© 2001 Caspian Networks, Inc. CONFIDENTIAL AND PROPRIETARY INFORMATION Internet Intelligence and Traffic Growth Lawrence G. Roberts Chairman & CTO Caspian Networks Lawrence G. Roberts Chairman & CTO Caspian Networks
Presentation Master V © 2001 Caspian Networks, Inc. Caspian IP Router Redesign
Presentation Master V © 2001 Caspian Networks, Inc. Originally Routers were dumb – they still are Caspian challenges this obsolete religion New Concept : No slow call setup like ATM, RSVP Keep Transient State from 1 st packet Toss out state if no packet within 9 seconds Route based on dynamic network load Impact : Lower cost, power, space Doubles fabric, trunk utilization (load balance) Full Restoration it level 3 with no waste Gives IP the same QoS capabilities as ATM 360 Gbps per Rack Scalable to 160 Tbps Multi-Protocol Translation Carrier Grade Reliability Caspian – 1 st Redesign of the IP Router
Presentation Master V © 2001 Caspian Networks, Inc. Internet Traffic Measurement Only real measurements since 1996
Presentation Master V © 2001 Caspian Networks, Inc. Core Router Backbone Node Topology & Definitions Edge Router Trunk Ports Edge Router Trunk Ports Interconnect Ports Edge Ports Core Router
Presentation Master V © 2001 Caspian Networks, Inc. Installed ISP Port Capacity ,000 1,500 2,000 2,500 3,000 3,500 Mar-00Sep-00Mar-01 Total Gbps 19 Largest Tier 1 US Internet Service Providers Edge Ports Trunk Ports Internal Ports
Presentation Master V © 2001 Caspian Networks, Inc. Port Allocation in ISP Networks Mar-00Aug-00Mar-01 Internal Ports per Trunk Port Edge Ports per Trunk Port Overbuilt in mid 2000 Higher Efficiency in Largest Tier 1 US Internet Service Providers
Presentation Master V © 2001 Caspian Networks, Inc. Internet Traffic Measurement Internet Traffic by ISP and Total ISP’s Measurement 1 March 2000 Measurement 2 September 2000 Measurement 3 March 2001 Total Traffic ,000 Jan-00Jan-01Jan-02 Gbps Growth Rate 3.6/yr2.7/yr4/yr 19 Largest Tier 1 US Internet Service Providers
Presentation Master V © 2001 Caspian Networks, Inc. Total US Internet Traffic
Presentation Master V © 2001 Caspian Networks, Inc. Internet Fraction of Bits and Revenue 0% 20% 40% 60% 80% 100% Jan-00Jan-01Jan-02Jan-03Jan-04Jan-05 IP Traffic IP Revenue Voice Traffic Jul 01 For the US – Rest of the world delayed slightly Voice Revenue Aug 2002 Aug 2000
Presentation Master V © 2001 Caspian Networks, Inc. Router/Switch Speed Required 56 KB T1 T3 OC-3 OC-12 OC-48 OC-192 OC Tbps 1 Gbps 1 Mbps 1 Kbps 1 Pbps 100 Pbps Moore’s Law Switch Speed Required Breakpoint Internet Traffic OC-1536 Television Broadcasting
Presentation Master V © 2001 Caspian Networks, Inc Gbps 1Tbps 10Tbps 100Gbps 10Gbps 100Tbps 100Mbps 1Pbps 10Pbps Switch Capacity Maximum Life Today is 18 months Switch Capacity Based on Growth at Factor of 4/year Carriers Need Scalability For 5 Years Caspian
Presentation Master V © 2001 Caspian Networks, Inc. Switch Size Required Switch Capacity Required for ISP's /1/011/1/021/1/031/1/041/1/051/1/06 Tbps 12 Largest ISP’s Non-Scaling Router Capacity
Presentation Master V © 2001 Caspian Networks, Inc. Core Market based on Traffic Growth Core Switching Market $1 $10 $ $ B Price reduced by Moore’s Law plus a 6:1 Cost Reduction due to Technology
Presentation Master V © 2001 Caspian Networks, Inc. Communications Switching Equipment Market $ M per Year ,000 10, , M a r k e t T i m i n g Packet Analog TDM
Presentation Master V © 2001 Caspian Networks, Inc. Cost of Internet Transmission $.0001 $.001 $.01 $.10 $1 $10 $100 $1,000 $10,000 $100,000 $1,000,000 $/HR for TV Cost of Switching Cost of Trunks (Fiber) DWDM Effect Total Cost DWDM Saturation
Presentation Master V © 2001 Caspian Networks, Inc. Making the Internet Profitable
Presentation Master V © 2001 Caspian Networks, Inc. 1 st Cost Problem Scaling
Presentation Master V © 2001 Caspian Networks, Inc. With No Scaling - using 160 Gbps Routers (16 ports each) 20 Racks 1 Tbps External OC-192 Internal OC-192 Fully Non-Blocking Only 1/3 of the ports produce revenue !
