Silicon for 10 Gbit/s Connected World - Hot Chips: A ...9/3/01 2 The First Inning – 1998 to...

9/3/01 1

Silicon for 10 Gbit/sConnected World

Silicon for 10 Gbit/sConnected World

Atiq [email protected]

Hot Chips Symposium 2001

9/3/01 2

The First Inning – 1998 to 2000The First Inning – 1998 to 2000

λ Explosion in the Use of the Internet

λ Rapid Fiber Deployment and Increase of Bandwidth in Fiber (2X Moore’s Law)

λ Availability of lots of Venture Capital for Start-Ups

λ Capital availability for CAPEX requirements of Carriers

λ Large demand generated by spending-happy Dotcoms and Telecom

λ Hot IPO market

λ Large number of acquisitions by Equipment and Chip companies

λ Start-up Success was defined by Presence in Momentum Segments

λ Explosion in the Use of the Internet

λ Rapid Fiber Deployment and Increase of Bandwidth in Fiber (2X Moore’s Law)

λ Availability of lots of Venture Capital for Start-Ups

λ Capital availability for CAPEX requirements of Carriers

λ Large demand generated by spending-happy Dotcoms and Telecom

λ Hot IPO market

λ Large number of acquisitions by Equipment and Chip companies

λ Start-up Success was defined by Presence in Momentum Segments

9/3/01 3Source: Factset based on data from 4/9/90 and 7/15/2001.

Category

> $1 Bn

$100MM - 1Bn

< $100MM

33

118

134

$194

$38

$5

388

622

700

$3,548

$234

$24

# Companies Market Cap ($Bn)

# Companies

19901990 20012001All

Market Cap ($Bn)

285 $237 $3,8061710

Dramatic Growth in New Companies and Market CapTechnology Companies and Market Cap by Size Now vs. 1990

16.4% CAGR 29.7% CAGRFrank Quottrone of CSFB

9/3/01 4

Capital Markets Sow the Seed and Reap the FruitCapital Markets Sow the Seed and Reap the Fruit

λ Capital markets have always rewarded growth

λ 1998-2000 hyper-growth was hyper-rewarded

λ Growth metrics rewarded rather than business fundamentals

λ Customers, subscribers, CAPEX budgets, multi-city expansion

λ Sound and flaky businesses attracted capital alike

λ Sound businesses grew flaky to demonstrate hyper-growth

λ Ooops!! There are no fundamentals in sight – Stop!

λ The brakes were bad and the debris is scattered far and wide

λ Capital markets have always rewarded growth

λ 1998-2000 hyper-growth was hyper-rewarded

λ Growth metrics rewarded rather than business fundamentals

λ Customers, subscribers, CAPEX budgets, multi-city expansion

λ Sound and flaky businesses attracted capital alike

λ Sound businesses grew flaky to demonstrate hyper-growth

λ Ooops!! There are no fundamentals in sight – Stop!

λ The brakes were bad and the debris is scattered far and wide

9/3/01 5

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Moore’s Law of Nasdaq Ran Out of Gas in Y2KJanuary 1983 - Present

Doubles in 8 yearsDoubles in 4 years

Doubles in 2 years

Doubles in 1 year

Frank Quottrone of CSFB

9/3/01 6

Indigestion in The Terabit Food ChainIndigestion in The Terabit Food Chain

Consumers

Enterprises

S&M Businesses

$

Services

$

Services

$

Entertainment

Carriers

MS

Os

Hosting C

os

Ap

plicatio

ns

Co

nten

tS

ervices

Netw

orkin

gE

qu

ipm

ent:

Op

tics & R

ou

ting

PC

s, Cell

Ph

on

es, TV

s,S

et-top

s

Servers &S

torag

eS

ystems

Co

ntract M

anu

facturers

Sem

icon

du

ctor C

om

po

nen

tsO

ptical C

om

po

nen

ts

9/3/01 7

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

2000 2001 2002 2003 2004

Terabit per sec

U.S. Backbone Internet Bandwidth DemandU.S. Backbone Internet Bandwidth Demand

Source: Pioneer

9/3/01 8

Bandwidth Drivers

With 100 Million active Consumers and5 Mbps bandwidth per userthe aggregate bandwidth is

500 Terabits/second

Andreas BechtolsheimCisco Systems Inc

With 5,000,000 Businesses and100 Mbps per business the

aggregate bandwidth is

500 Terabits/second

9/3/01 9

Restoring Health for The Terabit Food ChainRestoring Health for The Terabit Food Chain

