World Tour

1

• World Tour
• London 2008

PREMIER SPONSORS
GOLD SPONSOR
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Welcome!

• Kevin Vachon
• Chief Operating Officer
• MEF

3
MEF Mission Areas of Work

• Accelerate the worldwide adoption of Carrier
  Ethernet networks and services

Specifications and Liaison
Marketing Carrier Ethernet
Certification Programs
4
Carrier Ethernet Scope of MEF Work
HD TV, TVoD, VoD, Content Providers
Voice/Video Telephony
Internet information Software apps
Host applications, Consolidated Servers
Gaming, DR, ERP
Video Source
Carrier Ethernet
Carrier Ethernet wire-line and mobile
backhaul with copper, fiber , cable, wireless
access network delivery
5
MEF Membership 153 Companies
Aug 2008

• Membership doubled over 2 years
• Active involvement in Forum workgroups

Service Provider, Cable/MSO Members

• AboveNet
• Alpheus Communications
• ATT
• Belgacom
• Bell Canada
• Bright House Networks
• British Telecom
• Cable Wireless
• Charter Communications
• China Telecom
• Cincinnati Bell
• Colt
• Comcast
• Cox Business
• Demand Broadband
• Embarq
• Global Crossing
• IPC
• KDDI RD Laboratories

• PCCW
• PT Inovação
• PT Prime
• Qwest Communications
• RCN Business Solutions
• Reliance Communications
• Rogers
• Shanghai Information Network
• Singapore Telecom
• Sprint
• Suddenlink
• Swisscom
• Symphony Communication
• TATA Communications
• Telecom Italia
• Telekom Malaysia
• Teliasonera AB
• Telus
• Time Warner Cable

Equipment Vendors, Software Test Companies, Lab
Members

• Accedian Networks
• Actelis Networks
• Adtran
• Adva Optical Networking
• Aethera Networks
• Agilent Technologies
• Aktino
• Alcatel- Lucent
• Alloptic
• ANDA Networks
• ARRIS International
• Atrica
• Aurora Networks
• Axerra Networks
• Bay Microsystems
• Broadcom
• BTI Photonics
• CableLabs
• Calix

• Dowslake Microsystems
• DragonWave
• EANTC
• ECI Telecom
• Ericsson
• Ethos Networks
• EXFO
• Extreme Networks
• FibroLAN
• FiberHome Technologies
• Fluke Networks
• Foundry Networks
• Fujitsu Network Communications
• Gridpoint Systems
• Hammerhead Systems
• Harris Stratex
• Hatteras Networks
• Hitachi Cable
• Huawei Technologies

• JDSU
• Juniper Networks
• Lightstorm Networks
• Maipu Communications
• Matisse Networks
• Maxim
• Motorola
• MRV Communications
• Nakina Systems
• NEC
• Nokia Siemens Networks
• Nortel Networks Corp.
• Occam Networks
• Omnitron Systems
• Overture Networks
• Qosera
• PCT International
• RAD Data Communications
• Raisecom

• Spirent Communications
• Starhub
• Sunrise Telecom
• T Pack
• Tejas Networks
• Telco Systems
• Telcordia Technologies
• Telecommunication Metrology Center
• Tellabs
• Telrad Networks
• Transition Networks
• Transmode Optical
• Transwitch Corporation
• Turin Networks
• UNH-IOL
• UTStarcom
• Vitesse
• Wipro
• Wintegra

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6
Specifications Timeline 2001 2008Approved MEF
Specifications
MEF 16
MEF 4
MEF 7
MEF 12
ELMI
Architecture
EMS-NMS
Architecture
MEF 6.1
MEF 10.1
MEF 11
MEF 15
Ethernet Service Definitions Phase 2
MEF 2
Service AttributesPhase 2
MEF 17
Protection
UNI Framework
Management
Service OAM
2001-3
2006
2005
2004
2007
2008
MEF 13
MEF 18
MEF 20 UNI Type 2 MEF 21 UNI Type 2 Test Suite
Part 1
MEF 3
MEF 10
UNI-IA
Circuit Emulation Services Test Suite
Circuit Emulation
Service Attributes Phase 1
MEF 14
MEF 19
Traffic Management Test Suite
UNI Type 1 Test Suite
MEF 6
MEF 8
Circuit Emulation
Service Definitions
MEF 9
Services Test Suite
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MEF Certification Programs

