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ALCATEL-LUCENT NEW DNA FOR THE EVOLUTION OF ROUTING.PDF

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  • All Rights Reserved Alcatel-Lucent 2011

    Except for historical information, all other information in this presentation consists of forward-looking statements within the meaning of the

    US Private Securities Litigation Reform Act of 1995, as amended. These forward looking statements include statements regarding the future

    financial and operating results of Alcatel-Lucent such as, for example, an adjusted operating margin above 5% for 2011 and continued

    market share gains. Words such as "expects," "anticipates," "targets," "projects," "intends," "plans," "believes," "estimates," aim, goal,

    outlook, momentum, continue, reach,, growth, confident in, variations of such words and similar expressions are intended to

    identify such forward-looking statements which are not statements of historical facts. These forward-looking statements are not guarantees

    of future performance and involve certain risks, uncertainties and assumptions that are difficult to assess. Therefore, actual outcomes and

    results may differ materially from what is expressed or forecasted in such forward-looking statements. These risks and uncertainties are

    based upon a number of important factors including, among others: our ability to operate effectively in a highly competitive industry with

    many participants and to correctly identify and invest in the technologies that become commercially accepted, demand for our products,

    and acceptance of the technologies we seek to pioneer; difficulties and delays in our ability to execute on our strategic plan to adjust our

    product portfolio by boosting investment in certain segments and reducing spending in others, co-source certain business processes, focus

    on cash, and reduce costs; fluctuations in the telecommunications market; exposure to the pricing pressures in the regions in which we

    sell; the pricing, cost and other risks inherent in long-term sales agreements; exposure to the credit risk of customers; reliance on a limited

    number of suppliers for the components we need or a tight market for commodity components; the social, political and economic risks of

    our global operations; the costs and risks associated with pension and postretirement benefit obligations; changes to existing regulations or

    technical standards; existing and future litigation; difficulties and costs in protecting intellectual property rights and exposure to

    infringement claims by others; compliance with environmental, health and safety laws; the economic situation in general (including

    exchange rate fluctuations) and uncertainties in Alcatel-Lucents customers businesses in particular; control of costs and expenses;

    conditions and growth rates in the telecommunications industry; and the impact of each of these factors on sales and income. For a more

    complete list and description of such risks and uncertainties, refer to Alcatel-Lucent's Annual Report on Form 20-F for the year ended

    December 31, 2010, as well as other filings by Alcatel-Lucent with the US Securities and Exchange Commission. Except as required under

    the US federal securities laws and the rules and regulations of the US Securities and Exchange Commission, Alcatel-Lucent disclaims any

    intention or obligation to update any forward-looking statements after the distribution of this presentation, whether as a result of new

    information, future events, developments, changes in assumptions or otherwise.

    SAFE HARBORFOR FORWARD LOOKING STATEMENTS

  • COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    3

    NEW DNA FOR THE EVOLUTION OF ROUTINGBasil Alwan, President, IP Division and Head of Networks StrategyJune 28, 2011

  • 4COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    IP/MPLS MOMENTUM

    1.46B2010 IPD REVENUES(+24% YOY)

    150K+SERVICE ROUTER PLATFORMS SHIPPED

    400+SP CUSTOMERS

    26 OF TOP 30 WW

  • 5COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    THE THREE WAVES OF ROUTING

    ENTERPRISE INTERNET SERVICE

    Multiprotocol; inter-site connectivity

    IP; scalable, high speed

    Multi-service; converged services for business, consumer and mobile

  • COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    MARKET SITUATION

    CONVERGENCEHow to get here?

    Challenges: network convergence & video explosion

  • 7COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    SILICON DEFINES:

    Platform capacity and performance

    Interface speed and density

    Services scope, scale, and evolution

    Power efficiency

    THE IMPORTANCE OF NETWORK PROCESSOR SILICONTHE DNA OF IP ROUTERS

  • 8COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    A breakthrough innovation that that will herald faster, smarter and greener networks and applications

    THE NEW FOUNDATION OF ROUTING

    FP3FP3

  • 9COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    Performance & Services

