PONC High End Routing & Optical Group (HERO) Sri Hosakote VP/GM, HERO Group November 2012
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1 PONC High End Routing & Optical Group (HERO) Sri Hosakote VP/GM, HERO Group November Cisco and/or its affiliates. All rights reserved. 1
2 Market Cap Trends for select Global SPs $1190 B $1885 B 18% 14% Web SP Media 44% 13% The market is shifting their bets to the web players Web SPs are ahead in creating consumer experiences Value is shifting away from core infrastructure to applications 68% Telco/ MSO 43% Web SP: Apple, Google, Amazon, Facebook, Yahoo, Baidu, ebay, LinkedIn, Sina Corp, AOL Media: Disney, NewsCorp, TW, Viacom, China Television Media, British Sky, Direct TV, Shanghai Xinhua Media Co, Thomson Reuters, CBS Telco/MSO: AT&T, Verizon, Comcast, TWC, China Mobile, Vodafone, Telefonica, America Movil, France Telecom, Deutsche Telekom SPDR Dow Jones Industrial Average (DIA) Source: Thomson One 2010 Cisco and/or its affiliates. All rights reserved. 2
3 PAST: 3 Years Ago NOW Near Future 2-3 Years Connectivity Location based (Work / Home) Device based Ubiquitous Applications Few Many Lots Time to Deliver New Services Telecom: 18 months Internet: 6 months Social: Overnight Information Disjointed Analytics Intelligence: Network+Analytics +Policy How Does the Networking Business Evolve? 2010 Cisco and/or its affiliates. All rights reserved. 3
4 Characteristics of The Next Generation Internet MONETIZE NEW EXPERIENCES Mobility Part of Every Networked Experience Ease of Use Commands Premium More Mobile More Simple Next Gen Internet More Visual More Virtual Personal, Social, Interactive Blurring the Boundaries Between Network and Cloud OPTIMIZE THE INFRASTRUCTURE 2010 Cisco and/or its affiliates. All rights reserved. 4
5 Cost per subscriber L1 L7 Revenue per subscriber Optical Integration Improved Silicon Power & Cooling Software Defined Networking Integrated Applications Operational Efficiency 2010 Cisco and/or its affiliates. All rights reserved. 5
6 Optimizing Around Optical & Silicon System Investments CMOS Photonics enables integration of optical building blocks (waveguides, modulators, mux/demux etc.) onto a small CMOS die Best in class DSP & Chip Integration FlexSpectrum: trade off B/W reach and payload rate Aggressive Moves to Advanced Geometries: 90nm -> 55nm -> 28nm -> 22nm Silicon integration Advanced Cooling & Power Savings Techniques Maximized Throughput per Device 2010 Cisco and/or its affiliates. All rights reserved. 6
7 Density Current Generation Cisco CPAK vs CFP Port Next Generation 100G- LR4 CPAK CFP CFP 100G- LR4 100G- LR4 100G- LR4 100G- LR4 CPAK CPAK CPAK CPAK 100G- LR4 CPAK 100G- LR4 CPAK 100G- LR4 CPAK Flexible IEEE Compliant < 1/3 Power < 1/3 Footprint > 5x Density 2010 Cisco and/or its affiliates. All rights reserved. 7
8 1 XR 1 XR 2 Mobile Hypervisor Video Operating System Infrastructure HA & Modular distributed OS with Process Restartability & hitless patch ability Increased Reliability: Independent Admin. Plane OS Virtualization Infrastructure to enable ZPL & ZTL Upgrades 2 Application Virtualization Integrated Application Specific Blade Architectures Scalable Datacenter Based Services Network Virtualization Application / Network Services Infrastructure Dynamic, Secure, Elastic, & Orchestrated Services Ecosystem with Virtualization & SDN 2010 Cisco and/or its affiliates. All rights reserved. 8
9 elephant The SDN 2010 Cisco and/or its affiliates. All rights reserved. 9
10 World's Largest Gold Mine Performance Behavior Traffic Trends Breach Attempts Devices Presence Agents Usage Fault Trends Applications Site Trends Location Infrastructure Elements MPLS Video Mobile DC Network DC Compute DC Storage Bringing Without the Network a Shovel to Applications 2010 Cisco and/or its affiliates. All rights reserved. 10
11 Network Value Harness POLICY Orchestration ANALYTICS Program for Optimized Experience Harvest Network Intelligence NETWORK 2010 Cisco and/or its affiliates. All rights reserved. 11
12 Reality Turning SDN into Analytics Other Controllers Applications Policy Servers OSS/BSS... User App Orchestration OpenFlow Controller OnePK Applica3ons VSM 3 4 SDN controllers Can be hosted on external servers or VSM service blade Application Virtualization VSM/Forge Other protocols (e.g BGP FlowSpec, PCEP, ) Other agents OpenFlow Protocol OpenFlow Agent OnePK API OnePK Agent 2 Common APIs and SDK OnePK Agent Experimental OpenFlow Agent Harvest Network Intelligence Management Plane OnePK API Layer Control Plane Data Plane Policy Fwd Flows 1 SDN Enabled Data Plane: Flexible, programmable, Policy Based Forwarding (E-PBR, Flow mgmt.) Program Policies for Optimized Experience ASR 9000 / CRS Cisco and/or its affiliates. All rights reserved. 12
13 2010 Cisco and/or its affiliates. All rights reserved. 13
14 OPEX Savings through Cisco nv network Virtualization ASR 9000 nv nv Example: Cell Site Router Installation Minimum of 6 truck rolls nv cuts truck roles in half to install a cell site to 3 router: Router Physical Installation ASR 9000v ASR 9000v Power and Data Cabling Simplified Operations Multi-dimensional Scale Router Configuration EVC SLA Testing Zero Touch Deployment Simplicity Increased Service Velocity Ready for cut-over OpEx Savings 2010 Cisco and/or its affiliates. All rights reserved. 14
15 PO LIC Y Orchestration ANA LYTI CS Custom Silicon Optics Software Operations New COT Design Ultra-high density, single chip Power efficient NPU, DSP, Optical Integration Grey & DWDM 100G+ Investment Silicon Photonics CPAK: Optimized Density / Power Flex-ROADM / Flexspectrum Evolving the NGI SW Foundation Integrated Virtualization Service Ecosystem Carrier Class - ZPL/ ZTL Simplicity in Operation nv (Network Virtualization) Tangible OPEX savings Less Time-to- Deployment 2010 Cisco and/or its affiliates. All rights reserved. 15
16 Profit = Revenue - Cost Network Management Greater Visibility Greater Control Sales/BD Service Creation: Monetize New Dynamic Services SP NGN Technology Innovation at all Layers of stack - Sustained Competitive Advantage Operations Simplicity: Manage Operations with Smaller Budget Purchasing/CFO Cost Optimization 2010 Cisco and/or its affiliates. All rights reserved. 16
17 Thank you Cisco and/or its affiliates. All rights reserved. 17
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