Redefining the Data Center Edge

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1 Redefining the Data Center Edge Ahmet Houssein Senior Vice President & GM, Ethernet Business Unit 1

2

3 Unpredictable Girl or boy? Call run or pass? Who will ascend? 3

4 Predictable Since 1973 Ethernet Speed Trajectory 10Gbs 1Gbs 100Mbs 10Mbs 100Gbs 1Tbs 10Tbs 100Tbs 1Pbs 4

5 Why IT has been Predictable Spending 100% Industry IT Spending as a % of Revenue Software Publishing & Internet Services 6.7% Banking & Financial Services 6.3% Media & Entertainment 5.0% Education 4.7% Professional Services 4.2% Healthcare Providers 4.2% Telecommunications 3.8% Core Business Insurance 3.2% Pharmaceuticals, Life Sciences & Medical Products 3.2% 0% IT Utilities 2.8% Transportation 2.6% Industrial Electronics and Electrical Equipment 2.5% Consumer Products 1.9% Industrial Manufacturing 1.7% Retail & Wholesale 1.5% No motivation for disruption because the impact of IT savings on overall P&L is small. And when IT has a big impact on core business continuity, organizations take the safest, lowest risk approach. Chemicals 1.3% Food & Beverage Processing 1.3% Energy 1.1% Construction, Materials and Natural Resources 1.0% 5

6 I Felt a Great Disturbance in the Force 1Pbs 100Tbs 10Tbs 1Tbs 100Gbs 10Gbs 10Mbs 100Mbs 1Gbs 25Gbs 50Gbs 6

7 Causing the Disturbance 7

8 Hyperscale Server Connectivity Million Server Club Servers >2M >1M >1M Source: IT Brand Pulse 8

9 Disruptive Innovation puts the Hyper in Hyperscale At the 2014 AWS re:invent, Amazon VP James Hamilton said AWS deploys in one day the infrastructure needed to support Amazon s ecommerce business when it was at $7B of revenue per year. And they did it 365 times last year. 9

10 Hyperscale Profits Depend on Disruptive Innovation Spending 100% 0% Other IT (Core Business) Amazon operating income in Q1 14 was $146M. A 40% savings in IaaS spending due to use of opensource technology = $400M or $1.6B/yr. Facebook revenue was $10.8B and net income was $1.07B in 3 years During that period they reported savings of $1.2B by doing their own designs Profitability of IaaS providers is dependent on hyperscale-driven innovation and savings. 10

11 Software Defined Data Centers Made it Possible Predominant Architecture Today Predominant Architecture in 10 Years Servers Networking Storage Any Hypervisor Vendor-Specific SW Vendor-Specific SW Storage & Networking Apps Server Hypervisors Any Server Vendor-Specific HW Vendor-Specific HW Servers Software Defined Data Center 11

12 In SDDCs, Server Ethernet More Important than Ever SDDCs are Killer Apps for High-Density G Connectivity App Server Cluster Software Defined Storage Cluster NFV App Cluster VDI DB Cloud Operating System Cluster 12

13 Disruptive Innovation for Server Connectivity Sustaining Innovations 100G 40G 50G 10G 25G Performance that customers can utilize or absorb Disruptive Innovations 13

14 At the Heart of the Matter for Hyperscales 40G 25G 4 x 10 Ports/Lanes 1 x 25 Ports/Lanes 14

15 Ethernet Ecosystem Refresh 2 x 25 4 x 25 2 x 50 1 x Switches Block File Object 15

16 Gbps with RDMA Closes the Bandwidth & Latency Gap with InfiniBand Bandwidth Performance Gap InfiniBand (Gb) Ethernet (Gb)

17 25G Economics 10G Technology 64 half-width servers 128 x 10Gb server ports 128 x 10Gb ToR switch ports 1.2Tb available bandwidth 25G Technology 64 half-width servers 64 x 25Gb server ports 64 x 25Gb ToR switch ports 1.6Tb available bandwidth Quanta X300 Cloud Rack System 50% less server port cost and power 50% less ToR switch port cost and power 33% more bandwidth 17

