Convergence & Wireless Roadmap Robin Gareiss Executive Vice President & Senior Founding Partner www.nemertes.com
Convergence & Wireless Roadmap
Robin GareissExecutive Vice President &
Senior Founding Partnerwww.nemertes.com
© Copyright 2010 Nemertes Research
Agenda
About NemertesOrganizational TrendsDistributed Enterprise TrendsVoIP & UC Technology Overview & Adoption TrendsWAN Technology Overview & Adoption TrendsWireless TechnologyRecommendations
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Quantifies the business impact of emerging technologies Conducts in-depth interviews withIT professionalsAdvises businesses on critical issues such as:
Unified CommunicationsSocial ComputingData Centers & Cloud ComputingSecurityNext-generation WANs
Cost models, RFPs, Architectures, Strategies
Nemertes: Bridging the Gap Between Business & IT
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Organizational Trends
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Organizational Changes
Integration between technology “silos” (apps, networking, security)
Interaction with groups outside IT (HR, legal, personnel, facilities)
More matrixed structure
Balance openness with effectiveness--limit who’s in the critical path!
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Business Unit Partnership
Identify business/technology liaisons within ITIdentify “grassroots” helpBudget time for discussions with business-unitsh Leaders in HR, sales, finance, service, legal, etc.h Also discuss with managers and staff
Don’t ask technology questions—focus on problems they are having with their jobsUnderstand business problems, and relate your technology knowledge to solve themAssemble UC teamhMulti-disciplinary team—network, telecom, application development, contact
center, security, business unitsEngage team in all UC-related decisions
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Reporting Structure Option
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10 Steps for Identifying Business Issues
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Distributed Enterprise Trends
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More virtual workers
89%
More branch offices
9.2%
85%Decreased or Flat IT budgets
Branches with IT personnel
18%
MPLS & Ethernet(Solid network
performance is vital)
Managed Services
More bandwidth demands
More centralized apps & data
57%Optimization
Stre
amlin
ed C
omm
unic
atio
nsDistributed Enterprise: Overview
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Worker Characteristics and Needs
Worker Bandwidth Security WirelessTeleworker Moderate Moderate Low
Small/Branch/New Office
High Moderate Moderate
Customer Site Worker
High High Low
Road Warrior Moderate High High
Field Force Moderate High High
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Ethernet
Connectivity to the Cloud
MPLS Cloud
Teleworker
Small/New Office
Field Force
Internet
DSL
DSL/T1Wireless
(3G/4G/LTE)
MPLS Cloud
Customer Site Worker
TeleworkerRoad Warrior
IPsec/SSL
VOIP Server
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Formal Teleworking Policy
Only 37% had a teleworking policy in place in 2008.
84% increasing the number of telecommuters they support.
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What are the Drivers for Increasing Telecommuters?
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Virtual Workplace Business Drivers
Facilitiesh Moving from expensive headquarters to remote site saves $h Major metro area: $11,000-$20,000 per employee/yearh Suburban area: $7,000 - $10,ooo per employee/yearh Telecommuter: virtually zero
Agilityh Can respond more quickly to competitive pressuresh Can attract, retain employees by allowing them to work close to home or at home
Cultureh Virtual workplaces foster culture of responsibility, loyalty, employee productivity
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Streamlining Communications & Applications
Location doesn’t matterhUsers want applications, access to data regardless of location
Trend toward centralization of apps, datahEase of management key driver
All-in-one devices gaining momentumh48% of organizations use/want to use Two types of devices
– Routing/switching/security/wireless/IPT/compression– App acceleration/WAFS/DHCP/DNS/Print & file servers
More attention toward robust WAN & optimization
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Unified Communications and Collaboration: Technology
and Overview
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Technology Architecture & Evolution
VoIP
IP Video
PresenceIM
Web conferencing
IP CC
Social Computing
Fixed Mobile Convergence
Communications-Enabled Business Process
Management, Directory, Security
UM
Comm
on Protocols (SIP,SIMPLE,XMPP)
Handsets
Web portals
Office productivity
apps
User Interfaces
DashboardDesktop video
IP audio conferencing
Telepresence
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Telepresence
Typical Deployment Timeline
VOIP Pilot
IP Video
VOIP Production
IP Audio Conf IP Contact Center
Social ComputingUnified Messaging
Planning
Training, Management, Reporting, Security
Corporate Buy-in
Upgrade WAN infrastructure
Web Conf.
