1. It’s 2015 What do you know about Passive Optical LAN? Luis Gamez
Sales Manager, APAC

3. A lot has changed on the LAN, and nobody seemed to notice...

4. Steven Forbes on Copper vs Fiber
“Before the car, came the horse and buggy; before computers, there were typewriters; and before wireless and fiber broadband networks, there was copper wire.”
There aren’t many horse and buggies on the road and most of us don’t have typewriters sitting on our desks. So why are copper networks still so widely used although they have been rendered obsolete by next-generation technologies?
The simple answer is that federal, state and local regulations are stuck in the past.

5. LAN Evolution Then… Now… 80% of LAN traffic stayed local
Core
Switch
Then…
80% of LAN traffic stayed local
Served computer access to departmental servers
Server access was occasional and generally non-time-critical
Now…
90% of LAN traffic flows directly thru core router to the Cloud or Wide Area Network
Today’s LAN serves:
Internet traffic, virtual desktop, hosted/managed and cloud-based applications, voice, video, building automation, lighting, security systems, Wireless (WiFi and Cellular)
Even employee personal traffic needs to be factored
Security concerns exist from external and internal source
LAN access is pervasive and time-critical

6. Legacy Copper vs. Fibre CAT3 • Voice only •Capacity in Kbps CAT5e
• Data only
• Capacity in Mbps

7. Mark Fabbi - VP Distinguished Analyst
Much has changed in enterprise data networking in the last ten years
Bandwidth requirements have gone up by orders of magnitude
The numbers & types of devices have also increased dramatically
Traffic patterns shifted to be more centralized– and now cloud-based
All happening in an economic environment where there's less to spend
And yet costly, workgroup switch-based LANs are built the same way
The time is now to seek innovative, cost-effective solutions at the enterprise edge

8. LAN itself hasn’t changed
Traditional Core/Distribution/Access designs are unnecessarily complex:
Throwing more bandwidth at problems is often the only option
Adding electronics in the “middle” of the LAN add costs, complexity, and reliability risks
IDF’s are increasing in size, power/cooling requirements are exploding, and security risks are real.
Network complexity contributes to downtime
Misconfiguration of a single switch can affect the entire network
Difficult troubleshooting made possible by Ethernet’s “Best Effort” nature
Lack of true centralized control and management add to the frustrations
Compounding problems for IT

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

10. * 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

11. These are not just IT Problems. These are Business Problems.
Compound Effect
Outages and slow-downs don’t go unnoticed
The always-connected nature of today does not allow for unnoticed downtime:
Voice and Video calls require low-latency
Security devices require constant, reliable data paths
Internet access and Cloud services drives traffic bottlenecks to the WAN
NetworkWorld Magazine article: “Our Bullet-proof LAN failed. Here is what we learned”:
By Paul Whimpenny, Senior Officer for IT Architecture in the United Nations:
Risk 1: The greater the complexity of failover, the greater the risk of failure
Risk 2: The greater the reliability, the greater the risk of not having operational procedures
Risk 3: The greater the reliability, the greater the risk of not having people ready
Jan 26, 2015
CCIE traveling (knowing all aspects) when the super network failed – 300 active ports with dual Gbps uplinks = 4h outage!
Remedy 1: Make the network no more complex than it needs to be.
Remedy 2: Plan, document and test.
Remedy 3: Get the right people in-house or outsource it.
Gartner, for example, has identified five principles of organizational resilience, of which only one relates tightly to IT (Systems, with the other four being Leadership, Culture, People and Settings)
These are not just IT Problems. These are Business Problems.

