FlexSelect™ Architecture & CN 4200™ FlexSelect Advanced Services Platform A practical approach to profitable convergence

Why are we here? On May 16th, Ciena will make two announcements that further define the next generation of its network vision: 1 - FlexSelect Architecture – a blueprint for packet service migration that combines programmable hardware with service-oriented management to automate provisioning, transport and management of any mix of services, including SONET/SDH, Ethernet, storage and video 2 - CN 4200 FlexSelect Advanced Services Platform – the first proof point in Ciena’s FlexSelect Architecture to create service-selectable networks supporting voice, data and video services on any port of any line card using completely remote service provisioning and management

FlexSelect Architecture: The Right Service Mix at the Right Time Market Dynamics: Timeline for L1 & L2 migration Increased network complexity Focus on costs What our customers need: Maximum service flexibility Minimal costs (↓CAPEX ↓OPEX) Increased service velocity Who needs this: Cable & Telco service providers Enterprises / Government Ethernet SONET/SDH Too little SONET/SDH Ethernet Too much New generation SW defined ports dramatically reduce OPEX AND CAPEX New generation Integrated SW configurable switch reduces OPEX AND CAPEX New generation Service oriented Point-and-Click provisioning automates the process and reduces OPEX Large-scale SW-configured switches enable smooth transition and capacity adjustments SW-defined network accelerates revenues and creates a competitive advantage for our customers SONET/SDH Ethernet FSA Just right

FlexSelect Architecture: Redefining Network Flexibility Ciena’s FlexSelect Architecture offers Flexibility, Adaptability and Manageability to mitigate risks associated with network transition. Flexible hardware facilitates service migration, protecting legacy investment and revenue. Flexible embedded software adapts to meet the changing economic and technical needs of enterprise and carrier networks today and tomorrow. Flexible management that controls services and the network with point-and-click ease and granular SLA management. FlexSelect Architecture: A practical approach to profitable convergence

Defining the FlexSelect Architecture Port level flexibility Intelligent programmable hardware Investment protection Standards-based FlexSelect Hardware Flexible Network level flexibility Embedded software Intelligent control plane/switching Wavelength agility FlexSelect OS Adaptable Service level flexibility Service-oriented OAM&P Granular user-defined SLA Upstream interfaces FlexSelect Management Manageable

FlexSelect Architecture: The Evolution of LightWorks More Flexibility Service Orientation LightWorks™ FlexSelect Hardware Flexible Profitability & Convergence FlexSelect OS Adaptable The original FlexSelect Management Architecture for a bandwidth hungry world Manageable FlexSelect Architecture: Foundation for a smooth transition, greater adaptability, higher margins & lower costs

Ultimate Flexibility with the FlexSelect Architecture FlexSelect OS – Network level flexibility Multi-Protocol Core Transport - X - X SONET/SDH Storage Digital Video OTU SONET/SDH Storage Digital Video OTU Gigabit Ethernet Gigabit Ethernet FlexSelect Hardware – Port level flexibility The flexibility to support the changing needs of end-users and infrastructure for any-service architecture FlexSelect Management - Integrated Network & Service Management (On-Center) FlexSelect Management – Service level flexibility (ON-Center™) Multiple Technology Support Converged L1/L2 Capabilities Network Automation JIT Service Activation Streamlined Operations Investment Protection Enables

CN 4200 FlexSelect Advanced Services Platform Hardware Flexible Flexible FlexSelect OS Adaptable Adaptable FlexSelect Management Manageable Manageable

CN 4200 FlexSelect defined Extremely flexible multiservice transport and aggregation platform designed for service provider, enterprise & government applications Flexible Manageable FlexiPort remotely programmable line modules Any service on any port Up to 400Gbps/node Network & service management by ON-Center™ Automated provisioning Granular user-defined SLAs Multi-media transport/backhaul solution Wholesale services solution Enterprise service solutions (e.g. Managed SAN services) Adaptable Efficient sub-λ grooming Intelligent control plane Third party ITU wavelengths Stackable scalability CN 4200: Generally available now and in-service today

Positioning the CN 4200 FlexSelect WDM Metro WDM Metro SONET SDH Core CN 3600 GbE Core / Edge IP-DSLAM or CMTS Access CN 4200: FlexSelect innovations at work

