Shane Eleniak shares the Calix vision for Smart Home and Businesses at Calix ConneXions 2018

Good morning everybody. Incredibly excited to talk to you. You'll see there's a lot of themes to this: speed and innovation, speed at the innovation that we can get from software transformation, business transformation, network transformation, operational transformation, and platform. So what I'm going to try and do today is really talk about all the different pieces, how they go together, and why we're so excited about the Calix Smart Home and Business. Last year when we sat down and talked about this, we talked about the explosion of devices, the perforation of devices. I'm excited every January to come back here and go to CES and see what's new in the consumer space. But two years ago, when we stepped back and looked at Giga families, we looked at what we were doing with Compass and CC+ managed Wi-Fi, it was really about the smart home. For me, when I looked at it and we all sat back as a team, we started to look at this problem. For us, it became about smart home and this idea of chaos and order. That really was the genesis that led to EXOS. We started to look at it and go, if we built the platform and we really started to focus on smart home and business and smart city, could we start to make it really, really simple to launch new services and bring solutions? So ultimately, we stepped back and said for Calix Smart Home and Business, there's really four key areas. The first one is automation. What we wanted to do was create a platform to do lifecycle management of new services and bring these solutions to market, but to do it in a way that it was fully automated. Next part was analytics. We talk about business transformation when we talk about data and having data to drive your business. For us, it became this real key focus that says if I've got rich, fine-grain analytics, I could start to do predictive and behavioral analytics. I can start to look at what to do, where to market, I can start to do planning, I can start to do operations, I can start to do customer support much more efficiently. After that, it really became about applications. That's really the exciting part about this solution exchange. I'm going to talk more about the categories and what we're thinking there. For us, it became EXOS became this platform of how do we launch new applications, how do we bring solutions to bear. Then the last part was really this opportunity to refresh our systems. Michael talked about the GigaSpire and talked a little bit more about it, but ultimately we wanted to look at this new look and feel, we wanted to look at something that we felt would be future-proofed, but ultimately we wanted the platform to launch EXOS, what we're doing in the cloud, how it all tied together in this whole ecosystem. So that's what we set out to do. When we stepped back, we saw there was really four pieces to this. First one was really these new sets of platforms: GigaSpire, Max, because I fired blast, we've got some really exciting platforms. The really exciting part, this real theme this year, is they all work, they're all here. We've got 65 customers in our early adopter program that have been working with us for months now with these systems, with the XOS, learning it, giving us their feedback, looking at where do we want to go from an ecosystem perspective. That was really the first exciting part. The next part was we wanted to build the carrier-class OS that was container-based. We wanted to make it really, really simple for the best partners in the world to be able to work with us to launch new solutions. So we wanted a container-based OS that was abstracted from the underlying hardware. It needed to be always on, it needed to be carrier class because as we all step back and look at it, Wi-Fi, IoT, the smart home, that experience needs to always be on. It's a fundamental part of our lives now as consumers. The next part of it then was how do we want people to interface, how do they want to use our systems? What we got to was voice recognition, and Alexa and Amazon was the obvious partner from a voice recognition perspective. After that, we wanted to put a rich app for the consumer so that they've got the ability to easily set up policies, controls, the lifestyle that they want, the services that they want, eliminate this need to have all these different hubs and 16 different apps. I've got a lot of good friends who are very much into smart homes, they've got 20, 30, 50, 60 devices. One friend of mine counted he had 20 apps on his iPad to manage different things. It was insane. These were the kind of the genesis that led us to step back and say there's got to be a better way to do this. There's got to be a platform approach on how do we do this. That led us towards something that we call the microservices aggregation platform. It's a cloud-based, web-scale infrastructure. What it is, is to be able to work at a microservices level to solve a lot of problems very quickly, but more importantly, it's the basis for where we collect data and then do data processing and analytics. So now it's essentially this idea of a client-server UX type of model. The client is the XOS and these new systems that we have running XOS. The server is the microservices application platform. The two work hand-in-hand together to manage the lifecycle of these new services that we're trying to add, we're trying to launch, we're trying to offer, that we're trying to go to market with together with you. The UX becomes Alexa as well as the app. That's what we went out to build. Then the exciting part is it's real now. Over the course of last year, I got to talk about EXOS and the genesis and what we were going to go off and do. This year, I get to show what we've built, launch the products, and talk about 65 customers that have worked with us hand-in-hand to bring this to market. So Michael talked a little bit about the solutions exchange. Thought it would be helpful to step back and talk about what are the kinds of solutions that you guys are thinking. The first one for us is home automation. When we think smart home, most people think home automation. So we wanted to have the IoT applications. We integrated ZigBee, Z-Wave, low-energy Bluetooth, and Wi-Fi, all of the physical things that you need into the system. But more importantly, then we put an IoT application container into EXOS to