18 Your Grandfather s Hyperscale NIC Model Basic Protocol Support (Dumb) 10 (Fast) Limited HW Offload (Cheap) OCP Specification (Open) 18

19 LAN SAN IPC Convergence Critical in Private Clouds G Supports LAN, SAN and IPC Protocols App Server Cluster Software Defined Storage Cluster NFV App Cluster VDI DB RDMA FC FCoE iscsi Cloud Operating System Cluster 19

20 Network Virtualization Needed by Everyone G Supports HW Offload of Tunneling Protocols Data Center Data Center NVGRE VXLAN 20

21 Hyperscale and Enterprise Connectivity in the Future LAN/SAN/IPC/Network Virtualization Protocol Support (Smart) (Fast) HW Offload (Preserve server CPU for workloads) RDMA (Low Latency) Ethernet Specifications (Standards-based) OCP Specifications (Open) 21

22 Software Defined Servers in 10 Years (Actual) 100% 90% 80% New Workloads Virtualized 70% 60% 50% 40% New Workloads Not Virtualized 30% 20% 10% Source: Gartner 0%

23 Software Defined Networking in 10 Years (Forecast) Commercial versions of open source based SDN Orchestration and NFV Apps, Open Networking Switches Xeon E v G Ethernet SDN Orchestration NFV Apps Open Networking Switches Hyperscale SDN Public Cloud Hosted Private Cloud Enterprise SDN Traditional Enterprise Networking On Premise Private Cloud Source: IT Brand Pulse

24 10G Eating 1G, G Eating 10G 24

25 Fastest Time-to-Million Ports Forecast for 25G 25

26 We Need to Work Out the Kinks to Accelerate Adoption 26

27 We Do That by Systematically Working Together Time-to-2 Million Ports End User POCs Education 25G Early Access 25G Solutions Dev Community 25G 25G

28 The Next Generation of G Ethernet 28

29 ALLIANCE 29

30 Picking Up Where Industry Organizations Leave Off Standards & Specifications ABOUT THE 25G/50G CONSORTIUM The 25 Gigabit Ethernet Consortium is an open organization to all third parties who wish to participate as members to enable the transmission of Ethernet frames at 25 or 50 Gigabit per second (Gbps) and to promote the standardization and improvement of the interfaces for applicable products. The 25 Gigabit Ethernet Consortium enables industry participants to develop new technologies that function in accordance with the Specification(s) outlined in the consortium agreement in order to benefit consumers and the industry by facilitating accelerated adoption of 25 and/or 50 Gbps technologies. Go-to-Market ABOUT THE ALLIANCE The Initiative is a set of programs designed to: 1) Assist hardware and software vendors with early access to networking products, and to work together efficiently to develop solutions; 2) Assist channel partners with online and hands-on training, and with early access to networking products, so they may guide their customers through the migration; and 3) Assist IT professionals with education, hands-on training and early access to networking products needed to evaluate and deploy the new technology. 30

31 Goals Make it easy for everyone to learn, evaluate, and implement G. Harness the power of vendors and organizations working together. 31

32 Programs for Alliance Partners 1. Contribute and attend technical training from other partners 2. Contribute and receive alerts about product availability, technical topics, and company news 3. Contribute to and use portal with contact info, product listings and collateral from multiple G vendors 4. Contribute to and use early access programs offered by members 5. Participate in Solution test festivals allowing testing with multiple applications running on 25G networks at a single event 6. Participate in co-marketing programs to educate channel partners and IT pros 32

33 Alliance Members as of Today 33

34 Join Now Simply send an to with the following: I am authorized by <company name> to enroll <company name> as a member of the Alliance with the understanding there are no fees, and <company name> can withdraw its membership at any time. 34

35 35

36 Thank You 36

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