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© Ciena Confidential and Proprietary Full-Service Metro: Enabling the Service-Driven Network Stephen B. Alexander CTO October 7, 2008

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Full-Service Metro: Enabling the Service-Driven Network

Stephen B. AlexanderCTO

October 7, 2008

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Ciena’s full-service metro solution

AccessAccess and and AggregationAggregation MetroMetro CoreCore--EdgeEdge

Broadband Triple Play

Mobile

Business Services,

L1/L2

OTN

OptimizedEthernetHandoffs

GroomedTDM Handoffs SONET/SDH

Ethernet/λ over OTN

IP/MPLS

Ethernet WAN

Pickup/Concentration

Pickup/Concentration

Aggregation/Backhaul

Aggregation/Backhaul

Distribution/Handoff

Distribution/Handoff

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Full-service metroNetworks are becoming packet-based

Residential

Circuit‐switched voiceand

broadcast video

Digital broadcastIPTVVoIP

Internet videogaming

Enterprise

Dedicated connectionsT1/T3, FR, ATMDigital PBX

Ethernet ServicesVirtual circuits

IP PBXVoIP

Wireless

Voice optimized2G network

Data optimizedVideo enabled3G/4G/WiMax

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Trends for end-user applicationsEnterprise

Collaboration, interactive video

Virtualization, cloud-based applications, telepresence

Increased workforce mobility requiring seamless access

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Consumer

Trends for end-user applications

Maturity of combined voice/video/data offerings

Growing adoption of online video and Web 2.0

Increased penetration & improved ease of use of mobile data

EnterpriseCollaboration, interactive video

Virtualization, cloud-based applications, telepresence

Increased workforce mobility requiring seamless access

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End-user applications drive new service catalog

Optical Infrastructure

Ethernet Infrastructure

Multimedia/3Play Infrastructure

IP/MPLS Infrastructure

Mob

ile S

ervi

ces

Res

iden

tial

Serv

ices

Laye

r 3 V

PN S

ervi

ces

Ethe

rnet

Ser

vice

s

Opt

ical

/Wav

elen

gth

Serv

ices

Enterprise Consumer

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End-user applications drive new service catalog

Optical Infrastructure

Ethernet Infrastructure

Multimedia/3Play Infrastructure

IP/MPLS Infrastructure

Mob

ile S

ervi

ces

Res

iden

tial

Serv

ices

Laye

r 3 V

PN S

ervi

ces

Ethe

rnet

Ser

vice

s

Opt

ical

/Wav

elen

gth

Serv

ices

Enterprise Consumer

and challenge network infrastructure

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But revenue growth is slowing

2004 2006 2008 2010

10%

20%

30%

41%

3%7%

13%13%

-5%-3%-1%4%

Broadband

Wireless

Wireline

**

** Sources: Yankee Group and Pyramid Research

Traffic keeps growing …

66 Tbps

2007

134 Tbps

2011

Consumer

Enterprise

56 Tbps

101 Tbps

33 Tbps

*

* Source: McKinsey & Company

10 Tbps

Full-service metroNew services are needed to combat slower revenue growth

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Full-service metro: The new environmentImpact of mobile data

Future wireless network growth is driven by data applications3G/4G network technologies create a better mobile data user experienceRapidly increasing mobile network capacity places sharply risingdemands on metro networks

Source: Ovum

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

2005 2006 2007 2008 2009 2010 2011 2012

Mbp

s

Voice & data 3G impact 4G impact

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Full-service metroThe opportunity

The Metro network is the convergence pointResidential, business and

wireless networks come together

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Full-service metroThe opportunity

The Metro network is the convergence pointResidential, business and

wireless networks come together

One networkTo build (capex savings)

To manage (opex savings)To share (economies of

scale)

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Full-service metroThe opportunity

The Metro network is the convergence pointResidential, business and

wireless networks come together

Many servicesOptical transport

Ethernet transportConverged transport

One networkTo build (capex savings)

To manage (opex savings)To share (economies of

scale)

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Full-service metro requirements

