Software-defined Networking (SDN): Understanding the Threats and Opportunities

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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

Software-defined Networking (SDN): Understanding the Threats and Opportunities

Technology Business Research Webinar Series

June 17, 2014

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2 TBR Webinar Series | 6.17.14 | www.tbri.com ©2014 Technology Business Research Inc.

Software-defined Networking: Presenter

Scott Dennehy Senior Analyst, Data Center

Email: [email protected]

Twitter: @scottdTBR

mailto:[email protected]

https://twitter.com/scottdTBR

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Key Takeaways

Software-defined Networking Adoption Curve

Software-defined Networking Enterprise Benefits, Costs and Impact to Vendors

Server Virtualization versus Network Virtualization

Vendor Strategy Comparison

Vendor Solution Summary

Software-defined Networking Development Organizations

Future Outlook

Agenda

Software-defined Networking: Threats and Opportunities

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Key Takeaways

While SDN is gaining traction in the enterprise market, customer education and a stronger business case will enable widespread adoption

Software-defined networking (SDN) has moved beyond the hype and into real-world network deployments. However, challenges remain for SDN to proliferate within the broader enterprise market and meaningfully contribute to supplier revenue.

Unlike past network-specific technology transitions where the competitive landscape consisted solely of hardware providers, SDN has attracted a host of software vendors whose approaches threaten to commoditize network hardware over the long term.

SDN will progress over the next 12 months in the form of more use cases, vendor solutions and customer success stories. Suppliers will focus on educating customers on the benefits of SDN on their unique solutions and helping IT make a strong business case as spending reaches critical mass in 2015 and 2016.


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SDN adoption will accelerate in 2014 and 2015

Realization that virtualization

can benefit data center networks

2011

Deployments in major cloud

and content providers 2012

2013 Proof-of-concept stage

2014

Early

adopter

spending

increases

Vendor

consolidation

and attrition

2015

2017

2018 2019

Adoption by late

majority and

laggards

2016


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SDN provides a variety of benefits compared to traditional network architectures

Enterprise Costs

• Higher software capex

• Higher professional services capex/opex

Enterprise Benefits

• Lower hardware capex

• Lower deployment and maintenance opex

• Increased operational efficiency

• Increased network efficiency, flexibility and uptime

SDN versus Traditional Network Architectures


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SDN provides a variety of benefits compared to traditional network architectures, potentially resulting in lower vendor revenue

Enterprise Costs

• Higher software capex

• Higher professional services capex/opex

Enterprise Benefits

• Lower hardware capex

• Lower deployment and maintenance opex

• Increased operational efficiency

• Increased network efficiency, flexibility and uptime

SDN versus Traditional Network Architectures


Vendor

Opportunity

Vendor

Challenge

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Complexity in technology and decision making is inhibiting widespread enterprise adoption of SDN

• Complex technology not yet fully understood by broader enterprise market

• Business case not yet clearly defined

• Standards and vendor solutions still evolving

• Some internal conflict in IT organization

• Simple for IT to understand and implement

• Easily quantified and justifiable business case

• Established vendor solutions

• Clear decision-making process for IT

Network Virtualization Server Virtualization


SOURCE: CATSTECHNOLOGY.COM SOURCE: GL.ACCESS-COMPANY.COM

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SDN has altered the networking landscape to include a host of new competitors using different strategies

• Solutions are hardware-agnostic

• Leveraging success in server virtualization

• Combination of proprietary hardware and SDN controllers

• Platforms provide traditional switching and SDN and programmable functionality

• Support of OpenFlow standard


Brocade Cisco

HP Juniper

Microsoft Oracle

IBM VMware

Comparison of Vendor SDN Strategies

Enterprise

Customers

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Vendor solutions are broad and diverse, consisting of SDN-enabled legacy products and custom-built platforms Vendor Solution Name Key Products

Alcatel-Lucent Application Fluent Networking Nuage Networks Virtualized Services Platform and Gateway (VSP/VSG)

OpenFlow- and OpenStack-enabled switches (e.g., OmniSwitch 6800)

