Presentation from Embedded Solutions 2010 entitiled " Unstoppable Wireless Forces". Karl Wale, Director PLM, Continuous Computing When: Thursday, June 24 Time: 9:40-10:05 a.m. Track: Hardware & Systems Solutions Topic: Unstoppable Wireless Forces – the mobile broadband demand and challenges, what is driving this growth.

1. Unstoppable Wireless Forces
Karl Wale
Director, Product Line Management
Mobile Outlook 2010
www.ccpu.com Confidential and Proprietary

2. Who We Are
Network Equipment Providers
LTE
Femtocell
DPI
ATCA Professional
Platforms Services
www.ccpu.com
Migvan represents Continuous Computing in Israel
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3. Mobile Broadband: Huge Demand & Challenges
 Mobile voice revenues saturating
 Mobile broadband driving growth
Doubling every 9 months!
 BUT new base stations & spectrum Source: IDC
adding only 20% capacity / year
 Video is the true network killer app
 Will bring mobile networks to its knees!
The “Exa-Flood” is coming…
Source: Cisco Visual Networking Index, 2009
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4. What Is Driving this Growth?
Demographics Devices Demand
Internet Applications
Internet Generation Mobile Internet Devices
& Content
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5. And More to Come…
 Smartphones, Netbooks, Notebooks…
Smartphones Netbooks Notebooks
 Cameras, eReaders, Med Devices, Gaming, Navigation…
Personal
IP Cameras eReaders Medical Devices Gaming Consoles Navigation Systems
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6. Device Potential: 50 Billion Connections
Connected Devices  M2M Connectivity
12  Today, predominantly WiFi
 Coverage limited to HotSpots
10
 Consumer Opportunity
Relative Comparison
8
 Social networking phenomenon
 Facebook, YouTube…
6
 Wireline on the decline
4  Emergency, home security…
2  Enterprise Opportunity
 Operational efficiencies
0  Smart meters, tracking...
2009 2015 2020
Year
 Inventory management
Connected Devices Legend:
 BUT, there are challenges
Consumer Electronics – Cameras, eReaders, Gaming Consoles,
Personal Medical Devices, Smart Meters, Retail PoS terminal, etc.  Security – embedding SIM
Traditional Mobile Devices – Cellphones, Smartphones, Netbooks,  Indoor coverage
Data Cards, Dongles  Cost!! Cost!! Cost!!
Sources: various analyst reports, Continuous Computing estimates
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7. Big Threat: The Gap
 Apple sold 7.4M iPhones in Q3
 Intel reports blowout Q3 on strong mobile business; Atom rev up 14%
 AT&T sells Nokia netbooks for $300 with 2 year contract
 Verizon’s CTO: “Metered broadband is the future”
And…
Traffic
Revenues &
Traffic Gap
Widening Cost / Bit
MUST
Voice Era
Go Down
Revenues
Data Era
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8. “4G” Is Not Enough: Need Cheaper & Smarter Too
Femtocells =
Cheapest
Bit Pipe
LTE = Fastest Bit Pipe DPI = Smartest Bit Pipe
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9. LTE Delivers “Fast Pipes”
 Significantly increased data rates
E-UTRAN Architecture
 ~100Mbps down, ~50Mbps up
 Low latency for real-time apps
 11 LTE design wins
MME / Serving GW MME / Serving GW
 EPC: MME, SGW, PDN solutions
 RAN: eNodeB, HeNodeB
S1 S1
X2
eNodeB eNodeB HeNodeB HeNB Gateway
eNodeB HeNodeB HeNodeB
Spectral Efficiency Improved 4X
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10. Femtocells Deliver “Cheap Pipes”
 Femtocell = home base station Femtocell Solutions
 Offloads traffic  Provides cell coverage indoors
 Works with standard 3G & from the macrocell
network to a home
 Low-power & self-configuring to
minimize interference
base station
LTE handsets / data cards  Aligns with 3G / LTE standards
 Leverages users’ broadband
 Traffic backhauled on users’
fixed broadband (DSL / Cable)
 Data Traffic offloaded from the
macro cellular network
Macro network Standard 3G 3G femtocell
base station mobile phone converged device
 16 Femto design wins
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11. DPI Delivers “Smart Pipes”
Consumer Network Operator App & Content Provider
$
$?
Bit Pipe
$$
 Enables higher network efficiency  Enables new revenue streams
 Traffic Offloading / Throttling (P2P)  Tiered SLA / Bandwidth Allocation
 Security: IPS/IDS, DDoS, Firewall  Real Time Service-Tier Upgrade
12 DPI design wins
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12. Example – Airline, B2C
First
Business
Capacity-Limited Environment
Economy
Tiered Pricing Model: You Get What You Pay For
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13. Bandwidth-Based Pricing
 Fast, Faster, Fastest  $X / Mbps
Pros Cons
 Consumer’s viewpoint  “Guaranteed” data rates & QoE
 I’m in control  Dead spots?
 Easy to understand  Coverage gaps?
 LTE – the right opportunity!  Bit Pipe!
 Leverage context  Revenue / Traffic decoupling
 Real-time service tier upgrades  20% users taking 80% capacity
Tiered SLAs, Tiered Pricing Model
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14. Technology Advances
 New silicon technology
 Intel continues to refresh at rapid rate….Westmere shipping…
 Netlogic XLP832 packet processor delivers 2-3x performance
 System capacity extends from 80Gbps  200Gbps+
 40G AdvancedTCA
 4x backplane bandwidth
 1.5x power per slot (300W and beyond…)
 Ushering in 40GbE & 100GbE era
 …question is when this becomes cost effective vs 10GbE though
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15. Traffic Management
 Resurgence of network processor era ?
 Traffic shaping, congestion management, prioritization
 Critical requirement for delivering tiered service models
 Technology must scale to 100G’s+
 Centralized NPU resources vs hardware accelerators
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16. Network Solutions Beyond Capacity Play
Backhaul cost & PSTN
capacity
IuCS MSC GMSC
NodeB
RNC
Provider Edge
IuPS
NodeB
Limited Access Network Internet
Bandwidth
Gi
SGSN GGSN
Protecting Core Network Capacity
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17. Network Offloading
Policy
Server
VoIP Session
Provider
NodeB Edge
IuPS Gi
Internet
RNC SGSN GGSN
Video Session
NodeB
Multiple Simultaneous
Sessions from Users
“IP” traffic
Wireless RAN/Core traffic and protocols
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18. Traffic Specific Optimization
 Video recognized as huge threat to mobile network
 Particular problem for access networks
 Video optimization gateways
 Blends DPI to find video content, with compression technology to
reduce required bandwidth
 Adapts to suit network bandwidth, usage and handset type
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19. In Summary
 No single answer to broadband explosion
 Many paths and suitable routes depend on your network
 Cannot be solved just by capacity growth or service plans
 ARPU cannot rise by rate of broadband growth
 Technology gives a 2x improvement every year or two
 New paradigms will be needed
 New approaches needed that dramatically change cost per bit
 New devices to tackle specific challenges – video !
 Hardware accelerated traffic management
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20. Questions & Comments
Karl Wale
karl.wale@ccpu.com
Director, Product Line Management
www.ccpu.com
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