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Revenue
 9 Months Ended
Aug. 01, 2020
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
Disaggregation of Revenue

Ciena’s disaggregated revenue represents similar groups that depict the nature, amount, and timing of revenue and cash flows for Ciena’s various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ for each of its product categories, resulting in different economic risk profiles for each category.

The tables below set forth Ciena’s disaggregated revenue for the respective period (in thousands):
Quarter Ended August 1, 2020
Networking PlatformsPlatform Software and ServicesBlue Planet Automation Software and ServicesGlobal ServicesTotal
Product lines:
Converged Packet Optical
$722,512 $— $— $— $722,512 
Packet Networking
79,756 — — — 79,756 
Platform Software and Services
— 46,422 — — 46,422 
Blue Planet Automation Software and Services
— — 11,297 — 11,297 
Maintenance Support and Training
— — — 69,099 69,099 
Installation and Deployment
— — — 39,798 39,798 
Consulting and Network Design
— — — 7,828 7,828 
Total revenue by product line
$802,268 $46,422 $11,297 $116,725 $976,712 
Timing of revenue recognition:
Products and services at a point in time
$802,268 $15,838 $410 $3,300 $821,816 
Services transferred over time
— 30,584 10,887 113,425 154,896 
Total revenue by timing of revenue recognition
$802,268 $46,422 $11,297 $116,725 $976,712 
Quarter Ended August 3, 2019
Networking PlatformsPlatform Software and ServicesBlue Planet Automation Software and ServicesGlobal ServicesTotal
Product lines:
Converged Packet Optical
$724,245 $— $— $— $724,245 
Packet Networking
71,823 — — — 71,823 
Platform Software and Services
— 37,312 — — 37,312 
Blue Planet Automation Software and Services
— — 10,530 — 10,530 
Maintenance Support and Training
— — — 65,936 65,936 
Installation and Deployment
— — — 39,802 39,802 
Consulting and Network Design
— — — 10,958 10,958 
Total revenue by product line
$796,068 $37,312 $10,530 $116,696 $960,606 
Timing of revenue recognition:
Products and services at a point in time
$796,068 $12,657 $1,941 $4,804 $815,470 
Services transferred over time
— 24,655 8,589 111,892 145,136 
Total revenue by timing of revenue recognition
$796,068 $37,312 $10,530 $116,696 $960,606 
Nine Months Ended August 1, 2020
Networking PlatformsPlatform Software and ServicesBlue Planet Automation Software and ServicesGlobal ServicesTotal
Product lines:
Converged Packet Optical
1,968,355 $— $— $— $1,968,355 
Packet Networking
211,432 — — — 211,432 
Platform Software and Services
— 143,295 — — 143,295 
Blue Planet Automation Software and Services
— — 41,779 — 41,779 
Maintenance Support and Training
— — — 202,370 202,370 
Installation and Deployment
— — — 108,994 108,994 
Consulting and Network Design
— — — 27,452 27,452 
Total revenue by product line
$2,179,787 $143,295 $41,779 $338,816 $2,703,677 
Timing of revenue recognition:
Products and services at a point in time
$2,179,787 $45,930 $8,891 $12,174 $2,246,782 
Services transferred over time
— 97,365 32,888 326,642 456,895 
Total revenue by timing of revenue recognition
$2,179,787 $143,295 $41,779 $338,816 $2,703,677 
Nine Months Ended August 3, 2019
Networking PlatformsPlatform Software and ServicesBlue Planet Automation Software and ServicesGlobal ServicesTotal
Product lines:
Converged Packet Optical
$1,897,080 $— $— $— $1,897,080 
Packet Networking
216,529 — — — 216,529 
Platform Software and Services
— 114,139 — — 114,139 
Blue Planet Automation Software and Services
— — 37,977 — 37,977 
Maintenance Support and Training
— — — 196,002 196,002 
Installation and Deployment
— — — 111,746 111,746 
Consulting and Network Design
— — — 30,671 30,671 
Total revenue by product line
$2,113,609 $114,139 $37,977 $338,419 $2,604,144 
Timing of revenue recognition:
Products and services at a point in time
$2,113,609 $39,801 $11,216 $13,945 $2,178,571 
Services transferred over time
— 74,338 26,761 324,474 425,573 
Total revenue by timing of revenue recognition
$2,113,609 $114,139 $37,977 $338,419 $2,604,144 

Effective the beginning of fiscal 2020, Ciena’s Global Sales and Marketing organization combined its previous North America and Caribbean and Latin America (“CALA”) regions into a new “Americas” sales region. Accordingly, Ciena reflects its sales geographically around the following markets: (i) Americas; (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia Pacific, Japan and India (“APAC”). Within each geographic area, Ciena maintains specific teams or personnel that focus on a particular region, country, customer or market vertical. These teams include sales management, account salespersons and sales engineers, as well as services professionals and commercial management personnel.
For the periods below, Ciena’s geographic distribution of revenue was as follows (in thousands):
Quarter EndedNine Months Ended
August 1,August 3,August 1,August 3,
2020201920202019
Geographic distribution:
Americas
$713,340 $656,261 $1,937,725 1,788,234 
EMEA
162,465 169,532 433,861 413,715 
APAC
100,907 134,813 332,091 402,195 
Total revenue by geographic distribution
$976,712 $960,606 $2,703,677 $2,604,144 

