Ethernet Market Research Panel

Ethernet is EverywhereSession A-102, Ethernet Technology Summit

April 15, 2015 9:50 – 10:50 am

Jathin Ullal, Infrastructure Architect, Saygo

Santa Clara, CA USA

April 2015 1

Market Research Panel

Vladimir Kozlov, CEO, LightCounting. Optoelectronics

Casey Quillin, Director, Dell'Oro Group. Enterprise, DC

Dennis Ward, Principal Analyst, ACG Research, Optical core

Frank Berry, Chief Analyst, IT Brand Pulse, Buyer behavior

Jathin Ullal, Infrastructure Architect, Saygo, Track Chair

Santa Clara, CA USA

April 2015

Santa Clara, CA USA

April 2015 3

Ethernet

Alliance

Roadmap

Santa Clara, CA USA

April 2015 4

Ethernet Market Map

Total Available Market

Market Drivers

• Supply side: Cost structure, Capital R&D Investment, Go To

Market, Inventory, Technology Roadmap, Competition

• Demand side: Current Market, Transitions, Life cycle,

Installed base, Application requirements, Budget, IT plans,

Business models

Macro-economic

Inflation, GDP Growth, Business confidence

Market Segmentation

Santa Clara, CA USA

April 2015 5

• Enterprise:Large enterprise, Campus, SMB, PoE, Fixed & Modular switches,

Servers, PCs

• SOHO

• Data Center & Cloud

• Service Provider:

Carrier Ethernet, Routers & Switches, Access Devices, Services

• Optical :

10/40/100G, OTN, ROADM, Packet optical hw and optics

Data Center Ethernet Switch Market

Santa Clara, CA USA

April 2015 6

• Total Ethernet switch market ~ $ 25-30 B

• Data Center switch market ~ $ 8B 40M ports

• Price per port dropping ~ $ 200/ GbE port

• Over 10% of ports shipping are 40 & 100 GbE

Carrier Ethernet Market

Santa Clara, CA USA

April 2015 7

• By 2017*:

• $ 37B annual equipment revenue

• 95 Million ports

• 10G to overtake 1G

• APAC, US, EMEA, CALA

• Services

• Ethernet VPC (eVPC)

* Infonetics 2013 report

Residential Broadband Ethernet

Santa Clara, CA USA

April 2015 8

• ePON

• 10GePON

• ePoC

• Optical Network Units (ONU)

• Optical Line Units (OLU)

Open Ethernet Switching

Santa Clara, CA USA

April 2015

• Bare metal, White, Brite box switches

• Open Extensible network OS: Arista EOS vs Cumulus, PicOS,

Open Network Linux (ONL) vs Juniper, Dell NOS vs Cisco IOS

• Data Plane Development Kit (DPDK)

• Control Protocols – Openflow, Netconf, Yang

Challenges to Ethernet Market success

Santa Clara, CA USA

April 2015 10

• Ability to solve customer challenges in new and innovative ways

• Lack of leadership/support for innovation

• Components not available at the price point that customers demand

• Legacy infrastructure requiring upgrade

• Early in the standardization process

• Budgetary priorities

• User acceptance on a mass scale

• Reliability

• Interoperability

• Technology challenges