Consumers

Enterprises

S&M Businesses

$

Services

$

Services

$

Entertainment

Carriers

MS

Os

Mgd Services

Ap

plicatio

ns

Co

nten

tS

ervices

Netw

orkin

gE

qu

ipm

ent:

Optics &

Routing

PC

s, Cell

Ph

on

es, TV

s,S

et-top

s

Servers &S

torag

eS

ystems

Co

ntract M

anu

facturers

Sem

icon

du

ctor C

om

po

nen

tsO

ptical C

om

po

nen

ts

Debt Restructuring, Inventory Dissipation and New Products

9/3/01 10

Evolutionary RevolutionEvolutionary Revolution

Internet Access

Private Access

Voice

Broadcast Media

TD

M, A

TM

, FR

Docsis

IP, E

thernet

λ Constrained capital markets shorten ROI horizons

λ Carriers focus on Delivering Enterprise Services

λ Slower additional Dark Fiber deployment

λ Focus on Service Generation and Market Access

λ Less long haul and more Metro Services spending

λ TDM with Packet services again pick up momentum

λ IP-everywhere pauses as MPLS enables the trend

λ OC768 on hold as transport bandwidth in fiber

λ DSL connections continue – RBOCs step up

λ MSOs (cable market) grow aggressive – may win big

λ Constrained capital markets shorten ROI horizons

λ Carriers focus on Delivering Enterprise Services

λ Slower additional Dark Fiber deployment

λ Focus on Service Generation and Market Access

λ Less long haul and more Metro Services spending

λ TDM with Packet services again pick up momentum

λ IP-everywhere pauses as MPLS enables the trend

λ OC768 on hold as transport bandwidth in fiber

λ DSL connections continue – RBOCs step up

λ MSOs (cable market) grow aggressive – may win big

9/3/01 11

Lambda routing- OC-48s (2.4Gbps)

STSSTS routing- 45 Mbps

IP PacketsIP routing- < KBps- Packets per sec.

Res

tora

tion

CO

S

Tra

ffic

Eng

inee

ring

Pro

toco

ls

Last Mile Aggregation & Distribution

Data Centers

Media Transport

QOS

Traffic Engineering for Provisioning

Local Protocols

Source: Vinod Khosla at KPCB

BroadbandWireless

CPE LAN Technologies

Services Services Services

Applications

Intelligent Content D

elivery

Elem

ent and Sub-Elem

ent Netw

ork Managem

ent

Security1996-2000: Transport and Routing Infrastructure

9/3/01 12

Lambda routing- OC-48s (2.4Gbps)

STSSTS routing- 45 Mbps

IP PacketsIP routing- < KBps- Packets per sec.

Res

tora

tion

CO

S

Tra

ffic

Eng

inee

ring

Pro

toco

ls

Last Mile Aggregation & Distribution

Data Centers

Media Transport

QOS

Traffic Engineering for Provisioning

Local Protocols

Source: Vinod Khosla at KPCB

BroadbandWireless

CPE LAN Technologies

Services Services Services

Applications

Intelligent Content D

elivery

Elem

ent and Sub-Elem

ent Netw

ork Managem

ent

Security2002-2005: Data Service Delivery Infrastructure

9/3/01 13

Equipment and Components for Data Center NeedsEquipment and Components for Data Center NeedsTransport Transit Core Service Core Edge Access Data Center