•Networking Platforms revenue reflects sales of Ciena’s Converged Packet Optical and Packet Networking product lines.
◦Converged Packet Optical - includes the 6500 Packet-Optical Platform, 5430 Reconfigurable Switching System, Waveserver® stackable interconnect system (“Waveserver”), the family of CoreDirector® Multiservice Optical Switches and the Optical Transport Network (OTN) configuration for the 5410 Reconfigurable Switching System. This product line also includes sales of the Z-Series Packet-Optical Platform.
◦Packet Networking - includes the 3000 family of service delivery switches and service aggregation switches and the 5000 family of service aggregation switches. This product line also includes the 8700 Packetwave Platform, the Ethernet packet configuration for the 5410 Service Aggregation Switch, and the 6500 Packet Transport System (PTS), which combines packet switching, control plane operation, and integrated optics.
The Networking Platforms segment also includes sales of operating system software and enhanced software features embedded in each of the product lines above. Revenue from this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Operating system software and enhanced software features
embedded in Ciena hardware are each considered distinct performance obligations for which the revenue is generally recognized upfront at a point in time upon transfer of control.

•Platform Software and Services provides analytics, data, and planning tools to assist customers in managing Ciena’s Networking Platforms products in their networks. Ciena’s platform software includes its Manage, Control and Plan (MCP) domain controller solution, OneControl Unified Management System, ON-Center® Network and Service Management Suite, Ethernet Services Manager, Optical Suite Release and Planet Operate. Platform software-related services revenue includes sales of subscription, installation, support, and consulting services related to Ciena’s software platforms, operating system software and enhanced software features embedded in each of the Networking Platforms product lines above. Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

•Blue Planet® Automation Software and Services is a comprehensive, open software suite, together with related services, that allows customers to use enhanced knowledge about their networks to drive adaptive optimization of their services and operations. Ciena’s Blue Planet Automation Platform includes multi-domain service orchestration (MDSO), network function virtualization (NFV), management and orchestration (NFV MANO), analytics, network health predictor (NHP), route optimization and assurance (ROA), inventory management, unified assurance and analytics (UAA) and Ciena’s SDN Multilayer Controller and virtual wide area network (V-WAN) application. Services revenue includes sales of subscription, installation, support, consulting and design services related to Ciena’s Blue Planet Automation Platform. Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

Ciena’s software platform revenue typically reflects sales of either perpetual or term-based software licenses, and these sales are considered a distinct performance obligation where revenue is generally recognized upfront at a point in time upon transfer of control. Revenue from software subscription and support are recognized ratably over the period during which the services are performed. Revenue from professional services for solution customization, software and solution support services, consulting and design, and build-operate-transfer services relating to Ciena’s software offerings are recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period.

•Global Services revenue reflects sales of a broad range of Ciena’s services for maintenance support and training, installation and deployment, and consulting and network design activities. Revenue from this segment is included in services revenue on the Condensed Consolidated Statements of Operations. Ciena’s Global Services are considered a distinct performance obligation where revenue is generally recognized over time. Revenue from maintenance support is recognized ratably over the period during which the services are performed. Revenue from installation and deployment services and consulting and network design services are recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period. Revenue from training services is generally recognized at a point in time upon completion of the service.

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands):
Balance at August 1, 2020Balance at November 2, 2019
Accounts receivable, net$715,195 $724,854 
Contract assets for unbilled accounts receivable$97,373 $84,046 
Deferred revenue$136,870 $156,873 

Our contract assets represent unbilled accounts receivable where transfer of a product or service has occurred but invoicing is conditional upon completion of future performance obligations. These amounts are primarily related to installation and deployment and professional services arrangements where transfer of control has occurred, but Ciena has not yet invoiced the customer. Contract assets are included in prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.
Contract liabilities consist of deferred revenue and represent advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $91.8 million and $77.4 million of revenue during the first nine months of fiscal 2020 and 2019 that was included in the deferred revenue balance at November 2, 2019 and November 3, 2018, respectively. Revenue recognized due to changes in transaction price from performance obligations satisfied or partially satisfied in previous periods was immaterial during the nine months ended August 1, 2020 and August 3, 2019.

Capitalized Contract Acquisition Costs

Capitalized contract acquisition costs consist of deferred sales commissions, were $13.0 million and $15.7 million as of August 1, 2020 and November 2, 2019, respectively, and were included in other current assets and other assets. The amortization expense associated with these costs was $16.2 million and $12.5 million during the first nine months of fiscal 2020 and 2019, respectively, and was included in sales and marketing expense.

Remaining Performance Obligations

Remaining Performance Obligations (“RPO”) are comprised of non-cancelable customer purchase orders for products and services that are awaiting transfer of control for revenue recognition under the applicable contract terms. As of August 1, 2020, the aggregate amount of RPO was $970.6 million. As of August 1, 2020, Ciena expects approximately 82% of the RPO to be recognized as revenue within the next twelve months.