The past few months have shown that networks are essential for all of us, and it’s clear that we need to rethink how we build and use them. The digitization of all ecosystems will be a key part of the “new normal,” and efforts to digitize networks need to accelerate. It’s also now important for service providers to team up to address changing requirements. Is charging for network usage becoming essential? What new technologies are emerging that will enable us to do more with less and at a faster pace? In his NAMEX 2020 workshop, Christoph Glingener explained how simple wholesale services will be key to the digital revolution.

1. Back to the future
… with simple wholesale services NOW!
Christoph Glingener

2. © 2020 ADVA. All rights reserved.22
Outline
2 Impact of Covid-19
3 Simple wholesale services
4 How can they be realized?
5 Summary
6 Q&A
1 Introduction

3. © 2020 ADVA. All rights reserved.33
Global provider of solutions for edge network innovation
Who is ADVA?
Background
• Headquartered in Munich, Germany
• More than 1,900 employees
• Over EUR 0.5 billion turnover
Our mission
Being your trusted partner for
connecting, extending and assuring
the cloud
Our vision
Virtualization and software are keys
to differentiated solutions, while hardware
will remain strategically important
Atlanta Richardson Neuchâtel York Meiningen Munich Gdynia
Haifa Shenzhen Singapore Melbourne
Cloud interconnect
Cloud access
Network
synchronization

4. © 2020 ADVA. All rights reserved.44
Happy Birthday!
1970s 1980s 1990s 2000s 2010s 2020s
~1970
Low-loss fiber,
Semiconductor laser
@ room temperature
~1990
Erbium-doped
fiber amplifier
(EDFA)
~2010
>50GS/s
>50M gate
DSP ASICs
~1977-92
Regenerated
direct-detection
systems
~2010-
DSP-based
coherent
WDM systems
~1993-2009
Amplified
dispersion managed
WDM systems~2005
Wavelength
selective
switch
50 years of light-speed connections
25 years of NAMEX

5. © 2020 ADVA. All rights reserved. Confidential.
Impact of Covid-19

6. © 2020 ADVA. All rights reserved.66
Impact of Covid-19 on Telecom
… and we need to rethink!
Then we got redirected …
Traffic explodes (March 2020) :
• Global internet traffic up 30+%
• Web traffic up close to 20%
• Gaming, up 50%
• VPN, up 30%
• Video, up 20%
• Voice (fixed/mobile) up 50%
• Collaboration up 25%
5G conspiracy theory Revenues down?:
• Telecom services stable (IDC)?
• Mobile/equipment sales down
• Advertisements down
• Roaming charges vanishing
• IT spending down by 3% (IDC)
• SD-WAN growth stalling?
Cut costs!Build more!
Connect everyone Localize everybody
Remote education Remote working Telemedicine
70% of 2020 budget already spend (Cignal AI) ?
SME

7. © 2020 ADVA. All rights reserved.77
Impact of Covid-19 on connectivity equipment provider
Supply chain …
• Component shortages due to local lockdowns
• Distribution, I&C challenges
• Push for better business continuity and regionalization/localization
… is overall intact and moving to “new normal“ (ADVA)
Demand
From supply side challenges to demand side challenges?
Then we got redirected …
Cignal AI,
April 2020

8. © 2020 ADVA. All rights reserved.88
Support a new way of living and a new way of working
A huge opportunity for all of us!
The new normal?
• Networking is essential!
• Distributed flexible workforce (office, WFH)
• Processes, tools for this and remote R&D, …
• Interact with suppliers and customers virtually
• Ensure supply!
• Connectivity to sites AND homes
• Expedite digitization
• New ways to bring solutions to
customers
• Increase supply continuity, (part)
localize production
• Disaggregate services & networks
• Simplify and automate
• Charge for connectivity AND bits
• Team up with other SPs
• Pot. use government funding
 Simple wholesale services
Service
provider
• Ensure network/service continuity
• Upgrade networks to cope with
changed requirements
• Get revenue aligned with spend
• Do more, faster with less !
(Enterprise)