• Manufacturer and Service Provider Certification
• Certification for Carrier Ethernet equipment
  supplied to service providers
• Certification of service provider services to
  assure customers that service they are using
  Carrier Ethernet services compliant with MEF
  specifications

TM

• Certification Programs for MEF 9, 14 and 18
• Service certification to MEF 9 and MEF 14 for
  equipment manufacturers and service providers
• Circuit Emulation Services over Ethernet to MEF
  18 for equipment manufacturers

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MEF Certified Companies
Aug 2008
Growth Continues 70 Certified Services, 400
Certified Systems, 1000s tests
22 Service Providers Certified
MEF Certification Lab
65 Equipment Manufacturers Certified
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www.metroethernetforum.org
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MEF Tools Unique Global Services Directory

• Business Users
• Find Carrier Ethernet services anywhere in the
  world.
• Service Providers
• Find a partner to build a global Carrier Ethernet
  service.
• Featuring
• Free access to interactive map driven system
• Latest information on available services
  globally, locally
• Launched with first 17 service providers,
• http//www.metroethernetforum.org/gsd
• Service Provider maintenance system

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The MEF Looking Forward
Enabling Fully Scalable Worldwide Operations

• New Specifications for Automated Management
• Automated management of the User-Network
  Interface (UNI) (defined in MEF 20 7/08) and
  related specifications in 2009
• Specifications for Worldwide Interconnect
• Ethernet Network to Network Interface (E-NNI) Q2
  2009
• Other related Interconnect specifications
• Operational Tools
• Global Services Directory -on line and
  interactive
• Wholesales Access Interconnect Tools assist
  provisioning
• Bringing Ethernet Cost Model to Global Operations
  
• Major opportunity for cost savings in global
  service level networks over legacy networks

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Business Drivers for Carrier Ethernet

• Phil Sayer
• Principal Analyst, Forrester Research
• Strategic Board Member, CMA

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(No Transcript)
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Forrester Research - Historical Snapshot
Forrester Research is an independent technology
research company that provides pragmatic and
forward-thinking advice about technologys impact
on business and consumers.

• Founded in 1983 by George Colony, FY2007 212M
• Profitable since inception, double digit revenue
  growth the last four years
• 1000 employees globally
• 350 research professionals
• Over 2300 clients world-wide
• 75 of the Fortune 100 are clients

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Leaders rely on Forrester every day
Proportion of Global Fortune 100 that are
Forrester clients
80 of the Global Fortune 100 companies are
current Forrester clients
Proportion of Global Fortune 100 that are
Forrester clients
16
Agenda

• IT Trends
• Ethernet Adoption In Europe
• What Are Enterprises Saying?
• What Are Service Providers Saying?
• Recommendations

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Agenda

• IT Trends
• Ethernet Adoption In Europe
• What Are Enterprises Saying?
• What Are Service Providers Saying?
• Recommendations

18
What is driving IT?

• Stay ahead of next generation data center
• technologies
• Consolidate IT for cost, efficiency, and
• simplification
• Deliver always-on, always-available
• infrastructure
• Enable user productivity through mobility
• Automate and simplify IT processes
• Maintain and optimize core IT systems

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What Business Issues Drive WAN Technology
Requirements?

• Cost pressures
• Data center consolidation and server
  virtualization
• Drives up traffic and performance requirements
• New apps unified communications, telepresence
• Site bandwidth goes up from 2 Mbps to 100Mbps
• At Rabobank it went straight up to 1 Gbps
• Security and compliance issues
• Availability, resilience without compromises
• Flexibility, speed of response

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Enterprises must constantly innovate WANs

• Enterprise data traffic growth in Europe forecast
  to grow by 30 - 70 per annum to 2012 typically
  doubling every 18 months
• Tariffs fall by 5 10 per annum
• Without innovation, cost rise inexorably
• This is why carrier Ethernet is on every agenda
• But there is more to do
• Application acceleration and compression
• More efficient coding technologies eg for video
• Traffic migration to the Internet

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Agenda

• IT Trends
• Ethernet Adoption In Europe
• What Are Enterprises Saying?
• What Are Service Providers Saying?
• Recommendations

22
Forresters Networks and Telecoms Survey

• Every year, Forrester surveys over 2000 SMBs and
  Enterprises in N America and Europe about telecom
  trends
• Spending patterns
• Telecom project priorities
• Technology adoption
• Supplier preferences
• Sourcing strategies

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Network and telecom trends

• Almost all (93) European enterprises are
  multisourcing and buying managed services (95).
• MPLS (75), carrier Ethernet (70), and Internet
  VPNs (98) are in mass adoption
• Enterprise business communications
• VoIP is mainstream, and Unified comms and
  collaboration are gaining momentum.
• More video! Telepresence, desktop vc, video file
  dowloads
• Server consolidation is driving new network based
  services application acceleration, WAFS,
  network based security.

