1. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved Chris Koeneman Vice President, Bluesocket Business Group

2. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 2 Who is ADTRAN?  Leading provider of innovative networking and communications equipment –ADTRAN solutions enable converged voice, data, video, and Internet services –Broad customer base with solutions widely deployed by carriers and businesses of all sizes, worldwide ADTRAN Headquarters, Huntsville, AL  Smart, reliable solutions for today’s communications networks –25 years of experience building innovative solutions supporting next generation technologies –Continued market leadership in key technologies from integrated access, DSL, and VoIP to routing  Dependable solutions for business and residential connectivity –Entrepreneurial engineering capabilities –Demonstrated financial competence

3. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 3 ADTRAN – Carrier Networks Divsion Exchange Provider’s Access Infrastructure Improve service provider access infrastructure Increase services for business & residential customers Broadband Access Ethernet Aggregation Optical Access Business Ethernet Services Business Service Migration IPTV VoIP Mobile Backhaul Improve service provider access infrastructure Increase services for business & residential customers Broadband Access Ethernet Aggregation Optical Access Business Ethernet Services Business Service Migration IPTV VoIP Mobile Backhaul

4. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 4 ADTRAN – Enterprise Networks Division Business Customers Value-based communication solutions for Small & Medium Enterprises ADTRAN solutions enable: Branch Office Connectivity Internet Access Converged Access LAN Switching Wireless Access IP Telephony/VoIP Unified Communications Value-based communication solutions for Small & Medium Enterprises ADTRAN solutions enable: Branch Office Connectivity Internet Access Converged Access LAN Switching Wireless Access IP Telephony/VoIP Unified Communications

5. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 5  Bluesocket was a VC-backed company based in Boston high tech corridor  Bluesocket acquired by ADTRAN in August 2011  Acquired for innovative application of network virtualization to solve scale challenges in Wi-Fi networks  Bluesocket remains as a business group in ADTRAN  Bluesocket R&D remains in Burlington, MA, and has more than doubled since the acquisition

6. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 6 Network Compute An Application Needs Both Dreams of virtualization Highly virtualized Want to expose the difference? Ask about Disaster Recovery

7. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 7 Virtualization Starts Here Physical Device Service Service is de-coupled from the asset on which it operates Service is not described on, associated with, or limited by any physical asset Once Service is isolated, it can be defined in independent software: SDN Separation

8. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 8 But can the network be virtualized? Server Virtualization and Network Virtualization

9. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 9 But the Network is Different

10. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 10 Understanding Network Virtualization with a Venn Diagram Network Virtualization Katy Perry Golden Gate Bridge Currently sexy Incredible scale Built in California Success at least partly due to superior underlying infrastructure

11. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 11 1.Independence from network hardware 2.Actually reproduce the network service model 3.Follow operational model of compute virtualization 4.Compatible with any hypervisor platform 5.Isolation between applications, physical network, and control plane 6.Cloud performance and scale 7.Programmatic network provisioning and control Seven Principles of Network Virtualization Products and solutions adhering to these principles are appearing on the market

12. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 12 Server and Network Virtualization  Compute and Network will become more symmetrical  Common set of software tools to both set up both the compute side and network side of an application  A symbiotic relationship between Compute and Network  But can the network virtualize? Here’s What’s Evolving

13. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 13 The Seeds for Network Virtualization are 40 years old It starts with control plane separation Is control plane separation something new? It starts with control plane separation Is control plane separation something new? SS7? What’s next? A discussion of rotary phones?

14. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 14 The Seeds for Network Virtualization are Present in IP Networks Separates functions End point independence and intelligence Tunneling options for control information

15. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 15 Define and Operate The Network in Software SDN Central’s definition of Software-defined Networking (n) is: A new approach to networking that allow network operators more control of their infrastructure, allowing customization and optimization that enables invention of and delivery of new types of network services.

16. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 16 Wasn’t GMPLS going to unify the control plane? A good idea… …that got way too complicated SDN has the potential to deliver on the promise of GMPLS

17. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 17 What Happened to GMPLS and derivatives such as GMPLS-TE? Koeneman Law of Networking Any networking protocol with an acronym that exceeds four letters is doomed to irrelevance… …unless it has a slash in it like TCP/IP … or a mixture of small case with capital letters like vWLAN SDN is often associated with network virtualization which is also referred to as Network Functions Virtualization or NFV. It is written as “SDN and NFV”. If it becomes SDNNFV, it’s all over. If it becomes SDN/NFV, there’s a chance.

18. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 18 Does SDN imply OpenFlow? OpenFlow is an example and not a forgone conclusion. May suffer from least common denominator problem while vendor specific implementations excel REST is a good example

19. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 19 Understanding SDN with a Venn Diagram Software Defined Networks Some say it is mythical Data centers actually encourage it Detected in large bodies of water Would change the world if it really gets loose Loch Ness Monster Global Warming

20. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 20 SDN Far Fetched? Remember… 1998 2013 Someday, your network won’t be switching circuits but rather handling packets of various lengths. Someday, your network won’t be made up of switches and routers but instead virtual machines controlling simple physical devices.

21. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 21 The Implication is Far Reaching  Service agility –Change the software to redefine a service  Cost effective scaling –Control plane can be scaled independently of the data plane  Higher reliability –Control plane interruption does not affect the data plane  Greater throughput –Data plane device optimized for throughput  But where do you start? Spiderman…. Seriously?

22. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 22  Access network –This is where services are defined and users are classified –Take advantage of the service definition advantage of network virtualization –But which access network?  Consider the Wi-Fi portion of the access network –Under tremendous scale pressure with the number of Wi-Fi devices and usage patterns –Economic scaling is the hallmark of network virtualization Starting Point for Network Virtualization

23. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 23 Wi-Fi comes to you in the form of the WLAN  Different approach than your home Wi-Fi  Common WLAN is an access controller along with Wi-Fi access points  Access points simply bridge a user from wireless to wired  Access controller behaves as a switch and performs all the heavy lifting for the data sessions and service definitions  Antithesis of the principles of network virtualization

24. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 24 What is WLAN Virtualization? Traditional WLAN  Service definition and data flow coupled at the controller vWLAN Service definition and user control separate from the data flow Access point optimized for data forwarding Service definition and user control in software in a virtual machine WLAN Controller Access Points Hypervisor Management Plane Control Plane Data Plane Physical / MAC Layer Management Plane Control Plane Data Plane Physical / MAC Layer REST APIs

25. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 25  VPN, VLAN…Now think vWLAN  Leverages three key assets –Physical: Data Center –Computing Infrastructure: Hypervisor –Personnel: Application Programmers  But it goes further… Network Virtualization Applied to the WLAN If you are thinking this is a vWLAN, you haven’t been listening

26. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 26 Centralized Cloud Control Managed WLAN enterprise customer Public Access HotSpot NOC WAN  No need for physical controllers at each site  All users controlled and all APs managed from NOC  Data sessions remain distributed at remote site  One architecture serving public access, managed services, and offload Cellular Offload

27. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 27 Back Up NOC Virtualization Enables Policing and Traffic Shaping at the Edge Unwanted Traffic Groomed traffic Data Center or Network Operations Center Control plane scale a function of data center capacity Control traffic Unwanted traffic is turned away at the access point and never enters the network Traffic is prioritized at the access point LAN Switch

28. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 28 Conclusion  Network virtualization will make network service definition symmetrical with application definition  Network virtualization solutions are available  An ideal target in the network is the access layer, specifically the Wi-Fi access layer  By applying network virtualization to the Wi-Fi access layer, tremendous benefits are realized in terms of economic scaling, high availability, cloud control, and security

29. ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 29 ? ? ? ? ? Chris Koeneman Vice President, Bluesocket Business Group of ADTRAN CHRISTOPHER.KOENEMAN@ADTRAN.com +1 781 996 9689