Rockley Photonics, creator of the Silicon Photonic Optical Packet switch, lays out how to break into a massive market dominated by Tier1 corperates at TM&A Europe 2016

1. TM&A Europe 2016
How does a new player break
into this space?
Given the indomitable power of the incumbent
leaders. Is the era of meteoric growth from
fledgling to Apex organisation over?
Dr Andrew Rickman OBE
Rockley Photonics Ltd.
Scaling Cloud Datacenters
with Photonic Packet Switching
3rd March 2016

2. Check That The Planets Are Aligned
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Some basic questions to ask:
Is the market opportunity real?
Is it a sustained market opportunity?
Is the timing right? / Do we have the right technology?
Are the incumbents delivering what the customers want/need?
Can we maneuver and deliver faster than the incumbents?
Do we have the team or can we build it?
Growthofdata

3. 3
- Facing massive scaling requirements
- Networking does not follow Moore’s Law
Over the last 10 years:
• the Internet has grown about 100x
• the compute capacity of datacenters has grown
~1,000x [1]
Moore’s law continues to push down the cost of compute
• Lower compute costs lead to greater compute power
being called upon for greater data analytics, evolving
business models, etc.
Networking costs do not follow Moore’s Law [2]
• Relative cost of networking is increasing with respect
to compute [1] Dorren et al, Journal of Lightwave
Technology, Vol. 33, No. 5, March 1, 2015
[2] James Hamilton, AWSre:Invent, 2014
Time
Relative Cost Networking
Compute
Many are left scratching their heads how a potential 1,000x increase in compute
capacity in datacenters over the next 10 years will be addressed by networking.[1]
Datacenter Networking Market Situation

4. Our Solution – A Revolutionary Approach
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Larger switches
Lower cost
Lower power
Smaller footprint
An experienced, multi-disciplined team delivering an intimate
combination of:
- the data processing power of CMOS electronics, and the
- the data transport capacity of optics
The resulting integrated chip-sets enabling:
- a massively scalable Optical Packet Switching solution
- a breakthrough network fabric (RPFabric) uniquely designed
specifically for hyper-scale, and
- a massively simplified, higher performance solution delivered
as a modular switch rather than a large complex network.
Delivering what the customers want:
Rockley Photonics'
scalable ToR, leaf and
spine network switch
in one chassis module

5. Rockley Photonics Introduction
 Founded in mid 2013 by a team with the leading commercial track record in
silicon photonics (the optical analogy of silicon microelectronics)
– Our investor group achieved more than a ten times return from Bookham
Technology’s Nasdaq IPO and four times from Kotura Inc.’s trade sale.
 Well funded global team of more than 50; based in Pasadena CA, Oxford UK,
Helsinki Finland
 Fabless business model - selling chipsets and reference design IP
 Strong partner eco system in place
 Strong and growing IP position
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6. How Do We Do It?
 Have supportive, understanding investors
with aligned interests i.e. to make the
company a success.
 Build a great team with the brightest
people in the industry and lead and
motivate them effectively.
 In our case, we are addressing a problem
in scaling datacenters by bringing all the
necessary disciplines together in one
team…CMOS, SiP, System Design,
customer base, packing and operations.
– Came up with a paradigm shift. Other
groups seem to work from primarily one
discipline at the problem. We make those
cross functional juices flow and it has been
amazing to see the innovation.
 Ensure we are deeply embedded in
relationships with our customers and
listen to them.
– Get their attention and mind share early
on…bring the product idea alive with
them and show them how they adopt the
solution in a low risk incremental way
 Leverage the CM, foundry and
development partner environment to
maintain a capital light model.
 Hardware these days scares a lot of
investors, but our version of hardware
focusses on design, is fabless and at the
end of the day creates highly defendable
value and barrier to further competitors
People Relationships
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7. In Summary – Breaking In Is Challenging … But Possible
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 Stay nimble and innovate – this is your distinct advantage!
 Location is important – being based in California helps
 Have supportive investors
 Bring together the best multidisciplinary team – manage the innovation
process
 Manage partner relationships
 Organize your IP processes from the outset, we have 12 patent families in
filling and now a steady stream of patents awarded