethernet/IP over TDM/PDH Multiservice over Ethernet/IP Multiservice Ethernet Transport

nxE1/T1
nxE1/T1 TDM STM-1/OC-3
3G PDH/SDH
Node B
10/100 Ethernet
Ethernet Ethernet/IP
(Copper or Fiber) Ethernet
3G
RNC
Node B
nxE1/T1 Carrier
ATM/IMA
Ethernet STM-1/OC-3
10/100 TDM
3G Ethernet
Node B Ethernet
(over Microwave)
nxE1/T1
TDM
Metro Optical BSC
2G
BTS Ethernet OTN Ethernet
SDH SDH

Base-Station
Collocation RAN Transport Switching Center

Highly flexible backhaul solutions to meet the multiple options for 2G/3G
migration in Access, Infrastructure and Aggregation

© Ciena Confidential and Proprietary 14

3G Backhaul Transport and Cost Savings

Flatten 3G bandwidth OPEX

through highly cost effective
OPEX reduction through + efficient aggregation and 3G TDM-only
optimization transport

Increased network efficiency

Operational Costs
Flexible future-ready architectures
3G Packet-aggregated
Highest reliability packet networks

2G

Bandwidth demand over time

© Ciena Confidential and Proprietary 15

Ciena’s Winning Solutions for RAN Backhaul
What can you offer your customers?

Improved Network Economics

Up to 50% OPEX reductions over traditional TDM leased line backhaul

More control over bandwidth and transport costs

Reduce number of leased lines and maximize their use

Better Flexibility

Meet needs of all evolving standards, infrastructure requirements and aggregation methods

Simultaneous multiservice support for TDM, Ethernet, IP, MPLS, ATM

Future-Proofed, Standards roadmap alignment

Advanced revenue-generating, high bandwidth services in new locations

Industry-leading Reliability, Scalability and Performance

Six 9s availability, Ethernet pseudowire scale, QoS/SLA guarantees

Comprehensive network provisioning/management, OAM and performance monitoring

© Ciena Confidential and Proprietary 16

Target Application:

Private Optical Network Solutions for

Enterprise – Research & Education – Government Applications

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Shifts in Enterprise Wide Area Networking

Enterprise pressure points: Global Optical Network Equipment for

Enterprises
Enterprise-wide application rollouts 3000

2500
Grid / Utility computing
2000

$Million
IT asset virtualization
1500
Business continuance / disaster recovery 1000
concerns
500
Government / Industry regulations 0
(EU Data Directive / Accounting)
2005 2006 2007 2008 2009 2010
Emergence of Web Based Services
(Service-Oriented Architecture) Banking Discrete Mfg Education
Government Healthcare Insurance
Process Mfg Professional Svcs Retail
Securities & Inv. Svcs Transportation Utilities
Source: IDC, November, 2006

CAGR 17.6%

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Targeting Enterprise Optical Network Pain Points

Enterprise Demands: Winning Value Proposition:

Networks are becoming even more
mission critical
Carrier-grade WAN solutions being
demanded by enterprises
High availability
Applications transparency
Flexibility and adaptability
(traffic is less predictable)
Scalable / software
reconfigurable
. . . Ciena’s core competency
Eliminate overlapping, single-
application networks with a scalable
WAN / MAN solution
Support a mix of high-bandwidth, time-
sensitive, business processes across
entire enterprise
Optimize traffic at the lowest possible
layer for maximum throughput and
lowest latency
Dramatically simplified management

© Ciena Confidential and Proprietary 19

 Ciena Optical WAN Solutions
Enterprise – R&E – Government Applications

Grid Computing Coop Connectivity

DATA CENTER A DATA CENTER B

Data
Center VOIP

SAN SDH
Ethernet
WDM
Data Replication

Data Transfer

100s – 1000s kms

Field
Office

Storage extension Enterprise Optical Regional and National

solutions Networks Backbones
Interconnecting data centers Consolidated networks with Optical switching + transport for
with high performance WANs flexible connectivity to meet government agencies and
that are optimized for efficiency application requirements of enterprises – intelligence to
emerging applications automate provisioning,
management and restoration