9. © 2020 ADVA. All rights reserved. Confidential.
Simple
wholesale services

10. © 2020 ADVA. All rights reserved.1010
Disaggregation
of services, networks and network elements
Vertical disaggregation
Horizontal disaggregation
Optical Layer
Packet Layer
Proprietary APIs
Closed (“god box”)
Optical Layer
Packet Layer
Open APIs
Open APIs
Delayer
Open HW
Open SW
Open APIs
Disagg
Partition
Terminal
API API
OLS
Partial
Disagg
Full
Disagg
Terminal
API
ROADM
API
Amplifier
API
Connectivity
Applications
APIs
APIs
Partioned
Connectivity
Demarc
Demarc
Disagg
Network Equipment Services

11. © 2020 ADVA. All rights reserved.1111
of services, networks and network elements
Transformation of networks towards maximum agility and cost efficiency
Digitization
Visibility
Simplification
Programmability
Standards
Automation
Intelligence
Automation
• Auto-planning,
• Restoration/availability,
• ZTP
• Service activation and assurance
• Service management
Programmability
• Layer and partition,
• Disaggregate
• Virtualize
• Std. APIs and models
• White boxes, open source
• Telemetry, probes
Intelligence
• Applying ML/DL/AI to further minimize
human intervention (e.g., predictive
maintenance)

12. © 2020 ADVA. All rights reserved.1212
The IoT opportunity
Device/IoT
edge
On-premise
edge
Network
edge
Core Cloud
Fog compute Cloud compute
IoT Edge Connect
IoT GW
< 1ms <5ms <10 ms Latency <40ms <60ms >100ms
Fibernet-of-Things (FoT)
SCADA, ICS, …
Sigfox
LoRa
NB-IoT, …
5G
Privatemesh
IoT GW
AWS outpost?
Azure stack?

13. © 2020 ADVA. All rights reserved.1313
IOT - Key network properties
IoT Application Bandwidth (bit/s) Latency (ms) EC? Sync Security Availability ZTP
Con. Car & V2V 1M – 25M 1 – 5 (V2V) - 20
Local/
dist.
99.999
Transportation (ITS) 5K – 1M 10 - 100 distr. 99.999
Telemedicine 1K - 30M 30 local 99.999
Indust. automation 40 – 48K 0,25 - 10 local 99.9999999 (?)
Process automation 20 – 1K 50 - 100 local 99.99
Smart grid 800 – 100K 3 - 20 distr. 99.999
Smart home 8 - 20M 1000+ local 90
Professional audio 6K – 1M 2 local 99.99999 (?)
Based on: Cisco VNI 2017, IEEE Comms Mag 2017, IEEE Comms Sruvey 2019

14. © 2020 ADVA. All rights reserved.1414
The enterprise opportunity
Device/IoT
edge
On-premise
edge
Network
edge
Core Cloud
Private / public / hybrid / multi-cloud …
IT / OT convergence
Seamless branch office
access
SD-WAN
Wireless Convergence
WiFi
Enterprise LTE
(Private) 5G
Connectivity Bandwidth (bit/s) Latency (ms) EC? Sync Security Availability ZTP
SD-WAN, uCPE 10/100M – 1G >100
Local/
dist.
99.99
Enterprise DCI 2/10G – 100+G 10 - 100 X BC/DR, 99.999
Edge DCI
SaaS/applications

15. © 2020 ADVA. All rights reserved.1515
Cloud DC
Mobile Core
Device/IoT
edge
Cell site
Street cabinet?
Network
edge
Core Cloud
The mobile opportunity
UPFBBU DU CU
CU UPFDU
uRLLC
eMBB
DWDM / Transport
IP/MPLS/Ethernet
Compute
cRAN
vRAN
oRANDisaggregate
Virtualize
Centralize Distribute
CSG
5G Edge Cloud
MEC
Edge property Requirements
Bandwidth 1G … 10G … 25G …
Latency
10 ms RTT (eMBB)
1ms RTT (uRLLC)
Edge compute?
Infrastructure: Host DU, CU,
UPF
VA Apps : MEC
Sync
±1,5 µs e2e (5G TDD)
± 130 ns (same DU)
Security
SNOW-3G, ZUC, AES (UE -
RRH)
MACSec, IPSec in the edge
Availability 99.999 (uRLLC)
ZTP

16. © 2020 ADVA. All rights reserved.1616
Simple wholesale services
Device/IoT
edge
On-premise
edge
Network
edge
Core Cloud
Footprint, premises
Underlay connectivity services
Sync as a service, security as a service Network
slicinguCPE
Edge DCIManaged
fiber
Passive
optical
Active
optical
X-Haul Backhaul Ethernet/IP
NFV platform as a service
/ mMTC GW Other VA (e.g., MEC, fog, …)
Overlay, e.g.,
SD-WAN
Enterprise mobile Neutral host

