1 Reliable high-speed Ethernet and data services delivery Per B. Hansen ADVA Optical Networking February 14, 2005

2 © Copyright ADVA Optical Networking 2005 Outline  Introduction  Network topology evolution  Traffic characteristics  Ethernet service origination  Summary

3 © Copyright ADVA Optical Networking 2005 Ethernet services market opportunity  Enterprises need more bandwidth to more locations  Bandwidth demands are increasing at every site  Facility expansions create larger metro campuses  National and global facility expansions are growing  Enterprises need more applications and more simplicity  Ethernet has a strong familiarity and preference  Bandwidth upgrades without hardware change  Buying managed services helps the outsourcing trend  Enterprise see more cost-effective alternatives  Internal network analysis shows dramatic value gains  Legacy services under transition to private networking solutions  Creative budgetary approaches underway with productivity justification A scalable, cost-effective, and reliable Ethernet platform $10 $30 Worldwide Ethernet access (billion USD) $20

4 © Copyright ADVA Optical Networking 2005 Storage services market opportunity  Enterprises need higher levels of business continuity  Data security becomes mission critical  Network downtime costs can be devastating  New government regulations (Basel and SEC) are mandating recovery times and security distances  Enterprises need higher access speeds and distances  Increasing storage volumes and access demands  Increasing distances, turning SANs into MANs and WANs  Enterprises need higher flexibility and more locations  Storage environments and applications are increasing  New out-of-city facility savings programs drive more sites RPORTO A scalable, cost-effective, and reliable storage platform $1.0 $2.0 Worldwide Fiber Channel switches (billion USD)

5 Network topology evolution

6 © Copyright ADVA Optical Networking 2005 Point-to-point implementations  Point-to-point  Fiber relief  Economic long reach  Ring  Modified rings  Mesh

7 © Copyright ADVA Optical Networking 2005 Ring implementations  Point-to-point  Ring  Phys ring/logical mesh  Optical pass through  Service extension  Opt. protection  Modified rings  Mesh

8 © Copyright ADVA Optical Networking 2005 Modifying the ring topology  Point-to-point  Ring  Modified rings  High-capacity routes, sub-nets  Protection opt.  Mesh

9 © Copyright ADVA Optical Networking 2005 Growing towards full mesh  Point-to-point  Ring  Modified rings  Mesh  Routing efficiency  Capacity utilization  Protection flexibility

10 © Copyright ADVA Optical Networking 2005 Dynamic vs. static advantages Common metro WDM advantages Static WDM advantages Dynamic WDM advantages  Service flexibility from 10M to 10G+ per service  Network flexibility from pt-pt, linear ADM, ring  Distance capabilities from 1 to 600km+  Scalability from 1 to 64ch+  SONET/SDH and Ethernet integration options  Lower 1 st installed costs (3-10x)  Lower equipment cost/service (2-5x)  Simpler installation & maintenance  CWDM & DWDM flexibility  Mesh support (Degree-2+ connectivity)  Enables shared protection and mesh topologies  Increased planning flexibility  Faster incremental service turn-up  Simpler service upgrades Lowest service costs = CAPEX Highest service flexibility Highest provisioning flexibility = OPEX

11 Traffic characteristics

12 © Copyright ADVA Optical Networking 2005 Traffic evolution Mesh/ring  Predictable traffic  Between backbone access points  High-cap users to backbone  High-cap to high- cap Backbone  Unpredictable traffic  Private and SMB users to backbone  SMB to SMB connectivity

13 © Copyright ADVA Optical Networking 2005 Traffic evolution Linear Backbone  Predictable traffic  Between backbone access points  High-cap users to backbone  High-cap to high- cap  Unpredictable traffic  Private and SMB users to backbone  SMB to SMB connectivity

14 © Copyright ADVA Optical Networking 2005 Traffic characteristics  Predictable high-capacity routes  Network part of network backbone (especially non-dedicated linear systems)  Network connection between or to access points on the backbone  Heavy user internet access point (Web service enterprises, research institutions, etc.)  Unpredictable bandwidth needs  Small/medium business users  Consumer internet users  Static/slowly changing demands  Few customers  Performance  Reliability  BW/$ metric  Variable needs  Many customers  First cost  BW/$ metric Granular dynamic High-cap static

15 Ethernet service origination

16 © Copyright ADVA Optical Networking 2005 Network layers Core Metro Access

17 © Copyright ADVA Optical Networking 2005 Layer characteristics Number of network elements DistancesCapacity per fiber Cost sharing Core LowLong ~800km and up High Metro/ Regional Medium 50 – 800 km Medium Access HighShort <50 km Low

18 © Copyright ADVA Optical Networking 2005 Ethernet service creation  Many 100,000s of service defining devices  Edge routers, B-RASS, etc.  Management challenge (maintain, operate, upgrade, etc.)  Service origination in scalable service-oriented platform  Centralized, easy-to-upgrade, scalable service originating equipment that takes advantage of economies of scale.  Distribution in cost-efficient carrier-class distribution platform  Service agnostic/future-proof  Carrier-class reliability, management, and performance monitoring.

19 © Copyright ADVA Optical Networking 2005 Access network challenges Characteristics  Topology  Very large number of devices  Evolving network  Short distances  Service customization  Large and increasing range of services (apps., protocols, speeds, etc.)  Cost sensitivity  High; little sharing  Efficient operation  Easy/no set-up  No troubleshooting  No service dependent upgrades  “Carrier class”  Rate shaping  Protection options  Performance visibility  Cost-efficient  Delivery platform: service agnostic  Small form factor: “Pizza box”  Interfaces: S/XFP, RJ45 Requirements

20 © Copyright ADVA Optical Networking 2005 Summary  Network topology considerations  CWDM & DWDM flexibility  Simpler installation & maintenance  Mesh support (Degree-2+ connectivity)  Traffic pattern considerations  Static/slowly changing demands:  Customer base: few but large  Key requirements: reliability, performance guarantee  Cost sensitivity: medium and mostly on BW/$  Variable demands:  Customer base: many but small  Key requirements: service options  Cost sensitivity: high on both first install and BW/$  Access network requirements  Differentiated service options  Rate shaping  Protection options  Performance visibility  Cost-efficient  Delivery platform: service agnostic  Mass market concept  Efficient network operation and maintenance Metro transport and wavelength services FSP 2000 and FSP 3000 Ethernet access networks FSP 150

21 © Copyright ADVA Optical Networking 2005 Thank you