Rockley Photonics has developed an integrated optical I/O silicon photonics technology to address challenges in scaling mega data centers. Their technology integrates CMOS chips with silicon photonics to deliver packet switching solutions that enable infrastructure transformation with lower costs and power consumption. This positioning Rockley Photonics for a transformational role in the future of mega data center infrastructure and earned them the 2017 Global Technology Innovation Award for data center networking.

1. 2017 Global Data Center
Networking Infrastructure
Technology Innovation Award

2. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 2 “We Accelerate Growth”
Contents
Background and Company Performance ........................................................................3
Industry Challenges..............................................................................................3
Technology Attributes and Future Business Value .....................................................3
Conclusion...........................................................................................................6
Significance of Technology Innovation ..........................................................................7
Understanding Technology Innovation ..........................................................................7
Key Benchmarking Criteria ....................................................................................8
Best Practice Award Analysis for Rockley Photonics.........................................................8
Decision Support Scorecard ...................................................................................8
Technology Attributes ...........................................................................................9
Future Business Value...........................................................................................9
Decision Support Matrix ......................................................................................10
The Intersection between 360-Degree Research and Best Practices Awards.....................11
Research Methodology ........................................................................................11
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best
Practices .................................................................................................................12
About Frost & Sullivan ..............................................................................................13

3. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 3 “We Accelerate Growth”
Background and Company Performance
Industry Challenges
The number of devices connected to the Internet and leveraging cloud services is growing
exponentially, primarily driven by the proliferation of Internet of Things (IoT) and
connected living. Moreover, the increasing use of applications such as virtual reality and
artificial intelligence is leading to the demand for faster computing capabilities at data
centers. As a result, the sheer volume of data being processed by data centers worldwide
is increasing multi-fold. Data centers, therefore, are required to scale up in line with the
growing use, which introduces certain technical and business challenges. While Moore’s
Law remains valid for scaling up of microelectronics to meet processor demands, it does
not consider the increasing power consumption and limited capabilities of the input/output
(I/O) interface.
The cost associated with upgrading or scaling up data center network capacity arises from
two major components: the high cost of the incredible number of latest generation
networking components and the cost of energy required to power it all. Compounding this,
linear scaling up of data center compute capacity is associated with exponential scaling up
of networking components.
While single mode optical fibers are being adopted as the networking medium in mega
data centers, conventional packet switching still consists of a vast number of discreet
electrical to optical transmitters at significant cost and power consumption.
Headquartered in the United Kingdom, Rockley Photonics has approached the challenges
of cost and power consumption by integrating complementary metal oxide semiconductor
(CMOS) chips with silicon photonics for integrated optical I/O functionality. The product,
including a high level of technology integration, and the attendant reference designs and
software are expected to be the first of their types in the industry and will undoubtedly
provide a glimpse of future networking technology.
Technology Attributes and Future Business Value
Visionary Innovation
Rockley Photonics was founded in 2013, with the vision of addressing current challenges
faced by data centers and leveraging a “third generation” of silicon photonics technology.
The company understood the key scaling challenge that limits the efficiency of mega data
centers and accurately foresaw the potential of silicon photonics in addressing this
challenge.
Rockley Photonics has undertaken a unique approach of integrating its breakthrough
silicon photonics technology, conventional microelectronics and software to enable highly
scalable switch designs that have complete interoperability with industry standards. The

4. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 4 “We Accelerate Growth”
simplified switch design can increase the bandwidth and speed of data centers, while
minimizing power and component requirements. The support for Software Defined
Networks and Rockley’s highly innovative (albeit optional) datacenter architecture IP
provides additional opportunities for network architects to explore further network
optimization scenarios. This bold leap into the future not only enables network architects
to build networks in the same manner they currently do (at lower cost and power), but
also opens up new architecture design opportunities that may be more optimally adapted
to the workflow environment.
While competing established technologies can currently handle switching requirements,
with an increase in demand and evolving application/workflow environments, Rockley
Photonics will be best suited to address the networking challenges in the future.
The team at Rockley Photonics comprises experts in the field of silicon photonics, data
center architecture engineering and design, software, CMOS electronics, packaging
engineering, and network engineering. This diverse, yet focused and dedicated, team has
allowed the company to achieve remarkable technological advances across multiple
disciplines for next-generation data centers and other communication fields. Within three
years, the company has expanded to about 70 employees and has an established
presence in the United Kingdom, the United States, and Finland.
The visionary innovation exhibited by Rockley Photonics is unmatched in the industry and
addresses the key networking bottlenecks faced in mega and hyper scale data centers.
Product Impact
Rockley Photonics is poised to launch its first product in 2017 and is primarily focusing on
packet switching for mega data centers. This market is the largest and most relevant for
silicon photonics technology, primarily because of the introduction of 25 gigabits per
second (Gbps) lane rates and 100 Gbps Ethernet. Based on the integration of photonics
and CMOS technology, the product allows step-wise upgrading of the switching
technology. Therefore, instead of creating a network of boxes with high-speed circuit
boards, optical transceivers, and separate digital packet processing chips or packet switch
application-specific integrated circuits (ASICs), Rockley Photonics collapses these
components into a single, highly scalable digital packet switch processing chip-set
packaged with integrated photonic interfaces.
This feature provides Rockley Photonics with an advantage over competing technologies
and allows data center architects to upgrade the infrastructure in a simpler cost-efficient
manner.
Industry Impact
The integrated optical I/O silicon photonics technology will play a key enabling role in the

5. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 5 “We Accelerate Growth”
scaling up of mega data centers, and Rockley Photonics is poised to contribute to the
transformation. The future of data centers will be based on an amalgamation of electronics
and photonics technology. Rockley Photonics will provide data center architects with the
power to scale up networking infrastructure to meet computing demands, without
compromising on energy consumption.
Energy consumption is one of the major drawbacks for the current generation of data
centers, and the use of purely electronic components will accentuate this problem. Rockley
Photonics is providing the perfect balance of electronics and optics technology, which will
economically ease the upgradation of data centers, while positively addressing the issue of
data centers’ energy consumption. This solution will benefit numerous industries where
data centers act as the backbone, such as the Internet, analytics, IoT, and connected
living.
The unique low-cost, low-power optical I/O technologies developed for the switching
solution can also be “wrapped” around any digital ASIC or used in more discreet optical
transceivers. The deployment of the technology in these applications will offer greater
impact in an industry seeking numerous paths to critical CAPEX and OPEX reductions.
Scalability
Rockley Photonics is a fabless silicon photonics company, and its product manufacturing is
outsourced to dedicated foundries. The company has developed the manufacturing
processes and designs in-house but is based on existing practices and technologies. The
ecosystem of silicon photonics manufacturing is established; therefore, the technology is
highly scalable. Rockley Photonics has established relationships with various foundries,
packaging contract manufacturers, and system manufacturers.
The use of mature manufacturing technologies and the leveraging of the fabless business
model allow Rockley Photonics to scale up manufacturing without any additional capital
investments.
Application Diversity
While data centers are the primary application that will adopt silicon photonics-enabled
packet switches in the short term, the technology’s application potential will expand in the
longer term. Rockley Photonics’ technology will be relevant for use inside servers, for
connecting various functional elements such as the central processing unit (CPU), and for
memory blocks. In addition, the technology can cater to miniaturized computing devices
such as smartphones and tablets, where interconnects will eventually transform from
electrical to optical technology.
Rockley Photonics is targeting packet switching for the data center as it is currently the
most relevant application. With the proliferation of the silicon photonics technology, the
company will move to allied areas.

6. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 6 “We Accelerate Growth”
Technology Licensing
Rockley Photonics has developed a strong intellectual property (IP) portfolio, covering
various aspects of silicon photonics technology, including design, processes, and
technology utilization for data centers and other applications. Even though the company is
currently operating under the fabless semiconductor company model, where the
manufacturing of components is primarily outsourced to dedicated foundries, the company
is poised to leverage technology licensing as a business model. With the licensing model,
the company will be able to target diverse applications of the promising field of silicon
photonics. Having a strong IP portfolio provides Rockley Photonics with the option of
venturing into the licensing model in the future.
Conclusion
Increased network traffic and demand for higher speed data transfer in mega data centers
lead to the requirement for upgrading the networking infrastructure. Rockley Photonics
uses a novel approach of integrating silicon photonics with CMOS chips to deliver packet
switching solutions that will enable this transformation, while limiting capital expenses and
decreasing overall power consumption. The company is poised to play a transformational
role in the future of mega data center infrastructure.
As a result of its overall performance, Rockley Photonics has earned the 2017 Global
Technology Innovation Award for data center networking infrastructure.

7. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 7 “We Accelerate Growth”
Significance of Technology Innovation
Ultimately, growth in any organization depends upon finding new ways to excite the
market, and upon maintaining a long-term commitment to innovation. At its core,
technology innovation or any other type of innovation can only be sustained with
leadership in three key areas: understanding demand, nurturing the brand, and
differentiating from the competition.
Understanding Technology Innovation
Technology innovation begins with a spark of creativity that is systematically pursued,
developed, and commercialized. That spark can result from a successful partnership, a
productive in-house innovation group, or the mind of a singular individual. Regardless of
the source, the success of any new technology is ultimately determined by its
innovativeness and its impact on the business as a whole.

8. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 8 “We Accelerate Growth”
Key Benchmarking Criteria
For the Technology Innovation Award, Frost & Sullivan analysts independently evaluated
two key factors—Technology Attributes and Future Business Value—according to the
criteria identified below.
Technology Attributes
Criterion 1: Industry Impact
Criterion 2: Product Impact
Criterion 3: Scalability
Criterion 4: Visionary Innovation
Criterion 5: Application Diversity
Future Business Value
Criterion 1: Financial Performance
Criterion 2: Customer Acquisition
Criterion 3: Technology Licensing
Criterion 4: Brand Loyalty
Criterion 5: Human Capital
Best Practice Award Analysis for Rockley Photonics
Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;
ratings guidelines are illustrated below.
RATINGS GUIDELINES
The Decision Support Scorecard is organized by Technology Attributes and Future
Business Value (i.e., the overarching categories for all 10 benchmarking criteria; the
definitions for each criteria are provided beneath the scorecard). The research team
confirms the veracity of this weighted scorecard through sensitivity analysis, which
confirms that small changes to the ratings for a specific criterion do not lead to a
significant change in the overall relative rankings of the companies.

9. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 9 “We Accelerate Growth”
The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key players
as Competitor 2 and Competitor 3.
DECISION SUPPORT SCORECARD FOR TECHNOLOGY INNOVATION AWARD
Measurement of 1–10 (1 = poor; 10 = excellent)
Technology Innovation
Technology
Attributes
Future
Business Value
Average
Rating
Rockley Photonics 9 9.5 9.25
Competitor 2 7 7.0 7.00
Competitor 3 6 6.5 6.25
Competitor 4 8 6 7.00
Technology Attributes
Criterion 1: Industry Impact
Requirement: Technology enables the pursuit of groundbreaking new ideas, contributing
to the betterment of the entire industry
Criterion 2: Product Impact
Requirement: Specific technology helps enhance features and functionality of the entire
product line for the company
Criterion 3: Scalability
Requirement: Technology is scalable, enabling new generations of products over time,
with increasing levels of quality and functionality
Criterion 4: Visionary Innovation
Requirement: Specific new technology represents true innovation based on a deep
understanding of future needs and applications
Criterion 5: Application Diversity
Requirement: New technology serves multiple products, multiple applications, and
multiple user environments
Future Business Value
Criterion 1: Financial Performance
Requirement: High potential for strong financial performance in terms of revenues,
operating margins and other relevant financial metrics
Criterion 2: Customer Acquisition
Requirement: Specific technology enables acquisition of new customers, even as it
enhances value to current customers

10. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 10 “We Accelerate Growth”
Criterion 3: Technology Licensing
Requirement: New technology displays great potential to be licensed across many sectors
and applications, thereby driving incremental revenue streams
Criterion 4: Brand Loyalty
Requirement: New technology enhances the company’s brand, creating and/or nurturing
brand loyalty
Criterion 5: Human Capital
Requirement: Customer impact is enhanced through the leverage of specific technology,
translating into positive impact on employee morale and retention
Decision Support Matrix
Once all companies have been evaluated according to the Decision Support Scorecard,
analysts can then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
DECISION SUPPORT MATRIX FOR TECHNOLOGY INNOVATION AWARD

11. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 11 “We Accelerate Growth”
The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often, companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
analyses. The integration of these research
disciplines into the 360-degree research
methodology provides an evaluation
platform for benchmarking industry players and for identifying those performing at best-
in-class levels.
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS

12. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 12 “We Accelerate Growth”
Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan Awards follow a 10-step process to evaluate award candidates and assess
their fit with select best practice criteria. The reputation and integrity of the Awards are
based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1
Monitor,
target, and
screen
Identify award recipient
candidates from around the
globe
• Conduct in-depth industry
research
• Identify emerging sectors
• Scan multiple geographies
Pipeline of candidates who
potentially meet all best-
practice criteria
2
Perform
360-degree
research
Perform comprehensive,
360-degree research on all
candidates in the pipeline
• Interview thought leaders
and industry practitioners
• Assess candidates’ fit with
best-practice criteria
• Rank all candidates
Matrix positioning all
candidates’ performance
relative to one another
3
Invite
thought
leadership in
best
practices
Perform in-depth
examination of all candidates
• Confirm best-practice criteria
• Examine eligibility of all
candidates
• Identify any information gaps
Detailed profiles of all
ranked candidates
4
Initiate
research
director
review
Conduct an unbiased
evaluation of all candidate
profiles
• Brainstorm ranking options
• Invite multiple perspectives
on candidates’ performance
• Update candidate profiles
Final prioritization of all
eligible candidates and
companion best-practice
positioning paper
5
Assemble
panel of
industry
experts
Present findings to an expert
panel of industry thought
leaders
• Share findings
• Strengthen cases for
candidate eligibility
• Prioritize candidates
Refined list of prioritized
award candidates
6
Conduct
global
industry
review
Build consensus on award
candidates’ eligibility
• Hold global team meeting to
review all candidates
• Pressure-test fit with criteria
• Confirm inclusion of all
eligible candidates
Final list of eligible award
candidates, representing
success stories worldwide
7
Perform
quality check
Develop official award
consideration materials
• Perform final performance
benchmarking activities
• Write nominations
• Perform quality review
High-quality, accurate, and
creative presentation of
nominees’ successes
8
Reconnect
with panel of
industry
experts
Finalize the selection of the
best-practice award recipient
• Review analysis with panel
• Build consensus
• Select winner
Decision on which company
performs best against all
best-practice criteria
9
Communicate
recognition
Inform award recipient of
award recognition
• Present award to the CEO
• Inspire the organization for
continued success
• Celebrate the recipient’s
performance
Announcement of award
and plan for how recipient
can use the award to
enhance the brand
10
Take
strategic
action
Upon licensing, company
may share award news with
stakeholders and customers
• Coordinate media outreach
• Design a marketing plan
• Assess award’s role in future
strategic planning
Widespread awareness of
recipient’s award status
among investors, media
personnel, and employees

13. BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 13 “We Accelerate Growth”
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth
and achieve best in class positions in growth, innovation and leadership. The company's
Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best practice models to drive the generation, evaluation and implementation
of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 31 offices on six continents. To join our Growth Partnership, please visit
http://www.frost.com.