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© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential Presentation_ID

Cisco IP NGN 2.0 Powering Experience Provider Transformation; Enabling the Connected Life

Danny Chami – [email protected]

Sr. Mgr, Business Development Service Provider Group Emerging Markets

© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential Presentation_ID 2

Economic Turbulence: A Global Phenomenon

The volatility is dramatic and unpredictable

The impact is global, simultaneous and almost instantaneous

The effect is broad-based across all industries

…But opportunities for value-based Service Providers

… Customers of SPs are looking for their own economic solutions, turning to those who might help them


Three Key Market Transitions Affecting How We Perceive Services Delivery

Future of Work

Future of Connected Life

Future of Computing


Four Drivers Reshaping the Nature of Work

As the Nature of Work Changes, Collaboration Becomes More Critical than Ever

Clusters of Experts Dynamic teams come together to achieve shared outcomes

Millennials Innate ability to use multiple media simultaneously

Inter-Company Collaboration Seamless interactions and transactions across firewalls

Mobile Experience We no longer GO to work, we simply DO work


Four Drivers Reshaping the Future of Connected Life

Mobile Internet Will Be Ubiquitous The Internet will be all around us

Video Communication Video enables human interaction at scale

Content Sharing vs. Owning Enjoy content “in community” and on demand

Lifestyle Optimization within Constraints New models for healthcare, education, sports and entertainment


Four Drivers Reshaping the Future of Computing

Virtualization Un-tethered applications, un-tethered clients

High reusability

The Media-Rich Internet Application and content quality of experience

Cloud Computing Computing on demand anywhere, anytime

Green Technology responds to demand for improved energy use


Data Transport

Price/ Performance

Vertically Integrated

Architecture

Messaging Platform

Evolution of the Internet

Scale/ Richness

of Experience

The First Internet

Media Experience

Platform

Price/ Performance

Plus Sustainability

Distributed, Virtualized

Architecture

Collaboration Platform

The Next Internet

Data Transport

Price/ Performance

Vertically Integrated

Architecture

Messaging Platform

Time


Gopher, FTP

WWW

P2P

1993-1995

1995-2000

2000-2013

2013-2025

2025+

1995: Web Overtakes Gopher, FTP

2000: Peer-to-Peer Overtakes Web

2013: Video Content Overtakes Peer-to-Peer

2025: Video Communication Overtakes Video Content

And Video Will Become the Predominant Traffic

Video Content

Video Communication


Value in the Next Internet

Video creates an opportunity to become experience providers and to monetize new capabilities

Move toward Enterprise-Class Clouds and Inter-Cloud will drive demand for new services

Consumer

Small Business

Enterprise

Service Provider

Collaboration drives the next wave of productivity; business video has a transformative effect

Virtualization at scale improves agility and efficiency without compromising security and control

New technologies open up access to the same capabilities enterprises use

IT-as-a-service underpins the delivery of sophisticated and affordable solutions

New ways to share experiences across devices, locations and applications

The market will transition from a device-centric to a network-centric approach to delivering experiences


Service Provider Industry Dynamics Four Key Interlinked Focus Areas

Customers Business

Network Partner

Service Provider Success


Customer Challenges Increase Consumer Loyalty with Better Experiences

Bundled services lead to margin erosion,

“race to zero” mentality that degrades value of

unique, branded experiences

Bundles create commoditization…

Consumers want a connected life that

meets their needs / preferences

at home, at work, and on the move

One size does not fit all…

Traditional, silo’d voice, video and data services

do not address full range of residential,

business, and mobile consumer needs

Quad play is not enough…


Customer Solution: The Connected Life Quality Experiences At Home, At Work, On the Move

Delivering the “any’s” subscribers want—and will pay for…

Quantity/Quality

Flexibility/ Mobility

Availability/ Ubiquity

Reliability/ Security

Any Service

Any Device

Any Place

Any Time


Business Challenge: Board Room Reality Ever Present

Profitability = ƒ CapEx + OpEx

Revenue

Investment protection for IP NGN infrastructure


Reduce OpEx by converging services silos

Manage the bandwidth explosion from video

Strategic sourcing of support services

BOT, ROS

Driving adoption rates of advanced services

Monetization models beyond subscription model

Increase service velocity


How can service providers capitalize on this demand?