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Ethernet Services Are Outpacing MPLS in European
Enterprises
September 3, 2008 Ethernet Services Take Europe
By Storm
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What has happened over the last year?

• Ethernet deployment in Europe is up from 25 to
  42
• The doubters are becoming convinced. In 2007, 37
  of enterprises had no plans. 2008, down to 23.
• Europe leads N America in Ethernet deployment by
  14 percentage points. Why? Lower prices!
• SMBs are joining the party. 38 have deployed
  Ethernet access circuits and many are buying
  E-Line services.

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Why are enterprises choosing Ethernet?

• Higher speeds
• 10 Gbps in metro areas, with 40 Gbps soon
• 1 Gbps nationally and between major capital
  cities, 10 Gbps soon
• Better prices
• Overall savings can be 20 to 30 compared with
  MPLS and more!
• Lower latency
• Figures as low as 6 ms RTD for 500 miles
• More control
• Better control over security, routing, and
  network architecture
• Lower CPE costs
• 1 Gbps switch cards are much cheaper than STM-1
  interfaces

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Who is buying Ethernet?

• At the start finance driven by performance
• Then media driven by bandwidth, and business
  services, looking to innovate
• Now most sectors, driven by cost and innovation
• Retail/ wholesale
• Transport
• Public services
• Starting to get the message mining,
  petrochemicals, manufacturing

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Single-sourcing global network services has lost
favor why?

• Single source deals dont deliver on
• Service
• Competitive Pricing
• Longer term market price tracking
• Innovation
• Commercial security
• Physical security

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Pros and cons of multisourcing WAN services

• For
• Better control of cost, service, flexibility
• Local market knowledge and local contacts
• Competition works best to spur good service
  delivery at good price points.
• Less risk not total dependence on a single
  supplier its easier to change one supplier
• Innovation
• The small guys do it better

• Against
• More in-house effort required for
• Network design and management of multivendor WANs
• Service management different SLAs, reporting,
  billing
• Contract governance
• Integration becomes the user companys
  responsibility.
• The customer gets caught in the middle of
  finger-pointing.

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Ethernet and Multisourcing

• Multisourcing will favor
• Best of breed local infrastructure operators
• Service providers who offer innovative services
• Regional carriers with in-depth coverage
• Multisourcing will not favor
• Carriers who offer one-size-fits-all services
• Service providers who follow rather than lead

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What are enterprise strategies?

• Centralize sourcing and vendor management for the
  global WAN, and standardize procurement and VM
  practices across federated organizations.
• Use regional providers where deep coverage is
  needed and require NNIs with a global WAN
  provider.
• Negotiate flexible Ts Cs, and avoid minimum
  annual revenue commitments.
• Use more alternative and new access technologies.

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Managed service procurement trends

• Enterprises are buying managed telecoms from
  system and network integrators as well as telcos
• Growth of managed network (WAN LAN) services
  48 are already using managed MPLS
• VZB reports that 85 of its recent MPLS deals
  are managed
• Ethernet services must follow this trend too

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Agenda

• IT Trends
• Ethernet Adoption In Europe
• What Are Enterprises Saying?
• What Are Service Providers Saying?
• Recommendations

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What do enterprises say about Ethernet?

• We buy it wherever we can
• For high speed point-to-point links it is the
  only choice
• For access circuits it is the first choice
• Enterprises that try out E-LAN services like
  them
• Enterprises want
• CoS and SLAs at least as good as MPLS
• Supplier Interconnection agreements with service
  transparency
• The same service types and quality everywhere!
• E-ordering, reporting, billing, and trouble
  ticketing

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Agenda

• IT Trends
• Ethernet Adoption In Europe
• What Are Enterprises Saying?
• What Are Service Providers Saying?
• Recommendations

36
Alcatel-Lucent simple and cost-effective
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CW scalable, economic, robust
38
Agenda

• IT Trends
• Ethernet Adoption In Europe
• What Are Enterprises Saying?
• What Are Service Providers Saying?
• Recommendations