Optical High Speed High Speed Medium Speed I/O Intensive I/O Intensive

Optical Switches

Optical Repeaters

Optical ADMs

Optical Traffic Mgt

Optical Trunking

Optical Gateways

Aggregation Routers

Optical Traffic Mgt

Optical ADMs

Multi-Service Switches

Class 4 Switches

VoP Gateways

Aggregation Routers

Digital Cross Connects

Optical ADMs

Subscriber Mgt

ATM Switches

Frame Relay Switches

Remote Access

DSLAMs and DLCs

Class 5 Switches

VoDSL & VoIP

CMTS Super Head End

Metro BB Wireless TS

Remote Access

DSLAMs

Class 5 Switches

VoDSL Gateways

VoIP Gateways

DLCs

LAN Routers

Content Switches

Servers

SAN Switches

NAS Disk System

Content Management

Data Center

Semiconductor ComponentsOptical Components

Supply Chain

9/3/01 14

Transport Transit Core Service Core Edge Access Consumer

Optical High Speed High Speed Medium Speed I/O Intensive I/O Intensive

Optical Switches

Optical Repeaters

Optical ADMs

Optical Traffic Mgt

Optical Trunking

Optical Gateways

Aggregation Routers

Optical Traffic Mgt

Optical ADMs

Multi-Service Switches

Class 4 Switches

VoP Gateways

Aggregation Routers

Digital Cross Connects

Optical ADMs

Subscriber Mgt

ATM Switches

Frame Relay Switches

Remote Access

DSLAMs and DLCs

Class 5 Switches

VoDSL & VoIP

CMTS Super Head End

Metro BB Wireless TS

Remote Access

DSLAMs

Class 5 Switches

VoDSL Gateways

VoIP Gateways

DLCs

Semiconductor ComponentsOptical Components

Supply Chain

In-Building Routers

In-Home Gateways

Content Servers

Personal Computers

Appliances

Television

Consumer

Equipment and Components for Consumer NeedsEquipment and Components for Consumer Needs

9/3/01 15

DWDM Application ExampleDWDM Application Example

DWDMMultiplexer & Demultiplexer

Optical

Crossconnect

DigitalCross

Connect

IPRouter

ATMSwitch

TerabitIP

Router

ATMBackbone

Switch

Source: JPMS

FEC

SONET Framer

POS/ATM Mapper

Route Processor

Fabric

9/3/01 16

Components for the Terabit AgeComponents for the Terabit Age

LaserLaserDriver

PhotoDiode

X-amp

Opto-Electronic Devices

CMU

CDR

SERDES

SONET/SDHFRAMERMAPPER

PROCESSINGSWITCHFABRIC

(DSP processing)SWITCHFABRIC&

Line I/F

Voice-over-Packet: Compression Echo Cancellation

Telephony

Voice-over-Packet: Packetization

SAR, Cellification Jitter management

(DSP processing)

Payload processing

&aggregation

Header assemblyT1/E1Framing

Payload processing

ClassificationRoutingPolicingTraffic ShapingForwarding

State-full Applications

9/3/01 17

λ Market Segments defined by Product or Service, Technology, Sales Channels, Customers

λ Large Companies “Goliaths” develop broad multi-segment Franchises

λ Start-ups succeed with a “Compelling Product or Service Focused in One Segment”

λ Start-ups become Goliaths by adding products or services in contiguous segments

λ Diminished Focus in one Segment creates new opportunities for Start-ups

Market Segments and the Goliath FranchisesMarket Segments and the Goliath Franchises

Goliaths with Franchises

StartupsStartups

9/3/01 18

Focus*(Innovation + Rapid Execution) = SuccessFocus*(Innovation + Rapid Execution) = Success

Improvements Breakthroughs

Goliaths

Start-ups

Rapid Execution

Innova

tion

Focus

Creativity

9/3/01 19

Communications Chip Companies Aim to Control Line CardCommunications Chip Companies Aim to Control Line Card

Example: IBM Microelectronics

Message: Works best as one solution

9/3/01 20

Economic Drivers For Terabit RevolutionEconomic Drivers For Terabit Revolutionλ Enterprise

– Supply Chain Compression, Web based Business Transactions

– Integration of Data Center Storage and Compute with WAN

λ Carriers and Service Providers

– Compelling Services (Faster time to Revenue)

– Expanded Market Access

λ Multi-Service Operators

– Providing multiple channels, data, voice and other services

– Targeted Advertisement Revenue

l Mobile Business End-User

– Mobile Data Access

– Base Station WAN Integration

λ Enterprise












9/3/01 21

Investment Hot SpotsInvestment Hot Spots

λ Enterprise Spending Increases in IT

λ Service Providers focus on Delivering Managed Services

λ Data Centers– Enterprises– Carriers and Service Providers

λ Mobile Wireless Data Delivery– 802.11– 2.5G and 3G

λ Rich Media Content Service and Delivery

λ Enterprise Spending Increases in IT

λ Service Providers focus on Delivering Managed Services

λ Data Centers– Enterprises– Carriers and Service Providers

λ Mobile Wireless Data Delivery– 802.11– 2.5G and 3G

λ Rich Media Content Service and Delivery

9/3/01 22

Enterprise Economic DriversEnterprise Economic Drivers

λ Commerce over the WAN– Web based Commerce– Supply chain compression– Integration of WAN with the data-center resources

λ Secure Data Center Operation– Enabling a secure data-center perimeter – Wire-speed Firewalls– Managing the security of distributed Data Centers – SAN/WAN Integration– Security of business information over the WAN – Hard Secure WAN Flows

