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Will Ciena's Optical Technology Adoption by Sify Aid CIEN Shares?

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Ciena Corporation’s (CIEN - Free Report) optical technology has been deployed by Sify Technologies to link its seven Metro Area Networks throughout India. The upgrade begins with an express route connecting Mumbai and New Delhi, enhancing Sify's National Long-Distance network to support services of up to 600G.

Sify is a leading provider of Information and Communication Technology (ICT) services and solutions in India. With a strong emphasis on Cloud within its offerings, Sify addresses the evolving ICT needs of the emerging digital economy and the demands of businesses of all sizes, including large, mid-sized and small enterprises.  

Sify is implementing Ciena's advanced 6500 Reconfigurable Line System and Waveserver 5, both equipped with WaveLogic 5 Extreme (WL5e) coherent optics. This deployment is supported by Ciena Services, which provides strategic consulting to ensure a smooth implementation and ongoing support through Ciena’s Maintenance Service. The upgrade aims to interconnect Sify's key artificial intelligence (AI)-ready data center hubs in Mumbai, Chennai and Noida, along with their surrounding metro areas, creating a highly scalable network.


Sify has doubled its network capacity from 300G to 600G using Ciena’s optical technology and its line system, which accommodates both C and L-band transponders. Customers are now expected to benefit from ultra-low latency connectivity and reliable support for Generative AI and cloud services.

In addition, Sify has been utilizing Ciena’s Navigator Network Control Suite (Navigator NCS) for real-time software control and enhanced network visibility. It is specifically utilizing features of Navigator Intelligent Apps, including PlannerPlus, to effectively develop and enhance its optical network.

 

Ciena’s WaveLogic 5 Technology Gains Traction

Ciena’s performance is driven by strengthening demand for bandwidth owing to rapid cloud adoption and the proliferation of AI technology use cases.

In the third quarter, the company shipped nearly 12,000 WaveLogic 5 Extreme modems and added another 12 customers, nine of which are new logos for Ciena. It also continued to gain momentum with WaveLogic 5 Nano, ZR and ZR Plus, shipping a record number of pluggables in the quarter. It gained 18 new WaveLogic 5 Nano customers, bringing the total to 122.

Moreover, Ciena's coherent routing solution, which combines coherent aggregation routers with WaveLogic 5 Nano pluggables and the Navigator Network Control suite, is increasingly being chosen by clients to replace outdated legacy IP solutions. This growing adoption of WaveLogic 5 is expected to generate additional revenues for Ciena in the long term, potentially boosting CIEN shares.

CIEN’s Zacks Rank & Stock Price Performance

CIEN currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 42.4% in the past year compared with the sub-industry's growth of 41.9%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are Seagate Technology Holdings plc (STX - Free Report) , Cirrus Logic, Inc. (CRUS - Free Report) and SS&C Technologies Holdings, Inc. (SSNC - Free Report) . Both STX & CRUS presently sport a Zacks Rank #1 (Strong Buy), whereas SSNC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Seagate Technology delivered an earnings surprise of 80.9%, on average, in three of the trailing four quarters. Strength in mass capacity solutions owing to stronger nearline cloud demand is aiding Seagate. Its launch of Mozaic 3+ hard drive platform positions it well to harness the power of megatrends like AI and machine learning, likely boosting demand over the long term.

Cirrus Logic’s performance is driven by increasing shipments in the smartphone market. Steady momentum in the laptop market and standout next-generation flagship smartphone design cushion the top line. CRUS delivered an earnings surprise of 56.6%, on average, in the trailing four quarters.

SS&C Technologies Holdings delivers investment and financial management software and related services focused exclusively on the financial services industry. It delivered an earnings surprise of 3.1%, on average, in the trailing four quarters. In the last reported quarter, SSNC pulled off an earnings surprise of 4.9%.

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