39
Recommendations

• Enterprises use Ethernet to improve service
  quality, lower costs, and increase agility
• move to multi-service access everywhere
• take a look at E-LAN services
• Service providers
• Dont miss the E-LAN (VPLS) boat!
• Build infrastructure, use NNIs to expand reach
• focus on SLAs, managed services, and
  e-everything

Within 12 months carrier Ethernet will be the
preferred WAN technology for MNCs
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Ethernet Services Take Europe By Storm
41
Thank you

• Phil Sayer
• 44 20 7323 7637
• psayer_at_forrester.co.uk
• www.forrester.com

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Ethernet in the 21st century organisation

• Tim Hubbard
• Head of Technology and Platform Introduction
• bt.com

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The changing environment

• Increased financial pressures on business
• Rising input costs e.g. energy and transport
  costs
• Economic slowdown putting pressure on
  profitability
• Organisations becoming ever more dependent
  onnetworked IT services
• Applications developments driving increase
  innetwork demands
• Moores law computing power doubles every 2
  years
• Edholms law data rates improve in a similar
  manner to Moores law
• Infrastructure must support the demands of
  applicationsand business processes
• Capacity
• Resilience
• Agility
• Imperative to reduce costs and improve efficiency
• But ensure short term measures support long-term
  strategy

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Meeting the infrastructure challenge
Response

• Challenge

Scalable infrastructure supportingapplications
now and in future
New applications requirehigh network performance
Legacy infrastructure of limitedcapacity and
performance
High-capacity end-to-end networking
Managing disparate technologiesabsorbs resource
and raises costs
Simplified infrastructure Ethernet end-to-end
Local, National, Global - from a singleglobal
supplier
Wide geographical spread
Scarce skills to supportolder technologies
Managed service reduces pressures onin-house
staff
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BTs platform 21CN (21st century network)
21CN is an advanced multi-service network that

• Supports Ethernet and IP services
• Provides a platform for innovation,
  collaboration, agilityand customer service
• Enables the separation of network and services
• Enables a new generation of networked IT services
• Utilises 21CN Capabilities to support
  fasterdevelopment of exciting new services
• Empowers customers with control, choice and
  flexibility
• Radically enhances the customer experience

46
What is Ethernet access?

• Access is the connection from the customers site
  tothe network IP or Ethernet VPN (local,
  national, global)
• Ethernet access provides
• Standard well-known interface
• Flexibility in bandwidth use
• Uses expertise gained from LAN management
• Reduces costs by up to 50
• Access options
• Fibre
• Copper
• Passive Optic Networks
• Wireless

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What are Ethernet services?

• Layer 2 end-to-end Ethernet services
• There are three main variants
• Ethernet Private Line (EPL)
• Point to point service
• Evolution of TDM
• Ethernet Virtual Private Line (EVPL)
• Typically used for hub spoke networks
• Evolution of Frame Relay and ATM (CellStream)
• Ethernet LAN services (E-LAN)
• Any-to-any service
• Complementary to IP-VPN

48
IP vs Ethernet the wrong debate

• A debate is raging
• Which is better IP or ethernet?
• Which is cheaper?
• Is ethernet going to take over from IP?
• Or will IP win out in the end?
• These are the wrong questions to ask

• Our view is that in the 21st Century network
• Ethernet and IP will co-exist
• Complimenting each other
• Meeting different needs
• Both occurring in hybrid networks
• Delivered over a single, global MPLSplatform
  (21CN)
• Sharing similar cost and service characteristics

49
Differences between IP-VPN Ethernet services

• IP and Ethernet VPNs are complementary and suit
  different requirements

IP-VPN
50
The BT Ethernet portfolio

• Etherway
• Access component of Etherflow
• Can be multi-service accessto Layer 3 (e.g.
  IPVPN) andLayer 2 (Ethernet VPN) services
• EFM access
• Bonded copper access toa range of network
  services,including IP and Ethernet VPNs

• Etherflow
• New 21CN service configurable as EPL, EVPL or (in
  development) ELAN
• MegaStream Ethernet
• Existing Ethernet EPL or EVPL service using
  currentnetwork platforms
• EtherConnect
• A custom regional network service designed
  forlocal government
• EES, FEES, GEES
• Point-to-point fibre Ethernet extension services
• 10Mbit/s Ethernet Extension Service (EES)
• 100Mbit/S Fast Ethernet Extension Services (FEES)
• 1Gbit/s Gigabit Ethernet Extension Services
  (GEES)
• BTnet
• BTs primary business internet access service via
  Ethernet
• IP Clear, IP Converge
• Proven and popular IP-VPN services now have
  Ethernetaccess options

