Transcript Optical+Ethernet Innovation in Packet Transport

Optical & Ethernet now !
A major convergence opportunity
Kurt Kayser – October 2007
Director Business Development
ADVA AG Optical Networking, Munich, Germany
Outline
 Company Introduction and market positioning
 Significance of Ethernet
 Video is changing the network
 Ethernet is the convergence technology
 Carrier Ethernet is the key to growth
 Optical+Ethernet innovation
 Market growth drivers
 Architectural requirements
 Simplifying the network
 ADVA’s value in application
 Scalable metro and regional optical networks
 Efficient triple play infrastructure
 Intelligent Carrier Ethernet services
2
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
ADVA is creating tomorrow
Our mission is to be the global leader
of Optical+Ethernet transport solutions
that ADVANCE next-generation networks
for data, storage, voice and video services.
3
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Market overview
Total optical WDM +
Ethernet access market
2006: USD1.7 bn
35%
53%
12%
Sources: Dell'Oro, Infonetics, Ovum RHK and ADVA Optical Networking internal estimates - October 2006
ADVA’s addressable market is growing at 20%
4
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
3-year CAGR
20%
21%
13%
Market growth drivers




Core router and switch interconnect
OTN-based wavelength services
Integration of all legacy networks
Relief for fiber exhaust




Triple play services
DSL, PON and wireless backhaul
High-speed business access
Intelligent Ethernet services
 Corporate backbones
 Grid computing
 LAN extension
 Business continuity
 Disaster recovery
 SAN extension
Consumer broadband and intelligent business services drive growth
5
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
How we continue to advance
Revenues (Million EUR)
LEAD
150
BUILD
50
Applications
0
START
100% Enterprise
networks
10% Infrastructure
20% Ethernet
70% Enterprise
35% Infrastructure
35% Ethernet
30% Enterprise
Solutions
FSP 2000
FSP 500
FSP-I
OCM 4
OCM 8 & 16
1996
FSP 3000
FSP 150
FSP-II
2001
2006
ADVA leads in vision, focus and execution
6
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
FSP
Management
Suite
Our ADVAntage
Speed for customers
Responsive team
Customized delivery
24/7 worldwide
Strong growth model
Next-generation networking
Optical+Ethernet
innovation
Visionary leadership
Intelligence
Financial strength
Simplicity
Scalability
ADVA has a unique combination of
focus, customer dedication and innovation
7
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Growth strategy
Grow global
market share
for metro WDM
systems
Build our
carrier-class
Optical+Ethernet
business
Expand sales
and financial
positioning in
North America
Drive China
procurement,
engineering
and operations
Expand with
increasing market
demands and
revenue growth
Aggressive product
roll-out and
customer wins
Expand global
market positioning
and increase
shareholder value
Dramatically reduce
costs and increase
resources for
faster growth
GROW
BUILD
EXPAND
We are investing for innovation
and market leadership
8
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
DRIVE
Strong growth model
+20%
2000 – First Fibre Ltd.
2000 – Siemens Norway
Telecom R&D
2004 – Metro Packet
Systems
2005
2006
Employees
Our visionary management team
drives exceptional growth
9
2000 – Cellware
2006 – Covaro Networks
2004
Revenues
+52%
561
131,3 Million EUR
496
102,1 Million EUR
+29%
Successful
acquisition strategy
853
192,7 Million EUR
+47%
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
2006 – Movaz Networks
Our global team and presence
Americas
Asia Pacific
More than 300
world-class
engineers driving
Optical+Ethernet
innovation
EMEA
Over 200 sales, consulting and service team members
focused on speed and innovation for our customers
10
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Experience and proven results
FEATURES
APPLICATIONS
LCAS DWDM
10G
SFP
GFP
Raman amplification Hybrid
ROADM
GMPLS
VCATCWDM
Dynamic provisioning
EFM
Converged networks
Internet access
Transparent LAN services
Managed storage services
Video/IPTV Enterprise networks
VPN services
Flexible network infrastructure
DSL backhaul
SUPPORT
QUALIFICATIONS
Network design
Plan
ISCL
Early releases
Project management
Care
Build
Custom development
24x7 coverage
IBM PPRC
IBM GDPS®EMC SRDF
IBM SVC
HDS True Copy
HP Nonstop Server Cluster
SUN Solaris ready
Our global team is 100% dedicated to
our customers’ success
11
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Speed for customers
OVER 200
OVER 10,000
Incumbents
 Fortune 1,000
CARRIERS
IXCs
RBOCs
Pan-European carriers
ENTERPRISES
companies
 Small and mediumsize enterprises
MSP/ASPs
 Financial institutions
CLECs
 Insurance companies
Utilities
 Universities
City/state
 Healthcare
 Government agencies
At 9 of the 10 largest
carriers worldwide
In over 40 countries
on 6 continents
Source: Total Telecom, ranking by
revenues
We are leveraging our experience
in carrier AND enterprise markets
12
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Sales distribution strategy
