Ciena Publishes Report Analyzing the Impact of AI, DCI, and Cloud Evolution on Wave Services Demand
HANOVER, Md.--(BUSINESS WIRE)-- Ciena (NYSE: CIEN) has compiled a new report on wavelength services – the first of its kind – that explores the key drivers of the need for high-speed connectivity. The report examines the critical role of wave services in enabling the expansion of interconnected data centers driven by Artificial Intelligence (AI), the growing importance of low latency and data sovereignty for AI workloads, and the build-out of terrestrial and critical submarine network infrastructure. It also highlights the pivotal role of managed optical fiber network (MOFN) business models to expand high-speed connectivity into new geographies and markets.
Ciena report examines the role of wave services in enabling the expansion of interconnected AI data centers, the growing importance of low latency and data sovereignty for AI workloads, and the build-out of terrestrial and submarine infrastructure.
Share
'As cloud providers scale data center networks to address AI performance requirements, wave services must also evolve in terms of capacity, coverage, latency, and route diversity,' said Mark Bieberich, Vice President of Portfolio Marketing, Ciena. 'Demand for wave services is growing steadily worldwide, as data center network expansion requires increasingly high-capacity interconnection among various types of network operators and end users.'
Wave Services Circuits Grow
The total wave services circuits market in the U.S. grew nearly eight percent in 2024 and is projected to grow steadily through 2029, based on research from Vertical Systems Group. It observed an increasing use of wave services for cloud on-ramps, which is demonstrated by the metro geographical scope (41%) along with the dominance of retail customers (58%).
The report states that, from 2024 to 2029, growth in 400G circuits is set to soar, while 100G circuits will see a steady rise, and 10G circuits will experience modest growth.
Wave services are the foundation of most high-capacity networks, particularly when connectivity to or between data centers is involved. High bandwidth, protocol transparency, and low latency are some of their fundamental characteristics. Wave services can either act as end services or support higher-layer services. Based on Dense Wavelength Division Multiplexing (DWDM) technology, they enable massive data-transmission bandwidth over a fiber pair. Currently, wave services are dominated by 100G and 400G connections. There is still a high volume of 10G services deployed, but they are being upgraded to 100G at a steady pace.
Submarine cable growth
In addition, Ciena's report looks at the growth of submarine cables. It highlights that a record 161,100 kilometers of submarine cables are planned to become ready for service (RFS) in 2025, dwarfing the previous high of 121,000 kilometers becoming RFS back in 2001.
'With infrastructure expanding rapidly and resource constraints increasingly shaping growth, anticipating demand has never been more important,' Bieberich added. 'Network operators providing wave services can seize this moment by proactively routing new submarine cables to emerging data centers and innovating to address these challenges. Differentiation through greater route diversity, low-latency connectivity, and compelling managed services is key to staying ahead.'
The report provides a thorough analysis of the current industry landscape, evaluating key trends and identifying factors poised to influence the market in the coming years. The report's forecasting illuminates the path forward, enabling stakeholders to effectively strategize and maintain a competitive edge in their fields. Read the full Wave Services report here.
About Ciena
Ciena is the global leader in high-speed connectivity. We build the world's most adaptive networks to support exponential growth in bandwidth demand. By harnessing the power of our networking systems, components, automation software, and services, Ciena revolutionizes data transmission and network management. With unparalleled expertise and innovation, we empower our customers, partners, and communities to thrive in the AI era. For updates on Ciena, follow us on LinkedIn and X, or visit the Ciena Insights webpage and Ciena website.
Note to Ciena Investors
You are encouraged to review the Investors section of our website, where we routinely post press releases, SEC filings, recent news, financial results, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that are based on our current expectations, forecasts, information and assumptions. These statements involve inherent risks and uncertainties. Actual results or outcomes may differ materially from those stated or implied, because of risks and uncertainties, including those detailed in our most recent annual and quarterly reports filed with the SEC. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies and can be identified by words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Ciena assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
Best's Market Segment Report: 2024 Pricing Cuts in U.S. Cyber Generated First-Ever Reduction in Direct Premiums Written
OLDWICK, N.J., June 23, 2025--(BUSINESS WIRE)--Premiums generated from cyber insurance coverage declined by 2.3% to slightly less than $7.1 billion in 2024 compared with a year earlier, marking the first ever decrease in the segment since the data was first collected in 2015, according to a new AM Best report. Despite the drop in premium, the loss ratio for the U.S. cyber segment remained below the 50% mark in 2024, suggesting that the line of coverage is still profitable for those who choose to underwrite the risk. According to the report, the decrease in premiums is driven more by pricing changes than any changes in exposure. "When premium grew during the hard market cycle, the growth significantly outpaced the pricing increases, indicating that demand for cyber insurance was increasing as well," said Christopher Graham, senior industry analyst, AM Best. "Considering that the premium decrease is close to the pricing decrease, that would indicate that the demand for cyber insurance is steady." However, the report also notes that some large organizations may be shifting their cyber exposure to their own single-parent captive insurers. Such organizations that have a favorable loss experience find it beneficial to maintain the premium under the parent company's structure and typically don't file the related cyber data reports with the National Association of Insurance Commissioners. Among the report's other highlights: Much of the new capacity during the hard market came from surplus lines writers. Those carriers have held—and marginally increased—their market share even as the total premium slightly contracted; Surplus lines paper remains the prime spot for complicated cyber risks, and this is evident through the split among primary, excess, and endorsement coverage. While surplus lines writers benefited from the hard market pricing of 2020-2022, that benefit seems to have now worn off. When new writers enter the market during a hard market cycle, those writers get the benefit of the stronger pricing without having to pay the legacy losses. AM Best has maintained a stable outlook on the global cyber insurance segment, citing a cautious level of underwriting in a dynamic risk environment. To access the full copy of the Best's Market Segment Report on U.S. cyber insurance, please visit AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Christopher Graham Senior Industry Analyst +1 908 882 1807 Fred Eslami Associate Director +1 908 882 1759 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Yahoo
