CIENA CORPORATION

Presented To: Dr. A. Kumar

HISTORY
CIENA was founded in 1992 by Dr. David Huber ,a physicist who patented a number of innovation. They got the venture capital from the Sevin Rosen in 1994.

It is the company which design and sells optical networking equipment and services to telecommunication service providers.
In 1996 with help of its product DWDM ,company generated $ 1.6 billion in revenue.

 In 1999 CIENA acquired Light era and started developing an intelligent optical switch and it was released in 2000. It obtained 19 % market share in 2001 with the help of these two product.

CORE DWDM TRANSPORT ( 1996-1998)

Company launched its first product DWDM which allowed the data telecom service providers to increase the channel density and reach of their optical network. Became famous in the market within 12 month of its launch, which lead increased competition. It reduced the cost of carrying 1 gigabit of data per sec per km by 70% First IPO was made in february 1997 of $3.7billion. 1st FPO was made in July 1997 of $ 400 million. 2nd FPO was made in February 2001 of $600 million.

 On an argument about Ceina that it should now focus on Optical-optical (OO) approach to data transmission and switching. Dr David Huber Resigned from Ceina. In June 1998- started a talk for merged with Tellabs, a leader n voice and data communication equipment with revenue of $ 1.6 billion. On announcement that AT&T is not using Ceina s transport equipment. The merger cancelled and the stock price fall from $ 100 per share to $ 10 per share. Ceinas profit margin dropped.

Ceina stated looking for new ways to differentiate itself in new optical telecommunications technologies.

CORE SWITCHING (1998-2000)

Steve Alexander Chief technology Officer Next generation of switches was needed to accommodate the channel growth introduced by DWDM (Dense wavelength division multiplexing) transport. The development phase by help of OEO technology from LIGHTERAS (solve bandwidth explosion problem) for CIENA. BECAUSE TECHNOLOGY ONLY EXISTS IN OUR WORLD TO PROVIDE ECONOMIC VALUE ; IT DOESN'T STAND ON ITS OWN

METRO TRANSPORT AND SWITCHING (20002002)

In Oct 2000,Gray Smith was named as president and CEO of CIENA. He believed on growth of networks in transport and switching market for MAN. new breed of customers would be Sprint, AT&T, WorldCom , Regional bell operating companies(Verizon,Bell South), and international carriers (Williams, Broadwing , Level3, Enron) For proper integration and solutions MAN network should be incorporated. Result in differentiation and supports profitability.

 DWDM transport equipment providers network route

will build a service

Market for metro area optical networks would grow from $13 billion in 2001 to $23.6 billion in 2005.
In 2001 company paid $1.1 billion for Cyras Systems for starting a switch for MAN. In 2002,CIENA acquired ONI ,combining optical networks and ONIS metropolitan network capabilities. This would help the company to consolidate resources and target new market opportunities to increase profitability.