Building Next Generation Transport Networks

1 | © 2013 Infinera

Building Next Generation Transport Networks

Yalin Wang

Sr. Director, Product Planning

March 2013


This presentation contains "forward-looking" statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends for our business; any statements of the plans, strategies, and objectives of management for future operations; any statements of expectation or belief regarding future events, potential markets or market size, technology developments, or enforceability of our intellectual property rights; and any statements of assumptions underlying any of the items mentioned.

These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including but not limited to: aggressive business tactics by our competitors, our dependence on a single product, our reliance on single-source suppliers, our ability to protect our intellectual property, claims by others that we infringe their intellectual property, and our ability to respond to rapid technological changes, and other risks that may impact our business are set forth in our annual reports on Form 10-K filed with the Securities and Exchange Commission, as well as subsequent reports filed with or furnished to the SEC. These reports are available on our website at www.infinera.com and the SEC’s website at www.sec.gov. We assume no obligation to, and do not currently intend to, update any such forward-looking statements.

Safe Harbor

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Radical innovation

Instant bandwidth delivery

Network challenges

Who is Infinera


Technology Innovator• Silicon Valley success story

• Industry’s first Photonic Integrated Circuit (PIC)

• Industry’s first platform: OTN switch + WDM

• Transformed Optical Transport Market

• 450+ Patents Filed/Granted

Who is Infinera


Who is Infinera – Market share

3Q 2012:

#1 World-wide, 100G

long-haul ports shipped

Source: Dell’Oro 3Q12 Optical Network HW

955

707

345302

11122

38% of all LH 100G WDM ports in Q3, 201222% of all LH 100G WDM ports ever sold


Radical innovation


Network challenges

Who is Infinera


0

100

200

300

400

500

600

700

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total SP Bandwidth Usage (Tbps)

Service Providers must balance 2 key constituencies

Source: Telegeography 2011, Various SP financial statements

Capex / Revenue, Opex / Revenueratios must stay flat or improve

Scale the network → InvestmentsDeliver new services faster

InvestorsWall Street, Private

Customers Business, Consumer

Cloud

Video

Mobility


IP/MPLS

OTNSDHSONET

DWDM

Network build challenges: scale, efficiency, simplicity

Ro

ute

Swit

chTr

ansp

ort

Service Provider Network

Broadband Users Data Center

Complex multi-layer ops ∑ (devices, connections, resources)

Elec

tro

ns

Ph

oto

ns

Mo

ore

’s L

aw a

pp

lied

via

IC?


Network architecture choices have ripple effects

Architectures have visible first-in costs

But also recurring costs lasting yearsY1 Y2 Y3 Y4 Y5…..

One Time Capex:Wavelengths →

Chassis/Modules

Opex:Power, Rack SpacePlanning, Provisioning, TroubleshootingInventory, Upgrades

Step-function required to reduce Total Cost of Ownership

On Going Capex:Wavelengths →

Chassis/Modules


Radical innovation


Network challenges

Who is Infinera


The Infinera Founding Vision

An Infinite Pool of Intelligent BandwidthEnabled By

Photonic Integrated CircuitsIntegrated OTN Switching

GMPLS AutomationBandwidth VirtualizationTM

Key features that convert the network into a competitive advantage


Building the ultimate network resource

An Infinite Pool of Intelligent BandwidthFounding vision of Infinera

10G Era: 100G Pool(circa 2005)

DTN

1G client/service traffic

Key enablers:Photonic Integrated Circuits, PICs

Integrated WDM and OTN SwitchingIntelligent Software Control Plane

10G client/service traffic


PIC

Cap

acit

y

2004 2014

100G PIC

10G1st Gen

Regional

2009

~ ~

100G PIC

10G2nd Gen

Ultra long-haul

Unparalleled Engineering60 discrete optical functions integrated

PICs unleashed exponential DWDM capacityP

ho

ton

s

2012


DTN quickly led the market in 10G

100G PIC

18,000+ units, 2.7+ Pbps deployed45% of 10G λ since 2007

40GbE & 100 GbE10G & 40G λ

100+ customers in 50+ countries

DTN

http://www.cox.com/

http://www.cox.com/

http://www.integratelecom.com/

http://www.integratelecom.com/

http://www.telefonica.com/en/home/jsp/home.jsp

http://www.telefonica.com/en/home/jsp/home.jsp


PIC

Cap

acit

y

2004 20142012

100G PIC

10G1st Gen

Regional

2009

~ ~

100G PIC

10G2nd Gen

Ultra long-haul

1T PIC

Coherent Super-channels

5th Gen

2T PIC

500G PIC

100G CoherentSuper-channels

3rd Gen 4th Gen

4T PIC

8T PIC

Unparalleled Engineering600 discrete optical functions integrated

250+ fiber connects eliminated

Ph

oto

ns

Infinera extends PIC leadership

“PICs look to be the future for high bit rate scaling at

cost effective price points.”Eve Griliches, ACG Research

“As we move to the 100G era and beyond, the use of photonic integration becomes

more pervasive and, ultimately, mandatory.”Sterling Perrin, Heavy Reading


Building high density long-haul DWDM

AlternativeSolution

Photonics (Optical)