33 minutes ago
- Yahoo
FactSet: Modest Growth, Higher Costs
FactSet Research delivered revenue and annual subscription volume growth, but earnings were weighed down by higher costs. The company announced its 26th consecutive annual dividend boost and continues to repurchase shares. FactSet will get a new CEO in September when Sanoke Viswanathan replaces Phil Snow. 10 stocks we like better than FactSet Research Systems › Here's our initial take on FactSet Research Systems' (NYSE: FDS) financial report. Metric Q3 FY24 Q3 FY25 Change vs. Expectations Revenue $552.7 million $585.5 million 6% Beat Adjusted diluted earnings per share $4.37 $4.27 (2%) Missed Organic annual subscription value $2.2 billion $2.3 billion 5% n/a GAAP operating margin 36.6% 33.2% (3.4 pp) n/a Financial data and analysis vendor FactSet grew revenue in the quarter and remains a must-have vendor for its existing client base. But higher costs ate into the bottom line, leading the company to report earnings per share that fell short of Wall Street expectations. Revenue, including the product of acquisitions, grew by 6% year over year, and organic revenue was up 4.4%. FactSet grew its annual subscription value (ASV) by 6%, including the result of acquisitions, to $2.4 billion, and annual ASV retention was greater than 95%. As a percentage of clients, annual retention was 91%. Although costs were higher, much of the added expense can be attributed to timing issues and one-time items. GAAP operating margin fell to 33.2% from 36.6%, which the company attributed to the lapping of both a lower bonus accrual and a one-time payroll tax adjustment, as well as added salaries due to recent acquisitions. FactSet continues to return cash to shareholders. In May, the company announced a 6% increase to its quarterly dividend. It is the 26th consecutive yearly dividend increase. The company also repurchased $80.7 million worth of its shares in the quarter. Over the last decade, FactSet has reduced its share count by more than 8%. The company said its board approved a new $400 million repurchase authorization beginning on Sept. 1. The report was largely more of the same, and investors reacted accordingly. FactSet shares initially fell about 3% in premarket trading, continuing a trend that has seen the stock fall 12% so far in 2025. FactSet reaffirmed its full-year guidance, and CEO Phil Snow said the company has "a healthy pipeline and increased momentum." We are in the final three months of the company's fiscal year, so clarity should be strong. There is also change on the horizon. In early June, FactSet said Snow would be stepping down in September. He will be replaced by Sanoke Viswanathan, a JPMorgan Chase (NYSE: JPM) wealth management executive who was a member of Jamie Dimon's operating committee at the bank. FactSet has a well-regarded product, but its services are priced at a premium, and the total addressable market, buy-side and sell-side bankers, has not been growing. It will be up to Viswanathan to find the catalyst to get markets excited about FactSet again. Full earnings report Investor relations page Before you buy stock in FactSet Research Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and FactSet Research Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FactSet Research Systems and JPMorgan Chase. The Motley Fool has a disclosure policy. FactSet: Modest Growth, Higher Costs was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
37 minutes ago
- Business Wire
Best's Market Segment Report: 2024 Pricing Cuts in U.S. Cyber Generated First-Ever Reduction in Direct Premiums Written
BUSINESS WIRE)--Premiums generated from cyber insurance coverage declined by 2.3% to slightly less than $7.1 billion in 2024 compared with a year earlier, marking the first ever decrease in the segment since the data was first collected in 2015, according to a new AM Best report. Despite the drop in premium, the loss ratio for the U.S. cyber segment remained below the 50% mark in 2024, suggesting that the line of coverage is still profitable for those who choose to underwrite the risk. According to the report, the decrease in premiums is driven more by pricing changes than any changes in exposure. 'When premium grew during the hard market cycle, the growth significantly outpaced the pricing increases, indicating that demand for cyber insurance was increasing as well,' said Christopher Graham, senior industry analyst, AM Best. 'Considering that the premium decrease is close to the pricing decrease, that would indicate that the demand for cyber insurance is steady.' However, the report also notes that some large organizations may be shifting their cyber exposure to their own single-parent captive insurers. Such organizations that have a favorable loss experience find it beneficial to maintain the premium under the parent company's structure and typically don't file the related cyber data reports with the National Association of Insurance Commissioners. Among the report's other highlights: Much of the new capacity during the hard market came from surplus lines writers. Those carriers have held—and marginally increased—their market share even as the total premium slightly contracted; Surplus lines paper remains the prime spot for complicated cyber risks, and this is evident through the split among primary, excess, and endorsement coverage. While surplus lines writers benefited from the hard market pricing of 2020-2022, that benefit seems to have now worn off. When new writers enter the market during a hard market cycle, those writers get the benefit of the stronger pricing without having to pay the legacy losses. AM Best has maintained a stable outlook on the global cyber insurance segment, citing a cautious level of underwriting in a dynamic risk environment. To access the full copy of the Best's Market Segment Report on U.S. cyber insurance, please visit
