A Tsunami of Change Where are you going to hide? Luis Gamez Sales Manager, APAC +61 405 404 666 luis.gamez@tellabs.com

ICT budgets are being Challenged every year whilst demand for modernization increases.

It’s forecasted that USD 4,631 billion will be needed in LAN network equipment this year in APAC. Gartner Forecast: Enterprise Network Equipment Market by Country, 2015 & 2018 " (Millions of U.S. Dollars)"

Out of all countries, USD 279 billion will be needed in ANZ.

The same forecast applies, year-over-year till 2018.

We have TVs, Cars, industrial equipment and other things connected to the Internet… Collecting data for us.

It’s estimated that 50 billion Internet of things connections will exist by 2020, globally. Source: Cisco. Full Report: 2011 IBSG Report (PDF)

Asia has the most connections.

This is because the Chinese Government has committed to spend $603 billion by 2020 for m2m connections. http://www.gsma.com/newsroom/press-release/china-leads-global-m2m-market/

IoT Creates $14.4 Trillion of Value at Stake for Companies and Industries. Improves: Capital, Labour, Process and R&D efficiency; and, thus: Customer Experience. Source: Cisco. The Internet of Everything (IoE) Value Index (PDF)

Businesses will face further complexity in managing their fast-growing ICT operations whilst staying profitable.

IT departments will face the impact: New & BYOD, Exponential volume of Data and Cloud-based traffic.

Firms must confront: new Security threats, Compliance and IT Challenges to keep pace and realize value from IoE.

Growing connectivity (2) Growing IP traffic (1) Growing connectivity (2) Growing real-time services (1) Growing security concerns (3) http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/VNI_Hyperconnectivity_WP.html https://www.ncta.com/platform/industry-news/infographic-the-growth-of-the-internet-of-things/ http://securityaffairs.co/wordpress/24378/hacking/verizon-data-breach-investigation-2014.html

Our Customers are asking for, Simpler & Better ways to deal with these challenges.

Unfortunately, Status Quo will continue to increase complexity, slowdown modernization and impact profitability.

To Capture Value, companies must: - Invest in Simple & Scalable infrastructure - Adopt more Secure practices - Implement effective Real-Time Services Growing Connectivity = Operational Issues - This is why Advanced Operations and scalability is important, for the simplified management of 100s of 1,000s of end-points Security issues have been a determent for the adoption of M2M, cloud and wireless initiatives – time to lock down the LAN = Advanced Security Real-Time = Advanced Availability - an increase in real-time, critical, ecommerce and performance sensitive traffic + smart future-proof optical LAN infrastructure

* Passive OLAN directly impacts security & operational efficiencies Top 10 CIO Priorities Business Priorities Increasing enterprise growth Delivering operational results Reducing enterprise costs Attracting and retaining new customers Improving IT applications and infrastructure Creating new products and services (innovation) Improving efficiency Attracting and retaining workforce Implementing analytics & big data Expanding into new markets & geographies Technology Priorities Analytics and Business Intelligence Mobile technologies Cloud computing (SaaS, IaaS, PaaS) Collaboration technologies (workflow) Legacy modernization IT management CRM Virtualization Security ERP Applications Ops Soft ware Auto Secure * Passive OLAN directly impacts security & operational efficiencies

So, USD 4,631 billion in Simpler LAN translates to: - Advance and Flexible Software features - Consistent Security and Defensibility - Efficient Automation and Operation

Why Build modern LANs Using 30-Year Old Phone Technology? This is when we do our introductions

A New Technology, based on Passive Optical LAN is emerging as a player.

