Making networks more agile, open, and application centric

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Making Networks More Agile, Open, and Application Centric

Emerging Industry and Business Trends

July 2014 Ian A. Hood, P Eng.

Service Provider Architecture ihood@cisco.com

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New Infrastructure Model – Open, Agile, Smart

Business Implications

Growth and Productivity

Opportunities User Experience and Expectations

New Business Models Globalization

Security and Regulatory Compliance

Technology Transitions

New Breeds of Apps Mobility/Video Cloud Internet of Things Big Data and

Analytics

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Pace of Change is Accelerating

Simplification is Imperative

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Opera&onal*Compe&&veness*

Catching*the*Next*Wave*of*Cloud*

The*Poten&al*of*Data*and*Analy&cs*

Profitability*and*Growth*of*Digital*Media*Unlocking*The*

Value*of*SMB*

SP*Services*Evolu&on*

Network*Virtualiza&on*&*Programmability*

Pervasive*Mobility*

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Location Services 24% >> $14B

M-Commerce 55% >>> $180B

Public Cloud 27% >> $218B

Internet of Everything 35% >> Incremental $500B

Sources: ABI, IDC, In-Stat, Insight, Ovum, Parks, Screen Digest, Strategy Analytics

Mobile Ads 55% >> $33B

Virtual Desktop 10% >> $18B

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Service Providers Sit in the Center of the Internet of Everything

Home

Manufacturing

$140B Addressable Opportunity

Growing to $24B / yr

(16% CAGR)

Sources: Machina, Infonetics, Cisco BTA, Cisco CCS

Oil and Gas

$10B Addressable Opportunity

Growing to $1B / yr

(18% CAGR)

Healthcare

$171B Addressable Opportunity

Growing to $30B / yr

(38% CAGR)

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Open Source, Open APIs Enabling Faster Innovation and Wide Participation

Several Industry Initiatives Each Addressing An Aspect of the Challenges and Opportunities, Examples:

Open Source

NFV SDN

Beware the hyperbole – Look for the proven experience

Network Functions Virtualization, NFV Transforming Network Architectures & Operations

Software Defined Networking, SDN Abstracting to Better Application & Network Interaction

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Sources: ACG, ABI, Analysis Mason

SDN/NFV Market Potential Over $5B Through 2018 (65% CAGR)

0

500

1000

1500

2000

2500

3000

3500

2014 2015 2016 2017 2018

HW SW Services Annual

SDN Market

0

500

1000

1500

2000

2500

2014 2015 2016 2017 2018

NFV Market

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Orchestrated with Self-service

App & Network Interaction

Well-known Programmatic Interfaces

Autonomic with Control & Visibility

Open & Pluggable

Configurable

Apps Independent of Network

Command Line Interface

Managed

Proprietary

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Our Industry’s Mission: Business Transformation Cost reduction and agility leads to success for all

Automation, Virtualization and Orchestration Are Required

Virtualized Resource Pools

(network ready compute/storage)

Virtualized Network Functions

Dynamic Set-Up, Tear Down and

Provisioning

On-Demand Workload Movement with Service Profiles

Data Center

Network Workload Portability

Orchestration

Full Access to Resource Pools

Anywhere in the Cloud

Cloud Services

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Cisco Evolved Services Platform

Cisco Evolved Programmable Network

VNF VNF VNF

Compute Storage Network Core Optical

Edge

Access

Service Broker

Catalog of Virtual Functions

Applications

Orchestration Engine

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Service Broker Orchestration Engine Service Profiles

Services Offered

Catalog of Virtual Functions

Best of Breed Virtualization and Orchestration Validated with Multi-Vendor Partners

Video Network Mobile

Quantum vPC

Quantum Services Platform

CSR 1000v

Videoscape Media Suite

API GW

vWAAS

Videoscape Distribution

Suite

Quantum SON

Nexus 1000v

Virtual Subscriber Database

vASA

Virtual DPI

Quantum Analytics

vCPE

Virtual Load Balancer

vWLC

Virtual ANDSF

Videoscape Control Suite

vISE

Virtual IOS XR QvBN Virtual IPS

Virtual SaMOG

Quantum Policy Server

Quantum Service Bus

Orchestrator NFV

(CloudBand)

Compute & Storage

Prime Suite OpenStack

Provisioning / Management

Cloud

and more to come

WAN Automation APIC InterCloud API Open Daylight

Prime Suite UCS Manager/Director

Network

Citrix vLB

Arbor vDOS

VNF

VNF

VNF

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As-a-Service InterCloud-Based

Scale and Delivery

Simplified Purchasing Models to Transform Business

Repurposed on the Fly Open Interfaces to 3rd Parties Elements that Plug n’ Play

Virtualized Functions + Orchestration + Element Integration SLA certified (Packaged Service Insertion)

Individual Virtualized Functions

(Drop in Elements)

Virtualized Functions with Service

Orchestration (Integrated Capabilities)

OSS BSS

Term-based/Perpetual/Metered pricing Priced as integrated solution Pay-as-you-go

It’s All In The Economics Or Why are We Doing This?

