Ciena Corporation (CIEN) has come up with a new software solution — Agility Matrix — to create a new business model for Managed Services Providers (MSPs). Agility Matrix focuses on delivering a more profitable strategy for designing new network services and expanding the existing ones using a web interface and consumption-based billing model.
Since this is the key trend in network virtualization, Ciena will be able to enhance its acquisition, distribution, consumption and payment of virtualized network functions (VNF), while modernizing all enterprise and cloud-based applications.
Ciena’s new offerings beyond its core optical networking expertise are in keeping with its strategy to ramp up the product portfolio. These offerings have expanded the company’s customer base as well as its addressable market. The communications networking equipment, software and services provider’s focus on helping carriers transition to next generation networks places it in one of the fastest growing segments of the telecommunications market.
We believe that the company will be successful in selling its new products to existing customers and signing up new ones looking for a single company to provide a complete Ethernet solution. Moreover, the company has reported a significant rise in the number of customers who prefer its portfolio of solutions rather than individual products. This is expected to increase customer engagement and ensure a recurring revenue stream.
In addition, the company announced a new business division — Ciena Agility — that will provide dedicated resources for software development, product line management, product marketing, service and support, sales and business development. The division will also look after network control and application software technologies to help providers offer a truly on-demand user experience.
Ciena currently has a Zacks Rank #4 (Sell)
Other Stocks to Consider
Better-ranked stocks in this sector include Stamps.com Inc. (STMP) sporting a Zacks Rank #1 (Strong Buy) as well as Geeknet, Inc. (GKNT) and Oplink Communications, Inc. (OPLK) with a Zacks Rank #2 (Buy).
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