The New Enterprise Network In The Era Of The Cloud. Rohit Mehra Director, Enterprise Communications Infrastructure IDC

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1 The New Enterprise Network In The Era Of The Cloud Rohit Mehra Director, Enterprise Communications Infrastructure IDC

2 Agenda 1. Dynamics of the Cloud Era 2. Market Landscape 3. Implications for the new network - Datacenter - Campus - Branch/Network Edge - WAN 4. Essential Guidance

3 New Normality The CIO s Balancing Act Optimize, Grow, Comply Cost Take-Out Business Alignment Risk Management Data Center Consolidation Virtualization Cloud? Outsourcing? Metrics (measurement) Collaboration LoB Application Modernization Business Analytics IT Governance Business Continuity Disaster Recovery Security Compliance

4 Rapid Growth of Smart Mobile Devices Unit Shipments (Millions) Smart Devices Grow 4x In 2011, twice as many smart mobile devices will ship than laptop devices These connected devices will drive an explosion in social interactions, mobile transactions and digital content creation Server and network infrastructure will be needed to support resulting edge, application and database workloads Collaborative, Web and Security Infrastructure will be particularly important

5 Explosive IP Traffic Growth is Stressing the Current Network Infrastructure DATA CENTERS HAVE BECOME THE CORNERSTONE OF BUSINESS MORE DEVICES MORE APPLICATIONS MORE CONTENT MORE ON-DEMAND ACCESS BUT THE EDGE OF THE MODERN NETWORK IS UNDERGOING ITS OWN TRANSFORMATION AS WELL

6 Video, and more, video: Impact on the enterprise network Video and related applications will legitimately proliferate Telepresence becomes more mainstream Video-survellience and other streaming apps, many vertical-specific, will be increasingly deployed Web video has cast its net with enterprise video collaboration apps (training, marketing) IT will react to this video explosion Throw more bandwidth at the problem- good news for infrastructure vendors Pressure will increase for vendors to roll out 40/100G sooner rather than later Improved compression technologies will be rolled out, but that won t solve the problem either Network intelligence

7 Network Journey Meeting Datacenter Demands Enabling Consolidation Real Time Bandwidth optimization What s Needed Tomorrow Orchestrating Virtualization Bringing Business value to IT Flexible and dynamic Today s Network Global scale Reliable High Performance

8 Key CIO Initiatives- Networking Need to reduce/optimize IT resources in a touch economic environment Support for new emerging applications (VoIP, Video, WLAN) Improved manageability across the network and remote sites Launching new virtualization services Scalable infrastructure that can grow to support - increased traffic - new sites - new services

9 Data Center Drivers & Requirements DRIVERS Reduce TCO Find means to simplifying the network Cost effective aggregation Investment protection for 10 GbE Offer best in class services, need to control costs but deliver high availability Quickly scale to meet demand, roll out new services REQUIREMENTS High availability always on Pay as you grow for capacity and density Ultra high capacity, predictable performance under load End-to-end solution Some degree of automation

10 Migrating To The Virtualized Datacenter Consolidate Virtualize Automate Provision Cloud Metering & Chargeback Self Provision Metering & Chargeback Can the network stay the same? Mobility Mobility Mobility Hypervisor Hypervisor Hypervisor Hypervisor

11 Datacenter Network Attributes It s ALL IMPORTANT! Note: N=155 Q. When evaluating various Datacenter networking products, please rate the following attributes using a 7 point scale where 7 is extremely important, 4 is somewhat important, and 1 is not at all important % of respondents rated important and extremely important Source: Enterprise Communications Infrastructure Survey, IDC, March, 2010

12 Cloud Will Shape Network Requirements Opportunity will reach $1.4 billion in 2011 Prevailing IT trend of the decade Public, private and hybrid models will emerge Industries will migrate at different rates Benefits include: Reduced TCO Dynamic response Better allocation of resources Source: IDC 2011

13 Evolving Datacenter Networks: Public, Private or Hybrid? Hybrid Environments Majority of customers prefer private clouds 65% more find private clouds more appealing Network needs to support both private internal cloud and hybrid environments Infrastructure changes become a natural outcome Q: How does the appeal of private clouds in your organization compare with that of using public cloud services? Source: IDC Enterprise Panel 4Q09, n = 240

14 Expected Private Cloud Benefits

15 Virtualization and the Network: Best Practices Emerge Network managers evaluating best practices Default build for IT Cloud service providers early users Place in network will dictate success UC apps coming on board Benefits include: Faster time to deploy Advantages with application development Source: IDC 2011

16 Evolving Virtualized Datacenter Network Flatter Networks Network simplicity brings additional cost savings Less devices, line cards, power Fabric management is a must!-optimize and control bandwidth/services levels to virtual machines Agility to achieve virtual machine migration--cloud Foundation to automation Note: N=139 % of respondents rated extremely important Source: Enterprise Communications Infrastructure Survey, IDC, March, 2010

17 Most Important Factor in Enterprise Customers' Decision for a Campus/HQ LAN/WLAN Source: IDC Enterprise Networks Survey, 2010

18 Campus LAN: Refresh Drivers More bandwidth, scalability in network infrastructure Growth of enterprise data and multi-media traffic 100Mb to 1GbE, 1GbE to 10gbE Upgrade Only 31% IT managers expect network to meet performance requirements in next 12 months* