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Global Megatrends Driving Optical Innovation The New Economy

Global Megatrends Driving Optical Innovation The New Economy. Philippe Morin, SVP, Global Products Group May 2010. Global Megatrends Driving Global Innovation. Drivers. New economy and new business models are accelerating bandwidth growth. 1.

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Global Megatrends Driving Optical Innovation The New Economy

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  1. Global Megatrends Driving Optical InnovationThe New Economy Philippe Morin, SVP, Global Products Group May 2010

  2. Global MegatrendsDriving Global Innovation Drivers New economy and new business models are accelerating bandwidth growth 1 Devices and connectivity move from “nice to have” to necessity 2 Demands for HD video are fueling the next wave of bandwidth growth 3

  3. Corporate ProfitabilityBandwidth is Essential 1 • Economic impact to IT solutions scheduled for deployment to maximize efficiencies: • Data Center Consolidation • Data Center Virtualization • Telepresence • Software as a Service • Serverless Branch Source: Webtorials, 2009

  4. Corporate SolutionsUsing Capacity to Increase Productivity 1 Telepresence / video conferencing Increasing current application performance Massive capacity, new economics Telecommuting / Teleworking Data center consolidation – serverless branch

  5. New Global Distribution Models Accelerating Bandwidth Growth 1 • 1+ billion views a day • 20 hours of video uploaded every minute; equivalent of over 130,000 full-length Hollywood movie releases every week • More video is uploaded to YT in 60 days than all 3 major US networks created in 60 years • More page views every day than the primetime audience of all three networks combined • The world premiere of Wayne Wang's film, "The Princess of Nebraska" was viewed 165,000+ views during the first 48 hours it was posted. • Mobile uploads up 1700% in first half of '09; uploads have increased by 400% a day following the iPhone 3GS launch Source: YouTube, 2010

  6. Devices and Connectivity Move from “Nice to Have” to Necessity 2 • Personal relevance and connectivity • Eliminating discretionary items ahead of connectivity • Staying relevant with world-impacting news events

  7. Mobile Broadband Accelerating Despite Economic Downturn 2

  8. HD Video will Fuel the Next Wave of Bandwidth Growth 3 Anything less than HD on any device will be unacceptable in 24 months

  9. 3D HD TV DC Consolidation VR Gaming HD Video Telepresence Internet HQ Video Consumer and Business Video Applications Fuel the Next Wave of Bandwidth Growth 3 Capacity Internet SD Video Quality of Experience

  10. Internet TV / Video Fueling New Business Model 3

  11. Bandwidth Demand Scenarios “Networks now are being used in a way that few people foresaw” David Payne, Institute of Advanced Telecommunications, Swansea University, UK All previous assumptions must be challenged!

  12. Network Changing Innovation • Wireless techniques: increased spectral efficiency • Coherent Detection: Access to amplitude, phase, polarization • DSP: correcting signal degradations • Integrated in cost effective CMOS ASIC Coherent Transmission System 40G/100G with same or BETTER performance than 10G Networks! 12

  13. Creating Technical Discontinuity in the Optical Industry Coherent Evolution Capacity/C-band 1 Pbps WDM Evolution 1 Tbps TDM Evolution 1 Gbps 1 Mb/s New Era of Optical Networking

  14. Next Frontier Achieving Terabit / λ in the not so distant future Access technologies a magnitude lower in cost Upgrading capacity without wholesale changes Reducing the complexity in the network Many “impossible” challenges waiting to be solved

  15. The Way Forward….. Steps to Take Understand Market Forces and Megatrends Shaping our Industry 1 Challenge Current Assumptions and Established Ways of Doing Business 2 3 Become an Advocate for the Industry

  16. Thank you

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