Infinera Unveils the Network Efficiency Quotient

Framework to compare next-generation optical transport network architectures

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Sunnyvale, CA – June 14, 2012Infinera (NASDAQ: INFN), a leading provider of digital optical communications solutions, announced today the network Efficiency Quotient (EQ).  Network EQ is a framework for comparing next-generation optical transport network architectures, enabling network operators to evaluate the ripple effect of architectural decisions on the total cost of ownership (TCO).  As part of the announcement, Infinera unveiled two new applications that enable rapid estimation and analysis of transport network EQ, the EQ Estimator and EQ Power Analyzer. Additionally, Infinera is introducing EQ Engagement which provides select customer engagements with Infinera consultants for network specific TCO analysis. As a relative measure of optical transport network efficiency, EQ compares the impact of capital expenses (CapEx) and operating expenses (OpEx) of architectural alternatives over time. The results show that some operators may be able to reduce TCO by up to 70% with an optimal architectural approach.  

As optical transport bandwidth requirements grow–driven by mobile, cloud and video services – operators have to invest in scaling their networks to meet these demands. Simultaneously, operators must maintain or improve CapEx and OpEx over revenue financial ratios to satisfy their investors. Network operators can no longer meet both of these objectives by simply increasing optical capacity, such as moving from 10 gigabits per second (Gb/s) to 40 (Gb/s) or 100 (Gb/s) optical transmission speeds; they also need to deploy modern architectures that deliver scalability while converging network layers to simplify operations and boost efficiencies.  An architecture that integrates OTN switching with WDM transmission without compromise can dramatically improve network EQ, helping network operators improve their bottom line over legacy architectures that rely only on WDM transmission, without the benefits of OTN switching.  

The TCO benefits of an integrated OTN switching and WDM architecture can be further enhanced through the use of systems that utilize photonic integrated circuit (PIC) technology.  PICs enable converged OTN/WDM architectures without compromise and provide important additional benefits; rapid system commissioning to lower installation costs; service-ready bandwidth to enable operators to respond faster to customer service requests; lower power use, higher density to reduce rack space and co-location costs; reduced numbers of line-cards and fiber connections to simplify network operations; and greater reliability for improved service availability.

“Through several years of deploying and maintaining Infinera technology across our optical transport network we have enjoyed the improved network efficiencies enabled by a system that combines OTN switching with Photonic Integrated Circuit-based WDM optics,” said Randy Nicklas, senior vice president and chief technology officer at XO Communications.  “By working with Infinera, we’ve been able to realize the benefit of increasing wavelength efficiency while reducing space and power consumption compared to alternative solutions.”

“Our recent OTN Deployment Strategies survey showed that 75% of operators plan to deploy OTN switching in their networks. More than half of these operators want OTN switching integrated with WDM, as they see it as a means to improving network efficiency and lowering network lifecycle costs. It is good to see that Infinera has developed a framework that will help operators evaluate their architectural choices,” said Andrew Schmitt, Principal Analyst, Optical at Infonetics Research.

“In conversations with service providers around the world, we are seeing increased focus on driving efficiencies from the transport network to the bottom line of their income statement,” said Tom Fallon, Infinera CEO. “The EQ framework simplifies the analysis of transport network architectures as they impact total cost of ownership, providing operators a quick way to recognize opportunities to improve network efficiency for their bottom line.

For more information on Infinera’s EQ metrics or to find your network’s EQ score, please visit www.infinera.com/go/eq. The EQ Estimator and EQ Power Analyzer are available on PCs, tablets and smartphones.

For media and analysts:

Media:

Anna Vue

Tel. (916) 595-8157

avue@infinera.com

Investors:

Jenifer Kirtland

Tel. (408) 543-8139

jkirtland@infinera.com

 

About Infinera
Infinera specializes in Digital Optical Networking solutions that are designed to continually improve the economics of optical networking by combining the speed of optics with the simplicity of digital.  Infinera is unique in its use of breakthrough semiconductor technology: Large Scale Photonic Integrated Circuit (PIC). Infinera's platforms leverage PIC technology to provide customers with a service-ready architecture that enables faster time-to-revenue and greater profitability through network efficiency and the ability to rapidly deliver differentiated services without reengineering their optical infrastructure. For more information, please visit http://www.infinera.com/.

This press release contains forward-looking statements including, among other things, statements relating to Infinera products and applications; that The TCO benefits of an integrated OTN switching and WDM architecture can be further enhanced through the use of systems that utilize photonic integrated circuit (PIC) technology; that the PIC-enable converged OTN/WDM architectures without compromise and provide important additional benefits including; rapid system commissioning to lower installation costs; service-ready bandwidth to enable operators to respond faster to new service requests; lower power use, higher density to reduce rack space and co-location costs; reduced numbers of line-cards and fiber connections to simplify network operations; and greater reliability for improved service availability. These forward looking statements are based on our current expectations.  Actual results may vary materially from these expectations as a result of various risks and uncertainties, including, but not limited to, aggressive business tactics by our competitors, our dependence on a single product, our reliance on single-source suppliers, and our ability to respond to rapid technological changes. Further information about these risks and uncertainties, and other risks and uncertainties that affect our business, is contained in the risk factors section and other sections of our annual report on Form 10-K filed with the Securities and Exchange Commission on March 6, 2012, as well subsequent reports filed with or furnished to the SEC.  These reports are available on our website at www.infinera.com and the SEC’s website at www.sec.gov. Infinera assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

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