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© 2001 Caspian Networks, Inc. CONFIDENTIAL AND PROPRIETARY INFORMATION Internet Intelligence and Traffic Growth Lawrence G. Roberts Chairman & CTO Caspian.

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Presentation on theme: "© 2001 Caspian Networks, Inc. CONFIDENTIAL AND PROPRIETARY INFORMATION Internet Intelligence and Traffic Growth Lawrence G. Roberts Chairman & CTO Caspian."— Presentation transcript:

1 © 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

2 Presentation Master V 3.0 7-6-2001 - 1© 2001 Caspian Networks, Inc. Caspian IP Router Redesign

3 Presentation Master V 3.0 7-6-2001 - 2© 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

4 Presentation Master V 3.0 7-6-2001 - 3© 2001 Caspian Networks, Inc. Internet Traffic Measurement Only real measurements since 1996

5 Presentation Master V 3.0 7-6-2001 - 4© 2001 Caspian Networks, Inc. Core Router Backbone Node Topology & Definitions Edge Router Trunk Ports Edge Router Trunk Ports Interconnect Ports Edge Ports Core Router

6 Presentation Master V 3.0 7-6-2001 - 5© 2001 Caspian Networks, Inc. Installed ISP Port Capacity - 500 1,000 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

7 Presentation Master V 3.0 7-6-2001 - 6© 2001 Caspian Networks, Inc. Port Allocation in ISP Networks 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Mar-00Aug-00Mar-01 Internal Ports per Trunk Port Edge Ports per Trunk Port Overbuilt in mid 2000 Higher Efficiency in 2001 19 Largest Tier 1 US Internet Service Providers

8 Presentation Master V 3.0 7-6-2001 - 7© 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 0 1 10 100 1,000 Jan-00Jan-01Jan-02 Gbps Growth Rate 3.6/yr2.7/yr4/yr 19 Largest Tier 1 US Internet Service Providers

9 Presentation Master V 3.0 7-6-2001 - 8© 2001 Caspian Networks, Inc. Total US Internet Traffic

10 Presentation Master V 3.0 7-6-2001 - 9© 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

11 Presentation Master V 3.0 7-6-2001 - 10© 2001 Caspian Networks, Inc. Router/Switch Speed Required 56 KB T1 T3 OC-3 OC-12 OC-48 OC-192 OC-768 197019751980198519901995200020052010 1 Tbps 1 Gbps 1 Mbps 1 Kbps 1 Pbps 100 Pbps Moore’s Law Switch Speed Required Breakpoint Internet Traffic OC-1536 Television Broadcasting

12 Presentation Master V 3.0 7-6-2001 - 11© 2001 Caspian Networks, Inc. 19971999200120032005 1Gbps 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

13 Presentation Master V 3.0 7-6-2001 - 12© 2001 Caspian Networks, Inc. Switch Size Required Switch Capacity Required for ISP's 0.100 1 10 100 1/1/011/1/021/1/031/1/041/1/051/1/06 Tbps 12 Largest ISP’s Non-Scaling Router Capacity

14 Presentation Master V 3.0 7-6-2001 - 13© 2001 Caspian Networks, Inc. Core Market based on Traffic Growth Core Switching Market $1 $10 $100 200220032004200520062007 $ B Price reduced by Moore’s Law plus a 6:1 Cost Reduction due to Technology

15 Presentation Master V 3.0 7-6-2001 - 14© 2001 Caspian Networks, Inc. Communications Switching Equipment Market $ M per Year 10 100 1,000 10,000 100,000 197019751980198519901995200020052010 M a r k e t T i m i n g Packet Analog TDM

16 Presentation Master V 3.0 7-6-2001 - 15© 2001 Caspian Networks, Inc. Cost of Internet Transmission 1960197019801990200020102020 $.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

17 Presentation Master V 3.0 7-6-2001 - 16© 2001 Caspian Networks, Inc. Making the Internet Profitable

18 Presentation Master V 3.0 7-6-2001 - 17© 2001 Caspian Networks, Inc. 1 st Cost Problem Scaling

19 Presentation Master V 3.0 7-6-2001 - 18© 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 !

20 Presentation Master V 3.0 7-6-2001 - 19© 2001 Caspian Networks, Inc. Caspian Scaling – Fabric Fiber Between Racks 3 Racks 1.1 Tbps Fully Non-Blocking All of the ports produce revenue

21 Presentation Master V 3.0 7-6-2001 - 20© 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

22 Presentation Master V 3.0 7-6-2001 - 21© 2001 Caspian Networks, Inc. Scaling Cost Multiple Router Cost Multiple due to Scaling 0 4 8 12 16 20 04080120160 Tbps Cost Multiple ( # ports/revenue port) Caspian 16 port router 8 port router 1.18 Scalable Routers

23 Presentation Master V 3.0 7-6-2001 - 22© 2001 Caspian Networks, Inc. Cost Savings # 2 Reliability, Restoration and Utilization

24 Presentation Master V 3.0 7-6-2001 - 23© 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-48 3.5 : 1 Port Reduction 9 : 1 Space Reduction Router RAS

25 Presentation Master V 3.0 7-6-2001 - 24© 2001 Caspian Networks, Inc. Dynamic Load Balancing 80% 79% 82% 80% 78% 83% 81% 79% 80% Dynamic (not Static) Load Balancing Increases Utilization

26 Presentation Master V 3.0 7-6-2001 - 25© 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

27 Presentation Master V 3.0 7-6-2001 - 26© 2001 Caspian Networks, Inc. Major Cost Reduction Possible 0 10 20 30 40 50 60 70 80 90 TodayScaling Reliability & Utilization $M Capital Cost for 540 Gbps Redundant ISP Node CaspianScalable Routers 11 - 160 Gbps Routers 15:1 4:1 $81 M $22 M $5 M

28 Presentation Master V 3.0 7-6-2001 - 27© 2001 Caspian Networks, Inc. Revenue Enhancement

29 Presentation Master V 3.0 7-6-2001 - 28© 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

30 Presentation Master V 3.0 7-6-2001 - 29© 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

31 Presentation Master V 3.0 7-6-2001 - 30© 2001 Caspian Networks, Inc. Internet Future

32 Presentation Master V 3.0 7-6-2001 - 31© 2001 Caspian Networks, Inc. Communication and Content Cost per Person in US $0 $20 $40 $60 $80 $100 $120 20002002200420062008201020122014 Telephone & Wireless Internet TV & Radio Content TV & Radio Transmission Movies Content Communication

33 Presentation Master V 3.0 7-6-2001 - 32© 2001 Caspian Networks, Inc. Growth of Internet Bandwidth/User 197019751980198519901995200020052010 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

34 Presentation Master V 3.0 7-6-2001 - 33© 2001 Caspian Networks, Inc. Internet Television

35 170 Baytech Drive San Jose, California 95134 (408) 382–5200 www.caspiannetworks.com 170 Baytech Drive San Jose, California 95134 (408) 382–5200 www.caspiannetworks.com © 2001 Caspian Networks, Inc. CONFIDENTIAL AND PROPRIETARY INFORMATION

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