THE ON-DEMAND DATA CENTER NETWORK TRANSFORMATION IN A CHANGING INDUSTRY. Ken Cheng, CTO, Brocade October, 2013

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1 THE ON-DEMAND DATA CENTER NETWORK TRANSFORMATION IN A CHANGING INDUSTRY Ken Cheng, CTO, Brocade October, 2013

2 Fundamentally we ve had to redesign and challenge the way we ve run distributed infrastructure for the past 15 years. Not a single thing that we ve done in the past is now acceptable for the future. Steve Hilton, Chief Information Officer, Credit Suisse Group

3 Capture Historic Industry Shifts Closed to Open Blurring of Hardware and Software Software Defines Everything Cloud Evolution Flexible, Efficient, Programmatic, Elastic

4 PROPRIETARY PLATFORMS Brocade Communications Systems, Inc. Company Proprietary Information

5 Blurring Hardware and Software Boundaries EXPONENTIAL GROWTH OF X86 PERFORMANCE Gb/s Platform Harpertown Nehalem Westmere Sandy Bridge Ivytown Total Cores Virtual EPC Virtual Appliances Virtual Route Reflector Virtual Router Virtual CPE

6 Connecting IT and Networks IT SDN NETWORK

7 Evolving Cloud Services SERVICES PUBLIC CLOUD Basic Uniform Low Cost Rich Services Application Optimized Public cloud architecture Enterprise Policies Increased Security

8 The On-Demand Data Center Expanding Markets Service Providers Open API Innovation Data Center Fabrics Data Center Networking Software Enterprise Mobile Wireless Cloud

9 Market Dynamic and Opportunities FUELING VALUE DISLOCATION Scale-Out Host Distribution Telco Economics: ARPU vs Cost Threat: Cloud SPs, OTT Cloud SP Network Virtualization Abstraction Layer Multi-tenancy challenges Efficient and economic scale Enterprise Apps shifting to Virtualization Workloads shifting to Cloud Compute Virtualization Abstraction Layer

10 Migration to Cloud PUBLIC, PRIVATE, HYBRID AND COMMUNITY CLOUD 100% Public Cloud App Loads Total Enterprise IT Spend 75% 50% 25% Private Cloud In-House Management Cloud OS PRIVATE CLOUDS Federation & Choice Management Cloud OS PUBLIC CLOUDS 0% Today GovCloud

11 Data Center Architecture of the Future THE ON-DEMAND DATA CENTER Applications, Orchestration, and Services BUSINESS LOGIC APPLICATIONS, ORCHESTRATION, AND SERVICES Control NETWORK CONTROLLER SERVER AND STORAGE CONTROLLERS Virtual Resources NETWORK Network Virtualization NFV Layer 2-7 Functions SERVER Virtual Machines STORAGE Software Defined Storage Vyatta vadx ABR Physical Infrastructure NETWORK COMPUTE STORAGE

12 NETWORK FUNCTION VIRTUALIZATION (NFV)

13 Network Function Virtualization A NEW NETWORKING FRONTIER EMERGES Deployment Huge improvement in SWAP Modern logistics impacts Architecture Apps shifting to virtualization New network constructs Release Network functions from physical constraints Relocate Network services from server hardware Scale-Out Simple additions of virtual machines 1

14 NFV Use Cases 9 MAIN USE CASES* 1. Network Function Virtualization as a Service (NFVIaaS) 2. Virtualisation of Mobile Core Network Nodes (including IMS) 3. Virtualization of Mobile Base Stations 4. Virtualized Home Environment 5. Virtual Network Function as a Service (VNFaaS) 6. Service Chaining (VNF Forwarding Graphs) 7. Virtualization of CDNs 8. Virtual Network Platform as a Service (VNPaaS) 9. Fixed Access Network Functions Virtualization *All 9 approved at NFV#3.

15 The Disruptive Simplicity of NFV DE-COUPLE TRADITIONAL SYSTEM ARCHITECTURES Network Devices Proprietary Apps Embedded OS Custom Hardware NFV on Virtualized X86 Hardware VM NFV VM VM VM VM VM 20-Core VM Hardware NFV VM 90% lower hardware cost Agility of software Efficiency of virtualization Dynamic Life-Cycle 20-Core Hardware NFV VM VM VM VM Multi-Core Standard Hardware

16 NFV Use Case: U.S. Federal Virtual Router WARFIGHTER INFORMATION NETWORK Management VM Router VM Firewall/VPN VM Services VM Hypervisor Intel x86 Federal Virtual Router L3 Routing OSPF, BGP Security services Firewall, VPN, etc VM Management capability CLI, GUI, API Purpose-Built X86 Server 6 Core CPU 96GB of RAM 1TB SSD 2 GbE 2010 Brocade Communications Systems, Inc. CONFIDENTIAL For Internal Use Only 10/8/

17 NFV Use Case: Carrier Network Virtualization SEAMLESS EXTENSION OF CARRIER L3VPN TO DATA CENTER TRILL Underlay Provide cloud services over carriers L3VPN networks Scale out PE to meet DC multitenancy requirements MPLS L3VPN extension to vrouter Reduce Operational costs SDN applications - service chaining, SDN analytics 2013 Brocade Communications Systems, Inc. CONFIDENTIAL For Internal Use Only March,

18 NFV Use Case: Mobile Network Virtualization RF Access BH Access BH Aggregation Packet Core Internet Edge 2G 3G 4G T3 nxt1 Cell Site vcdn1 enb Virtuali enb zation (venb ) Ethernet 1G 10G MME EPC HSS Virtualization SGW (vepc) PGW Edge Core Border PE Virtualiz ation PE (vpe) PE PE Virtualiza tion (vpe) Roaming Exchanges Application Partners Corporate VPNs 2G 3G 4G T3 nxt1 Cell Site vcdn2 enb Virtuali zation enb (venb ) Ethernet Access Aggregation Core vr RR RR R vcd CDN N CDN IP/MPLS WAN Core Policy AAA Billing IMS, IMS Application Application Virtualization Enablement Data Center Internet

19 ABOUT BROCADE

20 Strength in Data Center Networking BROCADE NO. 2 IN WORLDWIDE MARKETSHARE Cisco Brocade Others F5 HP Juniper N=$9.2 Billion Source: IDC Datacenter Network Qview

21 Brocade will be the network provider of choice to the world s data centers BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 21

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23 Gaining Market Momentum 90%+ # 1 # ~30 MILLION FIRST TO MARKE 1.3+ T MILLION 200, MILLION+