Powered by Ciena

Expanding Our Optical Opportunity

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Forward-looking statements and non-GAAP measures

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Introductory Remarks

Jim Moylan, Chief Financial Officer

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Market Landscape

Steve Alexander, Chief Technology Officer

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Ciena market leadership

#1 GLOBALLY
• DATA CENTER INTERCONNECT #1 GLOBALLY #1 GLOBALLY
• DATA CENTER INTERCONNECT for ICPs • OPTICAL EQUIPMENT VENDOR LEADERSHIP • DATA CENTER INTERCONNECT
SP SURVEY • SLTE UPGRADE MARKET

#1 N. AMERICA
• PACKET OPTICAL #1 N. AMERICA #1 N. AMERICA
• NEXT-GEN OPTICAL • CARRIER ETHERNET ACCESS DEVICES • TOTAL OPTICAL NETWORKING
• LH WDM • LH WDM • LH WDM
• METRO WDM • METRO WDM • METRO WDM

#2 GLOBALLY #2 GLOBALLY #2 GLOBALLY

• LH WDM • TOTAL OPTICAL NETWORKING • TOTAL OPTICAL NETWORKING
• METRO WDM • METRO WDM • METRO WDM
• GLOBAL PACKET OPTICAL • SUBMARINE
• CARRIER ETHERNET ACCESS DEVICES

Optical Networks Report, 3Q16 Optical Networks Report, 3Q16 Data Center Interconnect Market Share Report, 3Q16
Ethernet Access Devices Tracker, September 2016 Market Share Spreadsheet: Subsea Optoelectronics. 3Q16
Optical Equipment Vendor Leadership Global Service
Provider Survey December 2016

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  400G single wavelength
WaveLogic Leadership  35 & 56 Gbaud
 32 QAM

Capacity/Modem
(Gb/s) Improved granularity optimizes system capacity
450

400

350

Higher 300
capacity WaveLogic Ai: 400G 32QAM Single Wavelength
250

200

150

100

50
At longer reach Nominal Reach*
0 (km)
0 500 1000 1500 2000 2500 3000 3500 4000 4500 * terrestrial
WL3 WaveLogic Ai
WL4

2x CAPACITY | 3x DISTANCE | 4-6x DENSITY | < ½ POWER

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Elements of a Transport System
Software

Terminal Line System Terminal

Line Card

Modem

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Elements of a Modem
(Modulator-Demodulator, AKA Transponder)
Modem

Integrated Coherent
Receiver

WaveLogic
Laser
DSP

Driver &
Modulator

Modem Controller

Electronics / Electro-Optics

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Design Choices Modules (or Stick-Built)

Modem

Integrated Coherent
Receiver Max Performance, Lowest Cost / Bit

WaveLogic
Laser
DSP

Driver &
Modulator
Pluggables

Controller CFP-DCO
Electronics / Electro-Optics
400ZR

Minimum Power, Interchangeable

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Optimized for Applications Modules for systems used in Metro,
Regional, Long Haul, DCI

 Permanently Integrated into a

circuit pack of a larger system
Modem  Typically:
 Multi-reach
Integrated Coherent  Multi-rate
Receiver
 Tunable
WaveLogic
Laser
DSP

Driver &
Modulator
Pluggables for Metro DCI

 Plugged into a port of a Switch,

Controller Router, White-Box, Mux, Demux
Electronics / Electro-Optics  Typically:
 Single-rate
 Short reach (<100km)
 Interchangeable

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Ciena’s Opportunity

James Frodsham, Chief Strategy Officer

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Ciena Optical Systems Business Model

• Telcos
• MSOs
• Webscale
• Enterprises
• Governments

WaveLogic coherent modem technology integrated into Ciena optical systems (6500, Waveserver, 8700, 5400)

Systems sold directly to network operator customers

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Additional Distribution Channel for WaveLogic
New Markets and Geographies

5x7 Module Telco, Webscale,

Systems Vendors MSO, Gov,
Enterprise

Operators with
disaggregated
Multi-rate
consumption
Multi-reach
models
(ex. Voyager)

WaveLogic available to component vendors for 5x7 coherent modules

Modules sold to systems vendors or directly to customers with disaggregated consumption models

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An Ecosystem for 400G Pluggable Market

• Address need for increasingly larger volume of

400G Pluggable modems will be required for DCI applications
• Establish open group to standardize development
of 400G pluggables
Max-rate
Low power • Make pluggables available to larger ecosystem
<100km reach • Rapidly accelerate innovation and enhance choice
for customers

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Estimated Product Availability

Partner Opto-electronics

+ Optimized for
5 x 7 Module
Performance

WLAi
100G-400G Miniature
Opto-electronics 400G Pluggable

+
Optimized for
Pluggables

NEAR TERM LONGER TERM

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Expanding Ciena Addressable Market

Legend
Captive – Modems sold as part of integrated systems
Merchant – Modems sold independently of systems vendors or network operators

Ciena
13%

Merchant
32%

2016 Addressable Market*:

235,000 total modems

Other
Captive
55%
*Source: Dell’Oro 4Q16 Market Share
(includes 100G and 200G DSP)

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Summary

• Continued diversification
• Differentiation by offering modems in integrated systems AND for merchant market
• Expand addressable markets in new geographies and market segments
• Broader role in the larger global communications ecosystem

• Grow their business with a broader portfolio offering

for our Partners • Access to trusted, best-in-breed technology and technical support
• Can differentiate via unique electro-optic, packaging, MFG processes

• Greater choice and control in technology consumption to meet business objective

for end Customers • Accelerate innovation via multi-vendor interop
• Increased competition in open environment

• Greater choice for buyers of network technology

for the Industry • Accelerated network deployments

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Copyright © Ciena Corporation 2016. All rights reserved. Confidential & Proprietary. 18