1. Pure-Play Virtualization
For Rural Broadband
Choice. Agility. Performance.

2. © 2016 ADVA Optical Networking. All rights reserved. Confidential.2
ADVA Optical Networking Today
Network innovator – Speed for customers – Trusted partner
Our LEADERSHIP
#1 Ethernet access devices3 global
#1 Enterprise DCI4 in EMEA; #2 global
#2 Metro WDM5 in EMEA
#2 Network synchronization6 global
Our NUMBERS
EUR 442 million revenue1
>1,700 employees2
Our CUSTOMERS
Hundreds of carriers
Thousands of enterprises
1) Annual 2015; 2) March 31 2016: 1724; 3)&5) IHS Infonetics Research, 4) Ovum 6) ADVA Optical Networking internal estimates
Headquarter
Office
Representative

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Innovation Overview
CLOUD
&
MOBILITY
FSP 3000 CloudConnect™
Shipping in Q1 2016
Specifically designed for DCI market
Most compact and scalable product
Open optical line system
Access to USD 4 billion NFV market
Enabling choice, performance, agility
Most advanced and comprehensive solution
Transforming the industry and expanding our competitive advantage
ConnectGuard™
Complements secure optical DCI leadership
Fixed and mobile user secure cloud access
Encrypted Ethernet connectivity
Access device industry firsts:
SFP-based timing excellence
Rubidium-based timing with unique holdover algorithm

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Our Hardware, Software and Services
Cloud interconnectCloud access
Service delivery
and assurance
Metro/Core
Distribution and hosting
Business
continuity
Cloud and OTT
services
Connecting, extending and assuring the cloud
Synchronization delivery
and assurance
Cloud Extension

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Network Virtualization in Rural Broadband

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Future of Rural Broadband
• Rural broadband providers face an uncertain future of federal
funding
• Changes in Universal Service Funding make it difficult to obtain funding or
recoup high costs of servicing low-density, remote locations
• Rural broadband providers need new technologies and
strategies to build revenue, reduce costs and gain operational
efficiencies
• Rural broadband providers need strategies for competing and
partnering with larger providers and/or public-owned providers
• Network virtualization provides many advantages for
communication service providers and it can be particularly
beneficial for rural broadband providers

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Network Virtualization = Greater Profitability
• Virtualization replaces today’s expensive custom hardware
appliances with software-based virtual network functions
(VNFs) running on low-cost and open commercial off-the-shelf
servers
• Network functions virtualization (NFV) and software defined
networking (SDN) provides service agility, network flexibility
and performance
• To reap the true rewards of NFV and SDN, rural broadband
provides need to focus on pure-play NFV and SDN architectures
• NFV can help rural broadband providers drive new business
today and set them up for continuous innovation in the future

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What Can You Do With NFV?
• Compete with larger communications providers in neighboring
urban areas
• Automation of network and service operations provide significant reduction
in costs and an opportunity to be more competitive on price
• Quickly define and deploy new services while eliminating the
need for truck rolls and hands-on access to configure remote
network equipment
• Including cloud-based managed services such as security, firewall, VPN,
database, PBX, etc.
• Personalize end-customer experience through granular network
orchestration and management
• License software on a pay-as-you-go or pay-as-you-grow scale
• Eliminate need for huge upfront investment
• Minimize financing on upgrades or expansion

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What is Pure-Play Virtualization?
Pure-play virtualization enables users to realize the benefits of the
cloud by replacing closed appliances with their choice of
software that can be hosted anywhere in the network on their
choice of open hardware.

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Pure-Play Enables Choice!
• Hardware suppliers
• Brand
• Compute power and memory
• Features (NEBS, power, redundancy)
• Software VNF suppliers
• Ability to change as needed
• Including swapping out ECE
• Deployment location
• Cloud / data center
• Central office
• Service edge
• Service chains between the above

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Benefits of Pure-Play: Choice of Software
Pure-play virtualization allows users to:
• Pick best-of-breed VNFs from a variety of suppliers
• Use different VNFs for same function with differing performance, features and
price points
• Replace VNFs as needed without requiring any hardware changes or truck rolls
• Deploy new VNFs on a common hardware architecture
Start:
1 VNF
Later:
2 VNFs
Even later:
2 VNFs, 1 replaced
Firewall
X
Firewall
X
Firewall
Y
Firewall
Z
Firewall
Y
Later still:
3 VNFs, 1 new
Firewall
Z
Firewall
Y
Router A