OEM
Solutions integration
NMS integration
Long relationships
DIRECT
Application focus
Technology partnership
Complete solutions
VAR
Regional focus
Vertical segments
Long relationships
Our successful three-pronged distribution model
is optimized for our customers’ needs
13
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Outline
 Significance of Ethernet
 Video is changing the network
 Ethernet is the convergence technology
 Carrier Ethernet is the key to growth
 Optical+Ethernet innovation
 Market growth drivers
 Architectural requirements
 Simplifying the network
 ADVA’s value in application
 Scalable metro and regional optical networks
 Efficient triple play infrastructure
 Intelligent Carrier Ethernet services
14
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Bandwidth: the insatiable demand
Computing power is
setting the pace
Exponential growth
of computing
Moore’s law
Number of transistors on a
chip doubles every 2 years
Video is creating huge
pressure on networks
More than 65,000 new
videos added per day*
*Source: www.reuters.com (Nov 2006)
Network capability must support exponential bandwidth growth
Optical+Ethernet
transport
15
 Intelligence
enables application transformation  Simplicity
 Scalability
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Ethernet – the data service
2.000
2,000
Global
Frame Relay
connections
E-Line and E-LAN services
1.800
1,800
EUR
million
Thousand
1.600
1,600
1.400
1,400
1.200
1,200
Global Ethernet Services revenues
Global Ethernet
services revenues
1.000
1,000
800
800
$25,000
$25.000
600
400
200
200
0
0
Global ATM
connections
2004
2004
2005
2005
2006
2006
2007
2007
2008
2008
2009
2009
$20,000
$20.000
$15,000
$15.000
$10,000
$10.000
Ethernet
CAGR: 27%
$5,000
$5.000
6060
$0
$0
5050
Thousand
EUR million
EUR million
EUR million
400
2005 2006
2006 2007
2007 2008
2008 2009
2009 2010
2010
2005
4040
3030
over all infrastructure
2020
Copper/xDSL , DS1/DS3 and E1/E3
1010
SONET/SDH , WDM/OTN , Fiber
00
2004 2005
2005 2006
2006 2007
2007 2008
2008 2009
2009
2004
Ethernet revenues 2005-2010, ATM and FR connections Global, 2004–2009, for illustrative purposes [Source: Ovum, 2005]
16
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Ethernet: a multibillion $ technology
Enterprises
$
Services
$
Ethernet
Systems
Components
Massive commoditization and downward price pressure
Huge industry innovation, development and economy of scale
Cost
ADVA is taking Ethernet economy into carrier access networks
17
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Ethernet: global networking
Historical Ethernet
Data
Storage
Carrier Ethernet
Voice
Video
= converged packet transport for multiple applications
18
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Carrier Ethernet services
The ADVA success story
Managed
LAN extension
services
Metro
private
networks
Managed
carrier
services
Ubiquitous
intelligent
Ethernet
Next generation
Ethernet
access
Service
demarcation
SLA management
Multiprotocol support
Open access infrastructure
Intelligence
ADVA drives intelligent
Carrier Ethernet
access
Media
conversion
Service
extension
2001
19
Access
aggregation
2003
2005
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
2007
Optical: ultimate scalability
ADVA’s product evolution
> 1000km
~ 500km
Scalability for
packets and circuits
< 100km
OCM 4
FSP-I
FSP 3000R1
20
FSP 3000R7
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Outline
 Significance of Ethernet
 Video is changing the network
 Ethernet is the convergence technology
 Carrier Ethernet is the key to growth
 Optical+Ethernet innovation
 Market growth drivers
 Architectural requirements
 Simplifying the network
 ADVA’s value in application
 Scalable metro and regional optical networks
 Efficient triple play infrastructure
 Intelligent Carrier Ethernet services
21
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Market growth drivers




Core router and switch interconnect
OTN-based wavelength services
Integration of all legacy networks
Relief for fiber exhaust




Triple play services
DSL, PON and wireless backhaul
High-speed business access
Intelligent Ethernet services
 Corporate backbones
 Grid computing
 LAN extension
 Business continuity
 Disaster recovery
 SAN extension
Consumer broadband and intelligent business services drive growth
22
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Carrier networks
delivering profitable services
Service providers
Voice
Video
Data
Storage
Intelligence
Simplicity
Scalability
Business
Residential
Broadband, FTTx
Video, triple play, IPTV
Internet2, peer-peer
High speed connectivity
Any device, anywhere
Always-on, on-demand
High performance VPN
Security and guaranteed QoS
Storage virtualization
Video drives bandwidth — Ethernet drives convergence
23
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Putting next-gen networks into gear
+
Transparency
Simplicity
Optical
Intelligence
Ethernet
Efficiency
Ubiquity
Scalability
Two technologies for cost-efficient
end-to-end packet transport. No more — no less.