Opticaltransport

Ethernettransport

Servicemanagement

Carrierclass

Improvedeconomics

DWDM (layer 0), OTN (layer 1)

Carrier Ethernet (layer 2)

Create, Provision, Assure

Attributes we already expect(reliability, availability, determinism)

Packet-based networks: a better building block

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Full-service metro: Layer visualization

Residential triple play

Wireless backhaul

Packet services

Optical services

Service and resource management

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Full-service metro: Layer visualization

Layer 2 – True Carrier Ethernet™

Residential triple play

Wireless backhaul

Packet services

Optical services

Service and resource management

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Full-service metro: Layer visualization

Layer 1 - OTN

Layer 2 – True Carrier Ethernet™

Residential triple play

Wireless backhaul

Packet services

Optical services

Service and resource management

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Full-service metro: Layer visualization

Layer 0 - WDM

Layer 1 - OTN

Layer 2 – True Carrier Ethernet™

Residential triple play

Wireless backhaul

Packet services

Optical services

Service and resource management

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Full-service metro: A natural fit for Ciena

Scalable bandwidth for uncertain growth

Configurable traffic formats

Configurable/re-routable traffic patterns

Automation and self-healing

Cost containment via convergence

Infrastructure requirements

End-user control

Service velocity

Service assurance

Service requirements

Support for multiple service types

OS commonality and management

unification

Carrier Ethernet-based

transformation

Network element programmability

…all supported by…

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CarrierEthernet-basedTransformation

Common OSand Unified

Management

NetworkElement

Programmability

Programmable service-delivery engine building blocks

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CarrierEthernet-basedTransformation

Common OSand Unified

Management

NetworkElement

Programmability

Core Infrastructure

Core Transport

Core Switching

Full Service Metro

Managed Services & Enterprise

Mobility & Backhaul

Programmable service-delivery engine building blocks

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CarrierEthernet-basedTransformation

Common OSand Unified

Management

NetworkElement

Programmability

Core Infrastructure

Core Transport

Core Switching

Full Service Metro

Managed Services & Enterprise

Mobility & Backhaul

Products

Programmable service-delivery engine building blocks

Carrier EthernetService Delivery

CN 3000 series

Metro Networking

CN 4200 familyCN 5000 series

Core Networking

CoreStreamCoreDirectorCN 4200 RS

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CarrierEthernet-basedTransformation

Common OSand Unified

Management

NetworkElement

Programmability

Core Infrastructure

Core Transport

Core Switching

Full Service Metro

Managed Services & Enterprise

Mobility & Backhaul

Products Applications

OpticalInfrastructure for IP/MPLS Core

Managing circuits,wavelengths, andpackets across the metro

Storage, video, Ethernetservices and privateoptical networks

Ethernet-basedbackhaul for 4Gwireless networks

Programmable service-delivery engine building blocks

Carrier EthernetService Delivery

CN 3000 series

Metro Networking

CN 4200 familyCN 5000 series

Core Networking

CoreStreamCoreDirectorCN 4200 RS

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Full-service metroSummary

The OpportunityConvergence in the metro

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Full-service metroSummary

The OpportunityConvergence in the metro

• A single infrastructure for all services

• Wavelength sharing reduces transport costs

• Reduced support costs

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Full-service metroSummary

The NeedNew service demands

The OpportunityConvergence in the metro

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Full-service metroSummary

The NeedNew service demands

The OpportunityConvergence in the metro

• Create new services spontaneously, instantly

• Easily scales to support new services

• Reduced support costs• Automatic failure recovery

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Full-service metroSummary

The NeedNew service demands

The FitCiena’s packet and

optical solutions

The OpportunityConvergence in the metro

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Q&A Session – Executive Panel

The webcast of Ciena’s Analyst Day 2008 is listen-only.

We apologize that we cannot take questions from webcast participants.

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Thank you for joining us today!

This concludes the live webcastof Ciena’s Analyst Day 2008.

The webcast of Ciena’s Analyst Day 2008 will be archived on Ciena.com

For more information, please contact Ciena Investor Relations at [email protected].