The Internet:

SUPERnet

January 22, 2002

Fred ChangPresident & CEO

SBC Technology Resources, Inc.

Fred ChangPresident & CEO

SBC Technology Resources, Inc.

Maturing to a Critical Infrastructure

© SBC Technology Resources, Inc. 2002

Agenda

First 30 Years– Historical Perspective & Timeline

Broadband Internet– Broadband Adoption, Providers, Use and

Applications

Critical Infrastructure– Increasing Bandwidth– Network Gets Smarter– Management and Security

1.2.

3.

© SBC Technology Resources, Inc. 2002

Internet Timeline

Ethernet

TCP/IP

NSFNET

ARPANET Web Browser

World Wide Web

UUCP

160130100

908070605040302010

0

19

6

9

19

7

1

19

7

3

19

7

5

19

7

7

19

7

9

19

8

1

19

8

3

19

8

5

19

8

7

19

8

9

19

9

1

19

9

3

19

9

5

19

9

7

19

9

9

20

0

1

20

0

3

Glo

bal H

ost

Count

( In M

illio

ns)

Yahoo!

Broadband Internet

IPO

NAPs

Netscape IPO

© SBC Technology Resources, Inc. 2002

0

5

10

15

20

25

30

2001 2002 2003 2004

Residential Broadband Adoption

Source: Gartner Dataquest

Number of households in millions

11.1

17.1

23.3

28.3

© SBC Technology Resources, Inc. 2002

Makeup of Broadband in 2002

Source: Gartner Dataquest

Perc

en

tage o

f house

hold

s

29.7

62.7

5.42.2

0

10

20

30

40

50

60

70

DSL Cable Satellite Wireless

© SBC Technology Resources, Inc. 2002

Broadband Use Is Exploding

it’s a whole new experience. is not just faster,

DSL 25 hours per week

Dial-up 7.5 hours per week

Users online:

Broadband

© SBC Technology Resources, Inc. 2002

Hooked on Broadband

78% daily newspaper

74% AM/FM radio

63% morning coffee

59% cable TV

Broadband Users Value DSL

% who would give up:

© SBC Technology Resources, Inc. 2002

The Broadband Home

Phone + DSL

Telephone Jacks

Internet Camera

Network

Printer

SmartAppliances

Internet Phone

Wireless Pad

EntertainmentCenter

Monitor Broadband

Home Gateway

DigitalPictureFrame

© SBC Technology Resources, Inc. 2002

Central Office

Home Network Hub

Home Network Hub

Wireless LaptopWireless Appliance

RioReceiver

Broadband Home

Gateway

Home Network

Home Networking Example

Phone + DSLPhone + DSL

© SBC Technology Resources, Inc. 2002

Hosted Network Software

“In three to four years, high speedbroadband communications will be available everywhere. The notionof software as a packaged productwill disappear. That’s a fact.”

Software Delivery

Steve Ballmer, CEO Microsoft

© SBC Technology Resources, Inc. 2002

Peer to Peer Computing

CompanyA

CompanyB

P2P will enable ad-hoc inter-company workgroups

© SBC Technology Resources, Inc. 2002

Home Monitoring & Automation

1.Sensors monitor home and send notification of any “events”

2.Events flow through PC and to home monitoring system

3.Events are stored in user’s account and are accessible via the web. Pager/email notifications can also be sent.

DSL

© SBC Technology Resources, Inc. 2002

Increasing Bandwidth

• .COM bursting bubble did not throttle demand

• Demand will catch up

• Applications will fill any given capacity over time

© SBC Technology Resources, Inc. 2002

“Big Pipe” Technologies

GigabitEthernet

FiberChannel

ESCON

OADM

SONET

FiberChannel

SONET

OADM

OADM

OADM

GigabitEthernet

ESCON

© SBC Technology Resources, Inc. 2002

Ethernet Invades the Core

Network Edge

Layer 3 Routing

Layer 2 SwitchingLayer 2 Switching

Network Core

Network Core

© SBC Technology Resources, Inc. 2002

The Network Gets Smarter

© SBC Technology Resources, Inc. 2002

Quality of Service

• Peak bandwidth

• Minimum guarantees

• Packet loss metrics

• Absolute delay limits

• Differential delay limits

• VoIP

• Video telephony

• Audio entertainment

• Video entertainment

• Mission-critical

© SBC Technology Resources, Inc. 2002

Virtual NetworksA

B

B B

B

A

A

A

PublicNetwork

© SBC Technology Resources, Inc. 2002

Stability

• Carrier class elements

• No more router reboots

• Redundancy

• Rerouting

• Reliability

• Availability

© SBC Technology Resources, Inc. 2002

Manageability: SNMP Meets OSS

• Capacity planning

• Performance monitoring, load sharing

• Automated fault detection, isolation, recovery

• Usage-based billing

• Decision support

• Customer network management

© SBC Technology Resources, Inc. 2002

Internet Security

Malicious CodeMalicious Code

VirusesWorms

Buffer OverflowsBuffer Overflows

Session Hijacking

Port Scanning

Trojans

Denial of Service

© SBC Technology Resources, Inc. 2002

Problem is Worsening6000

0

50000

40000

30000

20000

10000

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

Inte

r net

Secu

r ity

Vio

lat i

ons

Jerusalem

Tequila

Michelangelo

Good Times

Melissa & ILOVEYOU

Anna Kournikova

Code Red

Nimba

Badtrans

Source: CERT® Coordination Center Carnegie Mellon

© SBC Technology Resources, Inc. 2002

Core Network Security

Most security now at the edge• Firewalls, Hosts, Applications

Can we make the core more secure?

• Large networks

• Broad participation

• Novel approaches

© SBC Technology Resources, Inc. 2002

J F M A M J J A S O N D J F M A M J J A S O N D

Sto

ck I

nd

ex

70

80

90

100

110

120

130

140

150

Host

Cou

nt

(Million

s)

Perception Versus Reality

Nasdaq

5000

4000

3000

2000

1000

Host Count

Internet Growth(Jan. 2000 through December 2001)

2000 2001