Infinera OFC 2016 Technology Briefing Dave Welch, President and Co-founder 22 March 2016 1 2016 Infinera
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 www.infinera.com and the SEC s website at www.sec.gov. We assume no obligation to, and do not currently intend to, update any such forward-looking statements. 2 2016 Infinera
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 3 2016 Infinera
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 1-2 - 4-10 - Integration and parallelization improves cost, density, reliability 4 2016 Infinera
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 5 2016 Infinera
Bandwidth Demand Grows Exponentially Super Bowl 2016 3x YoY 315 million minutes online By 2020 IoT growth 3x, 21B devices Mobile video use 13x 70% business cloud-enabled Source: Gartner, Ericsson, IBM 6 2016 Infinera
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 2011 7 2016 Infinera
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 2005 500G 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 2011 8 2016 Infinera
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 9 2016 Infinera
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 10 2016 Infinera
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 11 2016 Infinera
53% Lower TCO With Sliceable Photonics 500 450 340% more 400 350 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 300 250 200 150 100 50 56% more 37% more 113% more 53% lower 0 Modules Power Space TCO 12 2016 Infinera Comparable designs for Infinera and nearest competitor
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 13 2016 Infinera
Crushes Industry Benchmarks Subsystems Competition Infinera Infinite Capacity Engine Electronics Photonics 82% lower power Electronics Photonics Comparable Subsystems for 1.2Tb/s 14 2016 Infinera Comparable designs for Infinera and nearest competitor
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 15 2016 Infinera Source: Telegeography 2015
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 16 2016 Infinera
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