λ Data Storage Consolidation and Warehousing– Data backup– Disaster based data-recovery– Better Storage Utilization

λ Network Equipment Management– Load-balancing– LAN-SAN-WAN Integration

λ Commerce over the WAN– Web based Commerce– Supply chain compression– Integration of WAN with the data-center resources

λ Secure Data Center Operation– Enabling a secure data-center perimeter – Wire-speed Firewalls– Managing the security of distributed Data Centers – SAN/WAN Integration– Security of business information over the WAN – Hard Secure WAN Flows

λ Data Storage Consolidation and Warehousing– Data backup– Disaster based data-recovery– Better Storage Utilization

λ Network Equipment Management– Load-balancing– LAN-SAN-WAN Integration

9/3/01 23

Carrier and Service Provider Economic DriversCarrier and Service Provider Economic Drivers

λ Metro Services– Managed Data Services to Points-Of-Presence closer to Enterprise Customers– Hard QOS flows delivered from Carriers to Enterprise– Web hosting, Application hosting– Storage Service integration

λ Media Delivery– Video-On-Demand distribution– Advertisement integration– Web hosting for data delivery

λ Data Center Managed Services– Resource Usage Based Billing model– Virtualization of Storage and Compute Resources– Security – Firewall, Intrusion Detection, Secure Transport

λ Metro Services– Managed Data Services to Points-Of-Presence closer to Enterprise Customers– Hard QOS flows delivered from Carriers to Enterprise– Web hosting, Application hosting– Storage Service integration

λ Media Delivery– Video-On-Demand distribution– Advertisement integration– Web hosting for data delivery

λ Data Center Managed Services– Resource Usage Based Billing model– Virtualization of Storage and Compute Resources– Security – Firewall, Intrusion Detection, Secure Transport

9/3/01 24

Data Flows

Virtual Control of Data Center ResourcesVirtual Control of Data Center Resources

Current Enterprise Data Center Model

New EnterpriseData Center Model

Secure Boundary

O

O

O

O

OO

O O

9/3/01 25

SAN / NAS Hybrid DAS

Content Switches

Global Load BalancersGlobal Firewalls

LAN Routers / Switches

Local Load Balancers

Bandwidth Management

Web Servers App Servers

Data Center EvolutionData Center Evolution

MetroServices Systems

MetroServices Systems

Content Servers

Nexsi

9/3/01 26

Mobile Wireless Data Integration with WANMobile Wireless Data Integration with WAN

Ξ 2G Cellular

Ξ 2.5G + GPRS

Ξ 3G Cellular + GPRS

Ξ 802.11b Islands

Ξ 2G Cellular

Ξ 2.5G + GPRS

Ξ 3G Cellular + GPRS

Ξ 802.11b IslandsCloud

Enterprise A web site

Enterprise B web site

Enterprise C web site

WAP

device

PDA

Laptop

Computer

RouterNetCache

ContentDirector

Filter

Router

CDN-Data Center- Origin

City

CDN-POP-

Internet Edge

Value AddedServices

NetCache

Broadband

The LastMile

Wireless

Wireless

GSLB Redirect

Staging Server

Browser Access

T1 or DSL -> 802.11

9/3/01 27

Media and Data Distribution over HFC and CableMedia and Data Distribution over HFC and Cable

Hub ~20k HHP

IP Backbone

HubFiber Nodes

Fiber Nodes~500 HHP

Head-end~500k HHP

Today: 1.5Mbps to each homePotential: 100Mbps to each home

Data

Media

Voice

9/3/01 28

Engines to Generate Services From Optical TrafficEngines to Generate Services From Optical Traffic

Custom processors for processing OC-192 routes and beyond Custom ASIC Products

Ultra-high performance parallel I/O processors for Web Servers Custom ASIC Products

Packet processors for TCP/IP termination and re-direction Custom ASIC Products

Stateful packet processors for processing secure traffic Custom ASIC Products and Standard Products

Programmable packet processors for packet forwarding Custom ASIC Products and Standard Products

Digital signal processors for RF for wireless, HFC and Coax Custom ASIC Products and Standard Products

High performance programmable control processors Standard Products

Special purpose processors for classification acceleration Standard Products

Digital signal processors for Voice-over-Packet applications Standard Products

9/3/01 29

Equipment Companies with ASICs vs. Standard ChipsEquipment Companies with ASICs vs. Standard ChipsCompanies with Custom ASICs 8/13/2001

