Cloud Computing Key takeaways for Financial players April

Cloud Computing Key takeaways for Financial players April, 19 th 2010

Cloud computing – confusing at best Graphic 2 courtesy of T-Systems © 2010 ADVA Optical Networking. All rights reserved. Confidential.

Thoughts on Cloud Computing “We are at the beginning of the age of planetary computing. Billions of people will be wirelessly interconnected, and the only way to achieve that kind of massive scale usage is by massive scale, brutally efficient cloud-based infrastructure. ” “It’s stupidity. It’s worse than stupidity: it’s a marketing hype campaign. ” Richard Stallman (The Guardian) Dan Farber (CNET News) 3 © 2010 ADVA Optical Networking. All rights reserved. Confidential.

Studies show private clouds CAN and HAVE saved money. 4 Reduce IT labor cost by 50% in configuration, operations, management and monitoring. 4 Improve capital utilization by 75%, significantly reducing license costs. 4 Reduce provisioning cycle times from weeks to minutes. 4 Improve quality, eliminating 30% of software defects. 4 Reduce end user IT support costs by up to 40%. 4 ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

Connectivity WITHIN the cloud Automation Efficiency Reliability 5 ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

Connectivity TO the cloud High-end user SLA-based business access Best effort 6 ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

Case Study – Novel Solution 4 Three customers dynamically sharing a common a data center. Servers Remote Desktop 7 Virtual Tape/Disk/Server Cloud © 2010 ADVA Optical Networking. All rights reserved. Confidential. © 2010 ADVA Optical Networking. All rights reserved.

8 © 2010 ADVA Optical Networking. All rights reserved. Confidential.

Exchanges and Trading NYSE Arca NASDAQ BATS EBS Direct Edge Po. Ps Carrier Hotels Co-Lo Central Office Financial Firms Banks Broker Dealers Hedge Funds Proprietary Traders 9 ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential. Information Feeds Reuters Bloomberg OPRA

755 Secaucus, NJ 300 Boulevard Weehawken, NJ BTEC, EBS, Direct Edge BATS, ARCA/SFTI, NYSE/SFTI, Crossfinder 1400 Federal Cateret, NJ Nasdaq Po. Ps 165 Halsey 32 Ao. A 111 8 th Information Feeds Financial Firms Banks Broker Dealers Hedge Funds Proprietary Traders 10 ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential. Reuters Bloomberg OPRA

Chicago (futures) New York (equities) Zero-latency dispersion compensation Content Router Content Cut-through Router Switch Cut-through Switch Trading Applications Ultra-low latency wavelength conversion 11 Zero-latency inline amplification Service transparency and security ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

Primary Route 4 Route Distance: 7. 20 km 4 Est. Latency: 41. 28 us Secondary Route 4 Route Distance: 9. 00 km 4 Est. Latency: 50. 58 us Third Route 4 Route Distance: 12. 29 km 4 Est. Latency: 68. 55 us Equipment latency includes transponder and filters 12 ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

Sources of latency by layer More latency 7 Application Presentation Session TCP windowing Flow control Packet re-send I OS 3 r ye La Address lookup Packet forwarding Routing 2 Segments it 4 Packets Store-Forward Line coding Frames Switching Framing FEC 1 Bits 13 Less latency Un 5 Data Da ta 6 © 2010 ADVA Optical Networking. All rights reserved. Confidential. © 2010 ADVA Optical Networking. All rights reserved.

Ethernet used for HPC interconnect IB IB Eth Eth IB IB 14 IB IB ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

Turn your cloud inside-out IB h Et IB Et h 15 IB Et h IB h Et F W SP D M P FS DM W F W SP D M Et h IB h Et IB with multi-protocol support © 2010 ADVA Optical Networking. All rights reserved. Confidential. © 2010 ADVA Optical Networking. All rights reserved.

Bridging – Ethernet’s savior More latency 7 6 5 4 Application Presentation Session TCP windowing Flow control Packet re-send Address lookup Packet forwarding Routing r Store-Forward Line coding Switching Framing FEC Less latency 1 16 ye La 2 Store-Forward Line coding Switching I OS er ay IL OS Address lookup Packet forwarding Routing 3 More latency ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

Integrated layer 1 encryption FSP 3000 cloud services module 4 Universal: Supports all storage applications 4 Fast: Low latency w/ real-time measurement 4 Powerful: 1000 km reach SFP+ SFP 4 Flexible: Tunable DWDM line IF for up to 80 l 4 Secure: In-flight encryption on the card 4 Qualified – with all major SAN vendors Mux SFP tunable Line I/F Scalable Fibre Channel, Infini. Band Ethernet transport protects investment; Real-time latency measurement and encryption satisfy most stringent requirements 17 ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

In-service fiber monitoring 4 Optical Time Domain Reflectometry (OTDR) plus novel ADVA technology combined to add in-service fiber monitoring to FSP. 4 Solution consists of two products, a filter module line card (OFTM) and the OTDR itself. OFTM OTDR 4 Up to 8 fiber pairs can be monitored simultaneously. 4 That’s over 10 Tbits of data! 18 © 2010 ADVA Optical Networking. All rights reserved. Confidential. © 2010 ADVA Optical Networking. All rights reserved.

Unprecedented monitoring Optical power tracking Spatial fault locating d fiber cut degradation 4 Protection switching 4 Alarm generation 4 Performance logging long-term effects 4 In-service measurement! 4 Network Fault Locator 4 Field Fault Locator Fault location Wavelength monitoring 4 Monitoring of system and alien wavelengths 4 Easy setup Wavelength 4 Long-term laser performance monitoring fiber intrusion 19 4 Intrusion detection ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

Echo profiling of in-service fiber 4 The FSP now allows customers to define a “mask” around the measured echo profile of the fiber that is in-service. 4 Any violation of the user defined mask will generate an alarm. User defined mask 20 Echo profile of in-service fiber ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

5 Key takeaways 1. Studies show private clouds CAN and HAVE saved money. 2. There is connectivity WITHIN a cloud, and connectivity TO a cloud. 3. Low-latency transport within a HPC cloud is a must have, and the lower the better. 4. Multi-protocol support is a must in HPC, as Ethernet translations wastes valuable time. 5. If transport resides within a cloud, then security of that transport becomes paramount. 21 ©ADVA 2010 Optical ADVA Optical Networking. All reserved. rights reserved. © 2010 Networking. All rights Confidential.

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