12. Implications of the Status Quo
LAN complexity is growing exponentially
Advancements in cloud, mobility, social, analytics, M2M and Internet of Things
United Nations – Our bullet-proof LAN failed! January 2015
LANs face increasing security threats
Infonetics says security is #1 concern for enterprise networks
Ponemon - cost for data breach in USA is $5.85M per incident
LAN supports real- time, critical services and commerce
LAN impacts labor productivity, data center connectivity and ecommerce
Infonetics – LAN downtime cost businesses ~3.6% annual revenue
50B things will connect to internet by 2020
Acceleration of connectivity with M2M, BYOD and Internet of Things
Forrester - 80% of global firms say IoT will be the most strategic technology initiative
Wi-Fi 802.3ac moving to 2G per WAP
Ubiquitous access for 3G/4G cell thru DAS is expected
Netgear – 67% business customers will not return to hotel with poor wireless
Rip and Replace electronics &
infrastructure
Forrester – 81% repeat business when expectations are exceeded

13. Passive Optical LAN
The path forward to better serve modern LAN traffic patterns
Direct traffic management capabilities allow you to allocate guaranteed bandwidth
Single point of configuration and monitoring
Native encryption and optical network enhances security
Fewer devices to Manage
Fewer moving parts mean less to buy, rack, stack, power, A/C, ventilate, provision, operate
Fewer things to break
Fewer latency concerns
Less conversions: electrical-to-electrical and optical-to-electrical
To improve energy consumption the industry can reduce these conversions (3)
And, gain benefit of reduced latency (4)
Passive-middle infrastructure eliminates or reduces IDF closet requirements
(3)
(4)
(5)
Flexibility
Disaster Recovery
Automatic s/w updates
Saves money (minimal day-1 capital expenses costs and predictable lower “pay as you grow” operating expenses)
Increased Collaboration
Work from anywhere
Document control
Security
Competitiveness
Environmentally friendly (this includes space and energy savings)
Core
Switch
GPON OLT
Core
Switch
© 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

14. 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.

15. 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
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

16. Operational Efficiencies
Legacy Copper-based LAN
Passive Optical LAN
Complex distributed network impacts policy and process consistency
Centralized Software fortifies processes
& policies A A
OLT
Local management and more humans touches wastes time & resources
Centralized management (M2M) speeds MACs &
reduces human errors B B
Less reliable network negatively impacts operational efficiencies
Simple Architecture improves operational efficiencies C C
More stressful and less productive work environment for IT staff
Consistency helps handle IT skill-set & head-count reductions D D
Deep network devices add complexity and vulnerable access points
Building
Automation
Advanced security reduces threat and downtime E
WAP E
Security
With centralized intelligence & management Optical LAN drives automation thru M2M actions
© 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

17. Operational Efficiencies Quantifiable Saving for 2,000 User/Employee
Operational Savings
Operational Efficiencies Quantifiable Saving for 2,000 User/Employee
700 users
employees served by Deltek OLAN installation
50 hours per week
amount of time saved by Deltek with OLAN’s centralized intelligence & Tellabs PON Manager
$56 per hour
Dunn & Bradstreet = average employee cost
From $145,600
50 x $56 x 52 = annual savings in IT staff productivity
2,000 users
mid-range size deployment for OLT1134
Up to $415,999
Savings for Tellabs’ Optical LAN (x 2,000)
Deltek’s 700 employee installation saves 50 hours a week in MACs due to Optical LAN architecture, Tellabs PON Manager and Advanced Operations features
50 hours times $56* = $2,800 times 52 weeks = $145,600
$145,600 saved annually
How about OLT1150E serving 3,000 employee facility?
50/700 = .07 average hours saved per employee
.07 x 3,000 x $56* x 52 weeks =
$611,500 saved annually
How about OLT1134AC serving 1,500 employee facility?
.07 x 1,500 x $56* x 52 weeks =
$305,760 saved annually
* Dunn & Bradstreet estimates $56 per hour average employee cost
Optical LAN can improve IT productivity and ultimately business productivity!
© 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

18. Business Security Impact
CIO priorities & high profile worse case scenarios:
Google, Yahoo and other Silicon Valley companies, stolen intellectual property (2009)
NASDAQ, sensitive communications of senior executives accessed (2011)
SONY, major cyber security breach – Customer Sensitive Information (2014)
Gartner Research: Security is a Top 10 technology priority for CIOs
Infonetics Study: Security is #1 concern for enterprise access networks
As companies harden the application layers against security threats, the network layer becomes next target. Improving the physical LAN defensibility,
enabling consistent protection policies is the new priority.

