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Cisco Knowledge Network:

Transport Solutions

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Introduction• Welcome – Moderator(s):

Dale Clark - Strategic Account Manager

Russ Esmacher - Sr. Business Development Manager

• Today’s Show: Transport Architecture Evolution

Speaker(s):

John Skochenski, Sr. Systems Engineer

Bruce McDougall, Sr. Systems Engineer

• Q&A

• Survey

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October, 2011

Transport Architecture Evolution

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John’s Agenda• Evolution of Transport Networks

• Current Trends in Transport Networks

• TDM Centric to Packet Centric Transport

• Convergence of Packet and TDM Transport

• MPLS-TP as a Building Block for Next Gen Transport Networks

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A Brief History of Optical Networking

Last 10 years have been incremental steps

1550nm

DS-3/T1

SONET

1995

WDM

TDM

SONET

2000

WDM

SONET

TDM ETH

2005

WDM

SONET

TDM ETH

2010

OTN

ROADM

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Get Ready for the Optical Reboot

• Next step will not be incrementalNew Coherent network deployments on unused fiber

New OTN transport and grooming layer

Emergence of Ethernet as a Circuit

2012~

2013

2010

WDM

SONET

TDM ETH

OTN

ROADM

Each Layer

Managed

Separately

SONETTDM ETH

2015

OTN

ASON

UnifiedMulti-Layer

Management

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Major Shift from SONET to DWDM/Packet

• WDM hardware spending is increasing 12%+ per annum

• Shift away from TDM / SONET to packet based transport

• ROADM, packet-optical and coherent technology

$0

$6

$12

$18

CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15

Reven

ue (

US

$ B

illi

on

s)

0%

20%

40%

60%

80%

100%

WD

M (

%)

Metro-SONET/SDH Metro-WDM LH-SONET/SDH LH-WDM WDM %

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The Transition of Transport Market• The Packet Optical Transport Market Transition is underway:

Growth in Ethernet Services are Breaking Existing MSPP TDM Networks

Time-to-Revenue, Fiber Consolidation, & Service Capacity are driving Growth in DWDM

Total Optical Spend WW is ~$12B. The P-OTS TAM will be ~$2B in CY13

1990 YR 2000 YR 2010 YR

Ethernet Services 0 0.0500000000000001 0.1

TDM Services 1 0.950000000000001 0.9

Ethernet Bandwidth 0 0.3 0.950000000000001

TDM Bandwidth 1 0.700000000000001 0.0500000000000001

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

MSPP Ethernet Bandwidth & Service Trend

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