    3rd GENERATION OF IN-HOUSE DESIGNRAISING THE BAR YET AGAIN

    Thro

    ughput

    & P

    erf

    orm

    ance

    10 Gbps

    Services & Scale

    100 Gbps

    FP2

    400 Gbps

    FP3

    FP

    FP1 FP2 FP3

    YEAR 2003 2008 2011

    SPEED 10 Gb/s 100 Gb/s 400 Gb/s

    TECHNOLOGY 180nm 90nm 40nm

    RISC CORES 30 112 288

    CORE FREQUENCY

    190 MHz 840 Mhz 1 Ghz

  • 10

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    400

    TRUE 400G, REALLY

    400 Gb/s

  • 11

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    A GIANT LEAP AHEAD 400G WHILE OTHERS JUST HIT 100G

    FP1

    FP2

    FP3

    0

    50

    100

    150

    200

    250

    300

    350

    400

    2003 2004 2005 2006 2007 2008 2009 2010 2011

    Alcatel-Lucent FP Rest of Industry

    Gb/s

    Alcatel-Lucent FP Processor Evolution

  • 12

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    Business services

    Mobile backhaul & packet core

    Residential services

    SERVICES BUILT-INPROGRAMMABLE, FLEXIBLE AND SCALABLE

  • 13

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    0

    2

    4

    6

    8

    10

    12

    FP 10 Gb/s FP2 100 Gb/s FP3 400 Gb/s

    SILICON POWER EFFICIENCY DRIVE DOWN POWER PER BIT

    Watt

    s/G

    b

    50% less power per bit with each new generation

  • 14

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    THE FP3 400G NETWORK PROCESSORTECHNOLOGY BREAKTHROUGH!

    SMARTER Deliver personalized services, content and applications Massive IPv4 and IPv6 scale for billions of people and machines Fully programmable to evolve for an unknown future

    GREENER Makes IP networks more environmentally sustainable Up to 50% less power consumption per bit Up to 30% less physical space in service provider premises

    FASTER The worlds fastest network processor 400 Gb/s packet processing delivers 4x performance Accelerates the adoption of 100G from network edge to core

  • 15

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    FP3 FLEXIBILITY BY DESIGNCONFIGURABLE FOR MULTIPLE APPLICATIONS

    100G 200G

    100G 200G

    200G Card

    100G

    400G

    400G

    100G

    100G

    100G

    400G Card

    400G

    400G

    400G

    400G Card

  • 16

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    FP3 400G NETWORK PROCESSORFOUNDATION FOR SERVICE ROUTER PORTFOLIO EVOLUTION

    TODAYNew, FP3-based ultra high-speed, high-density line cards for the 7750 SR & 7450 ESS

    LOOKINGAHEADKey ingredient for 400G interfaces and system scale to Terabit slots

    FP3

    2-port 100GE

    20-port 10GE

  • 17

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    SERVICE ROUTER EVOLUTION2003-2011

    !=

    7750 SR-12 circa 2003

    7750 SR FP3 IMM circa 2011

  • 18

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    Chassis DensitiesToday / 2012(FP2 / FP3)

    Today / 2012 Today / 2012

    1 GigE 480 320 440

    10 GigE 100 / 200 64 / 192 66

    40 GigE 30 / 60 0 / 32* 0 / 22*

    100 GigE 10 / 20 0 / 16 0 / 11*

    LEADING SERVICE INTERFACE DENSITIES

    7750 SR-12 Cisco ASR 9010 Juniper MX960

    * Not currently announced but expected to ship in late 2011 or 2012

    1/3 rack>1/3 rack

    1/2 rack

    Service Interface = Medium/high queue interfaces; no port-level queuing

  • 19

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    RICH SERVICES + BREAKAWAY PERFORMANCEIN ONE CHIP. BECAUSE WE CAN.

    FP3 400G

    Edge CoreTraditional Silicon Strategy

    CoreTransport

    Service Edge

    Service Depth Performance

  • 20

    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    THE HIGH-LEVERAGE NETWORKTM

    SCALABLE, INTELLIGENT, EFFICIENT BANDWIDTH FOR SERVICES

    1G to 10GPON, P2P

    Aggregation and backhaul

    ConvergedbackboneConverged

    wireline access

    Converged wireless access

    100G+Ethernet and WDM

    Service edge

    100G+Service Routing

    100G+IP/MPLS and DWDM

    LEADING INNOVATION ACROSS THE NETWORK, END TO END

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    COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

    SUMMARY

    FASTER - THE WORLDS FASTEST NETWORK PROCESSOR - 400 Gb/s

    GREENER - REDUCES IP NETWORK POWER AND SPACE

    SMARTER ENABLES VALUE CREATION VIA INNOVATIVE SERVICE DELIVERY