Neoscalers are rising as a new class of network operators—at the forefront of the AI revolution with unique challenges and opportunities. In this blog, Brodie Gage shares how Ciena’s optical innovations and services help them scale, innovate, and lead.
AI and cloud applications are rewriting the rules of optical networking—changing not only how networks are built, but also who needs to build them. Beyond the familiar hyperscalers, a new and fast-growing category is emerging: the neoscalers.
You already know this firsthand, but let’s clarify: when we say neoscaler, we’re talking about you—the providers of AI infrastructure, such as GPU-as-a-service and LLM operations platforms. We are also referring to cloud and edge service providers and data center and colocation providers.
As a neoscaler, you’re not just looking to meet AI-driven demand and fuel new business growth but are shaping the future of digital services by actively building advanced optical networks to capitalize on your substantial investments in assets like large language models (LLMs), GPUs, and data center resources. Positioned to drive the explosive growth of AI traffic, distributed compute, and automation, you face an incredible opportunity. But with that opportunity comes challenges that must be addressed head-on.
In my conversations with leaders across this ecosystem, three themes continually stand out—scaling network capacity efficiently, simplifying complexity, and accelerating time-to-market. In this blog, we’ll explore these challenges and how Ciena brings proven expertise to help you succeed.
Challenges and opportunities in the AI landscape
Scaling capacity efficiently: One of the biggest challenges is scaling network capacity between data centers while keeping costs under control. If you’ve relied on leasing network capacity to meet your connectivity needs, soaring bandwidth demands may already be exposing its limitations—traffic outpacing capacity, reduced control, and rising costs. This is prompting a shift in how networks are built, combining the strategic deployment of self-built optical networks with managed optical fiber networks (MOFN) where it makes sense. These approaches offer greater agility, scalability, and long-term cost advantages, while keeping pace with growing traffic demand. At the same time, you’re balancing complex trade-offs involving high-capacity, low-latency performance, power, cooling, and space, all while trying to identify the right solution to meet your unique requirements.
This is where Ciena comes in. We work closely with neoscalers like you to build networks that scale alongside your business, enabling you to unlock long-term growth potential. Our solutions are designed to eliminate network bottlenecks, ensuring the GPUs and models you’re deploying for AI training operate at maximum scale. With our advanced coherent technology, we help you get the most capacity out of your fiber assets by increasing capacity per wavelength and spectral efficiency. Additionally, our future-proof coherent optics and programmable photonics minimize footprint, reduce energy consumption, and lower cost per bit – keeping operational costs in check.
If you’re looking to support AI-driven innovations and next-generation cloud services, we offer a solid foundation built for growth and success.
Navigating networking complexities: We understand that planning and deploying optical networks can be a complex challenge, especially when your teams are more accustomed to software and IP-based systems or lack the specialized expertise needed for high-capacity optical networks. This skills gap can lead to slower deployments, reduced reliability, and higher operational costs—barriers that can hinder your ability to meet growth objectives.
At Ciena, we can help overcome these challenges by taking on the heavy lifting required to deploy and expand optical network capacity. Our solutions are designed to simplify, offering single-box systems that integrate multiple technologies into a single platform for a plug-and-play optical network that doesn’t require deep expertise to turn up capacity fast and reliably. And with our deep optical expertise and comprehensive services, we provide the resources needed to navigate the complexities of optical networking and streamline your deployments.
Time-to-market pressures: Another recurring theme in my conversations with neoscalers is the pressure to move fast. Time-to-market is critical for capturing emerging AI opportunities and meeting customer demands. Your network can’t afford to be a bottleneck—it must enable growth and innovation, not hold it back. Building infrastructure that accelerates deployment timelines is essential to staying ahead of rivals and delivering on customer expectations.
This is where Ciena’s optical innovations and expertise make a real difference. We work closely with neoscalers like you to bring infrastructure online faster, enabling you to accelerate your business and stand out from the competition. Our advanced automation and programmability capabilities reduce the time and effort required to deploy networks, empowering you to move quickly while maintaining the agility needed to grow and innovate.
Flexible, turnkey operations to oversee and execute day-to-day management tasks
Beyond technology, we offer comprehensive professional services through Ciena Services. From pre-deployment planning and design to network deployment and complete lifecycle management, our turnkey services cover every stage of the network lifecycle. Our managed operations services streamline network management and maintenance, freeing up your teams to focus on strategic initiatives, while our implementation services reduce risk and accelerate time to market by tailoring network design and deployment to your specific needs.
Whether through direct engagement or collaboration with service providers, we ensure you have access to the right technology and services to get the job done right – and done fast.
Tailored solutions for the diverse requirements of neoscalers
While I’ve discussed three primary challenges neoscalers are facing, it’s clear that your network requirements are as diverse as the organizations that define this market. Each of you has unique approaches, priorities, and operational needs. Some need the highest capacities to interconnect cloud and AI data centers, while others face distance challenges ranging from single-span connections to long-haul links. Advanced technology, like C&L-band optics may be required to maximize fiber capacity, or conserving power and space may be driving a need for more compact, power efficient solutions. For those of you carrying sensitive government traffic and applications, robust security and encryption capabilities become essential. This diversity means there’s no one-size-fits-all networking approach. Each of you has distinct goals—some focus on capacity, low-latency, and performance, others on simplicity and services, and many balance a mix of everything.
Comprehensive optical portfolio to address your specific network priorities
Addressing this broad spectrum of needs requires adaptable solutions and a tailored approach. At Ciena, our vast optical portfolio brings the right mix of leading technologies, solutions, and services to meet these unique requirements. Whether you need to scale capacity or optimize for simplicity and efficiency, our comprehensive portfolio is designed to deliver customized solutions that align with each of your objectives.
Empowering neoscalers to shape the future of technology
With a proven track record in hyperscaler networking, Ciena brings the expertise, innovation, and technology that neoscalers like you need to succeed. As your trusted advisor, we understand there’s no “one size fits all” solution and work closely with you to design networks that are scalable, secure, adaptable to your unique needs. Combining advanced coherent optics, programmable photonics, and industry-leading services, our robust optical portfolio ensures your networks are efficient, future-ready, and built to power the next wave of AI-driven applications.
Together, let’s build the networks that drive the future of cloud and AI innovation.