36 months24 months 60+ months48 months12 months
CEBP
Pre-deployment benchmarking
Validate Business Case Upgrades
Mobile Extensions
Presence/Unified Dashboards
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What Triggers a Move to UC?
Move to new facilityReplace aging TDM infrastructureNeed to centralize voicemailNeed integrated call features across multiple locationsWorkforce becomes more mobileWant virtual contact centerTime for a network upgradeVoice survivability/disaster recoveryRenegotiate telecom contractCost reduction opportunities/responseGreen initiatives
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UC Trending
UC Adoption, 2007-2011
17%
47%
60%
70%
80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2007 2008 2009 2010 2011
(Projected)
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Must-Haves
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On the Drawing Board
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UC Deployment: Key Challenges
Challenge 1: Ever-shrinking IT budget h In 2009: 85% of organizations had decreased or flat budget vs. 46% in 2008
Challenge 2: Staff decreaseshOn Average by 17%
Challenge 3: Interoperability concerns h Limiting adoptionh Concerns over standards complianceh Added cost & complexityh Need for additional upgrades just to achieve backwards compliance
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Challenge 4: Management
Why is Management Becoming So Important? h Network Complexityh New Application Plansh Mobilityh Fewer IT resources internallyh End user demandsh Globalizationh More remote workers & branch offices
UC adds more complexityh Presence managementh Integrated rich mediah Application integration
VOIP managed services grew from 22% in 2007, to 42% in 2009
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Challenge 5: WAN Demands
2009 Benchmark data: Average of 34% bandwidth increase year over year (in a flat economic environment—benchmark conducted during worst months of recession, January to April 2009)Increases driven by:h Bandwidth-intensive applicationsh Multimedia applications (voice, video)h Distributed/collaborative applications
Optimization techniques can mitigate but not eliminate need for increased bandwidthBottom line: WAN architectures must accommodate growth
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VOIP/UC Architecture: Network Becomes More Important
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WAN Technology and Overview
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VoIP/UC
Typical Deployment Timeline
MPLS,Ethernet, VPLS deploymentData-center consolidation
Optimization
All-in-One Branch/New sites & upgradesBranch standardization
Planning
Training, Management, Reporting, Security
Corporate Buy-in
Carrier RFP & negotiations
36 months24 months 60+ months48 months12 months
Pre-deployment benchmarking
Validate Business Case Upgrades
Mobile Extensions
Switch/router upgrade
WLAN
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Must-Haves
Business Drivers for Implementation
TechnologyCost savings
Sales increase
Broadly available
Managed services widespread
Enables virtual workplace
Falling behind without it
MPLS ● ● ● ● ● ●Ethernet/ VPLS ● ● ● ● ● ●
Broadband Access ● ● ● ● ● ●
Optimization ● ● ● ● ● ●
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On the Drawing Board
Business Drivers for Implementation
TechnologyCost savings
Sales increase
Broadly available
Managed services widespread
Enables virtual workplace
Falling behind without it
Wi-LAN ● ● ● ● ● ●
4G ● ● ● ● ● ●
Branch All-in-One Box ● ● ● ● ● ●
SIP Trunking ● ● ● ● ● ●
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MPLS and Carrier Ethernet Taxonomy
MPLS-Based Services
Layer 3 Layer 2 Layer 1 (optical)
RFC 4364 VPLS P2P
ATM/Frame
PWE3 GMPLS
Ethernet
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Network SemanticsMPLS is a technology, not a serviceWe say “MPLS” when we mean “layer 3 RFC 2547/4364 MPLS”—not any of the others (which are also MPLS)We say “Carrier Ethernet” to mean three separate service types:hEthernet connectivity to layer 3 MPLS (which is also MPLS)hPoint-to-point Ethernet connectivity (which may be delivered over an
MPLS fabric)hMultipoint Ethernet connectivity (which must be delivered over an
MPLS fabric)
Therefore, a service can simultaneously be “MPLS” and “Carrier Ethernet”—or be one or the other
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Justification: MPLS
Cost savingsh Range is 10%-40%
Ability to integrate multiple traffic types on one networkAny-to-any ability/DRCOS: Better manage capacityh 50% don’t use COSh 23% use 4 or more classes
Less overhead than ATM/FrameSolid managed services available
Global coverage from single carrier not “truly” availableCosts associated with upgrade (network equipment, installation, training)No application driversh Internet VPN still cheaper in
some cases
Key Benefits Why Not?
