Ciena Corporation · NYSE:CIEN
Ciena — Investor Presentation (October 2024)
37 slides from Ciena's investor presentation, Oct 8, 2024
Slide 1: Expanding our Optical Leadership: Ciena's Strategy for Growth in AI and Data Center Markets
Expanding our Optical Leadership: Ciena’s Strategy for Growth in AI and Data Center Markets © Cien a Corp oration 2023. All rights reserved. Propr ieta ry Information.
Slide 2: Our Strategy in the Context of Evolving Industry Dynamics
Our Strategy in the Context of Evolving Industry Dynamics David Rothenstein SVP and Chief Strategy Officer © Cien a Corp oration 2023. All rights reserved. Propr ieta ry Information.
Slide 3: Evolving landscape
Evolving landscape Different segments are revisiting their agendas and reshaping networking markets GENERATIVE AI User to Cloud Cloud to Cloud Enterprise & Consumer Rapidly Evolving Cloud Services NETWORK ANYWHERE Changing Business Models Service Provider Cloud Provider NETWORK NETWORK Diversifying
Slide 4: Bandwidth
Bandwidth Cloud and AI will accelerate WAN bandwidth growth, putting more data on optical fiber Growth of global data generation is Cloud data is growing twice as fast as Bandwidth on optical fiber continues to accelerating non-cloud grow at a high rate from a large base 16.0 400 100% 2024 Forecast
Slide 5: AI is a traffic amplifier
AI Video is expected to continue to fuel user bandwidth growth …is a traffic amplifier Projected global network user service traffic growth*, 2022–30 Tool Response 2,500 Input Output Example size Net new AI applications 2,000 AI-upgraded applications Text Text ChatGPT KBytes Conventional (non-AI) tr
Slide 6: Data center infrastructure trends related to AI will require more connectivity
AI Data center infrastructure trends related to AI will require more connectivity Global Data Center Power Consumption Data Localization AI Edge Monetization 1200 45 +23% 1000 High CAG R 40 37% CAGR 2021-27 35 800 Medium +15% CAG R 30 80% Global of total GPUs Low +8% 25 TWh 600 CAG R Shipped (millio
Slide 7: AI Managed Optical Fiber Networks
AI Connectivity requirements are impacting Service Provider behaviors Managed Optical Dark Fiber Fiber Networks Conduits Service Providers are seeing an uptick in MOFN and Dark Fiber opportunities driven by high-bandwidth connectivity requirements fueled by AI Corning and Lumen reach supply agreemen
Slide 8: Our strategy
Our strategy Strategic pillars are durable and evolving to address the market opportunities GROW ADDRESSABLE EXPAND DRIVE SOFTWARE-LED MARKET IN NEXT-GEN OPTICAL LEADERSHIP TRANSFORMATION METRO & EDGE REINFORCE OUR OPPORTUNITIES WITH GLOBAL SERVICES ACCELERATE OPERATIONAL EXCELLENCE 8 © Cien a Corp
Slide 9: Our technology
Our technology Optical technology is the foundation of our business CORE BUSINESS E X PAN S I ON OP P OR T UNI T I E S We specialized in Optical to become the We are now leveraging our Optical leadership best at moving bits over fiber to grow into new, adjacent markets Optical Optical Converged Disa
Slide 10: Our portfolio
Our portfolio We continue to evolve our portfolio and expand our addressable markets Blue Planet OSS Automation Navigator 5G xHaul/CSR IP NOS Access & Agg Metro Routing Broadband Convergence Metro / Reg’l DCI WaveLogic Long Haul Photonic Line Coherent Plugs Interconnects Disaggregation Submarine 10
Slide 11: Our future
Our future Impact of Cloud and AI on bandwidth growth plus new addressable markets result in opportunity to outpace our traditional revenue CAGR over time Service Providers Cloud Providers ODM/OEM • Interconnects New Optical • Metro Routing • Interconnects Components • BB Access • Optical • Optical
Slide 12: Overview of Ciena's Optical Systems
Overview of Ciena’s Optical Systems Brodie Gage SVP, Global Products & Supply Chain © Cien a Corp oration 2023. All rights reserved. Propr ieta ry Information.