manage all of that. We put microservices into the MAP, and we put capabilities in the app to drive all of that. So you can use voice recognition, you can use the app to drive all that. The exciting part, you can go across the way to the demos, you can see it, you can touch it, you can see the demonstrations. Not only what are we doing in home automation, but then obviously for us the next step is managed home security. So you start to look at home prevention. Stephen, who runs sales for Michael for the cloud products and the smart home products, loves to talk to people about 'I want to make sure terrible things are happening in my home.' For us, that's that whole category. If I can manage the smart home with home automation, it then becomes of making sure that I don't have terrible things happening to my home. That's really that next category: home security. After that, it becomes network security, home network security. So we stepped back and said we've got these great GigaSpires. They're the system, they're the center, they're the heart of this. In the home, what I want to be able to do is fingerprint all the devices around them. I want to see tablets, I want to see all the IoT devices, the computers, the TVs, and I want to be able to identify what all of those are. After that, I can start to see what's going on. I can see the applications, I can see the usage. We built this event-driven architecture to say something bad's happening, that device is behaving in a manner that we think there's a security problem. I want to be able to quarantine it. We've got that. What we're demonstrating across the way, we're showing you that we created some bad actors, some viruses, and some malignant stuff on some devices. We're able to first of all identify the good and the bad. We're able to fingerprint them and say well that's a Galaxy phone, that's an iPad, that's a computer. But we're also able to see this has a virus, it's malicious. We're able to identify it and quarantine it, create an event, come back and give you an alert. So you can now have your customer support people reach out to that customer. Obviously you've got a couple of different choices. You can offer a service to fix it for them, and we've got some great partnerships in mind on ideas on how you do that, put antivirus protection on it, or you can just let the customer know your Galaxy 8 phone has got a virus on it. That's a piece of information that we've never been able to do. We've never been able to say it's event-driven, I know the device, I know this symptom, here's the solution. That puts a lot of power in your guys' hands on how do you want to engage with your customers. Then the last area is lifestyle management. Everybody sees there's a tremendous amount of content on the internet, we all know that. There's a lot of content you don't want your family to be exposed to. How do you manage the content, how do you manage the time, how do you manage the engagement on how you use your services? For us, that's about bringing all of those pieces together and having partnerships, best-of-breed partners in each one of those categories. That's ultimately the solution exchange and what we're going to be bringing to market early next year. So let's look at how all that goes together. At the end of the day, what we're doing is we're bringing your vertical ecosystem. The heart of that ecosystem is the GigaSpire, the EXOS, ZigBee, Z-Wave, low-energy Bluetooth, Wi-Fi 6, the physical technologies that you need. Alexa support inside of it because we believe fundamentally voice recognition is a key part of how people want to engage with a smart home. After that though, it's about seeing all of those devices underneath us, having a software platform that's abstracted from the hardware, that's container-based so that we can quickly—and the exciting part is I get to work with partners that are saying it's taken us two weeks to take our software and put it into EXOS. That's exciting. This is about the speed of innovation. This is about best-of-breed software partners but being able to rapidly bring new solutions to market. After that, we've got that microservices aggregation platform which is really cloud infrastructure. It's web-scale cloud infrastructure, the type of infrastructure you would see a Yahoo or a Netflix build to be able to have rich analytics but also to be event-driven in web scale. After that, it's about APIs and making sure—it's great that I've got partners and software in the XOS on the GigaSpire. I've got to manage clouds for you. I'm going to be able to have APIs back into those home automation partners, those home security partners, people that are doing network security, people that are doing lifestyle management, and bring you that whole ecosystem to say I've got the complete solution. I've got the system, the GigaSpire. I've got the software platform, the XOS, to be able to bring partners and name recognition partners to be able to co-brand services around and to bring those services to market, to bring that software locally, but then also manage the cloud interaction back into their clouds, bringing you that complete solution as a vertical to say here's home automation, here's home security, here's network security, here's lifestyle management. Here's the options. We can work together. You can work closely with Matt's organization on how do we market it, how do we bundle it. But I got to make sure that we have all those right building blocks available. That's really what my team does: making sure that we've got the right platform but that we've got the right components.

It might be hard to tell now, but we weren't always being well smart with our smart home. Tossing it keys. I installed new keypads and downloaded the first keyless app I could find, but our home system wasn't IoT ready, so we had connection issues and still got locked out. We are in really doesn't the Jones's service provider offer a new smart home system that is always on? They can add new applications and devices with no interruption, you know things like locks. Wait, are you telling me you two were in here this whole time? Time fine. Now our new smart home system ensures that all our smart devices are always working. It's made all the difference. I mean, what's the point of having a smart home that isn't smart? We are so much better now, except for the broken window of course. Didn't get us in the house.

