© Ciena Confidential and Proprietary
Philippe Morin Senior Vice President, Global Field Operations
Ciena
September 21, 2011
THE NEW GLOBAL NETWORK IMPERATIVE Resilience at Lowest Unit Costs
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The New Global Network
Capacity Upgrades
Intelligent Switching & Restoration
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Inter-Continental Communications Dependence Borderless Communications
Increasing reliant upon global communications
Cloud Services
Research & Education
Financial Institutions
Medical Institutions
Consumer Multimedia
Multinational Corporations
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Bandwidth Demand Trends The Perfect Storm on the Horizon
1990 2000 2010 2020
100 Million+ Units Personal Computers
10 Billion+ Units/Users Mobile Internet
Desktop Internet 1 Billion+ Units/Users
Number of Broadband Subscriber Increases
Broadband Subscriber Bandwidth Increases
+
Growing Dominance of Video Traffic
+
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Trans-Atlantic
44%
85Tbps
Europe-Asia
58%
23Tbps
Intra Asia
54%
59Tbps
Trans-Pacific
49%
49Tbps
US/Latin America
45%
38Tbps
D Bandwidth by traffic route and country international bandwidth (CAGR 2010-2017)
Reference.: Global Bandwidth Forecast Service, Telegeography, 2011
International Bandwidth Growth Need for Speed
CAGR 2006 - 2010
: >100%
: 80% - 100%
: 60% - 80%
: 50% - 60%
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Global Communication Network Submarine Cables… World’s Most Strategic Network Links
Global network availability must be ensured
Minimize wet and dry plant network demarcation
Single seamless network that spans planet earth
The New Global Network… erasing demarcation
points between submarine and terrestrial networks
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Global Bandwidth Supply & Demand Demand Increasing… Prices Decreasing
Significant increases in demand
International prices are declining
How can providers differentiate?
Reference: 1Q2011 Global Bandwidth Forecast, 2011 (TeleGeography)
Reference: Median Trans-Pacific 10 Gbps Wavelength Prices, Q2 2010-Q2 2011 (TeleGeography)
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Increasing Bandwidth Demands Cost-Effective Coherent-Based Capacity Upgrades
40G/100G coherent channel upgrades
Existing wet plants remains untouched
Far less expensive than laying new cables
Lowering the cost per transported bit
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Undersea Cable Protection Challenges Unique Operating Environment
Undersea cables laid along seismically active and
heavily fished/trawled routes
Multiple terrestrial networks funneled through same
Cable Landing Station thus amplifying any outages
National economy/security affected by outages
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Differentiation via Network Restoration Intelligence Customized Service Level Agreements
Traditional Linear/Ring Based Protection
Inability to survive more than 2 simultaneous failures
Minimal service protection differentiation
Intelligent Mesh Network Protection
Ability to survive multiple simultaneous failures
Intelligence enables customized protection offerings
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Differentiated Restoration Offerings Attracting and Retaining New Customers
Traditional (50ms) Protection
No Protection
Untapped Market
Untapped Market
100ms Protection + 1 Failure Survivability
250ms Protection + 1 Failure Survivability
500ms Protection + 1 Failure Survivability
1sec Protection + 1 Failure Survivability
10sec Protection + 1 Failure Survivability
50ms Restoration + Maximum Survivability
50ms Restoration + 3 Failure Survivability
Stric
ter S
erv
ice L
evel A
gre
em
ents
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The New Global Network Seamless Networking Spanning Wet & Dry Plants
Erasing traditional terrestrial/submarine demarcation for truly resilient global networks
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Summary Submarine Network Intelligence… Key Enabler
Global intercontinental bandwidth
demand continues to increase
Intelligent network protection will
enable improved network resilience
Cost-effective capacity upgrades
over existing/new undersea cables
The New Global Network… the whole
is greater than the sum of its parts
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Thank You