The Rise of Optical Data Center Networks

Transcription

1 The Rise of Optical Data Center Networks #OpticalDCI An Infonetics Research / IHS Webinar Co-produced with Infinera This Webinar Will Begin Shortly

2 The Rise of Optical Data Center Networks #OpticalDCI An Infonetics Research / IHS Webinar Co-produced with Infinera

3 3 Today s Speakers #OpticalDCI Andrew Schmitt Principal Analyst, Optical Infonetics Research / IHS Dr. Stuart Elby SVP, Data Center Technology Infinera JoAnne Emery Event Director Infonetics Research / IHS (Moderator)

4 G Is the New 10G Evolution of Cloud Network Requirements Why Data Center Customers Are Different Data Center Interconnect Applications Infinera s Approach Conclusion A New Optical Market Q&A #OpticalDCI

5 5 Optical WAN Capacity Deployed Per Year Optical components are the best way to look at deployed telecom capacity Graph shows total transmission capacity of long reach optical modules shipped in a given year Deployed bandwidth growing 25% to 30% year over year 100G unseating the technology workhorse of the past decade 10G Requires 100G costs to drop at least 20% 30% per year Requires new technology and approaches to hit this cost target Infonetics Research, October G/40G/100G Optical Transceivers Market Size & Forecasts

6 6 100G Is the New 10G 10G fades but remains half of new deployments in G rises by 5x 400G is really 100G/200G technology used in parallel Interest in 200G isolated to only two respondents Operators: Estimate the % each speed will be of new wavelengths installed Metro Wavelength (<600km) Deployments Infonetics Research, September 2014, 100G Deployment Strategies: Global Service Provider Survey

7 100G in Metro Applications Data Centers Are the Catalyst for Metro 100G Data centers and Internet content providers are the major customers for metro 100G We need to transport 100GE interfaces from our own switches/routers Service providers see DCs and ICPs as the big driver for metro 100G We are waiting until 100G metro pricing drops further before we begin large scale deployments 5.1 Vendors need to address costs for large scale deployments to take place 100G will be used mostly to carry 10G and address fiber exhaust issues 4.9 Cost of metro 100G is competitive with 10G The right products and technology are not yet available The near term opportunity is for using 100G to carry 10G more economically Flexible coherent modulation is important enough for the metro that we will pay a premium Average Response (0 = Strongly Disagree, 6 = Strongly Agree) Infonetics Research, September G Deployment Strategies: Global Service Provider Survey 7

8 G Is the New 10G Evolution of Cloud Network Requirements Why Data Center Customers Are Different Data Center Interconnect Applications Infinera s Approach Conclusion A New Optical Market Q&A #OpticalDCI

9 9 Evolution of the Cloud: Past Early cloud deployments leveraged the Internet for reaching customers and interconnecting data centers Customers V vswitch V The Internet M V M V M M V M V M DC Fabric PE Routers Optical Transport Data Centers Data Center Common Network used for Customer Connection and Data Center Interconnect

10 10 Evolution of the Cloud: Present Explosive growth in social networking & machine-to-machine (M2M) traffic force larger connections directly between data centers DC SDN Platform The Internet Customers vswitch V V M V M V M M V M V M DC Fabric PE Routers Optical Transport Data Center Data Center Interconnect Data Centers Emergence of Dedicated Connectivity for Data Centers

11 11 Today s Cloud: Interconnected Data Centers Long Haul & Metro Metro Data Centers Long Haul DCI Cloud Exchange Metro Aggregation Network Operators Mega data centers around the world

12 $MIL 12 Dynamics Driving Change in Cloud Infrastructure IT Hardware & Data Networking Feb 19,2014 Technology Research New players, big spenders $90K $80K $70K Greenfield advantage No holdbacks from legacy OSS $60K $50K $40K $30K $20K $10K Big 7 ICP Spend Big 7 ICP Spend The Big 7 Hyper-scale Players Tier 1 Telco Spend Tier 1 Telco Spend Top North American Carriers Focus on innovation, speed, performance Telcos: forced to respond AT&T Domain 2.0 cloud-based architecture Verizon acquisition of Terremark $0 CY09 CY10 CY11 CY12 CY13 CY14E CY15E CY16E CY17E CenturyLink acquires Savvis Source: ISI Group Report on Hyper-scale Capex Trends, Feb 2014

13 13 Data Center Interconnection Growth 5X 100G metro wavelengths over the next 4 years: 65% CAGR per Infonetics Research Long haul 100G growing at over 25% CAGR DCI market expected to exceed $1.0 billion by 2017 Source: Infinera, February 2015