© Ciena Confidential and Proprietary 20

 Ciena storage extension solutions
High Performance with optimized bandwidth efficiency
DATA CENTER A DATA CENTER B

EMC Storage Data EMC Storage

Replication Traffic Replication
Private Line BW
IBM Replication Gigabit Ethernet IBM Replication
FC DS3/SDH FC
Switch Switch
HDS Replication
Dark Fiber HDS Replication
Data
Traffic
100s – 1000s miles/kms

Reduced WAN Lower Capital Cost Higher Performance

Leased Line Costs • Software programmable ports • Reduced latency
• 30% better compression (Fibre Channel, ESCON, • Higher throughput
• Efficient protocol mapping FICON and GbE)
• Reduced complexity
directly into SDH • Eliminate external switching /
• Reduced downtime
• Consolidates multiple routing equipment
applications over WAN circuit • Flexible WAN options

© Ciena Confidential and Proprietary 21

 CN 2000 Storage Extension
Financial Services Firm Case Study

Location A
Optional LAN traffic Location B
GbE
Carrier
SONET Service

Storage over ATM/IP Storage over SONET with Ciena Solution

Cost in Capital $200k $90k
Cost in Networking $60k/mth (two OC-3s) $30k/mth (one OC-3s)
TOTAL COST (3yr) $2.36 Million $1.17 Million

Ciena solution saved the customer ~$1.2M in networking costs

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Optical Network Solutions
Enterprise – R&E – Government Applications

Flexible, software-configured network

interfaces allow any service on any
port
Grid Computing Data
Coop Connectivity
Connectivity
Scalable to meet exponential inter-site Main Data Center
traffic growth and changed network VOIP

requirements SAN SDH

Ethernet (GbE, 10GbE)
WDM
Foundation for assured networks with
secure, carrier class platforms that Data Replication

form highly survivable networks Data Transfer

Automated design, configuration and

management Field Office

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CN 4200 Private Optical Network
Financial Services Firm Case Study Challenge:
• Connect data centers
Key Features:
and head office for
Head Office
• Software tunable ports Disk Mirroring and
• Multi-Service aggregation per λ LAN extension
• Detailed performance monitoring
• Carrier leased
service = €1,600,000
Data Center #1 Data Center #2

WDM Solution:
• Ciena partner offered
an alternative using
WDM and dark fiber
• Cost of CN 4200 +
WAN Services + Dark
Partner, sold €400k in Ciena solutions and €1M in Fiber =
storage and still saved the customer money €550,000 for 3 yr

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UKERNA Initial Phase

ULCC - LAB
3*STM16 – S16.1 3*STM16 – S16.1
1*10G – SR2
10G
2*GBE - SX
Manchester Warrington 1*STM16 – S16.1
1*STM16 – S16.1
24*10/100 Elect
10G Leased Bandwidth
10G SNCP
St Pancras
Cambridge
10G
4*GBE - SX
10G 10G
10G 4*GBE - SX
ULCC Amsterdam
Chicago
10G 4*GBE - SX
1*10G –SR2 24*10/100 Elect

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Innovative Solutions for High Availability Applications
EMC GDDR Long
Distance
Site

Mainframe
Heartbeat

s
ou
on
hr
nc
Gigabit Ethernet

sy
SONET / SDH

A
WDM

Primary Synchronous Bunker

Data Site
Center

• Ciena solutions integrate with GDDR to provide

dynamic bandwidth to optimized bandwidth before
and after a disaster

• Automated failover and restart for mainframe

systems

Significant opportunities to update and grow existing networks

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Innovative Solutions for High Availability Applications
IBM GDPS with STP
Site 1 100 Km Site 2
Max
ISC Links ISC Links

• Only IBM-certified system capable of multiplexing

STP channels onto a single wavelength while
meeting stringent delay tolerance standards

• Benefit: Lowers wavelength counts and increases

scalability of a GDPS network solutions
Significant opportunities to update and grow existing networks

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Your Selling Propositions Using Ciena Solutions

Able to deliver an innovative approach for private build optical

networks

Support complex BC/DR, SAN and Computing topologies with mixed

WAN types with high performance, flexible, and efficient bandwidth
utilization

Network solution offered is future-proof to technology shifts and

service changes; and are ready for ‘Ethernet everywhere’

Value add service opportunities backed by Ciena Global Network

Services and Ciena’s series of market enablement tools and
resources.

