Fiber optics networking vendor enables Blue Planet network intelligence and automation unit to operate as independent division
Ciena, the market leader in fiber optic networking, has made official the split of its Blue Planet network management automation unit, into an independent division.
The Lowdown: Blue Planet, acquired by Ciena in 2015, is a provider of network management, intelligence, and automation software. By making Blue Planet a separate division from the core hardware business, Ciena aims to accelerate
The Details: Blue Planet will operate under senior vice president Rick Hamilton, who was already overseeing the unit’s operations and development. The Blue Planet division will include the assets and products of the recently acquired Packet Design, a provider of Layer 3 network performance management, and DonRiver, a provider of federated asset management. It’s unclear if Blue Planet will have a channel organization separate from the recently launched Ciena Partner Network.
The Impact: The Blue Planet division is expected to generate $50 to $60 million in 2019. The company expects to double revenue by 2021.
Background: Blue Planet as an extension of the Ciena product portfolio made sense at the time of the acquisition. Ciena is pushing beyond its fiber optic networking gear into data center networking equipment. Having Blue Planet as a means of facilitating network automation seems like a good value add. However, Ciena admits that customers don’t always want Ciena’s hardware and the Blue Planet software. Separating the two should make sales easier.
The Buzz: “Service providers must adapt. They must undergo a digital transformation that allows them to break free of the manual, legacy business processes that shackle their ability to transform and innovate,” said Hamilton in a blog post. “It is with this challenge in mind that that we’ve taken the next evolutionary step with Blue Planet, creating a more independent division that is separate from Ciena’s primary hardware equipment business.”