Slide 13: Market-leading optical systems addressing key network applications
Market-leading optical systems addressing key network applications 10,000km 1000s km 100s km 10s km Tier 1 Metro Tier 1 Metro Office Tier 2 City Ciena Global Optical Market Share – ex China Other Vendors Ciena Ciena Market Share • #1 Optical market share $12 30% Billions $10 25% • Optical systems pa
Slide 14: Growth opportunities in Global Cloud and Service Providers
Growth opportunities in Global Cloud and Service Providers Ciena Cloud Provider - Global Ciena Service Provider-North America Ciena Service Provider-International Optical Market Share ex-China Optical Market Share Optical Market Share ex-China Other Vendors Ciena Ciena Market Share Other Vendors Cie
Slide 15: Key trends in optical networking driving new opportunities
Key trends in optical networking driving new opportunities Cloud Providers Americas Service Providers International Service Providers • AI innovation – GAI, LLM’s, applications, data • Service models based on fiber and wireless access • AI uplift on metro capacity (inference & Edge AI) ingestion and
Slide 16: Continuing to grow our leadership in Optical Systems
Continuing to grow our leadership in Optical Systems Cloud Providers Americas Service Providers New Growth in International 1.6Tb/s 800Gb/s-1.2Tb/s 800Gb/s-1.2Tb/s 100 km 100s to 1000s 14,000km km Cloud and AI-driven capacity Continue submarine leadership upgrades Huawei replacement AI build-outs in
Slide 17: Ciena's Optical Systems differentiation – why we win
Ciena’s Optical Systems differentiation – why we win Programmable • WaveLogic Coherent Optics Infrastructure • Photonic Line Systems Software Control & Automation • Navigator Network Control Suite Professional Services • Ciena Services 17 © Cien a Corp oration 2024. All rights reserved. Propr ieta r
Slide 18: Photonic layer
Photonic layer Critical for achieving continued scale at the lowest cost Supports all the applications and services running on top of it Aggregation / Edge Cloud Metro Mobile Access Core Business Internet Residential Ciena Line System Photonic Layer Higher-speed services Provides lowest with fast ad
Slide 19: WaveLogic coherent optics
WaveLogic coherent optics Data transmission per wavelength Gb/s 1600 160 x throughput increase over 20 years 800 10 20 100 200 400 2005 2008 2009 2012 2017 2020 2024 WaveLogic WaveLogic 2 WaveLogic 2 WaveLogic 3 WaveLogic WaveLogic 5 WaveLogic 6 Extreme AI Extreme Extreme Equivalent to CO2 emissions
Slide 20: Two options to address range of networking requirements
Two options to address range of networking requirements Performance-optimized Footprint / Power-optimized 800G First 1.6T 800G ZR / ZR+ Everywhere Performance-optimized optics 800Gb/s coherent pluggables, for regional / long haul / subsea, and for metro/regional and IPoDWDM Metro applications deploy
Slide 21: WaveLogic 6 Extreme – Lead applications
WaveLogic 6 Extreme – Lead applications 1.6Tb/s, 470km 1Tb/s+ connecting key European routes Navigator NCS • 470km route from Ashburn to Virginia Beach cable landing station • 200GBd 1.6Tb/s • 1.6Tb/s London – Paris • 6 spans, 3 ROADMs • 1Tb/s Dublin to London • WL6e in Waveserver chassis • 1Tb/s Ma
Slide 22: Fiber capacity and solution economics
All links are not equal Cloud and Service Providers require both Optical Systems and pluggable solutions Metro (~500km) Regional (~1300km) Long Haul (~2700km) Fiber capacity and solution economics Pluggable Performance Pluggable Performance Pluggable Performance Relative maximum fiber capacity Relat
Slide 23: Application-optimized service terminals leveraging WaveLogic coherent optics
Application-optimized service terminals leveraging WaveLogic coherent optics Purpose-built WaveLogic Converged Optical Transport Systems Coherent Routers Coherent Optics Edge Optical Service 6500 family Demarcation 8110 8112 800G 8114 8190 1.6T 8140 8192 Disaggregated Transponders 81xx family OTN NI
Slide 24: Multi-layer network control and automation
Multi-layer network control and automation MCP Applications Navigator Network Control Suite Operational Outcomes Challenges Navigator Multi-layer Controller GUI Reduced Manual OPEX and CAPEX APIs AIOps Navigator Slow Intelligent Apps Emulation Cloud Digital Twin Improved Complex customer QoE Intelli
Slide 25: Optical Systems portfolio addresses all key applications
Optical Systems portfolio addresses all key applications 10,000km 1000s km 100s km 10s km Tier 1 Metro Tier 1 Metro Tier 2 City Office Navigator NCS Ciena Services Coherent ELS O-NID 81xx family WaveRouter family 6500 family Reconfigurable Line System (RLS) Waveserver family 25 © Cien a Corp oration
Slide 26: Key takeaways
Key takeaways #1 Ciena is the global leader in Optical Continued demand for systems and pluggables – AI will accelerate this Positioned to WIN: Deep customer relationships, right portfolio: leading photonics + coherent optics + multi-layer control Leadership and expertise in Optical provides the fou
Slide 27: Expanding Inside & Around the Data Center
Expanding Inside & Around the Data Center Leveraging Ciena’s Core Optical Technologies Dino DiPerna SVP, Global Research & Development © Cien a Corp oration 2023. All rights reserved. Propr ieta ry Information.