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Benefits of Pure-Play: Choice of Hardware
Pure-play virtualization allows customers to:
• Let the application dictate the hardware requirements
• Leverage the wide array of available COTS servers
• Ride the Moore’s law curve of increasing compute power and efficiency
Residential
Gateway
Deep Packet
Inspection
Intrusion
Detection
Content Delivery/
Cache
Encryptio
n
Application
Acceleration
Load
Balancer
Network Address
Translation
Network
Firewall
RouterSIP
Gateway
Test Set
Basic Traffic
Management
Traffic
Management
Digital
PBX
Session Border
Controller
Choose any platform or brand

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Benefits of Pure-Play: Choice of Location
Pure-play virtualization provides choice in deployment locations:
Metro edge/central office
x86
Virtual functions
Service edge
Virtual functions
Datacenter/core/metro
Cloud or
datacenter
VNFs placed where needed, based on:
x86
Server
• Edge/CPE: low entry cost, resources scale with services
• CO/POP: reduced cost, increased speed, migration
• Datacenter: lowest cost, highest scalability
• Chained: best of all worlds
Virtual functions
• Service requirements (security, latency, bandwidth)
• Resource availability
• Preference (customer or operator)

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Our Approach to Pure-Play Virtualization
To be considered pure-play virtualization, a solution must
incorporate the following four components:
1. Completely open architecture
• Including hardware and software
2. Open carrier-class orchestration
• Supports a variety of VNFs with internal or external VNFM
3. Comprehensive ecosystem of VNFs
• Both 3rd party and open source
4. High-performance virtual switching and Carrier Ethernet
• Enables single-box deployment anywhere in network

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Ensemble Use Cases

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Customer problem
• Limited operational automation in appliance-
based solutions
• Proprietary and incongruent management
requirements for appliances
• Limited flexibility for new service introduction
• Multiple boxes required for each new customer
Challenges
• Locked into expensive, proprietary appliances
• Service activation tied to new ‘boxes’, truck-rolls
• Easily change service offering over time
• Operational efficiencies across service
management
Use Case: Enterprise Service Delivery Challenges
Service provider
Router
Firewall
NID

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Use Case: vE-CPE NFV-Based Service Delivery
Solution
• Ensemble Connector for Carrier Ethernet and
high performance virtual hosting:
• Accelerated vSwitch
• Supports DPDK enabled VNFs
• VNFs from any supplier can be deployed
• Standard server-based, can be multi-purposed
for different service offerings
Benefits
• Rapidly launch new services, drive new
revenues, reduce costs (over time)
• Real-time, low-touch service deployment and
activation
• Subscriber self-provisioning capability for new
services
ADVA FSP 150vSE or
ProVM or COTS
Service provider

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Inject new services into existing Layer 2 and 3 VPNs running over existing
MPLS networks, CPE deployments – without modifying existing infrastructure!
Use Case: Upgrade Existing MPLS Networks
MPLS backbone
Layer 3
VPN
Ability to derive incremental, value-added service revenue from
existing customers with minimal cost and operational overheads
Data center

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Use Case: Virtualized Networks
Enables operators to join
the fray by delivering
NFVIaaS along with
Carrier Ethernet
connectivity
Enables overlay service
providers or enterprises to
manage their own network
without buying or
managing hardware
To this:
From this:
Provider Y
EAD
Provider X
FSP 150 vSE
Customer
Provider Y
FSP 150 ProVM
or vSE
Provider X
VNFs
Customer
Provider X
VNFs

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DartPoints Use Case – Micro Datacenter
Multi-tenant
building
Co-locate with end-users to provide network and secure cloud services
Gateway
router
Customer 2
FSP 150 vSE
Customer 1
FSP 150 vSE
Public
Internet
Micro data
center DartPoints
NOC

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Use Case: SD-WAN
SD-WAN management layer
IP/MPLS
IP/MPLS
Branch
Branch
VNF
Connector
VNF
VNF
Connector
VNF
ADVA FSP 150 vSE
ADVA FSP 150vSE
HQ
VNF
Connector
VNF
ADVA FSP 150 ProVM
NFVO
(Ensemble Orchestrator)
SDN Control
(Ensemble Controller)
Cloud
manager
REST
PE
IP
(MPLS in IP)
PE
PE
PE PE
On-net
Off-Net
Gateway
Connector
Xeon Intel Server
Provides flexible and secure network overlay to deliver IP connectivity to
customers on-net as well as out of region
VRF

