Ciena Corp CIEN

Ciena Takes Share as Optical Networking Finds a Home in Data Centers

Ciena is the leading innovator in the coherent optical equipment industry. The firm was the first to market by over 18 months with 1.6 terabits-per-second capabilities, using its WaveLogic 6 Extreme optical engine and transport systems. This has positioned Ciena extremely well to capitalize on the large hyperscaler and neocloud data center investments and on telecom carriers' network upgrades. In the long term, we expect competition from Nokia and Cisco to increase. Still, the ban on Chinese networking equipment in Western markets should effectively maintain a duopoly with Nokia for the next generation or two of capacity standards.