Source: Independent Analyst Research and Cisco Analysis; Cisco Visual Networking Index

Global telecom revenue growing slowly…

Business Challenges: Monetize Demand for Network Services/Resources


2005 2006 2007 2008 2009 2010 2011 2012

Mobility

Business Internet

Business IP WAN

Consumer Internet

Consumer IPTV / CATV

46% CAGR 2007–2012

In 2012, Half a Zettabyte Will Cross the Global Network

Source: Cisco Visual Networking Index – Forecast, 2007–2012

50,000

25,000

0

Pb/mo

Business Challenges: Despite Growing Demand for Bandwidth Resources


SP Business Challenge

Cost of Traffic

Revenue


Tap into market adjacencies, beyond traditional telecom

Business Solution: Experience Provider Transformation / Market Expansion

Banking & Finance $5.3T

Media & Entertainment $1.7T

Retail $4.3T

Education $2.8T

Hotels & Restaurants $2.2T

Transportation Services $4.2T

Telecommunications $1.9T

$1.9 Trillion $21.3 Trillion


Network Challenges: Create Infrastructure that Supports New/Evolving Business

Silo’d networks do not provide service/application agility to quickly capitalize on new opportunities

Commodity networks can’t deliver scope of services or customization and personalization that subscribers demand

© 2009 Cisco Systems, Inc. All rights reserved. Presentation_ID


Network Solution: IP NGN Architecture Vision Just as Relevant Today, Fast Becoming Reality


Voice, video, data silos

Security threats

Business continuity

Rapidly introduce new differentiated services and grow ARPU

Deliver services with quality and accuracy

Ensure infrastructure efficiency for greater scalability and lower expenses

IP NGN 2.0 Architecture Must Deliver Services, Control, Efficiencies

Services

Control

Efficiencies

Bandwidth limitations


Cisco IP NGN Evolution Leading the Experience Provider Transformation

Network transition from:

IP NGN 1.0

FR ATM TDM

To:

IP

2000–2008: IP becomes global de facto convergence standard

Experience transformation from:

IP NGN 2.0

Voice Video Data

To:

2009+: More rich, integrated customer experiences

Mobile

IP


IP NGN 2.0: Innovation Architecture Leading the Experience Provider Transformation

IP NGN 2.0

Video Services

Mobile Services

Cloud/Managed Services

Video Enabler

Mobile Enabler

Cloud/Managed Enabler

Consumer / Business Experiences

IP Infrastructure

Service Innovation

Applications



The Connected Life

IP NGN 2.0

Video Services

Mobile Services


Video Enabler

Mobile Enabler



IP Infrastructure

Service Innovation

Applications

Video Medianet

Cloud/Managed Unified Service

Delivery

Mobility Mobile Internet


The Connected Life


IP NGN 2.0

Video Services

Mobile Services


Video Enabler

Mobile Enabler



IP Infrastructure

Service Innovation

Applications

Video Medianet

Cloud/Managed Unified Service

Delivery

Mobility Mobile Internet

Targeted Advertising

Personalization 3G / 4G

Gateways

Video Monitoring,

Visual Quality

Experience (VQE)

IP RAN

CATV / IPTV / SATV

TelePresence

Flip Video / UGC

Mobile Video

Location-Based Services

VPN Client

Unified Computing

Content Caching

VN-Link, VDC/SDR in

Nexus/CRS-1

Managed Services

WebEx / Collaboration

Cloud Services


Transform Video

Experiences

Ensure Quality of Video/

Experience

Scale The Infrastructure

Reduce The Complexity

medianet

QOS Formats

CDN Virtualization

Encryption Metadata

Medianet: Video over Unified IP Networks Cisco IP NGN 2.0

Loss(less)

Bandwidth Latency and Jitter

More Demanding Media Apps

Innovation Architecture


Cisco CRS-1

Cisco 7600 Cisco ASR 9000

Medianet Technology Routing Portfolio Designed for Multicast Scale

“Cisco mastered the multicast.”