24
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Simplifying networks
Legacy architecture
multi-layer, complex
IP/MPLS
Next-generation
packet transport architecture
ATM/FR
Optical+Ethernet
Ethernet
transport
 Intelligence
 Simplicity
 Scalability
SONET/SDH
WDM
Connection-oriented transport
for circuit and packet services
Compliant with ITU-T, IEEE standards and MEF specifications
25
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Time
ADVA’s Optical+Ethernet innovation
OPTICAL
Intelligent Ethernet everywhere
Any service
Anywhere
Anytime
Intelligence
QoS assurance
SLA monitoring
End-to-end testing
Ubiquity:
Automated operation
Resilient services
Simplified provisioning
- fiber
Simplicity
- copper
- leased lines
1Mbit/s to 100Gbit/s
1km to 2000km
Pt-pt to rings to mesh
Demarcation
Scalability
Extension
Aggregation
Scalable Optical from customer premise to regional
Flexible combination delivering ultimate
Intelligence – Simplicity – Scalability
26
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
ETHERNET
ROADM
Regional/LH backbone
Core router
F S P
Core/LH PoP
FSP
2nd aggregation layer
F S P
F S P
FSP
DWDM
FSP
CO interconnect
F S P
FSP
Switch
BRAS
PE
1st aggregation layer
CWDM
F S P
Mini PoP
F S P
FSP
Broadband
backhaul
FSP
DSLAM
PE
CO/PoP
FSP
F S P
F S P
FSP
F S P
FSP
Aggregation
Ubiquitous
Ethernet
F S P
Extension
FSP
F S P
FSP
PON
FTTH
WiMAX
FTTC
(VDSL, HFC)
Residential broadband access / triple play
27
F S P
F S P
FSP
F S P
F S P
FSP
F S P
FSP
FSP
Intelligent business services
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
FSP
Demarcation
3G/4G mobile
Intelligence Ethernet everywhere
Scalable optical from CP to regional
Efficient end-to-end transport
Carrier networks
delivering profitable services
Service providers
Voice
Video
Data
Storage
Intelligence
Simplicity
Scalability
Business
Residential
Broadband, FTTx
Video, triple play, IPTV
Internet2, peer-peer
High speed connectivity
Any device, anywhere
Always-on, on-demand
High performance VPN
Security and guaranteed QoS
Storage virtualization
Video drives bandwidth — Ethernet drives convergence
28
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
System architecture
Network topologies and size
 Support for:





Ring, p2p, linear add/drop
Meshed structures and higher degree nodes
Up to 20 nodes per subnet (ring, linear add/drop)
Up to 100 nodes per DCN domain
Up to 16 feeders per node
 Intelligent optical networking
 GMPLS based control plane
 Seamless migration to
meshed networking including
multi-degree ROADM
29
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Outline
 Significance of Ethernet
 Video is changing the network
 Ethernet is the convergence technology
 Carrier Ethernet is the key to growth
 Optical+Ethernet innovation
 Market growth drivers
 Architectural requirements
 Simplifying the network
 ADVA’s value in application
 Scalable metro and regional optical networks
 Efficient triple play infrastructure
 Intelligent Carrier Ethernet services
30
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
ADVA’s Optical+Ethernet flexibility
Applications and services
Intelligence
Some
applications
need more
OPTICAL
Simplicity
ETHERNET
Scalability
Application optimized transport
31
Other
applications
need more
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Scalable metro and regional OTN
Dynamic wavelength reconfigurability
FSP Software Suite
with integrated GMPLS
control plane
Requirements
 Ethernet service transport
 Flexible architectures: point-to-point, ring, mesh
 OTN, wavelength and legacy (SONET/SDH, ATM) services to 40 Gbit/s
From customer premise to regional networks
32
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Scalable metro and regional OTN
The Optical+Ethernet difference
 Full OTN feature set for ITU G.709 support
 Ethernet transport via GFP and ODU multiplexing
