Reliable high-speed Ethernet and data services delivery

1. Per B. HansenADVA Optical NetworkingFebruary 14, 2005 Reliable high-speed Ethernet and data services delivery 1

2. Outline • Introduction • Network topology evolution • Traffic characteristics • Ethernet service origination • Summary

3. Worldwide Ethernetaccess(billion USD) $30 $20 $10 2003 2005 2007 Ethernet servicesmarket 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

4. RPO RTO Worldwide Fiber Channelswitches(billion USD) $2.0 $1.0 2003 2005 2007 Storage servicesmarket 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 A scalable, cost-effective, and reliable storage platform

5. Network topology evolution 5

6. Point-to-point implementations • Point-to-point • Fiber relief • Economic long reach • Ring • Modified rings • Mesh

7. Ring implementations • Point-to-point • Ring • Phys ring/logical mesh • Optical pass through • Service extension • Opt. protection • Modified rings • Mesh

8. Modifying the ring topology • Point-to-point • Ring • Modified rings • High-capacityroutes, sub-nets • Protection opt. • Mesh

9. Growing towards full mesh • Point-to-point • Ring • Modified rings • Mesh • Routing efficiency • Capacity utilization • Protection flexibility

10. Lower 1st installedcosts (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 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 Highest provisioning flexibility = OPEX Highest service flexibility Lowest service costs = CAPEX

11. Traffic characteristics 11

12. Traffic evolutionMesh/ring Backbone • 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 SMBconnectivity

13. Traffic evolutionLinear Backbone • 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 SMBconnectivity

14. High-cap static Granular dynamic 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

15. Ethernet service origination 15

16. Network layers Core Metro Access

17. Layer characteristics

18. 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. Ethernet service creation • Many 100,000s of service defining devices • Edge routers, B-RASS, etc. • Management challenge (maintain, operate, upgrade, etc.)

19. 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 Access network challenges Requirements 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

20. Summary Metro transport and wavelength services FSP 2000 and FSP 3000 • 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 Ethernet access networks FSP 150

21. Thank you phansen@advaoptical.com