19. Enhanced Security Passive Optical LAN A A B B C C D D E E
Legacy Copper-based LAN
Passive Optical LAN
Complex distributed network impacts policy and process consistency
Centralized Software secures processes & polices A A
More humans touches increases configurations and MAC errors
OLT
Centralized Management reduces human errors B B
Less reliable network contributes to loss of data, files and records
Fibre is inherently more secure than copper cabling C C
Copper cabling introduces security weakness
Deep network devices store no configuration nor user information D D
Deep network devices add complexity & venerable access points
Building
Automation
Deep network devices provide no physical management access E
WAP E
Security
© 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

20. Security Comparison
Enhanced Security Quantifiable Saving for less than 500 User/Employee LAN
Less than 500 users
Realistic deployment size for enterprise LAN served by OLT1134
$99,944
2014 Symantec data breach calculator cost for “service only” company with only employee/company info at risk
29%
2014 Ponemon Institute, root cause = 42% malicious/criminal, 30% human error and 29% system glitch.
-$28,983
$99,944 x .29 = Percentage of responsibility for secure LAN infrastructure
$28,983
Proportional savings for Passive Optical LAN
Enhanced Security Quantifiable Saving for 1,001 to 5,000 User/Employee LAN
1,001 to 5,000 users
Realistic deployment size for enterprise LAN served by OLT1150E
$1,500,000
2014 Symantec data breach calculator cost for “service only” company with only employee/company info at risk
29%
The industries for which the costs were the highest are Healthcare ($358 per file) and Education ($294 per file).
-$435,000
$1,500,000 x .29 = Percentage of responsibility for secure LAN infrastructure
$435,000
Proportional savings for Passive Optical LAN
In 2014, a Ponemon Institute study concluded that the average cost of a data breach to a company in the United States (U.S.) was $5.85 million per incident.
(10) Symantec (using Ponemon Institute information) -
(11) Ponemon Institute -
© 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

21. Tellabs Optical LAN Tellabs® Advanced Availability Software Package
Goal is to build LANs that experience on average less than 5 minutes (or % uptime) and even 30 seconds (or % uptime) of annual network downtime, while lowering costs, reducing human error and improving security!
Fortifies the modern LAN that now supports critical, commerce and real-time services
Tellabs® Advanced Operations Software Package
Goal is to improve IT efficiencies by increasing speed of LAN installations, configurations, monitoring, troubleshooting and MACs, while reducing human error and security risks
Key being less human touches and more machine-to-machine actions through automation
Tellabs® Advanced Security Software Package
Goal is to improve the physical LAN defensibility, enabling consistent protection policies that are centrally managed, while reducing human error and increasing network stability
Delivers mechanisms needed for hardening LAN for demanding Industry Standards.
STIGS, FIPS, PCI and HIPAA
© 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.

22. Key takeaways With Passive Optical LAN, you can:
Eliminate complexity in the middle of the network
Have complete visibility into the network with Centralize management of the LAN
Future-proof your network with a modern optical infrastructure designed for upgradeability
with native encryption, Secure PON and no EMI, Improve you security
Manage unique bandwidth requirements that each device on the network requires
Stop having to throw bandwidth at problems
Core
Switch
(3)
(4)
(5)
Flexibility
Disaster Recovery
Automatic s/w updates
Saves money (minimal day-1 capital expenses costs and predictable lower “pay as you grow” operating expenses)
Increased Collaboration
Work from anywhere
Document control
Security
Competitiveness
Environmentally friendly (this includes space and energy savings)
GPON OLT
Core
Switch
© 2015 Tellabs Inc. All rights reserved. Tellabs Internal and Confidential.