14 Cost $/Gb Sales Price 14 This Is a Market Truly Driven by Fast Innovation The Innovation Gap Time to Market Innovation Gap Cloud needs fast innovation Technology is a tool to drive price down Moore s law expectation Leveraging Moore s Law is a necessity Speed to Market is essential Profit Innovation Reality t=time ICPs will sacrifice features for speed Operational simplicity is paramount Need to shrink the innovation gap

15 G Is the New 10G Evolution of Cloud Network Requirements Why Data Center Customers Are Different Data Center Interconnect Applications Infinera s Approach Conclusion A New Optical Market Q&A #OpticalDCI

16 16 Data Centers vs. Traditional Carriers Revenue comes from transporting bits Equipment flexibility is paramount Reliability and SLAs drive network design Fiber assets are owned, not scarce Vendor supplied control planes and limited interoperability Revenue comes from applications and content; transport is a cost center Cost per port; flexibility not important Cost and capacity requirements plus real estate constraints drive network design Fiber assets are leased, not owned Open source, open vendor, softwaredefined networks (SDN)

17 Two Different Markets Already Exist What % of your 100G coherent wavelengths were metro (<600km) in 2014? What do you expect in 2017? Some service providers already deployed metro 100G aggressively during 2014 Competitive providers focused on enterprise and data center interconnect applications Networks still metro heavy in 2017 This market needs a purpose built metro solution, not repurposed long-haul equipment Infonetics Research, 2012 and G/100G and ROADM Deployment Strategies: Global Service Provider Survey 17

18 18 Key Platform Requirements Metro Aggregation Decision Factors DCI Decision Factors OSS Integration with legacy systems Siloed operations and engineering teams DC Systems Simple and fast integration with DC systems Support for DevOps Multi-service support Single-service (VLAN, IP, etc.) Backwards/legacy compatible Telco compliance, e.g., NEBS, ETSI Density (Gbps/RU) Power efficiency (Watts/Gbps) Simple capacity growth: Rack and Stack

19 G Is the New 10G Evolution of Cloud Network Requirements Why Data Center Customers Are Different Data Center Interconnect Applications Infinera s Approach Conclusion A New Optical Market Q&A #OpticalDCI

20 20 DCI Deployment Example Data Center Switch Rack & Stack Optical Transport WDM Mux/Demux Data Center DC LAN Terabits per second fiber 10 GE 100s of Gbps WDM

21 G Is the New 10G Evolution of Cloud Network Requirements Why Data Center Customers Are Different Data Center Interconnect Applications Infinera s Approach Conclusion A New Optical Market Q&A #OpticalDCI

22 22 Cloud Xpress - A Purpose Built DCI Platform Cloud Xpress Metro Platform 1Tb/s input and output in 2 RU 500G PIC based super-channel line side 500G client w/mix of 10/40/100 GE Instant Bandwidth Hyper-Scale Density 2RU (500Gbps / RU) Rack & Stack growth Power Efficiency ~100W per 100G: ALL INCLUSIVE Simple Operation Simple step provisioning Server-like operational experience

23 G Is the New 10G Evolution of Cloud Network Requirements Why Data Center Customers Are Different Data Center Interconnect Applications Infinera s Approach Conclusion A New Optical Market Q&A #OpticalDCI

24 24 Data Center Networks Disrupt the Supply Chain 10G is the workhorse technology Metro and data center applications addressed by re-purposed and re-priced long-haul technology and hardware 100G coherent costs limited by traditional discrete component technology Balkanized networks with proprietary management solutions 100G coherent rapidly becoming the workhorse technology for all customers Vendors offer purpose built equipment for the unique needs of metro and data center customers Silicon photonics and InP allow photonic integration and cut costs by 20% 30% per annum Multi-vendor, open source, and multi-layer management and control

25 G Is the New 10G Evolution of Cloud Network Requirements Why Data Center Customers Are Different Data Center Interconnect Applications Infinera s Approach Conclusion A New Optical Market Q&A #OpticalDCI

26 26 Audience Q&A #OpticalDCI Andrew Schmitt Principal Analyst, Optical Infonetics Research / IHS Dr. Stuart Elby SVP, Data Center Technology selby@infinera.com Infinera JoAnne Emery Event Director joanne.emery@ihs.com Infonetics Research / IHS (Moderator)

27 #OpticalDCI Thank You This webcast will be available on-demand for 90 days. For additional Infonetics/IHS events, visit: Follow us on Twitter