ARM in Networking. Lakshmi Mandyam Director of Enterprise
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1 ARM in Networking Lakshmi Mandyam Director of Enterprise 1 v2
2 Connectivity Driving Infrastructure Growth in client computing and IoT driving demand on network infrastructure 2bn mobile computers and smartphones per year by 2016 (>2x 2011) 50bn installed internet connected devices by x Data traffic increase on mobile networks % LTE Capex CAGR % 90% Operator energy budget used by the network 60-80% Energy consumption attributable to base stations Cisco Systems, isuppli, NSN, IEEE 2
3 The Operator Challenge CAPEX New Revenue Streams OPEX User Experience 3
4 Heterogeneous Base Stations Data thirsty subscribers = 50x data and 100x signalling 10x lower power and cost Home Cell Enterprise Cell Metro Cell Indoor Metro Cell Outdoor Macro LTE 3G/4G Macro Enterprise Small Cell Home Small Cell Distributed Antenna 3G/4G Macro Enterprise Small Cell Metro Cell WiFi Hotspots WiFi 4
5 RAN Connectivity into the Core Network Access Fiber Mobile Backhaul Evolved Packet Core Microwave Cu Fiber Mobility Management Mobile Gateways Policy Mgmt Complex and specialized equipment. ARM can scale across all these applications 5
6 Why ARM in Infrastructure Networking Performance Density Ecosystem Vibrancy Energy Efficiency 6
7 ARM Partners in Networking 7
8 ARM in Networking Today Mobile Markets for ARM in 2011 Devices Shipped (Million of Units) 2011 Devices Chips/ Device TAM 2011 Chips 2011 ARM 2011 Share Smart Phone ,900 1,700 90% Feature Phone ,700 1,600 95% Low End Voice % Portable Media Players % Mobile Computing* (apps only) % Digital Camera % Digital TV & Set-top-box % Desktop PCs & Servers (apps) % Networking % Printers % Hard Disk & Solid State Drives % Automotive 2, , % Smart Card 6, , % Microcontrollers 7, ,800 1,100 15% Others ** 2, , % Total 23,000 26,000 7,900 30% * Including tablets, netbooks and laptops ** Includes other applications not listed such as headsets, DVD Home Enterprise Embedded Networking Market by Volume 3% 5% 39% 53% Home Networking Enterprise Networking Mobile Infrastructure Carrier Infrastructure Home Networking In 2011, ARM s networking market share consisted mainly of home networking shipments Home networking market: low value chips containing older generations of ARM technology E.g., WLAN, DSL etc Source: Gartner and ARM estimates 8
9 2016 Opportunity in Infrastructure Base Station Equipment Backhaul Networking RAN Infrastructure 2016 Silicon TAM $3bn Target 2016 Penetration 60% 2016 Silicon TAM $2bn Target 2016 Penetration < 5% 2016 Silicon TAM $1bn Target 2016 Penetration < 5% 3G/4G Macro Enterprise Small Cell Home Small Cell Distributed Antenna Enterprise Small Cell Metro Cell WiFi Hotspots WiFi Enterprise Access Points L2/L3 Switching Routing 2016 Silicon TAM $2bn Target 2016 Penetration 50% 2016 Silicon TAM $3bn Target 2016 Penetration 20% 2016 Silicon TAM $2bn Target 2016 Penetration 20% Shipping mainly ARM-based chips Shipping some ARM-based chips Public ARM design wins, but not yet shipping No ARM design win or not yet public Source: Gartner and ARM estimates 9
10 2016 Opportunity in Infrastructure Volume Units (bn) Silicon Revenue ($bn) 1.5bn 1.0bn 0.5bn 0.0bn $20bn $15bn $10bn $5bn $0bn Networking Volume by Type Home Networking Enterprise Networking Carrier Infrastructure Mobile Infrastructure Networking Silicon Value by Type Home Networking Enterprise Networking Carrier Infrastructure Mobile Infrastructure Mobile and carrier infrastructure, and enterprise markets support much higher chip ASPs than home networking ARM s most advanced Cortex-A processor technology applicable to these markets Cortex-A supports higher royalty rates Multi-processor implementations and next generation 64bit ARM processor technology will increase market opportunity to ARM and increase royalty rates further Source: Gartner and ARM estimates 10
11 ARM in Networking Q&A 11
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