Global Megatrends Driving Optical Innovation
The New Economy
Philippe Morin, SVP, Global Products Group
May 2010
Global Megatrends
Driving Global Innovation
Drivers
1
New economy and new business models are
accelerating bandwidth growth
2
Devices and connectivity move from “nice to
have” to necessity
3
Demands for HD video are fueling the next
wave of bandwidth growth
© Ciena Confidential and Proprietary
2
Corporate Profitability
1
Bandwidth is Essential
Economic impact to IT
solutions scheduled for
deployment to maximize
efficiencies:
 Data Center Consolidation
 Data Center Virtualization
 Telepresence
 Software as a Service
 Serverless Branch
© Ciena Confidential and Proprietary
Source: Webtorials, 2009
3
Corporate Solutions
1
Using Capacity to Increase Productivity
Telepresence /
video
conferencing
Increasing
current
application
performance
Massive capacity, new economics
Telecommuting /
Teleworking
© Ciena Confidential and Proprietary
Data center
consolidation –
serverless
branch
4
New Global Distribution Models
1
Accelerating Bandwidth Growth
• 1+ billion views a day
• 20 hours of video uploaded every minute; equivalent of over 130,000 full-length Hollywood movie releases every week
• More video is uploaded to YT in 60 days than all 3 major US networks created in 60 years
• More page views every day than the primetime audience of all three networks combined
• The world premiere of Wayne Wang's film, "The Princess of Nebraska" was viewed 165,000+ views during the first 48 hours it
was posted.
• Mobile uploads up 1700% in first half of '09; uploads have increased by 400% a day following the iPhone 3GS launch
© Ciena Confidential and Proprietary
Source: YouTube, 2010
5
Devices and Connectivity Move from “Nice to
Have” to Necessity
2
Personal relevance and connectivity
Eliminating discretionary items ahead of connectivity
Staying relevant with world-impacting news events
© Ciena Confidential and Proprietary
6
Mobile Broadband Accelerating Despite
Economic Downturn
© Ciena Confidential and Proprietary
2
7
HD Video will Fuel the Next Wave of
Bandwidth Growth
3
Anything less than HD on any device will be unacceptable in 24 months
© Ciena Confidential and Proprietary
8
Consumer and Business Video Applications
3
Fuel the Next Wave of Bandwidth Growth
3D HD TV
DC Consolidation
Capacity
VR Gaming
HD Video
Telepresence
Internet HQ Video
Internet SD Video
© Ciena Confidential and Proprietary
Quality of Experience
9
Internet TV / Video Fueling New Business
Model
© Ciena Confidential and Proprietary
3
10
Bandwidth Demand Scenarios
“Networks now are being used in a way that
few people foresaw”
David Payne, Institute of Advanced Telecommunications,
Swansea University, UK
All previous assumptions must be
challenged!
© Ciena Confidential and Proprietary
11
Network Changing Innovation
Wireless techniques: increased spectral efficiency
Coherent Detection: Access to amplitude, phase, polarization
DSP: correcting signal degradations
Integrated in cost effective CMOS ASIC
Coherent Transmission System
40G/100G with same or BETTER performance than 10G Networks!
12
© Ciena Confidential and Proprietary
12
Creating Technical Discontinuity in the Optical Industry
Coherent
Evolution
Capacity/
C-band
1 Pbps
WDM
Evolution
1 Tbps
TDM Evolution
1 Gbps
1 Mb/s
1975
1980
1985
1990
1995
2000
2005
2010
New Era of Optical Networking
© Ciena Confidential and Proprietary
13
2015
Next Frontier
Achieving
Terabit / λ in
the not so
distant future
Access
technologies a
magnitude
lower in cost
Upgrading
capacity without
wholesale
changes
Reducing the
complexity in
the network
Many “impossible” challenges waiting to be solved
© Ciena Confidential and Proprietary
14
The Way Forward…..
Steps to Take
1
Understand Market Forces and Megatrends
Shaping our Industry
2
Challenge Current Assumptions and
Established Ways of Doing Business
3
Become an Advocate for the Industry
© Ciena Confidential and Proprietary
15
Thank you