Upgrading Data Centers: Can New Models and Technologies Improve Performance? Tuesday, October 9, :45 a.m.
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1 Upgrading Data Centers: Can New Models and Technologies Improve Performance? Tuesday, October 9, :45 a.m. Data Center Session
2 PLEASE SILENCE YOUR CELL PHONES THANK YOU! Data Center Session
3 Moderator: Scott Widham, CEO, Alpheus Communications Speakers: Craig Drinkhall, Vice President - Product Management & Engineering, Lumos Networks Chandra Pandey, Vice President, Platform Solutions, BTI Systems Mannix O Connor, Director of Technical Marketing, Optical Transport, MRV Communications Data Center Session
4 Alpheus Communications Alpheus owns & operates fiber-optic networks throughout Texas Texas San Antonio Ft Worth Austin Dallas Houston Carrier s carrier since route miles Extensive network coverage in Texas Metro network reaches over 300 COs & Carrier POPs Ethernet expansion to South Texas Data Center Session
5 Alpheus Communications Alpheus datacenters are located in Texas largest markets Supported by Alpheus fully-redundant fiber network SSAE-16 certified Fiber interconnectivity to other major datacenters Data Center Session
6 Supply & Demand Growth Growth in Global Demand Outpacing Supply Source: Tier 1 Research Data Center Session
7 Significant Market Opportunity Source: Gartner Dataquest Insight Data Center Session
8 Industry Segments Consolidating Cloud Services Manage Hosting Colocation Inter- Connectivity Consolidation of smaller, regional players Telcos acquiring larger firms Climbing multiples Companies are cautious moving to the cloud Data Center Session
9 EV / 2011E EBITDA Range Sector Valuation 24x 23.1x 22x 21.6x 20x 20.1x 18x 16x 14x 16.5x 14.8x 12x 10x 9.6x 8x 6x 4x 9.3x 8.7x 8.1x 7.4x 6.3x 6.0x 7.5x 6.4x 5.8x 5.6x 5.2x 6.2x 5.1x 4.5x 3.8x 3.6x 2x 3.2x 3.4x 0x Towers Data Centers Fiber Cable Satellite ILEC Wireless CLEC Data Center Session
10 CompTel Presentation Craig Drinkhall Vice President Product Management and Engineering 10
11 The Challenges Small and Medium Business IT Demand Growth Drives demand for hardware/software/datacenters Costs, Capital and Operational Service Provider Old line Business Decline (Voice,DSL), Increased Churn Data Demand is Growing Expensive Assets are in Place But Underutilized (Generators, HVAC, UPS, Floor Space) Our Technology Comes with People 11
12 Opportunities Reposition Telco space as Enterprise Data Center Space Market and Sell Tier1/Tier2 Colocation Services Solution Selling versus Competing on Price Network is Already in Place and is an Advantage Our Technology Comes with People 12
13 Risks/Rewards Risks Small Infrastructure Upgrades May be Needed Slight Operational Changes Convincing Marketing and Sales to Engage Rewards Solves a Real Customer Problem Increase Revenue, Wallet Share, Reduce Churn Launch Pad into MSP and Cloud Services Our Technology Comes with People 13
14 Options Build Greenfield or Retrofit Converting Assets to Revenue is a Core Competency Buy Quicker Ramp up Less Margin / Control Partner Quickest Start Up / Immediate Products / Skill Lowest Margins Give up Customer Ownership Doesn t Drive Network Sales Our Technology Comes with People 14
15 Optimize Create Tier 1 or Tier 2 Facilities Avoid Expensive Tier 3/4 Builds Tier1/2 is Still Relevant Add AC UPS Infrastructure Raised Floor or Flat? Flat Floor Advantages Cooling is Key Cooling is Largest Expense Implement Latest Tech Hot Aisle / Cold Aisle Containment In Rack Cooling Incremental Growth No Stadium Builds Technology Available to Grow as Revenue Grows Racks / UPS / Cooling Our Technology Comes with People 15
16 Summary Telcom Service Providers have Assets to be Credible Data Center Providers Grow new Revenues to Overcome Declining Markets Select Implementation Options that Grow with your new Business Our Technology Comes with People 16
17 Upgrading Data Center Can New Models and Technologies Improve Performance? Chandra Pandey VP of Platform Solutions
18 Business Requirement Low Latency Interconnect for High Performance Computing 10GE/40GE to enable virtual m/c, SAN, NAS across DC Business Continuity and Disaster Recovery DC Expansion/Consolidation for better applications performances Load Balancing across DC Power & Cooling efficiency Virtualization Data Storage and replication Global Collaborative services 18 Company Confidential. Distribution of this document is not permitted without written authorization.
19 Benefits and Challenges Choosing The Right Model Ultra-Low Latency across DC for SAN/NAS/HPC = Higher Performance for all the applications Facilitates vmotion beyond Data Centre (long distance live migration) Shared SAN across Data Centers Choosing The Wrong Model Poor Applications Performance More Resources, Poor Utilization Increase Cost Model A Model B 19 Company Confidential. Distribution of this document is not permitted without written authorization.
20 Current approach Add multiples ports on Routers and add additional wavelength across the DC if team was able to isolate the issues is related to DCI Most of the time its hard to isolate the issue to DCI and first point of attack is let s add additional servers, memory, storage etc. DC Interconnect without ultra low latency does not improves the performance much Servers/VMs still spend significant amount of cycles 50% waiting for IO transactions to complete or retry after time-out DC Interconnect with ultra low latency not only improves the performance of the IO transaction significantly but also improve the overall transaction rate significantly so less numbers of VM resources needed reducing both CAPEX and OPEX 20 Company Confidential. Distribution of this document is not permitted without written authorization.
21 Current Approach Router, Muxponders, Transponders, ROADM Router Site A Optical Transport Centralized NMS Router Site B Optical Transport ROADM RING Optical Transport Site C Router GE/FC-x Port 10GE Router Port GE/FC Muxponders GigE/10GE Transponders xd ROADM 21 Company Confidential. Distribution of this document is not permitted without written authorization.
22 Right Solution Ultra Low Latency across the DC i.e. no significant latency addition beyond the fiber delay Better performance achieved from all the DC infrastructure low CAPEX for HPC/SAN and lower OPEX power due to load sharing and better utilization less number of servers, LAN ports needed Packet Optical solutions to minimize the numbers of wavelength and routers ports Significant Saving 22 Company Confidential. Distribution of this document is not permitted without written authorization.
23 The Right Choice To Support Shift High Scale >TBits Compact, Low Power Nano Seconds High Performance Reliable, Predictable 25-50% Saving CapEX and OpEX Pay As you Grow 23 Company Confidential. Distribution of this document is not permitted without written authorization.
24 Global Trend Is Clear The Rise of the Internet & Cloud Connectivity Distributed Data Centers Data Centre to Data Center traffic growing 3-4x faster than user traffic! Driven by: Virtual machines Big data/replication Remote backups Content distribution Network hosted applications Requires new solution with: Massive scalability Pay-as-you-grow Link network intelligence to applications 24 Company Confidential. Distribution of this document is not permitted without written authorization.
25 Summary Choosing The Right Model Intelligent Platform based DCI solution 25%-50% CAPEX/OPEX saving due to higher utilization of HPC/SAN and lower power dissipation and better operational efficiency Scale as you grow Scale from 10G to 9.6TBits as single node at optimum cost using Virtual Chassis Standard Interfaces (GigE/10GE/100GE, HD/SD-SDI, FC-x/FICON, OC-x, STM-x) Single Platform for multiple protocols simplified operation and limited FRU Ultra Low Latency Industry-leading latency in nano-seconds (LAN/SAN extension to share the resources across the data center for load sharing) Compact low power, purpose build for DCI (GREEN) 25 Company Confidential. Distribution of this document is not permitted without written authorization.
26 Empowering the Optical Edge 26
27 Data Center Performance Connectivity Depends to Data Centers on Many Players Provider A Provider B Provider C CEN Carrier Ethernet Network Access Network Data Center Interconnectivity L4 L3 L2 L1 Scalable Highly Reliable SLA Measurable Low Latency Space / Power Efficiency Security Economical 27
28 Locate Compute where Power cost is low Disaggregation of Data Center functions Compute, Connectivity, Access Cost of Power / Labor / RE Cost of Interconnect Quantity and Quality of Interconnect Speed of Data Access Use best customer access media Locate Interconnect where Access cost is low or plentiful 28
29 Other Concepts Data Center Communications Reference Points IEEE 802.1Qbg and 802.1Qbh new data center switching standards Fiber Channel switches, new FC data rates and SAN provide scale SDN defining lower cost network management models 29
30 Quality of Service & High Bandwidth Scalability enable premium services Carrier Ethernet Bandwidth (CE CIR/EIR) # of virtual flows MPLS-TP 1Gbps 10Gbps UNI / ENNI Optical Transport Fiber & WDM ultra-high capacity Bandwidth High demand for 100G transport at low-price L4 L3 L2 L1 DWDM CWDM Inter channel spacing As low as 0.2nm 20nm # of channels (up to 18) Position Access/Metro/L-Haul Access New connectivity options enable new higher margin service options. 30
31 End-to-end SLA performance monitoring Packet layer OAM EVC EVC EVC λ Packet-Services within wavelengths Physical layer OAM Carrier Ethernet UNI UNI Performance Monitoring E-NNI UNI Carrier Ethernet A ENNI Carrier Ethernet B UNI Portals & Reports UNI UNI L4 L3 L2 L1 New OAM protocols operate at Layer 1 Layer 3 and enable centralized management of heterogeneous networks. 31
32 Space & Space Power & become Power critical Efficiency cost factors SPACE Real Estate Business Space is critical 509,147 Data Centers Globally 285,831,541 sq ft Outsourced Data Center usage growing almost 100% per year Power Use 1.3% of World s Total Electricity Cooling Costs vs Power Costs Large Data Centers Approaching 100MW Equivalent of 80,000 homes L4 L3 L2 L1 32
33 Speaker Contact Information: Scott Widham: Craig Drinkhall: Chandra Pandey: Mannix O Connor: moconnor@mrv.com Data Center Session
34 THANK YOU FOR ATTENDING! Data Center Session
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