© 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual

© 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

Enabling the CloudAT&TMargaret T. ChiosiExecutive Director - Global Optical & Ethernet Service DevelopmentAT&T LabsMEF Board of Directors


Cautionary Language Concerning “Forward-Looking” Statements

This presentation contains 'forward-looking statements' which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially from such statements. These risk factors include the impact of increasing competition, continued capacity oversupply, regulatory uncertainty and the effects of technological substitution, among other risks. For a more detailed description of the factors that could cause such a difference, please see AT&T's 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T.

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Agenda

• IT as a Utility – Cloud Services

• Cloud Requirements

• Software Defined Networks

• AT&T Cloud Services


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IT/Network as a Utility

• From “The Big Switch Rewiring the World, From Edison to Google” by Nicholas Carr – In 1850s innovative industrialists (e.g. Henry Burden) had their own

private power generators– By early 1900s, electricity became a utility service provided by a few

companies to major companies and then the masses– We are at this same juncture in early 2000s

Electricity IT/Network

Company Owned 1850s Mid 1900s

Shared/Utility Early 1900s Early 2000s

Masses Early 1900s Early 2000s


Network/IT as a Utility

Power Utility

Power grid

BusinessConsumer

Users

Amazon Google iApple

InternetCloud Carrier

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Is The Industry Moving Towards A Broadband Utility Model?

6Source: Ethernet Executive Council State-of-the-Industry Survey Report, 4Q 2011, Heavy Reading

Question: Do you agree with the following statement? At a macro level, carrier Ethernet standards and technologies are moving in the direction of enabling a broadband utility model in which (a) Ethernet serves as the unifying layer to virtualize access to the network, (b) high-capacity Ethernet and wavelength services function as transmission lines, and (c) large data centers play the role of power generation plants in the network. In this model, utility computing and storage capability are connected by low-latency Ethernet and wavelength services and are delivered to a customer – with an on-demand option – through a single Ethernet user network interface that can handle many applications with SLA guarantees.

87% agree

87% of respondents agreed that the industry is moving towards a broadband utility model, and only 2% disagreed.


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Agenda






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Today• Static Bandwidth/Attributes• Static Ordering• Multi-year Lease

Future• On Demand/Dynamic Network Services – Set profile (e.g. bandwidth, COS, latency,

availability..) for a set duration of time– Activation - Secs, Mins, Days– Duration – Days, Months– Pay as you go

• Standard API– To provision (add, delete, change) network

services– To collect Performance Management– To perform Fault Management– To provide Usage Information for

Billing/Applications– To provide Network Information for

Applications

Cloud Market New Network Requirements


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Agenda






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What is SDN?• Software-defined networking (SDN) – Enables network applications to request and manipulate services

provided by the network and allow the network to expose network state back to the applications

• e.g.– Give video priority over e-mail– Create rules for traffic coming from or going to a certain destination– Quarantine traffic from a computer suspected of harboring viruses– Provides a way to try out new solutions in the mobility market


Transition to SDN (IETF/ITU)

Custom Hardware

Custom Hardware

Custom Hardware

Custom Hardware

Custom Hardware

OS

OS

OS

OS

OS

API/NBI

Feature Feature

Feature Feature

Feature Feature

Feature Feature

Feature Feature

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Apps Apps


Transition to OpenFlow

Custom Hardware

Custom Hardware

Custom Hardware

Custom Hardware

Custom Hardware

OS

OS

OS

OS

OS

Network OS

Feature Feature

Feature Feature

Feature Feature

Feature Feature

Feature Feature

Feature Feature

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Agenda



• Architecture Evolutions



AT&T Enables the Virtual Private Cloud

• Hybrid model• Private/VPN connectivity• Trusted logical separation

VirtualPrivate Cloud

Enterprise IT End Points

Combining the security and performance of private cloud with the economics and flexibility of public cloud

Storage

Compute

VPN

• Internet based• Massive multi-tenancy• Best-effort reliability

Public Cloud

• Single tenant• Dedicated infrastructure• On-premises or hosted

Private Cloud

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AT&T As a Service StrategyDeliver integrated content, applications and services to any device, anywhere, anytime

• End-to-end management

• Dynamic scaling

• Mobility integration

• Enterprise grade experience

• Integrated service delivery model

Mobile Worker

Enterprise Worker

AT&T Network Fixed and Mobile

PlatformHosting • PaaS

Public/Private/Hybrid Cloud

AT&T MarketplaceUser experience/portal management

Applications AT&T • ISVs • SaaS Partners

Performance ● Security ● Reliability

Man

agem

ent/

Inte

grati

on/

Secu

rity

Customer Benefits


HSPA+ on ~100% of the mobile network

>LTE deployment to be completed by end of 2013

>200K Wi-Fi hotspots3M mobile VPN endpoints

AT&T Network: Premium Global InfrastructureIntegrated Wireline and Wireless Network Provides Businesses with Secure Global Access

AT&T’s BackboneNetwork CarriesMore than 28.9

Petabytes ofData Traffic

on an AverageBusiness Day

MPLS-based Services in 182

Countries

3G Wireless Coverage in 145

Countries

916K fiber route miles worldwide

38 internet data centers on 4 continents

Wired Ethernet from 1,646 access points

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Documents

© 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual