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Global Megatrends Driving Optical Innovation The New Economy Philippe Morin, SVP, Global Products Group May 2010
© Ciena Confidential and Proprietary 2 Global Megatrends Driving Global Innovation Drivers New economy and new business models are accelerating bandwidth growth Devices and connectivity move from nice to have to necessity Demands for HD video are fueling the next wave of bandwidth growth
© Ciena Confidential and Proprietary 3 Corporate Profitability Bandwidth is Essential Economic impact to IT solutions scheduled for deployment to maximize efficiencies: Data Center Consolidation Data Center Virtualization Telepresence Software as a Service Serverless Branch 1 Source: Webtorials, 2009
© Ciena Confidential and Proprietary 4 Corporate Solutions Using Capacity to Increase Productivity 1 Telepresence / video conferencing Increasing current application performance Telecommuting / Teleworking Data center consolidation – serverless branch Massive capacity, new economics
© Ciena Confidential and Proprietary 5 New Global Distribution Models Accelerating Bandwidth Growth 1+ billion views a day 20 hours of video uploaded every minute; equivalent of over 130,000 full-length Hollywood movie releases every week More video is uploaded to YT in 60 days than all 3 major US networks created in 60 years More page views every day than the primetime audience of all three networks combined The world premiere of Wayne Wang's film, "The Princess of Nebraska" was viewed 165,000+ views during the first 48 hours it was posted. Mobile uploads up 1700% in first half of '09; uploads have increased by 400% a day following the iPhone 3GS launch 1 Source: YouTube, 2010
© Ciena Confidential and Proprietary 6 Devices and Connectivity Move from Nice to Have to Necessity Personal relevance and connectivity Eliminating discretionary items ahead of connectivity Staying relevant with world-impacting news events 2
© Ciena Confidential and Proprietary 7 Mobile Broadband Accelerating Despite Economic Downturn 2
© Ciena Confidential and Proprietary 8 HD Video will Fuel the Next Wave of Bandwidth Growth Anything less than HD on any device will be unacceptable in 24 months 3
© Ciena Confidential and Proprietary 9 Consumer and Business Video Applications Fuel the Next Wave of Bandwidth Growth Capacity Internet SD Video Quality of Experience Internet HQ Video Telepresence VR Gaming 3D HD TV DC Consolidation HD Video 3
© Ciena Confidential and Proprietary 10 Internet TV / Video Fueling New Business Model 3
© Ciena Confidential and Proprietary 11 Bandwidth Demand Scenarios Networks now are being used in a way that few people foresaw David Payne, Institute of Advanced Telecommunications, Swansea University, UK All previous assumptions must be challenged!
© Ciena Confidential and Proprietary 12 Network Changing Innovation Wireless techniques: increased spectral efficiency Coherent Detection: Access to amplitude, phase, polarization DSP: correcting signal degradations Integrated in cost effective CMOS ASIC 12 40G/100G with same or BETTER performance than 10G Networks! Coherent Transmission System
© Ciena Confidential and Proprietary 13 Creating Technical Discontinuity in the Optical Industry 1 Mb/s 1 Tbps 1 Gbps Capacity/ C-band TDM Evolution WDM Evolution Coherent Evolution 1 Pbps New Era of Optical Networking
© Ciena Confidential and Proprietary 14 Next Frontier Many impossible challenges waiting to be solved Achieving Terabit / λ in the not so distant future Access technologies a magnitude lower in cost Upgrading capacity without wholesale changes Reducing the complexity in the network
© Ciena Confidential and Proprietary 15 The Way Forward….. Steps to Take Understand Market Forces and Megatrends Shaping our Industry Challenge Current Assumptions and Established Ways of Doing Business Become an Advocate for the Industry
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