FlexiPort: Practical technology to drive profitability OC-3 OC-12 OC-48 Fibre Channel Gb Ethernet ESCON Video Fast Ethernet Any Service Any Speed Any Port Any Time Network or Client } “The traditional approach” “The Ciena approach” { OC-3 OC-12 OC-48 FlexiPort saves money, mitigates risk and expedites revenue Fibre Channel Gb Ethernet ESCON Video Fast Ethernet On-Demand service delivery Faster provisioning/adds/moves/changes Faster packet migration Less planning, engineering, spares Download upgrades for future services Lower costs, higher profitability The FlexiPort advantage

CN 4200: Protects investment while maximizing profits How the CN 4200 reduces cost 78% reduction in wavelength usage Reduce provisioning time by 95% Eliminates man hours & truck rolls for add/change/move Reduce equipment planning Reduce spares by 66% Built for “pay as you grow”-- CAPEX maps to revenue growth 60% reduction in total cost of ownership Multi-media transport/backhaul solution Wholesale services solution Enterprise service solutions (e.g. Managed SAN services) CN 4200: Protects investment while maximizing profits

CN 4200 delivers revenue faster Traditional Approach Ciena Approach Upgrade OC-12 to GigE Total days to revenue ~45 days for new equipment ~45 days to commission & provision new equipment 0 days via software 0 days for delivery Revenue up to 90 days sooner! Save 6-10 man hours for order, install, provision per upgrade Save headcount for equipment & service mix planning & forecasting New service possibilities Ciena’s CN 4200 Advantage = OPEX ROI

Tailored to our target markets Telco/Cable service providers Enterprise/Government Affordable carrier-grade transport solution Qualified networked remote storage (EMC, IBM, HP, etc) Meets emerging requirements for GRID & Web services Enables government network transformation Investment protection Automated & remote service provisioning capabilities Eliminates customer interoperability problems No re-training Properly balanced network SONET/SDH Ethernet SONET/SDH Ethernet FSA FSA Huge overall cost reductions Maximum control and flexibility

Service Level Manageability Flexibility & service orientation = improved profitability with network convergence Telco & Cable Multiservice Transport Private Network Services Network Optimization Network Convergence Enterprise/Government Storage Transport Ethernet Networking Private Networks Network Convergence Wireless Wireless Aggregation T1/E1/Ethernet Backhaul Consolidation Service Level Manageability WDM Metro WDM Metro SONET SDH Core CN 3600 Network Adaptability GbE Core/Edge IP-DSLAM or CMTS Access Service Flexibility

FlexSelect Architecture Summary FlexSelect Architecture CN 4200 FlexSelect Flexibility Intelligent hardware with extreme flexibility FlexiPort programmable line modules Adaptability Embedded software offers the ability to adapt Intelligent & adaptive switching & control plane technology Manageability Customer & service oriented architecture ON-Center manages networks & enforces granular SLAs

Thank You!

Backup Slides

Actual customer cost-savings analysis CN 4200: Reducing the TCO of networks without compromise

CN 4200: Cost savings from wavelength efficiency 12 6 9 5 2 5 6 2 5 6 7 4 7 4 14 5 8 5 8 5 5 5 1 3 ROADM Only 1 3 ROADM + Pt-to-Pt Mux 8 Max 14 unique?; 22 if protected 4 + Max 9 unique?; 13 if protected 4 4 1 3 1 3 4 4 2 2 2 5 6 1 2 (Example: Mix of 10GbE, NX GbE & DV Video; OC-48 & GbE Data; OC-3 Telephony; & ESCON, FC, GbE, OC-x Private Line) 2 1 ROADM = 14 Wavelength ROADM+ = 9 Wavelength CN 4200 = 3 Wavelength 1 1 1 3 Sub-λ + FOADM 3 Max 3 unique?; 5 if protected 2 1 1 4 CN 4200 Source: Ciena CN 4200: 78% reduction in wavelength usage

CN 4200: Cost savings of FlexiPort Assumptions: 3 service types, 50 sites, 10 ports per site, 1 spare/service on site + 7% depot sparing CN 4200: 66% reduction in spares Source: Ciena