Company Equity Cash TotalMarket Cap Ent Value 2001 2002 2001 2002

Alcatel 20,447 3,083 25,172 2,979 3,141 8.4 x 8.0 xBrocade 8,018 218 7,800 515 670 15.1 x 11.6 xCiena 10,001 1,501 9,365 1,741 2,632 5.4 x 3.6 xCisco 132,800 6,200 126,600 18,336 20,441 6.9 x 6.2 xExtreme Networks 2,910 271 2,639 491 540 5.4 x 4.9 xFoundry Networks 2,129 260 1,869 355 440 5.3 x 4.2 xJuniper 7,347 1,600 5,747 941 989 6.1 x 5.8 xNortel 23,235 1,930 25,605 18,895 19,363 1.4 x 1.3 xONI Systems 2,865 739 2,426 281 470 8.6 x 5.2 xRedback 952 314 1,142 277 380 4.1 x 3.0 xRiverstone 1,463 176 1,287 219 404 5.9 x 3.2 xSonus 4,021 136 3,885 207 311 18.7 x 12.5 xTellabs 6,372 1,034 5,341 2,269 1,873 2.4 x 2.9 xTellium 1,111 231 882 130 288 6.8 x 3.1 xSun Microsystems 52,800 1,860 53,389 18,250 17,147 2.9 x 3.1 x

Average 6.9 x 5.2 xMedian 5.9 x 4.2 x

Companies with Off the Shelf ASICsADC 3,900 432 3,602 2,530 2,229 1.4 x 1.6 x3Com 1,721 1,847 (126) 1,864 1,755 -0.1 x -0.1 xCacheFlow 191 82 110 86 119 1.3 x 0.9 xf5 Networks 310 69 241 117 169 2.1 x 1.4 xNetwork Appliance 4,580 364 4,216 1,006 921 4.2 x 4.6 xLucent 22,036 2,285 25,961 21,528 20,446 1.2 x 1.3 xMarconi 3,398 728 2,670 9,927 8,746 0.3 x 0.3 xScientific Atlanta 4,393 754 3,639 2,511 2,254 1.4 x 1.6 xSycamore 1,873 1,300 573 226 308 2.5 x 1.9 x

Average 1.6 x 1.5 xMedian 1.4 x 1.4 x

Premium on Average for Custom ASICs 4.3 x 3.5 xPremium on Median for Custom ASICs 4.1 x 3.0 x

Revenues Multiple of TEV

9/3/01 30

Indexed Stock Price HistoryDaily from 15-Aug-2000 to 15-Aug-2001

0%

25%

50%

75%

100%

125%

Aug-2000 Nov-2000 Feb-2001 May-2001 Aug-2001

Daily from 15-Aug-2000 to 15-Aug--2001

Inde

xed

Sto

ck P

rices

Custom ASICs Off-the-Shelf ASICs

Period when all businesses attracted capital alike

9/3/01 31

Critical Technological ChallengesCritical Technological Challenges

λ Routing Multiple (N) 10G flows in a unified Routing Engine– High Performance Route Processors and Classification Engines– Enabling High Speed SERDES on chip

λ Supporting the Routing Table bloat for the future– Get the highest performance out of Moore’s Law– Distributed Routing Models– High Speed Packet Memory buffers and next generation TCAMs

λ Enabling latency control and QOS at 10G rates– MPLS at the Core

λ Transitioning from 1G to 2.5G/3.125G to 10G line rates

λ 10G Ethernet requires XAUI (4x3.125) to 10Gbps SERDES

λ Switch Fabrics with QOS and TDM support with on-chip SERDES

λ 40G line rates will require all-optical ADM

λ Routing Multiple (N) 10G flows in a unified Routing Engine– High Performance Route Processors and Classification Engines– Enabling High Speed SERDES on chip

λ Supporting the Routing Table bloat for the future– Get the highest performance out of Moore’s Law– Distributed Routing Models– High Speed Packet Memory buffers and next generation TCAMs

λ Enabling latency control and QOS at 10G rates– MPLS at the Core

λ Transitioning from 1G to 2.5G/3.125G to 10G line rates

λ 10G Ethernet requires XAUI (4x3.125) to 10Gbps SERDES

λ Switch Fabrics with QOS and TDM support with on-chip SERDES

λ 40G line rates will require all-optical ADM

9/3/01 32

Growth of BGP Routing TableGrowth of BGP Routing Table

Report last updated at Thu, 16 Aug 2001 4:15:12 UTC+1000.