3rd party optics = ∑components

3rd Gen PIC – 500G0.78W / Gbps

2.8 W / Gbps

Infinera estimate, line module only, shipping product operating at 25°C

500G Capacity Example

1 module

5 modules

Coherent(Electronics)

FlexCoherent™Processor (FCP)

Coherent ASIC


SCALABLE

SIMPLE

EFFICIENT

• 500 Gb/s super-channel; 1Tb/s future• 5 Tb/s to future 240Tb/s switching

• Intelligent GMPLS automation• Converged DWDM/OTN; MPLS future

• Most efficient use of resources• Lowest Power, Space, Network Ops

DTN-X: The next step-function in network TCO

500G PIC


Transforms waves into resources• An infinite pool of intelligent capacity

GMPLS allocates resources to service demands • Same concept as data center virtualization

Supports fast shared mesh protection (fastSMP)• <50ms protection against multiple simultaneous network failures

Enabler for Software Defined Networks (SDN)

Foundational Elements• DWDM• OTN Switching• GMPLS Control Plane

10GbE service demand

40GbE service demand

Bandwidth VirtualizationTM speeds up provisioning

In use65 Gb/s

Total200 Gb/s

75 Gb/s115 Gb/s


Accelerating ROI and lowering TCO, per network

63% decrease

Total # Modules, Cards

14,017

5,129

Discrete Optics

Photonic Integration

38% decrease

Power Consumption over 5 years9.0

MW-hr

5.6MW-hr

Discrete Optics


63% Decrease

Total Number of Chassis

900

329

Discrete Optics


Source: Infinera Case Study, Large-sized Network

Network-wide Lifecycle Impact


22 DTN-X customers - unprecedented success!

Tier 1 Domestic

Tier 1 Wholesale

Cable (MSO)

Tier 2 / Wholesaler

Internet Content Provider

Research & Education

Submarine

10 in AMER 9 in EMEA 3 in APAC

New Existing

7 15

Long-HaulMetro Core Subsea

12 64


Continuous innovation for the next decade

Phase 1Status QuoSP Network

Phase 2what THE NETWORK will be

Ro

ute

Swit

chTr

ansp

ort

IP/MPLS

OTNSDHSONET

DWDM

IP

MPLS

ConvergedMPLS/OTN/DWDM

(future)

PICEnabled

Converged OTN/DWDM

PICEnabled

IP

Services


Converging Network Layers


The Architectural Blueprint

Network Challenges


What is Infinera Instant Bandwidth TM?

Industry’s first software-activated 100G bandwidth delivery solution

Operational Innovation

Enhanced programs

Rapid delivery of client interfaces10GbE, 40GbE, 100GbE

No link/node re-engineering

Software Innovation

New capability on DNA

Bandwidth managementSoftware-activated 100G

Automated service activation

Hardware Innovation

New WDM Line Card

500G Super-channel capableInitial capacity for 100G

Incremental capacity of 100G

100G ACTIVE

100G Latent

100G Latent

100G Latent

100G Latent


Instant Bandwidth TM powers success-based network growth

An Infinite Pool of Intelligent BandwidthActivated in slices matching customer revenue

100G Era: 500G PoolNx100G Enabled Per Line Module

100G slice activated 100G slices available; software-defined activation

DTN-X

10G client traffic2.5G client traffic

100G clienttraffic


Intelligent Control across layers & domains

Speeds service delivery

Reduces transaction costs between IP and Transport teams

Optimize resource utilization & bandwidth cost

Multi-layer Control and Optimization

$,W

Router

Optics

DigitalSwitching

$$$,kW

Converged Packet/OTN/Optical Layer

IP/MPLS Layer

Intelligent Control

Local IP net

Local Enet

SDN Demo with Esnetfor Transport SDN


Architectural Transformation Underway

IntelligentTransport

100G andBeyond

ConvergedArchitecture

Choosing the right architecture has a profound, lasting impact


Thank Youwww.infinera.com

http://www.infinera.com/