July 27, 2011: KVH and Ciena Complete Successful 10 Gigabit Ethernet Wirespeed Link Encryption Trial for the First Time in Japan
Press Release: July 27, 2011
KVH Co. Ltd., Japan’s leading information delivery platform providing IT and communication solutions, and Ciena® Corporation (NASDAQ: CIEN), the network specialist, today announced they successfully completed a transmission trial of an encrypted 10 Gigabit per second (Gb/s) Ethernet data connection between KVH Data Centers in Tokyo and Chiba, Japan. Based on Ciena’s 5000 Advanced Services Family, this trial is the first successful encrypted 10 Gigabit Ethernet transmission trial using optical transport equipment in Japan. The success of this trial will enable the two companies to offer a new differentiated encryption solution delivering best-in-class latency and addressing the high-quality service needs of enterprises in financial or transaction-oriented industries in Japan. The two companies aim to commercialize the new service within 2011.
KVH operates the lowest latency network in Japan, and with over 450 financial services customers, is the leading provider of ultra low latency network solutions in Tokyo and Osaka. Ciena’s 5000 Advanced Services Family, equipped with FIPS-certified, integrated encryption capabilities, is a critical component in KVH’s optical fiber backbone network in providing leased line services to enterprises, especially those within the financial service industry. In the current business environment with network attacks and security risks increasing, demand from governments as well as financial services customers has grown for higher level security services such as Ethernet link encryption at multi gigabit rates for any business critical protocol. The two companies conducted this trial to test the commercial viability of a new encryption solution based on the existing KVH WDM backbone.
Compared to Layer 2 or 3 encryption solutions, Layer 1 encryption delivers a high-performance, protocol agnostic solution with ultra low-latency and 100% service throughput and transparency, as the same equipment can encrypt multiple protocols without impacting service quality.
“With the success of this Ethernet link encryption trial, KVH is now ready to offer a new data link encryption service based on our existing backbone. That will allow us to cost effectively deliver a high performance encryption solution that is still ultra low-latency. KVH will expand our security solutions portfolio at various levels from Ethernet connectivity to advanced business applications, to meet the high security requirements of financial institutions and other security conscious customers,” said Joe Duhamel, Executive Vice President, Systems and Technology of KVH.
“Ciena’s integrated encryption solution allows service providers like KVH to increase revenue potential by enabling them to offer network encryption as a value-added service,” said Anthony McLachlan, vice president and general manager, Asia Pacific at Ciena. “These types of encryption capabilities are essential for businesses that transport large amounts of time-sensitive and classified data, such as those in the banking, finance, military and government sectors.”
Ciena offers integrated wire-speed encryption solutions that allow secure and transparent managed service delivery. Ciena’s encryption solution simplifies the deployment of secure network services for enterprises by combining market-leading optical transport technologies with powerful, standards-based encryption functionality in a single, integrated infrastructure – minimizing points for potential network failure and significantly reducing capital and operating expenditures by eliminating the need of standalone encryption-only network elements.
KVH was established in Tokyo in 1999 by Fidelity Investments as a Japan focused IT/communications service provider. As an information delivery platform that allows enterprise customers to store, process, protect and deliver their vital business information, KVH offers integrated communications and IT management solutions that include managed and cloud services, data center services, professional services, data networking, internet access, and voice services. KVH operates the lowest latency network in Japan, and with over 450 financial services customers, is the leading provider of ultra low latency network and proximity hosting solutions to the high frequency trading community in Tokyo and Osaka. KVH also offers low latency connectivity services between major financial markets in the Asia/Pacific region and the US including Tokyo, Chicago, New York, Singapore, Hong, Kong, Shanghai, and Sydney. More information on KVH can be found at www.kvh.co.jp/en/.
Ciena is the network specialist. We collaborate with customers worldwide to unlock the strategic potential of their networks and fundamentally change the way they perform and compete. With focused innovation, Ciena brings together the reliability and capacity of optical networking with the flexibility and economics of Ethernet, unified by a software suite that delivers the industry’s leading network automation. We routinely post recent news, financial results and other important announcements and information about Ciena on our website. For more information, visit Supporting Resources: www.ciena.com
Note to Ciena Investors
Forward-looking statements. This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to the Company as of the date hereof; and Ciena's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Report on Form 10-Q, which Ciena filed with the Securities and Exchange Commission on June 9, 2011. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking 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.