20 Years IETF - Innovations for a Global Market Dr. Georg Haubs CTO Innovations, Siemens Networks GmbH San Diego, November 8th, 2006 Copyright © Siemens AG 2006. Alle Rechte vorbehalten. A Global Powerhouse Siemens AG: Worldwide figures for fiscal 20051 (U.S. GAAP2) Net Income: $2.8B Group Profit from Operations: $5.9B 460,000 employees worldwide 47,000 employees and $6.6B dedicated to global R&D $106,7 $98,2 $98,2 FY05 FY04 $91,3 FY04 FY05 in billions Sales* Orders* Ranked 2nd in its industry in Fortune’s 2006 “America’s Most Admired List” 1 Fiscal Year October 1 – September 30, Page 2 November - 2006 Copyright © Siemens AG 2006. All rights reserved. Siemens Networks GmbH & Co. KG Siemens USA Key statistics for fiscal 2005 (U.S. GAAP) +17.5% +13.25% $18,8 $20,8 $17,7 $16,6 70,000 employees in all 50 states FY04 6,945 employees in R&D FY05 Sales* FY04 in billions FY05 Orders* USA 20% More than 9B€ spent on approx. 30 acquisitions in the past 18 months** Worldwide Sales * Sales/Orders by U.S. Operating Companies exclusive of transactions with affiliated companies ** As of 06-30-06 Copyright © Siemens AG 2006. All rights reserved. Page 3 November - 2006 Siemens Networks GmbH & Co. KG A new heavyweight will arise… Nokia Siemens Networks Networks Fixed 22% Revenue 2005: € 6,6 • Wireless • Wireline • Services Services Revenue 2005: € 9,2 16% • Mobile Networks • Fixed Networks • Carrier Services 6% 56% Services Com Carrier 22% Revenue CY 2005: Headcount: Mobile 78% € 15,8 Bn. about 60.000 Copyright © Siemens AG 2006. All rights reserved. Page 4 November - 2006 Siemens Networks GmbH & Co. KG 21 Attendees at the 1st IETF meeting in San Diego 16-17 January 1986 Braun, Hans-Werner Brescia, Mike Callon, Ross Chiappa, Noel Eldridge, Charles Gross, Phill Hinden, Robert Mathis, James Mills, David (Chairman) Nagle, John Natalie, Ronald Rokitansky, Carl Shacham, Nachum Su, Zaw-Sing Topolcic, Claudio Zhang, Lixia Clark, David Corrigan, Mike Deering, Steve Means, Robert St Johns, Mike U. of Mich. BBNCC BBN Labs MIT/Proteon Sparta MITRE BBNCC SRI Linkabit Ford Aerospace BRL DFVLR SRI SRI BBN Labs MIT-LCS MIT-LCS DCA Standford M/A Com DCA (B612) Copyright © Siemens AG 2006. All rights reserved. Page 5 November - 2006 Siemens Networks GmbH & Co. KG Telecommunications 20 years ago -Computers start to talk over phone lines Acoustic Modem 1981 – Anderson Jacobson 300 Bd Acoustic Modem 1989 – CTK 1200 Bd FDX Acoustic Modem 1989 – Dataphon 300 - 2400 Bd FDX “Datenföhn” Copyright © Siemens AG 2006. All rights reserved. Page 6 November - 2006 Siemens Networks GmbH & Co. KG Also professional users were guests in a voice network Modem N10 – Siemens 1977 V24, synchron, 9600 Bd Modem 2400 D – Siemens 1985 2400 Bd Modem DAG 64 – Siemens Datex-P X.25 Copyright © Siemens AG 2006. All rights reserved. Page 7 November - 2006 Siemens Networks GmbH & Co. KG Digital voice switches was a booming business until … Digital Ports Shipment (TDM) mio. ports estimates 140 120 Siemens is leading supplier 17% market share of shipments 1985 - 2004 100 25% market share of 80 60 shipments 2004 1890 mil. 40 ~400 mil. 20 313 mil. 0 1986 1989 1992 1995 1998 Siemens 2001 2004 2007 Analysts expect a steady demand above 60 mio. Ports p.a. until 2010 2010 source: Dittberner 2004 Siemens with largest installed base and more than 350 customers in 110 countries. Copyright © Siemens AG 2006. All rights reserved. Page 8 November - 2006 Siemens Networks GmbH & Co. KG Copyright © Siemens AG 2006. All rights reserved. Page 9 November - 2006 Siemens Networks GmbH & Co. KG … Moore’s Law and IP cracked up strong vertical industry "Continent of the Innovators" "Island of the Mighty" Cracked up by IP Source: Com CD Copyright © Siemens AG 2006. All rights reserved. Page 10 November - 2006 Siemens Networks GmbH & Co. KG Provide new Product Ideas and bring them to new business within 2 - 3 years 385 21 Innovation Board 9 19 Source: Com CD Copyright © Siemens AG 2006. All rights reserved. Page 11 November - 2006 Siemens Networks GmbH & Co. KG PeerTV – Global Personal Video Recorder Digital Rights Management P2P PC Client P2P PC Client Charging & Incentive P2P network Content Injection Rendezvous Peer Security and Trust peer P2P PC Client P2P PC Client Copyright © Siemens AG 2006. All rights reserved. Page 12 November - 2006 Siemens Networks GmbH & Co. KG IT technology takes over Telco … … while laws of physics still apply 100% IT/IP/Ethernet IT industry Enterprise network Fixed Carrier Mobile Carrier 100% telco-specific technologies Copyright © Siemens AG 2006. All rights reserved. Page 13 November - 2006 Siemens Networks GmbH & Co. KG The transition from vertical, single-purpose networks... Mobile network Fixed network Data network Cable TV network Applications and application enablers Applications and application enablers Applications and application enablers Applications and application enablers Control Control Control Control Switching and routing Switching and routing Switching and routing Switching and routing Transport Transport Transport Transport Access Access Access Access Clients and devices Clients and devices Clients and devices Clients and devices Copyright © Siemens AG 2006. All rights reserved. Page 14 November - 2006 Siemens Networks GmbH & Co. KG ...to a horizontal, multi-purpose network for every type of access and device – provisioning new services Mobile network Fixed Data network network Service Delivery Framework (SDF) Applications and application enablers Applications and application enablers Control Control Switching and routing Switching and routing Switching Transport Transport Access Clients and devices Applications and application enablers Control Applications and application enablers Control Control Switching and routing and Routing Transport Cable TV network Switching and routing Transport Transport Access Access Access Clients and devices Clients and devices Clients and devices Copyright © Siemens AG 2006. All rights reserved. Page 15 November - 2006 Siemens Networks GmbH & Co. KG Communications still has a long way to go to match human capabilities Senses Bandwidth of Receptors Neuronal Transmission Eyes 200 Gbit/s 200 Mbit/s Ears 4 Mbit/s 2 Mbit/s Skin 1,5 Gbit/s 10 Mbit/s Tongue 150 Mbit/s 11 Mbit/s Nose 20 Gbit/s 30 Mbit/s ∑ = ca. 200 Gbit/s ca. 250 Mbit/s Copyright © Siemens AG 2006. All rights reserved. Page 16 November - 2006 Siemens Networks GmbH & Co. KG Copyright © Siemens AG 2006. All rights reserved. Page 17 November - 2006 Siemens Networks GmbH & Co. KG Dr. Georg Haubs Senior Vice President, CTO Innovations georg.haubs@siemens.com Thank you www.siemens.com Copyright © Siemens AG 2006. All rights reserved. Page 18 November - 2006 Siemens Networks GmbH & Co. KG