17. © 2020 ADVA. All rights reserved.1717
Simple wholesale servicesServiceComponents
Progressive Service Offering
L2/3 Switched/Aggregated
Sync aaS (PTP), Security aaS (L2/3 Encr.)
Network Slicing SDN Layer (TSN?)
L2/3
Footprint, Premises
Dark Fiber (unmanaged)
Dark Fiber (managed)
Spectrum (flexible or fixed)
Active Wavelength
Optical/Layer1
Sync aaS (Optical Timing Channel), Security aaS (Layer 1 Encryption)
Edge Compute
NFV aaS
SaaS
Neutral Host,
IOT GW, …
Orchestration
Hosting
Property
Subscription or
Perpetual
Licenses
Compute
Security
Sync
Availability
Latency
Bandwidth
(Throughput?)
SLADemarcation/Metering
Automate

18. © 2020 ADVA. All rights reserved. Confidential.
How can
they be realized?

19. © 2020 ADVA. All rights reserved.1919
Optical wholesale services
L2/3 switched/agg
Sync/sec aaS
Network slicing
L2/3
Footprint, premises
Dark fiber (unmanaged)
Dark fiber (managed)
Spectrum (flex/fix)
Active wavelength
Optical/Layer1
Sync/sec aaS
Edge compute
NFV aaS
SaaS
Orchestration
Hosting
On-premise
edge
Network
edge
Core
Enterprise DCI
Access link monitoring (OTDR)
Fibernet of things (IOT)
A-OLS (G.metro)
Outdoor-OLS
Core-OLS
DCI - OLS
Metro OLS
Open disaggregated connectivity
10/100G CPE
Outdoor TP
1/10G G.metro
Teraflex
Quadflex
SAN DCI TP
Edgeflex, OpenFabric
Optical timing channel
Layer 1 Encryption incl. QRA/QKD
Open SDN NBIs
Ensemble
Controller
Fiber/Optical/Sync Director

20. © 2020 ADVA. All rights reserved.2020
L2/3 wholesale services
L2/3 switched/agg
Sync/sec aaS
Network slicing
L2/3
Footprint, premises
Dark fiber (unmanaged)
Dark fiber (managed)
Spectrum (flex/fix)
Active wavelength
Optical/Layer1
Sync/sec aaS
Edge compute
NFV aaS
SaaS
Orchestration
Hosting
On-premise Network edge
Core
DIY Mobile/CPE
Edge GM
CSG/RRH
GM
Core GM
Edge aggregation
Layer 2/3 encryption
Open SDN NBIs
Ensemble
Controller
Packet/Sync Director
DCSG
Secure access
5G transport
MEF services
1-100G
NID/CPE/CSG
Activator
Disaggregated NOS

21. © 2020 ADVA. All rights reserved.2121
On-premise Network edge
Core
DIY Mobile/CPE Enterprise IoT
Hosting wholesale services
L2/3 switched/agg
Sync/sec aaS
Network slicing
L2/3
Footprint, premises
Dark fiber (unmanaged)
Dark fiber (managed)
Spectrum (flex/fix)
Active wavelength
Optical/Layer1
Sync/sec aaS
Edge compute
NFV aaS
SaaS
Orchestration
Hosting
Compute CPE Edge compute
Connector
uCPESD-WAN
Enterprise µCloud
Enterprise mobile
IT/OT convergence IoT IoT GW
Hybrid CPE/Agg
Open SDN NBIs
Ensemble
Controller
Packet/Virtualization Director
NFVi overlay on packet edge
Largest library of commercial VNFs
Open ecosystem
Largest white/grey box support
Ensemble
Orchestrator
Open NBIs

22. © 2020 ADVA. All rights reserved. Confidential.
Summary

23. © 2020 ADVA. All rights reserved.2323
The past months have shown that
• Networking is essential
• We need to charge for usage!
• We need to do more, faster with less
 Digitization and disaggregation of networks need to be accelerated
 Wholesale set-ups with simple services are required
 Key service properties range from bandwidth to edge compute/SaaS and
need to be defined by SLAs and ensured/metered
This is a huge opportunity for all of us – we are in the right industry!
Summary

24. © 2020 ADVA. All rights reserved. Confidential.
Q&A

25. Thank you
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cglingener@adva.com