Presentation Master V © 2001 Caspian Networks, Inc. Caspian Scaling – Fabric Fiber Between Racks 3 Racks 1.1 Tbps Fully Non-Blocking All of the ports produce revenue
Presentation Master V © 2001 Caspian Networks, Inc. Scaling to 160 Terabits/second Hub Rack Fully Non-Blocking 11 Racks 4 Tbps Add Hub Racks as needed To expand above 3 Tbps
Presentation Master V © 2001 Caspian Networks, Inc. Scaling Cost Multiple Router Cost Multiple due to Scaling Tbps Cost Multiple ( # ports/revenue port) Caspian 16 port router 8 port router 1.18 Scalable Routers
Presentation Master V © 2001 Caspian Networks, Inc. Cost Savings # 2 Reliability, Restoration and Utilization
Presentation Master V © 2001 Caspian Networks, Inc. To Backbone Network OC-192 Redundancy in a Typical Network To other Metropolitan Networks OC-48 OC-12 OC-3 RAS Private Lines MPLS Router Unreliability currently leads to 2:1 Redundancy (vertical) Unreliability also leads to Routing Isolation using Level-2 switches between Level-3 Routers (horizontal) Both can be eliminated with Reliable Router/Switches OC-192 To other Metropolitan Networks OC-192 OC-48 To other Metropolitan Networks OC : 1 Port Reduction 9 : 1 Space Reduction Router RAS
Presentation Master V © 2001 Caspian Networks, Inc. Dynamic Load Balancing 80% 79% 82% 80% 78% 83% 81% 79% 80% Dynamic (not Static) Load Balancing Increases Utilization
Presentation Master V © 2001 Caspian Networks, Inc. Automatic Protection Switching SONET Optical Switch Typical Router 50 ms 50% Trunk Wastage 30 sec No wastage 10 ms No Waste 10 ms Recovery 50 ms 30% Trunk Wastage Eliminates any wastage for spare trunks and need for separate global and metro routing regions
Presentation Master V © 2001 Caspian Networks, Inc. Major Cost Reduction Possible TodayScaling Reliability & Utilization $M Capital Cost for 540 Gbps Redundant ISP Node CaspianScalable Routers Gbps Routers 15:1 4:1 $81 M $22 M $5 M
Presentation Master V © 2001 Caspian Networks, Inc. Revenue Enhancement
Presentation Master V © 2001 Caspian Networks, Inc. Guarantees Bandwidth Guarantees Single Flows – Voice, Video Composite Flows – VPN’s, Frame Relay Delay Variation Guarantees Down to 1 ms Analog Voice Interconnection MPEG-2 Video Guarantees command higher rates
Presentation Master V © 2001 Caspian Networks, Inc. Network Consolidation Multi-Protocols Support IP, MPLS, FR, ATM Bandwidth Guarantees Frame Relay, ATM Delay Variation Guarantees Voice Video One Wire – All Communications
Presentation Master V © 2001 Caspian Networks, Inc. Internet Future
Presentation Master V © 2001 Caspian Networks, Inc. Communication and Content Cost per Person in US $0 $20 $40 $60 $80 $100 $ Telephone & Wireless Internet TV & Radio Content TV & Radio Transmission Movies Content Communication
Presentation Master V © 2001 Caspian Networks, Inc. Growth of Internet Bandwidth/User Voice Video Phone TV Text 2007 HDTV Where are the Opportunities… Internet Bandwidth per User - US 100 Mbps 10 Mbps 1 Mbps 100 Kbps 10 Kbps 1 Kbps 100 bps 10 bps 1 bps 1997 Breakpoint Web/Text
Presentation Master V © 2001 Caspian Networks, Inc. Internet Television
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