 Tandem Connection Monitoring for end-to-end services
 Dynamic wavelength reconfigurability
 Cost-effective static/dynamic/multi-degree ROADM solution
 State-of-the-art integrated GMPLS control plane
 Maximum throughput for all native client services
 10GbE LAN/WAN PHY, 10Gb Fibre Channel and 40Gbit/s
 Lowest latency for real-time protocols, eg. storage
 Highest availability and security
 Flexible optical protection schemes
 Embedded fiber plant surveillance
Operational simplicity, more revenue, lower cost
33
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Modular flexibility = cost efficiency
200%
200%
cost
RelativeCost
Relative
40 ll
40
150%
150%
20 ll
20
100%
100%
The ring is part of a larger
network, and 2 of the nodes
on this ring are hubs where
50% of the traffic is
transferred to another DWDM
ring.
50%
50%
0%
0%
Model: A 12-node ring is
assumed, with evenly
distributed traffic termination
among the OADM nodes of
the 20, or 40 wavelengths
per fiber at 10Gb/s
modulation rate.
Multi-degree
ROADM
2-degree
2-degree
ROADM
Fixed
OADM
Mixed
ROADM
Mixed ROADM solution provides best value
34
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Efficient triple play infrastructure
Circuit/packet distribution and backhaul
FSP
Management
Suite
Logical
connection
BRAS
DSLAM
IP-DSLAM
GbE-ADM
Triple play
Framer
Video on Demand
Requirements
 GbE optimized transport with multicast and deterministic QoS
 Upgradeable to Nx10GbE for future capacity demands
 Legacy multiservice support for SONET/SDH and ATM infrastructure
From DSL broadband to next-gen FTTx applications
35
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Efficient triple play infrastructure
The Optical+Ethernet difference
 Circuit/packet distribution and backhaul
 Transport-centric packet aggregation
 Maximum bandwidth efficiency
GbE-ADM
Framer
 GbE optimized muxponder and ADM cards
 Lowest cost-per-bit transport
 Lowest latency, jitter and zero packet loss
 Industry’s first CWDM / DWDM hybrid
 Low first in cost – maximum scalability
 Integrated L0/L1/L2 network layers
 Optimized video/triple-play service delivery
 Unicast, broadcast and multicast features
 Asymmetric link provisioning
Operational simplicity, more revenue, lower cost
36
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Transponders and muxponders
Service offerings
G.709/OTH services:
OTU-1, OTU-2, OTU-3
SDH:
STM-1, -4, -16, -64, -256
Sonet:
OC-3, -12, -48, -192, -768
Ethernet:
Fast Ethernet, Gigabit Ethernet,
10 Gigabit Ethernet LAN and WAN
Storage:
Fibre Channel 1G, 2G, 4G, 8G and 10G,
ESCON, FICON, FICON Express Sysplex
timer (CLO/ETR), Coupling Link 1G and 2G
Other services:
Any scrambled NRZ service between
8Mbit/s and 2666Mbit/s, e.g. FDDI, HDTV
Extensive use of pluggable transceiver technology allows rapid
and simple adaptation to a large variety of client-side interfaces
37
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Client
Channel
layer
card
Channel
protection
Versatile
Versatile
protection
Single
path
protection
protection
CAPEX
Equipment availability
Protection features
protection
(group)
(line)
Core
Enterprise
Access
 Protection offers huge leverage over equipment cost
 Wide variety of protection options allows exact match of required
availability to necessary CapEx
38
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Simplicity = cost efficiency
Analysis
 Example network
Optical
Constant cost, pt-pt GbE pipes
 5 PoPs on core ring
 6 MiniPoPs per access ring
 6 DSLAMs per MiniPoP
 Low initial subscriber take-up, increasing
Ethernet
100
Small increments from adding
10GbE core trunks

Optical+Ethernet
L2 aggregation at edge to reduce
access capacity/ports still further
L2 aggregation reduces core optical
capacity needed
Cost (nominal)
High increase when miniPOPs scale
beyond single 10GbE access trunks
80
60
40
20
OPTICAL
OPTICAL+ETHERNET
0
DSLAM GbE capacity loading (%)