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Justification: Ethernet & VPLS
Emerging as next-generation WAN technologyLower per MB costs vs. MPLSGreater bandwidth & flexibilityBetter customer satisfaction vs. MPLSh 79% extremely satisfied, compared
to 67% with MPLS
Can’t get it!
Why Not?Key Benefits
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Justification: SIP Trunking
Reduced costs h PSTN: 20%-60% savings, depending
on current, future networkh No need to buy gateways
Ability to share trunksVirtual Number Services
Can’t get it!Security concernsh IP connection opened to PBX; need
SIP firewall
PBX doesn’t support SIP or requires costly upgrade
Why Not?Key Benefits
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WAN Optimization Deployment
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WAN Optimization Functions
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The Role of Wireless
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Enterprise-Wide Mobility Strategy?
Mobility Strategy 2008
Mobility Strategy 2009
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The Mobilized Workforce Is Here!
Over 75% of companies have or are planning mobility strategyAverage anticipated 12-month growth in number of mobile devices is 421% (median = 100%)hOf those with discrete budget, currently spending 4%-4.5% of overall IT
budget on wireless/mobility
Enterprise user populations are shifting from “special-purpose” (sales, logistics, onsite repair) to “general” Application demand is increasing dramaticallyDevice requirements are more complex (multimode, security, etc.)
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Managing Mobile Devices
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Mobile App Time Savings Impact
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The Mobility Transformation
Special-purpose network
Old New
Service IntegrationGeneral purpose network
Choice of DevicesDevice Proliferation
Separate from IT Infrastructure
Integrated with IT InfrastructureTransparency to User
IT IntegrationManaged by
Silos
Managed by IT
Special-purpose devices
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Justification: WiLAN
Productivity EnhancementServes contractors, visitorsCan add wireless VoIP
Security concernsNewness of 802.11n standardOpportunity to save costs by moving cellular voice to WiLAN may erode as Femtocells become available.
Key Benefits Why Not?
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Justification: 3G/4G
Serve virtual workforceDisaster recoveryRedundancy for leased line accessPotentially less expensive than carrier landline services
Performance4G still unavailable widelyStandards rapidly changing
Key Benefits Why Not?
54% using/planning fixed broadband; 89%
mobile broadband
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Closing Thoughts & Recommendations
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Technology Outlook
20112010 2013+20122009
More managed services
More hosted apps
VoIP rollouts / UC integration continues; increased penetration in large companies
Social computing integration
CEBP
UC virtualization
Second life integration
Intense mobile integration
Video distribution 3D telepresence Hologram telepresence
Mobile multimedia
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Bottom Line
Consider key emerging WAN technologies.Standardize products, capabilities at your distributed enterprise.Plan for expansion! The keyword here is “more” applications, bandwidth requirements, branch-office sites, expectations from users, etc.Leverage wireless—fixed and mobile.Understand business problems VoIP & UC can solve.Spend time up front educating IT, business units, executives.h Win support internally.
Tie UC to corporate green initiatives.h Enables telecommuting
Prioritize: You can’t do it all now!Consider MSPs, third parties.Know your numbers!
Thank You!
Robin GareissExecutive Vice President &
Senior Founding Partnerwww.nemertes.com
© Copyright 2010 Nemertes Research
Addendum
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Characteristics of Canonical MPLS
Enterprise WAN device (CE) must be a router Enterprise WAN device exchanges routing info with carrier WAN device (PE)Routing across cloud handled by carrierPackets are mapped into pathsPath topology is defined by carrier hOptimizes performance characteristics for all users across cloud
Connection between CE and PE may be either standard telco interface (T1, fractional T3, T3 etc) or alternative interfaces (DSL, Ethernet.. or even Ethernet-over-DSL…)
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Three Flavors of Carrier EthernetEthernet access to MPLS networkh This is just canonical (RFC 2547/4364) layer 3 MPLS service with an Ethernet
connection between the CE and the PE h CE must still be a router; still exchanges routing information with PE
Ethernet point-to-point across MPLS (or other) networkh “Virtual private wire services”—VPWS (Martini RFC)h CE may be a (layer 3) router or a (layer 2) switchh Carrier emulates “Ethernet in the cloud” between any two points in the WANh No routing information is exchanged between user and carrier
Ethernet Virtual Private LAN Services (VPLS)h CE may be a router or a switch; customer handles routingh No routing information is exchanged between user and carrierh Carrier emulates “Ethernet in the cloud” between multiple points in the WAN
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Scalability
MPLS has successfully scaled to support 10,000-node networks; multi-thousand node networks are not uncommonLargest known Carrier Ethernet network is ~ 200 nodesOne reason: OSPF route adjacencies max out at 50 (therefore you can’t have any-to-any connectivity of more than 50 sites)Users can engineer hierarchical routing across Carrier Ethernet (same as with private lines in the old days)This takes some degree of routing skill and expertise from users MPLS generally doesn’t require the same level of expertise
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Canonical (VPLS) Carrier EthernetUser handles routing across cloud
LANCE
Site 1
LANCE
Site 2
LANCE
Site 3
LANCE
Site 4
WAN access circuits are Ethernet(may be over telco cabling, eg DSL)
No routing information exchanged between carrier and user!
