Vendor analyst and investor events do not usually generate so much in the way of news, but more often they underscore the reasons why we should feel rah-rah or blah-blah about a particular company and sector. Having said that, Ciena Investor Day at the New York Stock Exchange on Thursday did offer a couple of noteworthy nuggets, via analysts who attended the event.
Alex Henderson, an analyst at Needham & Company, wrote in a research note that Ciena Corp. (NYSE: CIEN) provided reason to believe that the 100G metro market is already ramping up this year -- more quickly than anticipated. "We had expected Ciena to say, 'Not yet, but could become big in CY15 and CY16.' Instead, Ciena's CEO noted that this is happening sooner and with more strength than expected."
Heavy Reading senior analyst Sterling Perrin has said that the 100G metro market could be worth $2.1 billion by 2018. However, there has been some increasing market activity of late, with Infinera Corp. (Nasdaq: INFN) hinting at a metro product in development. (See Infinera Shifts Up a Gear.)
Michael Genovese, managing director at MKM Partners, also cited 100G metro optimism at the event, though he complained that Ciena's overall comments on the optical market were "too general."
In his own research piece, Genovese wrote that Ciena may be advancing through the AT&T Supplier Domain 2.0 program. "According to our checks, Ciena is now undergoing Domain 2.0 certification at AT&T, including software interoperability with SDN Controller maker Tail-f Systems, which is a new but key AT&T vendor."
Ciena, an ongoing supplier to AT&T, has been expected to be involved in the Supplier Domain 2.0 program, though AT&T has yet to acknowledge that. The more notable part, if Genovese's checks are on the mark, may have to do with Ciena being engaged in the software interoperability process with Tail-f Systems . As Light Reading reported in February, Tail-f was chosen for "further discussions on design and deployment," but perhaps things are progressing. (See MKM: Cisco Biggest Loser in AT&T SDN Plans and AT&T's Cloud Future Takes Shape.)
— Dan O'Shea, Managing Editor, Light Reading