22. © 2016 ADVA Optical Networking. All rights reserved. Confidential.22
Ensemble Active Customer Engagements
Service provider Application/
use case
Ensemble
Orchestrator
Ensemble
Analytics
Ensemble
Connector
FSP 150
VSE
FSP 150
ProVM
Masergy Prem-based virtual CPE Yes Yes
DartPoints DC virtualization Yes Yes Yes
Tier 1 fixed (US) CO virtual Service Yes Yes Yes
Tier 1 fixed (US/EMEA) Virtual CPE/SD-WAN Yes Yes Yes
Tier 1 cable MSO (US) Virtual CPE Yes Yes
Tier 1 fixed/mobile (CALA) Virtual CPE Yes Yes Yes Yes
Tier 1 fixed/mobile (EMEA) Virtual CPE Yes Yes Yes Yes
Tier 1 fixed (US) Virtual CPE/SD-WAN Yes Yes Yes Yes
Tier 1 fixed (US) Virtual CPE Yes Yes
Tier 1 fixed (US/APAC) Virtual CPE Yes Yes Yes Yes
Tier 1 fixed (APAC) Virtual CPE Yes Yes Yes Yes
Tier 1 cable MSO (US) Virtual CPE Yes Yes Yes
Tier 2 fixed (US) Virtual CPE/SD-WAN Yes Yes Yes
Tier 1 cable MSO (US) Virtual CPE Yes Yes
Tier 2 fixed (APAC) Virtual CPE Yes Yes Yes
Tier 1 fixed/mobile (APAC) Virtual CPE Yes Yes Yes
Tier 1 fixed (EMEA) Virtual CPE Yes Yes Yes

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Solution integrators
Comprehensive Ecosystem - Harmony
VNF providers Technology partners

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Vendor VNF category Product
Router, vADC, vEPC 5400, 5600 vRouter, vEPC, vADC
Encryption vCEP
Firewall FortiGate
Firewall Security Gateway Virtual Edition
Router VSR 1000
WAN Optimizer Ipanema WAN Optimization
Router vMX
Core IMS, SBC Clearwater IMS, Perimeta SBC
Firewall VM-Series for KVM
DPI Deepflow
WAN Accelarator SteelHead
SBC SBC Software Edition
Small Cell Gateway SmGW, seGW
Tier 1 NEP (via VNFM) vEPC vMME, vS/PGW
Tier 1 NEP (via VNFM) vIMS vIMS, Open TAS
Testhead Test Center Virtual with DPDK
Current VNF Library
VNF category Product
Firewall Untangle
Firewall pfsense
IP PBX Asterisk
Packet crafter, traffic
generator and analyzer Ostinato
Proxy server Squid proxy
Router Vyos
UCS SIPxecs
3rd party Open source

25. Benefits of Virtualization in Rural
Broadband
Savings, service agility, flexibility

26. © 2016 ADVA Optical Networking. All rights reserved. Confidential.26
Primed for Innovation
“Our rural broadband clients are a passionate, motivated group and they
will innovate. We’re going to be challenging them to find new and better
ways of providing services with NFV. We fully expect these Tier 3
providers will create new ways to complete on service level and price
without a lot of investment.”
Tory Richtmyer, Mid-State
Consultants

27. © 2016 ADVA Optical Networking. All rights reserved. Confidential.27
Challenges With NFV
• Current hardware-centric culture and staff skill set
• Training and some staff augmentation to become Agile/DevOps
• Overhead is reduced as new technology facilitates more remote
support and maintenance
• Engineering and support services providers will adapt by adding
software techs and keeping them trained on the newest offerings
• Fear of expense and unknown
• New software licensing schemes and lower-cost hardware reduces
risk
• Partnering with engineering firms and vendors is critical
• Overture Total Cost of Ownership Calculator and Agility Model
• Vetted with service providers of all sizes and areas
• Provides a solid estimate of savings and new service revenue

28. © 2016 ADVA Optical Networking. All rights reserved. Confidential.28
Total Cost of Ownership Calculator

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Summary
• NFV brings real benefits to rural broadband providers
• Operational efficiencies and savings
• New service innovation to grow revenue
• Flexibility for quick and cost-effective changes
• New pay-as-you-go licensing models lessening financial risk for
upgrades and expansion
• Lower overhead costs with fewer truck rolls and “zero-touch” activation,
upgrades and maintenance
• Choice of software. Choice of hardware. Choice of location. Choice to
change.

30. Thank you!
Mike Heffner
Senior director
Technical product marketing