Infinera OFC 2016 Technology Briefing
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1 Infinera OFC 2016 Technology Briefing Dave Welch, President and Co-founder 22 March Infinera
2 Safe Harbor This presentation contains "forward-looking" statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends for our business; any statements of the plans, strategies, and objectives of management for future operations; any statements of expectation or belief regarding future events, potential markets or market size, technology developments, or enforceability of our intellectual property rights; and any statements of assumptions underlying any of the items mentioned. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including but not limited to: aggressive business tactics by our competitors, our dependence on a single product, our reliance on single-source suppliers, our ability to protect our intellectual property, claims by others that we infringe their intellectual property, and our ability to respond to rapid technological changes, and other risks that may impact our business are set forth in our annual reports on Form 10-K filed with the Securities and Exchange Commission, as well as subsequent reports filed with or furnished to the SEC. These reports are available on our website at and the SEC s website at We assume no obligation to, and do not currently intend to, update any such forward-looking statements Infinera
3 Aggregation or Disaggregation or Both? Standardized Specifications Device/Solution Performance Why? Examples When? Disaggregation Cost, Density, Simplicity Software (cloud), Digital hardware Cost becomes significant, Virtualized resources, Rapid deployment and product lifecycle Aggregation Cost, Density, Simplicity Analog hardware Cost / power benefit, Max performance need, Network accountability, Future-proof capacity Infinera
4 The Complexity of Analog Technology (Optical Transport) Baud Rate - 66G - 44G - 33G Channel Count Capacity-Reach factor paramount at system and fiber level Photonic integration optimizes baud rate, modulation, channel count Integration and parallelization improves cost, density, reliability Infinera
5 Breaking Through: Multi-Terabit Optical Subsystem Industry s first 2.4 Tb/s transport technology The next step function in optical with Infinite Capacity Engine Advanced electronics (DSP/ASIC): Next-gen FlexCoherent processor Cutting-edge photonics: Fourth-gen Photonic Integrated Circuit (PIC) Infinera Infinite Capacity Engine DSP PIC Infinera
6 Bandwidth Demand Grows Exponentially Super Bowl x YoY 315 million minutes online By 2020 IoT growth 3x, 21B devices Mobile video use 13x 70% business cloud-enabled Source: Gartner, Ericsson, IBM Infinera
7 Transport Bandwidth Step Functions 500G 100G 500G PIC Coherent SC HD-FEC SD-FEC Discrete 10G 10G Non Coherent 180nm Pre-Infinera 100G PIC Non Coherent Non Coherent 130nm, 10GBaud 2005 FlexCoherent DSP 40nm, 16GBaud Infinera
8 It s Time for a Quantum Leap to Multi-terabits Discrete 10G 10G Non Coherent Non Coherent FlexCoherent Electronics 180nm 130nm, 10GBaud Pre-Infinera 100G 100G PIC Non Coherent G Introducing the Infinera Infinite Capacity Engine Multi-Terabit Photonics Bigger Smaller Better Industry s first 2.4T super-channels Proven monolithic InP technology Industry s first multi-terabit 500G PIC Coherent SC HD-FEC SD-FEC L1 encryption, bulk + per service 82% lower power in a tiny subsystem vs. nearest competitor 4x more capacity per mm 3 FlexCoherent DSP 40nm, 16GBaud Sliceable photonics 53% lower TCO Advanced Coherent Toolkit (ACT) including Nyquist subcarriers Instant Bandwidth flexibility Infinera
9 Up to 12x Bigger: Multi-terabit Super-channels Increased Reach Infinera 500G Super-channel Long-haul Competition 200G/400G/500G Metro More Capacity Infinera Infinite Capacity Engine Up to 2.4T Super-channel Up to 26.4T / fiber BPSK, ME-PSK, 3QAM, QPSK, 8QAM, 16QAM Up to 12000km Infinera
10 Better Distance x Capacity Performance: 40-60% Infinera Advanced Coherent Toolkit (ACT) Nyquist Subcarriers SD-FEC Gain Sharing ME-PSK modulation High Gain SD-FEC Flexible Channel Spacing Subsea Capacity-Reach increase: BPSK ME-PSK + 3QAM mix & Margin Q- value increase via SD-FEC enhancements, 40-60% better Regional/Metro Move to higher-order modulation on existing fiber QPSK (1.2T) 8QAM (1.8T), 50% increase Infinera
11 Infinite Flexibility: Sliceable Photonics, Time-Based Instant Bandwidth A SDN B Plan Pre-Deploy (up to 2.4T) Activate Inst. BW (1.5T) C F Multi-terabit Super-channel Slice, Route, Modulate Use Time-Based Inst. BW D E 100G Subsea Infinera
12 53% Lower TCO With Sliceable Photonics % more Competition INFN Standard US Collector Network Client: 10G heavy, 100G later Traffic Growth: 3 Time Periods Mix of QPSK & 16QAM Mix of Switched & Muxponder Normalized % more 37% more 113% more 53% lower 0 Modules Power Space TCO Infinera Comparable designs for Infinera and nearest competitor
13 The Infinera Unified End-to-End Portfolio SDN and INFINERA NMS Triple Play Broadband Cable Broadband Business Ethernet Mobile Front/ Backhaul NID EDU ACCESS TM-Series TM-102 TM-301 METRO AGGREGATION TG-Series TM-3000 CORE XTC-2 LONG HAUL / SUBSEA DTN-X Family XTC-2E FlexILS XTC-4 XT Series PHOTONIC LEADERSHIP XTC-10 MTC-9 DC INTERCONNECT Cloud Xpress TM-Series Customizable per network location Infinite Capacity Engine 600G 2.4T Infinera
14 Crushes Industry Benchmarks Subsystems Competition Infinera Infinite Capacity Engine Electronics Photonics 82% lower power Electronics Photonics Comparable Subsystems for 1.2Tb/s Infinera Comparable designs for Infinera and nearest competitor
15 Crushes Industry Benchmarks Systems Nearest Competitor Reference Design Infinera Reference Design 12KW 8 Tb/s 12KW 8 Tb/s 12KW 8 Tb/s 42U Rack 12KW 24 Tb/s 75% of racks are 12KW or less in data centers Infinera Source: Telegeography 2015
16 A Quantum Leap in Optical Transport to Terabits Bigger Multi-terabit super-channels, up to 12x bigger Multi-terabit wire-rate L1 encryption Smaller One of world s smallest multi-terabit subsystem Lower power: 82% vs. competition Infinera Infinite Capacity Engine Better Sliceable photonics, 53% lower TCO Advanced coherent, 40-60% improved capacity-reach performance Infinera
17 Infinera
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