Content, Video, Data Center, Cloud driving higher traffic volumes and new patterns
Users are now consuming Super-HD movie streams via Netflix
33 million members, streaming 1 billion titles per month
A third of peak traffic in US is Netflix
SuperHD takes 40% more bandwidth than regular
Enterprises are offloading mission-critical applications to the cloud
AWS claims 70% lower TCO, 5x agility, global reach in minutes
AWS customer base is 100s of 1000s in 90+ countries including blue chips
Communication, Latency, Uptime vital for IaaS
Scale and Reliability essential
References,
http://blog.netflix.com/2013/09/highest-quality-hd-now-available-to-all.html
Businesses have to face traditional & non-traditional competitors
Google Fiber plans to expand beyond few cities to several tens in the US, challenging established operators
Google Fiber promises 100 times faster speeds than basic broadband
New commercial agreements between content providers and bit-pipe operators
To remain competitive operators continue network build-out, incurring higher costs
Telecom CapEx rising slightly ahead of earlier forecasts (tracking 6% globally in 2013)
Telecom Revenue rising at 2.5% globally in 2013.....Infonetics SP Capex, Revenue Nov 2013
Thus need to expand revenues with new and sticky services to offset costs
Infrastructure needs to be nimble to allow agile operations, faster time to revenue, while reducing costs
Network Infrastructure largely unchanged for a decade
Two layers: Routing, Transport
Huge margins in Routing Layer prompting pressure to break End-to-End Closed Systems
Tight control at Routing Layer also slowing innovation
Finally reflecting in Routing segment growth, for the first time Infonetics lowered previous CAGR by half
Now Transport Layer becoming more capable
Previous functions at Layer 3 now being handled at Layer 0-1
Reflecting in Transport segment growth, CAGR steady at over 10%
Status Quo is being challenged and slowly being dismantled
Analysts agree that the transport industry is at the “optical reboot” stage as 100G is taking off faster than anticipated.
During any such a critical juncture, providers look to build networks for the next decade and in today’s context that would transport them (pun intended) to the Terabit Era
Infinera’s mission is to build the world’s most innovative network solutions to help our customers win, and we do that by delivering on our founding vision of “an infinite pool of intelligent bandwidth.”
The foundation for delivering on this vision was laid by the development of the large-scale Photonic Integrated Circuit or PIC technology. T
This was soon commercialized into production at volume and is an industry-first. The PIC allows massive WDM capacity in small footprint and it led to our first system – the DTN platform. We could integrate OTN switching with WDM in the DTN because the PIC allowed enough “room” in the system for power and cooling to have this key function without any performance compromise. The platform was a part of the now well-established Digital Optical Network architecture that we introduced in 2005 for the 10G to 100G Era. We found much success reaching number 1 in the market within 18 months of its introduction.
We then expanded the architecture with converged multi-layer switching of Packet-aware OTN and ROADM in a single platform and using open software to automate, control and exploit these additional capabilities.
Finally the architecture has been boosted with massive scale through super-channels, having demonstrated Terabit super-channels in the past year. Our FlexCoherent solution provides the optimal balance between bandwidth and long-haul reach, while the clean-slate design is future-proofed to support 1Tb per slot without any platform refresh.
This framework laid the foundation for operators to build their networks for the next decade which is witnessing the move from 100G to 500G and Terabit.
Let’s first look at Scale,
Super-channel definition
Provisions single unit of capacity in a single operational cycle
Packing multiple carriers to deliver the single unit of capacity needs complex optics
Number of optical functions and fiber connections needed
Photonic Integration of all this makes Super-channel possible
Today 500G super-channel is shipping (since 2012) – integrates over 600 optical functions in one small chip
Next, let’s look at integration of switching with transmission,
In the first architecture with WDM Muxponder (or only Transmission with no switching), the network is inefficient
Wavelengths are not well utilized
So we introduce switching to better pack traffic in those wavelengths
This switch can be external – it improves bandwidth efficiency
But now needs an extra chassis incurring penalties of inter-connects, power, space, cooling
Integrating the switch with transmission, we avoid these penalties dramatically improving overall network efficiency
Finally, we added automation to the Transport Layer
With GMPLS we convert individual wavelengths into a pool of resources
Today our GMPLS is proven with deployed networks of over 22000 nodes
Bandwidth Virtualization allows upper layer services to view an abstracted physical infrastructure
We further automated bandwidth provisioning with Instant Bandwidth that slices 500G capacity into 100G chunks
And we are moving dynamic network protection capabilities traditionally fulfilled by Layer 3 (MPLS FRR) into Transport with FastSMP
Here’s where Technology gets interesting,
As the dismantling of status quo networks is underway, let’s look at what’s replacing it
Up the stack Layer 4 through 7 functions are moving from closed appliances to an open virtualized model using NFV
Layer 3 devices comprise of control plane and forwarding plane functions
These functions are being disaggregated
Control is being offloaded to the Carrier SDN cloud while Forwarding could be met by white label boxes (recall Cisco CEO quote)
Meanwhile the transport Layer Intelligence is absorbing capabilities from the upper layers
The Transport Layer would be differentiated with photonic technology as photons need complex engineering and continue to provide scalability for nonstop bandwidth growth
The best technology in the photonic domain at the Transport layer will win in this new world of Carrier SDN
Direct proof of the pressure on the Routing Layer…
When asked what Cisco’s biggest competitive threat is, Chambers mentioned that at or near the top of the list is service providers who just buy cheap “white box” routers and switches.
Reference-
http://blogs.barrons.com/techtraderdaily/2013/09/26/cisco-ceo-chambers-targeting-nokia-ericsson-big-time-white-box-the-big-threat/