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Etherflow adaptive, high-performance,21st
century Ethernet

• BTs first 21CN business service in the UK
• An Ethernet private line Ethernet virtual private
  line service
• Provides a natural migration for private
  circuits, ATM and Frame Relay and complementary
  to IP-VPNs
• Easy re-configuration to meet future needs
• You can choose from two traffic classes
• Standard
• Premium (for delay sensitive applications)
• Access speeds
• Oct 08 10Mbit/s 1Gbit/s
• Mar 09 1Mbit/s 1Gbit/s
• Virtual connection speeds
• 200Kbit/s 1Gbit/s
• Geographical rollout
• Oct 08 106 21CN Access nodes
• Mar 09 600 21CN Access nodes
• Dec 09 1000 21CN Access nodes
• Online customer service portal

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Ethernet in the First Mile (EFM) Access Options

• New bonded copper, symmetrical access
• Access speeds 2Mbit/s 10Mbit/s
• More flexible and cost-effective alternative to
  accessingnetwork services compared to SDSL or
  private circuits
• Enhanced coverage via new 21CN Access Nodes
  providinglower cost for fibre access
• Can be used to access
• MegaStream Ethernet (an Ethernet VPN)
• IP Clear/Converge (an IP-VPN)
• EFM access to Etherflow available from Mar 09
• EFM rollout
• Aug 08 47 exchanges
• Mar 09 600 exchanges

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Our Ethernet credentials

• BT has been providing Ethernet accessservices
  for over 17 years
• A base of over 33,000 Ethernet installations
• BT experts are leading the development
  ofEthernet standards
• Guaranteed investment funding and timetablefor
  UK rollout
• With 21CN BT will bring you one of the
  largestinstallations of Ethernet anywhere in the
  world

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Some network scenarios
55
Conclusions
56
Panel IBusiness Services OverviewOfferings for
Today and Tomorrow

• Moderator James Eibisch
• Research Director, European Telecoms and
  Networks, Forrester Research

57
Business Services OverviewOfferings for Today
and Tomorrow

• James Moore, Global Product Marketing, BT
• Phil Tilley, VP EMEA Marketing, IP Division,
  Alcatel Lucent
• Ian Harris, Metro Ethernet Business Development,
  Nortel

58
Service Axes

• Three key attributes
• Service Type Based on MEF definitions (E-Line,
  E-LAN, and Access)
• Geography Area where service is delivered.
  (Metro, national and international)
• Speeds Bandwidth profile of delivered service
• Other attributes
• CoS/QoS service prioritization
• Protection schemes
• Handoffs

59
IDC Forecast Framework
gt1000 Mbps
lt1000 Mbps
lt100 Mbps
lt10 Mbps

• Demand side firmographic information, enterprise
  trends and research
• Supply side carrier research, market analysis

60
UK W. Europe Ethernet Forecast
Does not include Ethernet access (to Internet, IP
VPN, etc.) Spending growth from 1.5B in 2007 to
4.2B in 2012, CAGR of 22 Growth is highest in
national, international and high-bandwidth
services
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Applications

• General Demand
• LAN-to-LAN
• DR/BC
• Video conferencing (telepresence)
• Internet access
• Application aware networks/SOA
• Converged access
• VoIP
• Data center/IT infrastructure consolidation
• Virtualization, grid, utility services
• SaaS
• Business Process automation (ERP, CRM, SFA, etc.)

• Vertical Specific Demand
• Medical Imaging (PACS)
• CAD/CAM
• Video content (broadcast, streaming)
• Financial simulations (e.g. Monte Carlo)
• Financial trading and market info
• Distance learning
• Internet infrastructure
• Public sector

62
Business Services OverviewOfferings for Today
and Tomorrow

• James Moore, Global Product Marketing, BT
• Phil Tilley, VP EMEA Marketing, IP Division,
  Alcatel Lucent
• Ian Harris, Metro Ethernet Business Development,
  Nortel

63
Case Study IBusiness Benefits of Carrier Ethernet

• Introduction Peter Konings
• Product Director, Global Private IP Services,
  Verizon
• Case Study Paul Ellis
• Chief Operating Officer, Fixnetix Ltd