9/3/01 33

BGP Routing Table Growth Chasing Moore’s LawBGP Routing Table Growth Chasing Moore’s Law

Source: Tony Li, Procket: “Hyperexponential Growth will exceed Moore’s Law”

9/3/01 34

Raza Foundries Partner CompaniesRaza Foundries Partner Companies

Advanced SAN ChipsetsOptical Packet Processor Engine

Hardened QOS over Optics

Broadband Access Systems

Content-Aware Delivery System Metro Wireless and Optical Systems

Distributed Application Delivery

Transparent Optical Switch

Global Ethernet Wireless Solutions

Terabit Switch Fabric

Advanced Service Delivery

Next Generation Web Server

Hyper Fabric

Acquired by AMCC

IntruvertNetworks

Wire-Speed Security Systems

Acquired by Cisco

9/3/01 35

Raza Venture Fund A/B Investments - Broad PerspectiveInvestments Co-Investors Products Segment Business

Procket NEA, USVP, Redpoint Router Core Router Equipment

Switch-On Sequoia, Redwood Classification Accelerator Router Chips Acquired by PMCSSiByte Cisco, Bowman, ATI Comm Processors Line Card Control Acquired by BRCMNexsi Sequoia 10G Content Switch Data Center System EquipmentSilicon Access Norwest Ventures Network Accelerators Router Chips ChipsVxTel Sequoia, Telesoft VOP Chips Chips for Class 4 Acquired by IntelOptovation NEA, Redwood Optical Components Optical Transport ModulesNishan WP&G, Comm Ven Storage Area Networking Data Center System EquipmentCyras Networks NEA Optoelectronic ADM Optical Networking Acquired by CienaMobilian Bessemer 802.11+ Bluetooth Wireless LAN ChipsZeevo Sequoia Blue Tooth Chipset Wireless LAN ChipsEuclid Redwood Network Services Data Center Services ServicesPaxoNet Framer/POS chips Optical Linecard ChipsMellanox Sequoia, USVP Infiniband ICs Server & Storage Fabric ChipsQuantum Bridge TPG, NEA PON Switch Transport Equipment Filed for IPOCelox TPG, Apex Partners Optical ATM Transport Transport integration EquipmentArcot Accel, Onset User Authentication Security Software SoftwareEverypath Sevin Rosen, USVP Web Access by Phone Wireless Access Software ServicesMagma DA NEA, CMEA Synthesis/P&R Fusion Next gen CAD Filed for IPOLara Networks Battery, Telesoft CAM & Processors Router Chips Acquired by Cypress

9/3/01 36

Economic Drivers For Terabit RevolutionEconomic Drivers For Terabit Revolutionλ Enterprise












λ Enterprise












IntruvertNetworks

Nexsi

9/3/01 37

Highlights of the Raza Portfolio – Eighteen MonthsHighlights of the Raza Portfolio – Eighteen Months

λ Highest Valuation private “Chip Company” - SiByte - $2.2B

λ Highest Valuation acquisition after downturn - VxTel - $500M

λ Fastest path to liquidity for “Chip Company” - Yuni - $250M

λ First acquisition by Cisco after downturn - AuroraNetics - $150M

λ Seven acquisitions

λ Two IPO filings

λ Highest Valuation private “Chip Company” - SiByte - $2.2B

λ Highest Valuation acquisition after downturn - VxTel - $500M

λ Fastest path to liquidity for “Chip Company” - Yuni - $250M

λ First acquisition by Cisco after downturn - AuroraNetics - $150M

λ Seven acquisitions

λ Two IPO filings

9/3/01 38

Dr. Lawrence RobertsDr. Lawrence Roberts

August 17/2001 Contrary to some opinions, the Internet is not shrinking,nor does it appear to be slowing yet in its growth, says Internet veteranand network scientist Dr. Lawrence Roberts. In fact, new measurementsby Roberts and his research team suggest traffic on the Internet hasrecently been growing faster than ever before, increasing as much as anunprecedented four times annually through the first quarter of 2001.

Roberts believes this data has implications for service providers andcommunications equipment vendors. "Carriers have been holding backon purchases due to spending constraints. Recently, some had beengrowing their capacities by redeploying equipment and capacity they'dpreviously acquired for OC-192 testing. But this borrowed time is aboutto run out -- if traffic continues to grow at rates like these, networkbuildouts will need to continue soon."

Silicon for 10 Gbit/s Connected World - Hot Chips: A ...9/3/01 2 The First Inning – 1998 to...

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