1. 1Presentation_ID © 1999, Cisco Systems, Inc. IP Over Optical: Building Terabit Networks Today Larry McAdams lmcadams@cisco.com

2. 2DWDM_LM_8/99 Network Trends Dominant Traffic Technology Economics Voice TDM Web and Internet Packet Switching Constrained BW Plentiful BW “Old World” “New World” Service Foundation Architecture IP Clouds Service Optimized Circuits Service Multiplexing

3. 3DWDM_LM_8/99 The Internet Drives Capacity Jan-98Jan-99Jan-01Jan-02Jan-03Jan-00 Tier 1 ISP Mbps 2 x OC48c 80 x OC192c 16 x OC48c 16 x OC192c

4. 4DWDM_LM_8/99 1996 The Cost of Bandwidth Source: Ryan, Hankin and Kent and Internal Data Year Line and Network Speeds (Gbit/s)Bandwidth Cost ($/Mbit/s) 0 20 40 60 80 100 120 140 160 1996199719982000 19971998199920002001 0.1 1 10 100 1000 Year OC-3 OC-12 OC-48 OC-192 TDM Routers/Switches Optical (WDM)

5. 5DWDM_LM_8/99 Data Optimized Architecture Data Optimized Architecture DS3 OC-3 DS3 Ethernet CustomerAggregation IP Transport Ring Backbone OC-192c OC-48c OC-192c 2.5 or 10 Gbit/s Statistically Multiplexed Core IP Transport Ring CustomerAggregation Aggregation Technologies Dynamic Packet Transport Hybrid SONET (Cerent) Backbone Technologies IP over Optics at OC-48/192 Optical Cross-connects (Monterey)

6. 6DWDM_LM_8/99 Future Platform 2000+ ports Internet Cross-Connect Integrated Long-haul WDM Integrated DPT Internet Cross-Connect Integrated Long-haul WDM Integrated DPT GSR OC192 Platform Upgrade Investment protection DS3 to OC192c OC192 Platform Upgrade Investment protection DS3 to OC192c Platform Evolution Capacity (OC48 Equiv.) 1 10,000 100 1000 10 GSR 11xOC48 44Mpps Highest capacity Router IOS Routing DS3 to OC48c Highest capacity Router IOS Routing DS3 to OC48c

7. 70642_02F9_c1 © 1999, Cisco Systems, Inc. www.cisco.com