64
Global Communications Service Provider
Customers
From convergence, the new provider is enabled
Flexible Global Customer Engagement
Robust Customer Communications Portal
Globally Consistent Customer Care
Professional Services
Service Management Platform and Managed Services
Collaboration Solutions
Security Services
Application Performance
Global IP Network Services
Solid foundation capability with flexible service
solutions
65
Verizon Business Networking Solutions
Communication Solutions
Innovative communicationsolutions
Security
Management
Collaboration
Global IP Network
Secure Gateway
Global networks with Secure Gateway integration
MPLS
Ethernet
Public IP
Extensive breadth and depth of access choices
Ethernet
Optical
Frame/ATM
Wireless
Remote Access
Satellite
DSL
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Reducing Latency while increasing Availability
67
Increasing Availability Making Latency
Predictable
68
Ethernet Growth and Market Projections Require a
Balanced Ethernet Product Portfolio
Ethernet Virtual Private Line (EVPL)
E-LANand Virtual Private LAN Service (VPLS)
Ethernet Access
Ethernet Private Line (EPL)
69
Business Benefits of Carrier Ethernet

• Case Study Paul Ellis
• Chief Operating Officer, Fixnetix Ltd

70

• September 2008

• The ultimate trading advantage
• microsecond access
• end to end delivery
• easy integration

71
THE OPPORTUNITY
Fixnetix is becoming the leading provider in
Europe for ultra low latency connectivity for
data trading
Outsourcing
Data
Trading

• New markets on demand
• Reduced latency
• reduced risk
• No missed opportunities
• Reduced cost of trading

• No long term commitment
• Restrict CapEx costs
• Expertise on demand
• No restrictions of
• resource or power

• Best Execution trading
• Never missing a tick
• Ability to future proof
• Performance Cost

Hedge Funds Agency Brokers Investment
Banks Exchanges/MTFs
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TRADING IS SLOW TODAY
Current solutions are manufactured using legacy
infrastructure Engineering a performant solution
requires a complete rebuild of existing
infrastructure using best of breed components and
the expertise to design and manage
Separate Execution Routing
Conventional Infrastructure
Market data
Multiple Networks
Aggregation
Ticker Plant
Data Distribution
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NEXT GENERATION TRADING INFRASTRUCTURE
Data is processed at the exchange source and
delivered as a Service on the wire
Fixnetix provide resilient high bandwidth
circuits using the same connection data trading
1-2 ms
iX-Direct
Market data
Exchange Technology
Connectivity People

• Co-Location
• Feed choice
• Vendor of Record
• NSP Status

• Network Design
• Engineering
• Support Monitoring
• Helpdesk

• Feed Handlers
• Ultra-low latency backbone
• Hardware

• Optimal routing
• Dedicated Network
• Gigabit circuits

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73
74
A PRICE MISSED IS AN OPPORTUNITY LOST
C
B
A
Best Execution Opportunity to sell a large block
without affecting the market Combination
B
C
A
B
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18 MONTHS OF ACHIEVEMENT
Exchange Memberships

• Stock Markets
• LSE
• Frankfurt
• Paris
• Amsterdam
• Brussels
• Lisbon

• Futures Options Markets
• Eurex
• Liffe
• MEFF (Spain)
• IDEM (Italy)
• Chicago Mercantile

• Bond Markets
• EuroMTS
• Multilateral Trading Facilities
• Equiduct
• Chi-X
• Turqouise
• BATS

• Dublin
• Milan
• Madrid
• Swiss
• Virt-x

Data Centres
75
76
AN INTEGRATED TEAM/SOLUTION

• 3 - Network
• Co-location _at_Source
• Resilient live-live environment
• Multiple data centres
• Gb Ethernet/Fibre connections

• 1 - Exchange
• Co-location _at_Source
• Optimal connectivity choice
• Optimal Feed choice
• Official Data Vendor
• Exchange Network provider

• 4 - People
• Market leading integrated team covering all
  deliverables
• Engineering expertise
• 7am 9pm support
• Upgrades/Monitoring

• 2 - Technology
• Ultra low latency tickerplant
• Optimal Feed Handler choice
• Multiple interfaces for easy integration

Since seamless integration of all components and
resources remains a critical aspect
of maintaining a system with the lowest latency
possible, the firms that can create technology
teams by using knowledge that stretches from the
routing switch to the user interface will be the
ones who take the lead in low latency. Tabb
Group
76
77
OUR CORE STRENGTHS

• World class team of Market Data professionals
• Not just a provider of one component but an
  end-to-end solution encompassing all deliverables
• Direct data vendor agreements with exchanges
• Network Service Provider status to provide
  exchange trading connectivity
• Distributed architecture close to each exchange
• Proven technology for sub-millisecond processing
• Network design with up to 1Gb Ethernet or fibre
  connectivity

