SDN at Light Speed

Breakthrough Operational Efficiency Improvement For Data CentersCALIENT Technologies, July 2015

2 © 2015 CALIENT Technologies – All Rights Reserved

CALIENT Technologies at a Glance Headquarters in Santa Barbara, CA, U.S.A.

• Atiq Raza (Chairman and CEO) held former roles as CEO of RMI, President and COO of AMD, and CEO of NexGen• Dr. John Bowers (Co-Founder) is Director of the Institute for Energy Efficiency at University of California Santa Barbara (UCSB)

Optical Circuit Switching market leader. >$400M invested to develop & perfect core 3D MEMS optical technology 2013: Started shipping new S-Series Optical Circuit Switch in volume to one of the largest global cloud data centers

• The only Optical Circuit Switch shipping in high volume and tested to rigorous Telcordia GR63 & GR1073 requirements

Data Center applications focus on improving operational efficiency by increasing compute resource utilization High Growth: In 2015 CALIENT ships our entire 2012 volume every 2 weeks. Driven by Data Center shipments

3 © 2015 CALIENT Technologies – All Rights Reserved

We Improve Data Center Operational Efficiency Reduced OPEX and Improved Customer Satisfaction

• Automation of Fiber Infrastructure speeds new service provisioning, improves customer satisfaction and retention, supports creation of new on-demand services, improves reliability, eliminates truck-rolls, and lowers workforce cost.

Reduced CAPEX & Improved Energy Efficiency• Compute resources can be reallocated and shared at the optical layer, supporting

much improved % utilization of server and storage assets. These represent 85% of the DC electronics cost and almost 70% of the energy consumption.

Enabling “Lights Out” Data Centers

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Problem: Poor Compute Resource UtilizationThe biggest operational efficiency problem in Data Centers

Amortized Equipment Cost 1 Power Consumption 2

Sources: (1) James Hamilton, Amazon. (2) The Datacenter as a Computer, Luiz André Barroso, Jimmy Clidaras, Urs Hölzle (Google)

Compute Resources = 85% of Electronics Cost & 68% of Energy

Problem: Compute Resources are typically less than 40% utilized

Massive CAPEX & Energy Waste

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CALIENT Improves DC Compute UtilizationSupports Pooling and Sharing of Expensive Server Resources

Compute Resources are physically shared between PODs in response to Application/Workload demands

Data Centers use convenient POD-based architectures that simplify deployment and maintenance

However PODs restrict resource agility for large workloads and result in poor compute utilization – less than 40%

CALIENT Optical Circuit Switches support physical virtualization allowing compute resources to be shared between PODs for maximum efficiency

Economic Benefit of CALIENT OCS

Model assumes $2B in mega-scale data center spending A server utilization increase of less than 10% is

equivalent to saving the total CAPEX of the entire data center network

Savings is in the $100Ms for a Mega-scale Data Center

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Further Benefits of Optical Network Automation Accelerate New Service revenue

• Provision in seconds instead of days• Create and reallocate capacity on demand• Enhance customer satisfaction and retention

Reduce Operational Expense• Reduce on-facility workforce and truck-rolls• Manage connections from a central offsite operations facility• Support automated entry and updating of facility electronic records

Improve Quality of Service • Minimize human-error scenarios• Accelerate fault detection and isolation during service degradations or outages

7 © 2015 CALIENT Technologies – All Rights Reserved

Thank You