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VoIP
Cost savingsh MACsh WAN network & accessh Telecommuting
Application developmentImprove productivityIntegration with UCAbility to take advantage of SIP trunking
TDM works fine. Why mess with it?Type of business doesn’t need advanced telecom features/appsLack of robust WAN
Key Benefits Why Not?
74% using; 21% planning
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Justification: IP Videoconferencing
Save on travel costs & timeMakes meetings more productiveDecipher facial expressionsKeep increasingly virtual staff connectedCompetitive disadvantage without itServices enable communications with business partners
Capital investment can be costly (particularly telepresence)Need ample network capacityNot many/any remote locations
Key Benefits Why Not?
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IP Video Adoption Rates, 2009
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UC: Have you Quantified Video Benefits?
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UC: Video Reduces Travel Time
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UC: Video Management
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UC: Video Networks
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Webconferencing
Share documents, spreadsheets, desktopMakes meetings more productiveKeep increasingly virtual staff connectedSee who is on call, attentive, not attentiveEasier to sell products/servicesOn-premise saves more than services
No need to share desktop applications.
Key Benefits Why Not?
67% + using/planning
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Instant Messaging & Presence Dashboards
Get quick answers to important questionsHelp close dealsImproves customer service at contact centersKeep increasingly virtual staff connectedCost reduction through lower phone usageDashboards provide quick glance and integrated communicationsRemote supervisor tool (What’s your availability?)Know how to contact whom (presence)
Compliance/security/regulatory issues
Key Benefits Why Not?
68% + using/planning IM
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IP Contact Centers
Customer serviceVirtual contact centerImprove productivityIntegration with UC
Training essential for successCapital investment requiredMust have a contact center h Important/critical part of business
Specific Needs
Key Benefits Why Not?
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IP Audioconferencing
Eliminate CPM for audioconferencing services (internal calls)Integrate with IP telephony systemNo separate bridge required for 6-12 endpoints (included in IP PBX)When integrated to dashboard, can view who joined rather than taking roll call.
Capital investment requiredFew or no internal conference callsNo IP PBX yet
Key Benefits Why Not?
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Unified Messaging
Saves timeBetter loggingIntegration
Voicemail becomes data in terms of complianceRequires integration with IP telephony system
53% + using/planning
Why Not?Key Benefits
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Social Computing
Unique marketing opportunitiesReach people quicklyWord gets out through networksKeep increasingly virtual staff connected
Can be a time-wasterLegal responsibilities for postingsCompliance regulations
38% + using/planning
Key Benefits Why Not?
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Business Case: Rapid Restock
Challenge: Competition for retail shelf space Solution: Integrating mobile data devices with inventory system applicationOutcome: One sales person replaced $70,000 worth of product instantly
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Business Case: Another Margarita, Please!
Challenge: Increasing top-line revenue at restaurants Solution: Wireless-enabling waitstaffOutcome: Measurable increase in alcohol sales and margins
Note: Also works in high-end coffee bars with table service!
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Business Case: JITFTEChallenge: Obtaining real-time subject matter expertiseSolution: Integrating data devices with presenceOutcome: Measurable increase in close rates and decrease in sales cycles
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Business Case: Smarter Spies
Challenge: Validating intelligence tips faster (DIA)
Solution: Wiki-enabling analysts
Outcome: Streamlined speed of information validation by 20%-25%, maintained historical record of analysis (vs. email trail)
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Business Case: Cutting Support Costs
Challenge: Fast, low-cost tech support for challenged users (consumer technology retailer)
Solution: Presence and instant messaging capabilities for first and second-level help desks
Outcome: Increased productivity of second-level help desk by sevenfold (700%): fewer (expensive) experts