Lowest first-in cost, best scalability
39
ETHERNET
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Intelligent Ethernet services
The Optical+Ethernet difference
 Protocol-neutral access network
 Transparent access to all core/metro networks
 Supports IP/MPLS, VLAN, T-MPLS, PBT/PBB-TE variants
 Etherjack® demarcation – manageable carrier services
 Exceeds MEF service specifications at UNI
 Full SLA assurance and service management
 Extension – ubiquitous service delivery over any media
 ITU/IEEE OAM, connectivity fault management
 Consistent end-to-end SLAs
 Aggregation – economy of scale for carrier networks
 Secure hardware based packet processing
 Transport-centric packet aggregation
Operational simplicity, more revenue, lower cost
40
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Open Ethernet access network
Protocol-neutral segmentation model
FSP
Management
Suite
IP/MPLS, VPLS, T-MPLS,
VLAN, VLAN-XC, PBT/PBB-TE
Alternate SP
Access
Aggregation
economy of scale
Extension
ubiquitous delivery
Copper
Fiber
Leased
Wholesale SP
Global SP
Access
infrastructure
provider
Core/metro
Demarcation
carrier management
Enterprise
From LAN extension to global Ethernet access
41
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
FSP 150CCf-825
Next-generation service demarcation
 GbE Etherjack® service terminal (1000Mbit/s)






42
Aggregates up to 5 client ports (10/100BT & GbE) over GbE uplink
MEF-compliant service definition (Ethernet UNI)
ITU-T- and IEEE compliant OAM (NID)
Remote loopbacks and built-in testing
Single-ended and book-ended applications
Access to any packet core, including PBB-TE, T-MPLS and MPLS
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
FSP 150
Key applications
 Demarcation: Differentiated, dedicated or shared Ethernet
services
 Extension: Ubiquitous Ethernet service delivery over any
media
 Aggregation: Secure carrier-class Ethernet transport access
network with up to 1:1000 aggregation ratio
Key benefits
 Intelligent Ethernet: differentiated service delivery with full
end-to-end SLA monitoring for in-region and out-of-region
applications
 Simplicity: easily added to existing networks, perfect for
overlay networks, designed with newest standards
 Cost: low first-installed cost, low cost-per-customer, low
operational expense
Key features
 Etherjack®: intelligent demarcation
 Secure hardware-based aggregation via IEEE802.1Q tagging
 Rich performance monitoring out to customer premise
 Support for point-to-point, tree, chain and ring topologies
 Carrier-class
43
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
The Ethernet
access solution
Intelligence = cost efficiency
 1) Carrier grade service = more revenue
 More $$ per service
 More services sold
$$
Best effort
Carrier grade
 2) End-to-end visibility = lower cost
$$
OPEX
CAPEX
Frame Relay
SONET/SDH
unmanaged
Ethernet
Etherjack
demarcation
Differentiated service – fewer truck rolls
44
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
ADVA FSP Management Suite
Service Management
CORBA, CSV
Network
Management
Network Element
Management
FSP Network Manager
EM ... EM
EM EM
EM
EM
SNMP
SNMP
Client
EFM
OSC
Service 1
Service n
ECC
Key features
Key benefits
Software suite for entire FSP
portfolio
Simplicity
FSP Element Manager, FSP Network
Manager and FSP Network Planner
Low training effort
Northbound interfaces
45
Lowers operational cost
Network planning in minutes
Integration in existing OSS environment
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Optical+Ethernet innovation
Solving next-gen network challenges
Scalable
infrastructure
Efficient
operations
Intelligent
services
Intelligence
Some
applications
need more
OPTICAL
Simplicity
Scalability
Application optimized transport
46
© 2007 ADVA Optical Networking. All rights reserved. ADVA confidential.
Other
applications
need more
ETHERNET
Thank You
[email protected]