Legacy Copper Based LAN LAN Evolution Legacy Copper Based LAN Passive Optical LAN Complex Architecture Simple Architecture Built for Internal Traffic Built for Cloud-based Traffic Distributed Intelligence Centralized Intelligence Distance = up to 30Kms between electronics Distance Limited = 100m copper & 550m MMF Passive Distribution Layer = Less Resources Active Distribution Layer(s) = More Resources Space, Power, Cooling, etc Defense rated Security; Carrier-class Availability Corporate Grade Security & Availability Software Defined Bandwidth Fixed Dedicated Bandwidth Locally Managed at disparate equipment locations Centrally Managed Capped for the future (cat7, cat8, etc) Future-proof fibre (Tbps) © 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

P2M M2M vs Person to Machine Machine to Machine

Machine-to Machine (M2M) Person-to-Machine (P2M) Machine-to Machine (M2M) M2M Each Device has a separate: IP address Local craft access Localized switching And is Provisioned Individually vs

Architecture Evolution Legacy copper-based LAN Data Center / MDF Campus / Building / IDF Closet / IDF / Zone Access Wireless Voice, Video Data Aggregation Distribution Local Provisioning and Management Distance Limited MMF 550m /Copper 100m Distance Limited MMF 550m /Copper 100m Optical LAN Person to Machine vs. M2M Data Center / MDF Campus / Building / IDF Closet / IDF / Zone Access Building Automation OLT Voice, Video Data Single Mode Fibre Passive Optical Splitter Security Surveillance Centralized Provisioning and Management Passive Network Up to 30km/18mi Distance 300x Greater Reach Wireless

Optical LAN Technology Optical Line Terminal (OLT) Optical Splitter (1:32 or 1:16) Optical Network Terminals (ONT) Optical Line Terminal (OLT) 1490nm 1310nm 1G or 10G Network Uplinks 20km/12mi to 30km/18mi Single mode fiber Optical Line Terminal (OLT) Acts as the central aggregation element Located in the main data center Replaces multiple L2 switches Can aggregate up to 7,700 end users © 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

Optical LAN Technology Optical Network Terminal (ONT) Optical Splitter (1:32 or 1:16) Optical Network Terminals (ONT) Optical Line Terminal (OLT) 1490nm 1310nm 1G or 10G Network Uplinks 20km/12mi to 30km/18mi Single mode fiber Optical Network Terminals (ONT) Terminates the fiber at the end user Provides Data, VoIP, IP Video services Some models also provide native POTS Desktop, In-Wall & Multi-Desk Unit model Supports Power over Ethernet © 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

Optical LAN Technology Passive Optical Network (PON) Optical Splitter (1:32 or 1:16) Optical Network Terminals (ONT) Optical Line Terminal (OLT) 1490nm 1310nm 1G or 10G Network Uplinks 20km/12mi to 30km/18mi Single mode fiber Passive Optical Network (PON) Completely passive infrastructure Single fiber carries multiple wavelengths Today 2.48Gbps downstream & 1.24Gbps upstream Serve remote end-points up to 20km to 30km No bandwidth limits nor obsolescence horizon © 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

Optical LAN Technology Optical Splitters & Fiber Management Optical Splitter (1:32 or 1:16) Optical Network Terminals (ONT) Optical Line Terminal (OLT) 1490nm 1310nm 1G or 10G Network Uplinks 20km/12mi to 30km/18mi Single mode fiber Optical Splitter and Fiber Management Completely passive components Typically splits single fiber up to 32 ways Redundancy option with 2:x optical splitter Flexible positioning and mounting options Today they support next gen 10GbE PON © 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

Why Tellabs® Optical LAN? Simple Secure Scalable Stable Smart Centralized intelligence and management Less equipment to install and Manage Minimizes operational complexity SDN Resources = Automation Fiber is not susceptible to interference nor does it introduce interference Natively encrypted and supports all Industry security standards Robust equipment with no user data in end point ONTs Fiber has 100Tbps capacity From 100 to 8,000K end-points = Density Reach up to 30km distance across campus or between schools 10GPON & Data Centre Connectivity Carrier-class reliability with better availability (network up time) Less “rip-and-replace” events (migration to future technologies) Less SPOF JITC certified Integrate smart and intelligent building services Lower energy usage and lower thermals impact for better sustainability Saves CapEx, OpEx and industry best TCO Operational Efficiency © 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.