• Turquoise

• CHI-X

• MTS

• LSE

• Equiduct

• LIFFE

London (2)

• CME

Dual Gigabit
London (1)

• Deutsche Borse

• Eurex

Dual Gigabit
Frankfurt
Dual Gigabit

• Euronext

Paris
77
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CONCLUSION THE FIXNETIX ADVANTAGE

• Performance
• The fastest end to end solution
• Fully resilient with no single point of failure
• Multiple options including exchange colocation at
  source and multiple telco connectivity solutions
• Cost effectiveness
• Dramatically reduced total cost of ownership
• No CAPEX requirement
• Fully managed outsourced service
• Ease of integration
• Reduced lead times
• Multiple formats
• Services delivered on the wire with no hardware
  or software installed on site
• Expertise
• Dedicated team of experts from top IBs
• No customer investment required in technology
  skills

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79
Network Topology
79
80
Network Topology
80
81
Panel IIEuropean and Global Services Availability

• Moderator James Eibisch
• Research Director, European Telecoms and
  Networks, Forrester Research

82
European and Global Services Availability

• Matthew Hayes, Consulting Systems Engineer, Ciena
• John Hoffman, Product Manager, Global Enterprise
  Solutions, Tata Communications
• Peter Konings, Product Director, Global Private
  IP Services, Verizon

83
Global Carrier Ethernet Services (B)
Excludes Ethernet access - as a result WE is
largest region now and in 2012 US and AP
dominated more by Ethernet access to other
services - IP or DIY networks. Ethernet widely
available in major regions now, and coverage
increasing rapidly worldwide
84
Service Displacement

• Indications are displacement occurs but overall
  bandwidth usage increases

85
Growth Drivers

• Market Expansion
• Regional, country, municipal carrier deployments
• Large carriers filling out product suites
• Product Expansions
• VPLS, pseudowire services
• CoS/QoS Deployments
• Footprint Expansion
• Fiber buildouts
• Ethernet over copper
• Ethernet over wireless

86
Limits to Growth

• Network Reach
• Fiber buildouts
• Over copper, wireless, etc.
• Over private line services
• Ethernet NNIs
• Offering proliferation/rationalization
• Customer understanding and confusion

87
European and Global Services Availability

• Matthew Hayes, Consulting Systems Engineer, Ciena
• John Hoffman, Product Manager, Global Enterprise
  Solutions, Tata Communications
• Peter Konings, Product Director, Global Private
  IP Services, Verizon

88
Case Study IICarrier Ethernet The Business
Rationale

• Introduction Stuart Lodge, VP Enterprise, Tata
  Communications
• Presentation Case Studies Chas White,
  President and Managing Principal, White and
  Associates

89
Who is Tata Communications?

• State-of-the-art Infrastructure
• 200,000 route km global network
• 300 points of presence (PoPs)
• 20 terabit submarine capacity
• 1M sq. feet of data center space

• Customers
• 1,500 global carriers
• 600 mobile operators
• Fortune 1000 of India
• 5,000 SMEs in India
• 500,000 Internet and broadband subs

• Industry Leader
• 1 global wholesale voice
• 1 global submarine cable capacity
• 1 international long distance services in India
• 1 enterprise data services in India
• 1 Internet services in India

90
A New World of Communications

• Delivering an extensive product portfolio that
  provides Converged IP Solutions and Managed
  Services
• Network Services
• Managed IT Infrastructure Services
• Collaboration Services
• Managed Application Services
• Managed Security Services
• Professional Services and Outsourcing

91
Our Ethernet Portfolio and Global Coverage

• Point to Point
• Global Dedicated Ethernet
• National Dedicated Ethernet
• Priority Ethernet (National and Global)
• Point to Multipoint (Hub and Spoke)
• Priority Point to Multipoint Ethernet (National
  and Global)
• Dedicated Point to Multipoint Ethernet (National
  and Global)
• Multipoint (Any to Any)
• Dedicated Multipoint Ethernet (National and
  Global)
• Options
• Enterprise SLA Option
• (not available on Priority Ethernet or Priority
  Point to Multipoint Ethernet today)
• National services are within India

92
Carrier Ethernet The Business Rationale

• Chas White, President and Managing Principal
• White and Associates

93
Carrier Ethernet The Business Rationale
MEF Conference - London 18 September 2008
Chas M. White, MS President Managing
Principal White Associates RD, LLC
94
Setting the Stage

