CISCO AND CIENA Announce Intent to Develop Optical Internetworking Technologies
Interoperable Products Enable Service Providers to Build Scalable, Cost-Effective Networks
SAN JOSE, Calif. & LINTHICUM, MD — 04/20/1998Cisco Systems, Inc. and Ciena Corporation (Nasdaq: CIEN) today announced plans to develop carrier-class solutions to accelerate the deployment of next-generation optical internetworks. Under the Memorandum of Understanding, Cisco and Ciena will work together to overlay switching and routing technologies directly onto optical networks, enabling service providers to build more scalable and cost-effective data services.
Initially, Cisco and Ciena will work to enable service providers to build high-capacity IP backbones by interfacing the Cisco 12000 Gigabit Switch Router (GSR) directly to Ciena's long-haul, dense wavelength division multiplexing (DWDM) systems. The Cisco 12000 will interface with Ciena's DWDM systems via synchronous optical network/synchronous digital hierarchy (SONET/SDH) OC-48c/STM-16 interfaces at 2.5 Gbps, without the need for additional intermediate network elements, such as SONET terminal multiplexers. Future activities will include integration of additional platforms and interfaces, including support for asynchronous transfer mode (ATM), and the definition of new interfaces between data and optical layers to improve network flexibility and reduce equipment costs.
The rapid growth of data traffic is forcing service providers to reevaluate the way they build their transmission infrastructures. The ability to directly connect data platforms with optical networking elements such as DWDM will enable service providers to cost-effectively exploit the enormous capacities of optical technologies. Leading service providers have recognized this opportunity and are building new network infrastructures specifically optimized for data. By focusing on IP switching, routing and DWDM as core infrastructure technologies, service providers will be able to build data-optimized infrastructures with capacity costs significantly less than traditional, voice-optimized, time-division multiplexing (TDM) infrastructures.
"IP traffic volumes on high-speed backbones continue to double every six to nine months, with some routes already requiring multigigabit bandwidths," said Don Listwin, senior vice president of Cisco Systems' Service Provider Line of Business. "We believe that optical technologies will be key to addressing these enormous capacity requirements. Cisco and Ciena are working to bring about the rapid realization of this new networking approach and to ensure that we stay ahead of customer demands."
"Carriers are quickly recognizing the benefits of bringing IP traffic directly onto DWDM transport," said Patrick Nettles, Ciena's president and chief executive officer. "After initial interoperability testing, we expect more strategic product development to naturally emerge."
Cisco and Ciena are also cooperating with other leading vendors and service providers to ensure open standards for optical internetworking. In a separate announcement today, the two companies announced that they cofounded the Optical Internetworking Forum (OIF) to provide a venue in which vendors and users can agree on key specifications that will complement international standards activities while accelerating the deployment of optical internetworks.
Ciena specializes in network transition. We provide the flexible platforms, intelligent software and professional services to build converged networks for enhanced services and applications. With a growing global presence, Ciena leverages its heritage of practical innovation to deliver maximum performance and economic value in communications networks worldwide. For more information, visit www.ciena.com.
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. News and information are available at http://www.cisco.com.
Forward-looking statements in this release regarding both near term and longer term expectations of the partnering plans with Cisco, including the development of new carrier-class solutions, integration of platforms and interfaces, definition of new interfaces between the traditional data and optical layers, and development of important new products which may naturally emerge over time, are based on information available to Ciena as of the date hereof. Ciena's actual results could differ materially from those stated or implied by such forward-looking statements, due to risks and uncertainties associated with the Company's dependence on its major customers and their spending patterns, including specifically the impact on the Company's near term operating results of WorldCom's recently announced change in purchasing practices, the challenge of transitioning to the manufacture of multiple product lines in fiscal 1998, and the overall management of its expansion. Partnering arrangements such as that announced hereby are themselves subject to risks and uncertainties based on a number of factors, including the dynamics of differing markets in which the partners compete, and the priority and support given to the partnering effort relative to parties' other corporate plans and activities. The forward-looking statements should be considered in the context of these and other risk factors disclosed in the Company's Form 10-Q, filed with the Securities and Exchange Commission on February 19, 1998.
Cisco, Cisco Systems and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.
Nicole Anderson
Ciena Corporation
(877) 857 -7377
pr@ciena.com Erin Bergamo
Cisco Systems, Inc.
(408)527-0600
ebergamo@cisco.com
Marie Downing
Ciena Corporation
(888) 243-6223
ir@ciena.com