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Ciena Partner Product Solution Categories

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 METRO ENTERPRISE
WIRELESS
TRANSPORT R&E + GOV

CN 4200 Family of Metro WDM products

16 slots
CN 4200 RS

4 slots
2 slots CN 4200 (Classic)
CN 4200 MC

FlexSelect Programmability of ports, wavelengths, services, and functionality to simplify

operations, and protect investments

Seamless Ethernet Integration – Managed like transport

OTN based – enable carriers transition towards a service oriented transport network

Investment Protection – allows service providers to fully capitalize on both circuit- and packet-
based services delivered and managed on a single, automated network

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 METRO ENTERPRISE
TRANSPORT R&E + GOV

CoreDirector Multi-Service Optical Switch

Highly Integrated CoreDirector
Built-in intelligence manages
multiple device functionality into a
single element

Intelligent Control Plane

Manages ports, wavelengths,
connectivity, network across
multiple network types CoreDirector CI

Ultra-Reliable
Field proven 99.9999% with line,
ring and mesh protection for ultimate
reliability

© Ciena Confidential and Proprietary 31

 METRO WIRELESS
TRANSPORT

CN 5060 Multi-Service Carrier Ethernet Platform

MEF Ethernet Services
EoPDH / SONET / SDH
Legacy FR / ATM Services
GbE / 10 GbE
TDM Services
IP DSLAM Aggregation
2G / 3G Wireless Services
Any service in, Carrier Ethernet out

Industry-leading pseudowire density ensures Ethernet and legacy service

support without capacity exhaust

Smooth migration from legacy services to Ethernet and IP using Service

Interworking

Customer confidence through industry-leading system availability

(99.9999%), advanced service OAM, QoS and Protection

© Ciena Confidential and Proprietary 32

 METRO ENTERPRISE
TRANSPORT R&E + GOV

CN 2000 Storage and LAN Extension

Enterprise Gateway / Service Provider Demarc Solution
Multiple Protocols Disk
• Fibre Channel
Tape
• Gigabit Ethernet Single
• FICON Protected Link
Ethernet / LAN
• ESCON
Mainframe

Multiple Applications Leading platform for extending storage and

• Sync / Async disk mirroring
LAN over distances
• Remote Backup (Tape or Disk)
• SAN extension Dynamic bandwidth assignment and
• Geo clustering hardware compression deliver top
• LAN extension performance and efficiency
• Mainframe connectivity

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 METRO WIRELESS
TRANSPORT
CN 3000 Ethernet Access Series
Providing Ethernet Access over any Media
• Family of Carrier Ethernet demarcation
devices (NTEs) at customer premise and NTE
Aggregators in central office

• Enables carrier managed Ethernet services

across virtually any network uplink media
(fiber, PDH, SONET/SDH, xDSL)

Allows Carriers near ubiquitous Ethernet service coverage

Provides Carrier Manageable solutions for Ethernet Services
Comprehensive OAM support
Common On-Center Network and Service Management Suite across
all products
Provides flexible and adaptable hardware to enable feature
customization and in-service upgradeability

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Conclusion
Financial, regulatory, competitive and technology trends are creating
tremendous networking opportunities in the Service Provider,
Enterprise, R&E and Government segments

You can provide unique value to your Customers with Ciena’s field-
proven FlexSelect Architecture based products and services. Ciena’s
solutions are aimed at addressing critical Customer pain points and
business objectives

We want and need you to be successful! We are prepared to help any

way we can.

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 Thank you

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