Lightreading – EANTC Independent IPTV test

NEW

Multi-terabit Multicast at core

In-fabric Multicast replication Most scalable multicast

tested at edge

40G of multicast replication per slot today

Most resilient multicast at edge

Highly scalable line rate multicast


Visual Integrated Ubiquitous

Monetization IP NGN Architecture

Network Business Experience

Cisco 4G Mobile Internet Strategy Enabling the Promise of Mobility and Delivering Framework for Success


Cisco 4G Mobile Internet Foundation Enabling the Connected Life Through IP NGN

Coverage

WiMAX

LTE

3G

UMA/ Wi-Fi

Femto

Fixed

Client

WebEx Connect

UC Apps

Smart Clients

VPN

Control

Converged Edge

Packet Gateways

IP RAN

IP Service

Control

Mobile Svcs

Scale Speed

Scope Support

Content

Biz Apps

Connectivity

Core Data Center


Customer

Unified Service Delivery: Transforming Services with a Secure Virtual Experience

Unified Service Delivery

SP Data Center DC—CO—VHO

Communication IP NGN

Collaboration

Information

Entertainment

Secure Virtual Experience

TT Mrkt -90%

OpEx -35%

CapEx -20%


Inter Cloud

Transition to SP Cloud Services Unified Service Delivery Provides the Foundation for Cloud Services

Utility Virtualization Consolidation Market Automation

Network and Data Center Consolidation

Data Center Virtualization and Unified Fabric Architecture

Unified Computing

SP Cloud Services


Unified Service Delivery: End-to-End Solution Cisco IP NGN 2.0

Unified Service Delivery

SP Data Center DC—CO—VHO

Communication IP NGN

Unified Computing

Third Party Virtualization

Unified Fabric

Nexus Family

Nexus 1000V

Unified Computing

System

Media Aware Distribution

Peering and Interconnect

Network Intelligence and Quality

Security and Application Performance

Video Delivery Product Suite

IOS, IOS-XR, medianet

APM, WAAS, Mgd. Security

CRS / ASR Families

Innovation Architecture


Voice, video, data silos

Security threats

Business continuity

Rapidly introduce new differentiated services and grow ARPU

Deliver services with quality and accuracy

Ensure infrastructure efficiency for greater scalability and lower expenses

Services

Control

Efficiencies

Bandwidth limitations

IP NGN 2.0 Network Layer Support Service Growth, Increase Top-Line Revenue


IP NGN 2.0

Video Services

Mobile Services


Video Enabler

Mobile Enabler


NETWORK LAYER / IP INFRASTRUCTURE

Service Innovation

Applications

Cisco IP NGN Network Layer Efficient, Scalable, and Future-Proof for Lower TCO

Support Growth

Lower Costs

Reach All Segments


Industry-Leading Performance & Scalability Award-Winning Platforms

Mobile Internet

Cloud / Managed

Video / Media Net

Support Growth

ASR 1000 & 9000

Massive scale

Non-stop video

Instant turn-on of

current & future

services

Highest capacity

in industry

90+ terabits

capacity Large-scale,

high-bandwidth

services Unparalleled

longevity

CRS-1


Cisco IP NGN Platforms Built to Last Better Investment Protection

’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09+

CRS-1 5 Yrs—Multiservice Core

Cisco 7600 8 Yrs—Intelligent Edge

Cisco MGX 12 Yrs—Media Gateways

Cisco 7200 13 Yrs—Services Aggregation

Cisco 15454 10 Yrs—Optical Transport

Cisco XR 12000 12 Yrs—Secure Virtualization

Support Growth


Experience Provider Mega Test Proven Scalability

“Light Reading and EANTC have found that the IP infrastructure from Cisco really does deliver.”