Slide 28: Data Center Interconnect applications based on reach
Data Center Interconnect applications based on reach Wide Area Around Data Inside Data Network Center Center Inter-Region Metro DCI Campus Region Campus Intra DC Data Center Rack Rack Switch, Server and/or Storage PCB Switch, Data Center Rack Server and/or PCB Region Campus Storage 1,000s → 100 km 1
Slide 29: New AI requirements and evolving data center architectures
New AI requirements and evolving data center architectures Higher Capacity Lower Latency Lower Power High-performance Longer GPU Interconnect Optical Switching Inside Distances Increasing Capacity -- Optical Impairments -- Reach Data center interconnect performance is becoming critical 29 © Cien a C
Slide 30: IMDD vs Coherent technology
IMDD vs Coherent technology Non-Coherent Optics Coherent Optics Morse Code: Digital Radio: • Amplitude and phase carry info • Power (on/off) carries info • Tunable receiver • Dumb receiver • Digital enhancements Amplitude-based Amplitude, Phase, Polarization 1 or 2 bits per symbol Many bits per symb
Slide 31: IMDD starts to reach physical limits at higher speeds
IMDD starts to reach physical limits at higher speeds Coherent technology becomes critical Inside & Around the Data Center 400G 800G 1.6T 3.2T Metro DCI Around DC <100km Coherent Coherent Coherent Coherent ¹ Campus IMDD / IMDD / IMDD Coherent <20km Coherent Coherent Fabric IMDD / IMDD / IMDD IMDD IM
Slide 32: Coherent optical performance enables new data center applications
Coherent optical performance enables new data center applications Campus - Reach Campus - WDM ... 1.6Tb/s ... 1-20km Inside the Data Center - Emerging architectures 1.6T Coh-Lite 1.6T Coh-Lite 800LR 800LR 1.6TbE DSP ASIC E/O E/O 1.6TbE OCS DSP ASIC 8x224G 800LR 800LR 8x224G 32 © Cien a Corp oration
Slide 33: Ciena has unmatched expertise in high-speed interconnects across multiple technology generations
Ciena has unmatched expertise in high-speed interconnects across multiple technology generations World’s 1st 400Gb/s 140GBaud in QSFP- World’s 1st DSP-assisted World’s 1st coherent 100Gb/s 1st at delivering higher Baud DD800 form factor electro-optics, eliminating (56GBd) Lowest power,
Slide 34: WaveLogic 6 – Core technologies
WaveLogic 6 – Core technologies WaveLogic 6 Extreme WaveLogic 6 Nano 1st 3nm coherent DSP ASIC 1st 200GBaud 3nm coherent Receiver Silicon DSP ASIC Photonics Receiver 1st 200GBaud Silicon Photonics-based Coherent Driver Modulator with integrated Modulator (CDM) SOA 34 © Cien a Corp oration 2024. All
Slide 35: Ciena's leading interconnects solutions
Ciena’s leading interconnects solutions 400ZR/ZR+ NEW: 1.6 Tb/s Coherent Lite pluggable for data center fabric and campus applications 800ZR/ZR+ 1.6T Coherent ASIC 3nm 224G SerDes • Major wins for coherent pluggables across all 4 of the largest Cloud Providers • Lowest power; highest performance • I
Slide 36: Opportunities to serve a broader ecosystem
Opportunities to serve a broader ecosystem High-speed Analog and Systems Coherent Modules DSP ASIC Electro-optics DRV DRV MOD SerDes MOD DAC/ DAC/ SerDes DSP SerDes DSP TIA RCVR ADC TIA ADC nITLA RCVR DAC/ ADC TODAY EXPANSION SerDes – Serializer-deserializer DRV – driver DSP – digital signal process
Slide 37: Thank You
Thank You © Cien a Corp oration 2023. All rights reserved. Propr ieta ry Information.