Brocade N/A Vyatta 5400/5600 vRouter

OpenFlow-enabled routers and switches (e.g., MLX/ICX/VDX families)

Cisco Application-centric Infrastructure (ACI) Nexus 9000 switch

Application Policy Infrastructure Controller (APIC)

Dell N/A

Z9500 Fabric Switch

Active Fabric Controller

OpenFlow-enabled switches (e.g., N and S Series)

HP N/A

7900 Switch

OpenFlow-enabled switches (e.g., FlexFabric family)

Virtual Application Networks (VAN) SDN Controller Software

IBM SDN for Virtual Environments (SDN-VE) SDN-VE KVM, VMware and OpenFlow editions

OpenFlow-enabled switches (e.g., RackSwitch family)

Juniper N/A EX9200 switch

Contrail SDN Controller

Microsoft N/A Hyper-V Network Virtualization

NEC ProgrammableFlow Networking PF Series Switches

PF6800 SDN Controller

Oracle Oracle Virtual Networking Oracle Fabric Interconnect/Manager/Monitor

Oracle SDN

VMware N/A NSX


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SDN industry organizations share the same goal, although their methods and approaches vary

Comparison of SDN Development Organizations

• Founded in 2013

• Primarily a vendor-driven organization

• Focused on developing an open-source SDN controller

• 40 member companies

Accelerate adoption of SDN through open architectures

• Founded in 2011

• Primarily a user-driven organization

• Introduction and support of OpenFlow standard

• 130 member companies


OpenDaylight Open Networking

Foundation

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SDN remains a significant revenue opportunity for vendors, but fierce competition and long sales cycles remain obstacles to success

• Enterprise demand

for SDN solutions is

growing.

• Customers will want

to consult with

vendors before

deploying SDN

products.

• SDN standards and

vendor solutions will

continue to mature.

•Widespread adoption

of SDN will be slowed

by long sales cycles.

• Competition in the

SDN market will be

intense, with both

hardware and software

vendors vying for

customer wallet share.

Inhibitors and Competition

Growth and Opportunities


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Software-defined Networking: Webinar Contact Information

Scott Dennehy Senior Analyst, Data Center

Email: [email protected]

Twitter: @scottdTBR

Telephone: 603.758.1822

Questions?

James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166

Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel LinkedIn: www.linkedin.com/company/technology-business-research


https://twitter.com/scottdTBR


https://twitter.com/TBRinc

http://www.slideshare.net/TBR_Market_Insight

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NMP Syndicated Research Coverage

Telecom Vendors Operators Benchmarks

• Accenture Telecom & Mobility • Alcatel-Lucent • Cisco Systems • Ericsson • HP Telecom & Mobility • Huawei • IBM Telecom & Mobility • Juniper Networks • Nokia Solutions and Networks • Samsung Telecommunication

Systems • ZTE

• AT&T • Sprint • T-Mobile USA • Verizon Enterprise Coverage: • AT&T Business Solutions • BT Global Services • Orange Business Services • Verizon Enterprise Solutions • Vodafone Enterprise Services

• Telecom Vendor Benchmark

o Telecom Infrastructure Services (TIS)

Telecom Infrastructure Services Benchmark

Telecom Infrastructure Services Margin Benchmark

Telecom Infrastructure Services Addressable Market Forecast

Telecom Infrastructure Services North America Addressable Market Forecast

• Enterprise Network Vendor Benchmark

o Enterprise Networking Addressable Market Forecast

o Network Infrastructure Services (NIS) Benchmark

• U.S. & Canada Mobile Operator Benchmark

Enterprise Networking Cable Providers

(Reports include content on Ent. Networking)

• Accenture Telecom & Mobility • Cisco Systems • HP Telecom & Mobility • Huawei • IBM Telecom & Mobility • Juniper Networks

• Comcast • Time Warner Cable

Internet Companies

• Google • Microsoft Telecom & Internet

TBR Networking & Mobility Practice Syndicated Coverage

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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

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Software-defined Networking (SDN): Understanding the Threats and Opportunities

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