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Virtualized Managed Services (vCPE) Enterprises Focus on Innovating While Realizing Significant TCO Savings

Rev Uplift

Operations Savings

Cisco Evolved Programmable Network

Secure VPN

EnterpriseService Portal

Network Storage Compute

vCPE

Cisco Evolved Services Platform

VFW vNAT vDPI

vWAAS VNF

Service Broker

Orchestration Engine

Catalog of Virtual Functions

Service Profiles

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Virtualized Mobile Internet – Premium Mobile Broadband

TCO Savings

Quantum Virtualized Packet Core

Cisco Evolved Programmable Network

Mobile Service Portal

Quantum Services Platform

Cisco Evolved Services Platform

Quantum vPC

Quantum SON

Quantum Policy

ANDSF Quantum Services Bus

Network Storage Compute

Service Broker

Orchestration Engine

Catalog of Virtual Functions

Service Profiles

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Location Based Venues

Cisco Evolved Programmable Network

Venue Service Portal Cisco Evolved Services Platform

Quantum Services Platform

Quantum vPC

Quantum SON

Quantum Policy

vIPS Quantum Services Bus

Network Storage Compute

Service Broker

Orchestration Engine

Catalog of Virtual Functions

Service Profiles

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Global Tunnel Balancing Customers Optimize Long Haul Links

Cisco Evolved Services Platform 2

TCO Savings

Service Provider

1

Collects Global Traffic View

2

Requests Load and Maximizes Utilization

3

Predictive Analysis with Global

Modeling

4

Auto Rebalance Traffic

Tunnel Balancing

1 4

Enterprise Service Portal

Service Broker

Orchestration Engine

Man

agem

ent

Deploy Collect

3

Operator Portal

Policy

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Bandwidth Calendaring WAN Automation Enables New “Classes” of Services

Enterprise Data Center

Enterprise Data Center

Enterprise Service Portal

Service Broker

Cisco Evolved Services Platform

Orchestration Engine

Man

agem

ent

Multi-Vendor Agile Infrastructure

R1

R2 Congested!!

Deploy Collect

1

2

3

4 1

Auto Collects Traffic &

Topology

2

Service Request Made

3

Predictive Analysis with Network Impact and

Optimization

4

Optimal Service Deployment

Enterprise Portal

Revenue Growth (CAGR)

Policy

Cisco Evolved Programmable Network

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Opportunity to Grow Virtual Cloud Services Business

Cisco Evolved Programmable Network

Enterprise Portal

Enterprise Private Cloud

Private Application Workloads

VM VM VM

Service Broker

Open Daylight

InterCloud

Virtual Private Application Workloads

Telco Cloud Provider

Cisco Evolved Services Platform

VM VM VM

Orchestration Engine

APIC

Public Application Workloads

+ Cisco Global InterCloud

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Network Virtualization Model Helping Telefonica Transform

Source: Telefonica

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•  #3 Business Ethernet Services Provider •  Simplify Network – Expand the Offerings •  Consistent Provisioning – Open API •  Dynamic Capacity Business Services •  Improved Customer Experience

•  North American Premium Business Services by 2017 •  $15B >> 29% CAGR over 5 years

On-Demand Business Services

Enabling On Demand Business Services from the Cloud

Evolved Programmable Network

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Evolved Programmable Network

•  Virtualized Private Cloud Services in Data Center •  Policy Driven Bandwidth On Demand •  Intelligent Convergence -- Migration to NCS + CRS + ASR •  Rapid Acceleration of Service Delivery •  Increased Revenue Growth

•  Opportunity to Grow Managed IP Business Services •  Current Revenue Growth Rate ~ 4%

Virtualized Business Services

Simplifying Cloud Based Delivery for Telstra

Sources: Gartner, IDC, Cisco VNI

Data Center

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It’s all about the business and transforming it successfully !  Imperative to understand where to focus immediate

attention for business benefit to you and your customers

!  Cisco and its Partner community can uniquely help you in your journey to overcome the business challenges and seize the opportunities.

!  The time to act is now but choose your path thoughtfully

Thank You

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