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OPTICAL TRANSPORT @ 100G AND BEYOND TECH SYMPOSIUM Sam Bucci November, 2013

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SHIFTS IN DEMAND

720% INCREASE IN VIDEO TRAFFIC

440% INCREASE IN CLOUD AND DC TRAFFIC

BELL LABS MODELING

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BELL LABS MODELING

DRIVING A SHIFT IN TRAFFIC DYNAMICS

Core network

Internet

Metro network

Regional datacenters

CDN/ caching

National datacenters

IPTV hub

560% INCREASE IN METRO TRAFFIC

~2X FASTER THAN CORE

320% INCREASE IN CORE TRAFFIC

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$5.8B MARKET BY 2015

SHIFT IN METRO TRANSPORT

SITUATION

-  Tapped out, need to move to 100G -  Traffic is now mostly packet -  Data centers getting closer to end users -  Greater inter-connection within metro -  More dynamic changes in demand

CONNECTING USERS TO THEIR CONTENT @ LOWEST TCO

Metro Network

Regional Datacenters

CDN/ Caching

IPTV Hub

SHIFT IN METRO

TRANSPORT

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SHIFT IN METRO TRANSPORT

REQUIREMENTS

-  Packet-optimized -  Right-sized solutions -  Multiple applications -  Greater agility

SOLUTION INGREDIENTS

-  10G/100G small to large capacity -  Integrated multi-layer switching -  End-to-end service management -  Integrated control plane -  Storage and compute interconnect

Metro Network

Regional Datacenters

CDN/ Caching

IPTV Hub

$5.8B MARKET BY 2015

SHIFT IN METRO

TRANSPORT

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SHIFT IN CORE TRANSPORT

SITUATION

-  Out of capacity, upgrade to multiple 100G -  Fiber scarcity -  Long distances with non-uniform fiber -  Varying traffic patterns -  Cost center

OBJECTIVE: LOWEST COST/MANAGED BIT/KM WITH 100% UPTIME

Core

Network

Internet

National Datacenters

$4.8B MARKET BY 2015

SHIFT IN CORE

TRANSPORT

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SHIFT IN CORE TRANSPORT

REQUIREMENTS

-  Maximum fiber utilization and wavelength fill -  Consistent performance and resiliency -  End-to-end view -  Run network hotter

SOLUTION INGREDIENTS

-  Electro-optics: 100G, 200G and 400G options -  Integrated multi-layer switching -  GMPLS multi-layer control -  Nominal networking toolkit

Core

Network

Internet

National Datacenters

$4.8B MARKET BY 2015

SHIFT IN CORE

TRANSPORT

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PROGRAMMABILITY MORE THAN OPENFLOW

PROGRAMMABLE NETWORK:

• Multi-layer switching •  Programmable modulation •  Any-to-any ROADMs

SDN CONTROL:

• Multi-layer control plane •  Centralized resource management •  Policy driven provisioning • Open APIs

SDN Control

Programmable Network

CLOUD-OPTIMIZED NETWORKING

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WHAT’S IN COMMON Core Metro

Small form factor

Multi-protocol

Large form factor

High capacity

Ultimate reach

Photonics

Electro optics

Packet + OTN Switching

Programmability

Control plane

OAM

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SINGLE FAMILY FOR DIVERSE PACKET-OPTICAL APPLICATIONS KEY TO R&D EFFICIENCY AND VIABLE BUSINESS

METRO CORE

1830 PSS

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KEY IN-HOUSE & CUSTOM TECHNOLOGIES & CAPABILITIES SUSTAINABLE PORTFOLIO DIFFERENTIATION

SYSTEMS

NMS & SDN CONTROL

SILICON

TRANSPORT OS

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150+

100G customers

in 70+ countries

45+

OTN deployments

MARKET MOMENTUM

8,400+ 100G units

360+ 1830 PSS Customers

100G customers

1830 PSS customers

2008 2009 2010 2011

100

200

2012 3Q13

300

OTN customers

400

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CONCLUSION

• Greater scale, versatility and programmability

•  Key enabling technologies address new transport paradigm •  Focused R&D investment combined with in-house optical

expertise for assured pace in sync with demand

•  Established solid 100G Next Gen footprint and 1830 growth

•  Continuing to push the limits – terabit switching, 400G and beyond

•  Shift in demand – video and cloud

• More dynamic traffic

RESPONSE

OUTCOME

TRIGGER

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THE WORD ON THE STREET

400G network in Saudi Arabia

ACG forecasts steady growth in optical networking More 100G in the Amazon

CenturyLink signs 100G customer

100G among the Hobbits

Optical transport system sales resume YoY growth says Dell'Oro

100G ports a $6 billion market by 2017 says Infonetics

OTN market booming says Infonetics

Verizon’s year of 100G

Fiber for Everyone!