Carsten Rossenhovel, Managing Director, EANTC

Third-Party Independent

Testing

Cisco IP NGN Solution Solution Results

1.96 million IP video subscribers

Highest per slot edge capacity

8000+ multicast groups to support future subscriber & channel growth

Sub-50 millisecond recovery times

No video quality degradation

Cisco ASR 9010, CRS-1, 7600

IPTV

TelePresence

Digital signage

Video surveillance

Test replicated real-world conditions

Cisco IP NGN achieved industry’s highest results ever tested.


Network Layer Consolidation Lower OpEx and Increase Service Velocity

Key Benefits

Reduce OpEx, support sustainability

• smaller facilities footprint

• reduced power and cooling

Higher resiliency and availability

Bring new services to market faster

Lower Costs

CRS-1: Reduce chassis footprint up to 75% ASR: “Instant-on” virtual service delivery reduces blades & appliances


Network Layer Intelligence and Convergence Enable Profitability across All Segments

Key Benefits:

Service-awareness: Deliver seamless, rich Connected Life experiences across all segments

Access-agnostic: Deliver across any device using any access type

Self-defending, self-healing: Ensure predictable performance and high availability

Business Mobile

Converged IP infrastructure enables Connected Life

IP NGN 2.0 Network

Layer Residential

Reach All Segments


Cisco's innovations on the CRS-1 platform have allowed us

to continually meet and exceed our vision… we can offer an

improved experience to current subscribers who are

increasingly using video, social networking and

collaboration applications…

Maxime Lombardini

Chief Executive Officer of Iliad (Free)

Scaling to Deliver Rich-Media Services

Cisco CRS-1

”

“


The Cisco ASR 9000 offers investment protection,

massive bandwidth capacity and excellent services

capability in a highly reliable and efficient design that gives

us the flexibility to build a truly leading IP NGN network for

our 4G mobile and video services.

Junichi Miyakawa,

EVP and CTO Softbank Telecom

Cisco ASR 9000 Series

Reducing Costs and Driving Efficiencies

”

“


Grow Efficiently —Today & Tomorrow

Network Layer

Enable Powerful Scalability

• Meet growth requirements

• Protect investment for years

• Easily add new, differentiated services

While Reducing Expenses

• Reduce power, cooling, management costs • Improve TCO

To Deliver All Services to All Segments

• At home, at work, and on the move

• Any-play services to all devices

Network layer offers proven efficiencies and power to grow.


Partner Challenges: Find Experience/Expertise to Support Success

Enhance the Customer Experience

Expand the Business with New Services and Markets

Build Intelligent, Scalable IP NGN

Create Strategic Alliances for Ongoing Innovation


Service Provider Dynamics Experience Provider Transformation

Live Broadcast

Time-Shift Multicast

VoD Streaming

Internet Downloads

Internet Access/Data

Voice & VoIP

Broadcast

Satellite/ Wireless

Over the Top

Wireline

Cable

Content Production

Business Services

Telecoms

Digitalization

IPTV

Cloud Services

Video Alliances

3G/4G Video


BT’s Connected Life Experiences Broad Suite of Personalized Managed Business Services

Managed IP

Telephony

High-Speed Internet & Data

Managed Security

Hosted CRM /

Business Intelligence

TelePresence

Highlights:

40% Growth in MPLS Revenue (2008-09)

26 Managed Data Centers

Global Leader in TelePresence Market

Managed IP Network


IP NGN: Adding Up the Impact CapEx / OpEx Savings Strengthens Balance Sheets

£1B

OpEx Savings (by 2012)

Enabled by IP network

convergence, multiservice

network deployments

Source: VON Magazine 2008

$300M

CapEx Savings

(Q2 CY08, YoY)

Lower spending across all residential categories

Source: Comcast 2008

14%

CapEx-to-Sales Ratio

(by 2010)

Versus 18% ratio with legacy

network. Time-to-market reduced by

two-thirds

Source: Ovum 2008

$9B

CapEx/OpEx Savings

(Alltel Acquisition)

Incremental savings of $1B by

2010

Source: VZW 2008


How to Build an IP NGN Network


Or:

How to Build an IP NGN Network


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