• The Carrier Ethernet Services discussed are
  intended to reflect the operational definitions
  as depicted in the graphic to the right.
• Rather than attempt to state an anticipated
  value for any of the generally accepted financial
  indicators (e.g., ROI, TCO, etc) the presentation
  will identify key considerations necessary to
  these calculations.
• As with most emerging technologies, market
  trends, variance between vendor offerings, the

TECH TRACKER CMP Publications 2006

• maturation state of relevant standards and
  compliance therewith, and volatile pricing models
  complicate future value calculations and will
  influence attempts to generate independent
  financial evaluations.
• Decision criteria, such as security
  considerations, that are less quantifiable but
  often critical will be identified where relevant.

95
Where does Ethernet fit in the Stack?
Source Forrester Research, Inc.
96
Who is considering adoption?

• Within the US the three most aggressive sectors
  in Ethernet adoption have been utilities (30),
  finance and insurance (29), and media,
  entertainment and leisure (36), the traditional
  users of dedicated (PL) services.

97
Ethernet in the European Market

• More developed (started in the UK and moved to
  other countries)
• Greater cross border providers single providers
  with metro and national offerings in multiple
  countries
• Aggressive pricing and wide variety of services
• Has been less opportunistic about using Ethernet
  on a global scale

Source Ovum Study (2007)
98
National Global Ethernet Growth

• According to OVUM from a 2007 project Ovum
  projects E-LAN to grow over the forecast period
  the driver is economic

99
What are the business drivers?
Service Providers are being pressured to migrate
to new service models in order to quickly
introduce new products and gain First Market
advantage, while leveraging existing capabilities
to achieve economies of scale.
Increasing Applications with CoS/ QoS
Requirements
End-to-End Services Management Common Service
Level Agreements
Business Continuity Disaster Recovery
requirements which demand high data rates and low
latency
While Service Providers often claim that cost
savings of 20 to 50 percent can be gained by
choosing Ethernet over comparable WAN services
the prices for long-haul connectivity have not
dropped as dramatically experience reflects
17-20 reductions over ATM/FR.
Price Flexibility Improved Scaling Intervals
Preference for Layer 2 vs. Layer 3 Solution
WAN Upgrade Requirements
100
What are the primary cost drivers?
101
Point to Multipoint Cost Comparison
102
Point to Point Growth Cost savings

• Bandwidth Ethernet is able to provide more
  granularity than Layer 1
• Ports Ethernet ports are more flexible and a
  single port handles all the growth

103
Multipoint Ethernet

• Key business drivers for moving to Multipoint
• Move the responsibility for a complex network to
  the service provider, freeing up IT assets to
  focus on revenue impacting items
• Improve flexibility and bandwidth efficiency
  while keeping security tight (using an Ethernet
  over SONET/SDH platform)
• Easy to make adjustments or add new sites without
  impacting the active service on the network.
• Key cost drivers
• Aggregate bandwidth with all sites, reducing per
  meg costs
• Much simpler architecture compared to multiple
  point-to-points
• Difference in High usage times between sites
  due to time differences between global sites
  creates a situation where total bandwidth
  requirements can be decreased and bandwidth
  efficiencies increase. (London not open when
  Tokyo is open)
• Adding new sites and adjusting the network for
  optimal usage is very simple and not service
  affecting.

104
Current User Insights
105
Key Take-Aways from Interviews

• Ubiquitous Ethernet knowledge
• Flexibility of port hardware Multi-vendor
  interoperability
• Potential for an Enterprise SLA
• Security offered by Ethernet over SONET
  Switched vs Routed topology
• Virtually no churn (lt2) reported across industry
  high acceptance low migration risk
  (providers, cables, circuit paths, etc)
• Potential to reliably transport very high data
  content files that are latency sensitive such as
  those found in real time medical collaboration,
  disaster recovery / business continuity
  applications, distributed design team engineering
  and architectural systems, and converged VoIP or
  video applications optimized for operation in
  multipoint-to-multipoint environments.

DISCERNABLE, IMPROVED FINANCIAL PERFORMANCE and
REDUCED RISK PROFILE
106
Chas M. White, MS White Associates Research
Development, LLC 1(321) 255-2489 chas_at_chaswhite.
com
107
Concluding RemarksDraw for Prizes

• Phil Tilley

108
Join us for Cocktails!
109

• World Tour

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