So first off, I love the Millers. I love these videos. For me, they bring across the message so powerfully. I would particularly love this video. It's called 'Locked Out,' and really it brings home the heart of a smart home has to be smart. I've got to have the comprehensive solution. I've got to have a software platform in EXOS that's always on, but I've got to have all the other pieces around it. The cloud infrastructure and management is a fundamental part of this. So when we stepped back, we looked at it and said cloud services has to be fully integrated into this. When we started, really the first one that we started thinking about actually wasn't support cloud, that was an obvious one. We started looking at it from a marketing cloud perspective, and we said we're going to get rich analytics. We need to tie back to lenses, we need to tie back to filters, to campaigns to figure out who are the people that are going to first want these smart home applications. Who's going to want home automation, home security, who's going to want network security? How do we work with you hand in hand to figure out how to market these and who are the right people to market to? That was really the first step. We said I've got this microservices aggregation platform, I've got the central repository of analytics. We've got to make sure we take those analytics and we've got to be able to do predictive analytics and say predict who are the best people to go market this to, where am I going to get the widest success. That's what we set out to do. That for me is a tremendously exciting thing. We get to show not only ground up from the systems, the software on the systems, the cloud infrastructure, but we get to tie it into here's where to go market it, here's where to go sell it. The next part, we got to support it. We've got to make sure that not only can we support it, but more importantly can we get in front of problems. That was a key part of this. Can we start to get and see those misalignments? Can we see event-driven opportunities to offer new services in the way of network security but also to fix problems? Can we put the intelligence in the EXOS and in the GigaSpire to have it fix problems, IoT problems, fix Wi-Fi utilization problems, clients to your band steer? That's really about bringing the intelligence. For me, it's about making sure that the support person has that information at their fingertips, but can we proactively fix problems before the customer sees them? People ask me what's next. It's planning and operations. So for us, really the next thing is to do a Calix planning and operations cloud. When we step back, you can say I want the tools to be able to operate the network, but then I also want to be able to do planning to figure out where to take my network next. That's both on the XRS side and what we're doing on the premises, but also in the XOR side of what we're doing on the systems. So I'm really excited about where we're going with that. For me, you know, I'm a big pictures tell a better story than words. I'm a big believer in the thousand words. So Bhopal ads, you know Michael talked a little bit about mobile ads in this idea that we got in one of our business cabs and we're demonstrating that across the way. But wouldn't it be great if all of a sudden a customer when they were pushing speed test, we saw that event, we went to an ad that we had created as part of marketing cloud, and when the person starts pushing speed test—because we all know people speed test two times: when they first buy a service to make sure they got what they thought they bought, and then when they're unhappy. So a lot of times it's because there's a misalignment, they're not getting the service that they should be buying. Wouldn't it be great that when someone pushes that, we push a banner ad going 'Hey, wouldn't you love to try this new gaming package? There's higher speed service.' And take it as an opportunity to be able to take something that's negative—you've got a customer that's not happy—and turn it into something positive. We think that really speaks to the power of the platform, what we're doing from an application perspective, what we're doing in EXOS, what we're doing with MAP, and how it ties back to cloud services. The last piece of it is really, you know, we kind of gave you guys a big hint right? We call it Calix Smart Home and Business. Everything we've talked about is home. So what's next for us? Business. Business is really what's next for EXOS. We take the XOS, we take MAP, we take this idea of solutions and solution partners, we take it to SMB. So we start working with you, our customers, on what's the next GigaSpire Pro for SMB. What are those use cases? Do we do disaster recovery with LTE backup? Every retailer I know lives on point-of-sale. If you want to see a retailer panic, watch their point-of-sale system go down. Doesn't matter whether it's a restaurant, a dry cleaner, who it is. If they can't sell you something, they're shut down. So can we start to bring things there? Can we bring them managed Wi-Fi? Can we bring them security services? The second part of it then is really around campus and branch office. Can we bring branch type of solutions that make sense and bring the same type of offerings there? They won't be home automation, they won't be home security, they'll be business oriented. But can we leverage that same platform and bring you those same types of partnerships and capabilities for both SMB as well as campus and branch? With that, thank you so much. As everybody said, we would not be here without you. We really appreciate it. We've got some great demonstrations across the way. I'd really like to see all of you come take a look at it. I think you'll like them. I think you'll find them very useful. With that, partnerships are a key part of what we do. I'm going to welcome on the stage Pam Ferguson, and she's going to have an opportunity to talk with two of our key partners: Amazon, what we're doing with Amazon, what we're doing with Alexa, but also HCI. So part of this also is we wouldn't be developing this all by ourselves. We've got a couple of really close development partners. HCI is one of them. We have the opportunity to work with them on the cloud side of this, on what we're doing both on MAP and cloud infrastructure, but also help what we're doing on CMC and CSC. So you'll get to hear a little bit from both of them. But really a common theme about all of this is speed, innovation, partnerships. I'd like to for us really to tell you more about those types of partners because we're really excited about the partnerships that we're bringing to the table. Okay, with that, thank you so much. I hope you have a great two days.