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JULY 2013

WI-FI MARKET TRENDS AND DYNAMICS

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A PERIOD OF UNPRECEDENTED CHANGE

dis·rup·tion / noun transitive verba : to break apart b : to throw into disorder C : to interrupt the normal course or unity of— dis·rupt·er noun— dis·rup·tion noun— dis·rup·tive adjective— dis·rup·tive·ly adverb— dis·rup·tive·ness noun

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MOBILITY DRIVES IT SPEND

IT spending in 2013 will exceed $2.1

trillion, up 5.7% from 2012.

Sales of smart mobile devices including smartphones and tablets will grow by 20%, generate 20% of all IT sales, and drive a whopping 57% of all IT market growth.

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GROWTH IS CHALLENGING THE WIRELESS NETWORK

• Access network has historically been optimized for wired• Wireless has been a convenience with inconsistent user

experience • Wireless needs to take on “wired” characteristics

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DEVICE INNOVATIONS DRIVE WIDE SCALE ADOPTION

iPhone 5

Blackberry 10

iPad

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TABLET ADOPTION CONTINUES

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MOBILE DATA CONTINUES ITS GROWTH TRAJECTORY

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APPLICATION USAGE EXPLODES

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APPLICATIONS DEMAND INCREASED CAPACITY

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USERS FAVOR MOBILE APPLICATIONS

Source: Junptap

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INSTAGRAM BECOMES NO.1 TRAFFIC ON WWW

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WIRELESS IS OVERTAKING WIRED

By 2015, data per month by access type will be…

- Wi-Fi 37.2 Exabytes

- Wired 37.0 Exabytes

- Cellular 6 Exabytes Source: Cisco VNI, 2011 Source: Dell’Oro Group, 2012

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ENTERPRISE WIRELESS GROWTH

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

$0.0

$1,000.0

$2,000.0

$3,000.0

$4,000.0

$5,000.0

$6,000.0

802.11ac802.11n802.11a/g802.11g802.11b

Source: Dell’Oro 2013 Enterprise WLAN Forecast

Enterprise WLAN AP Revenue

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WHAT’S CHANGING IN WI-FI?

From

IT driven decision

Dumb Access

One device per user

PCs, Laptops

Low Wi-Fi density

Device level control (Guest Access / NAC)

To

LOB owner drives decision

Programmable Network

Multiple devices per user; Wi-Fi preferred or only

Tablets, Smartphones, Machines

High Transaction density

Flow control (application visibility & context)

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HOW DOES THIS IMPACT NETWORKING?

Yesterday

High Volume of Low Density Access Points

Vendor Driven network services

Vendor Management Interface

Tight Service Coupling

Macro-segmentation

Vendor develops services

Today

Low Volume of High Density Arrays

Customer driven network services

Programmable APIs

Loose Service Coupling

Micro-segmentation

Customer or Ecosystem enables services

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THE NEW REQUIREMENTS FOR WIRELESS

• Break away from traditional architectures that don’t scale

• Ability to add capacity and coverage easily as needed

• Provide a “wired-like” experience for the users

• Portfolio to address small to highly dense

• High availability, mission critical apps

• Application aware infrastructure

• Roadmap to 802.11ac +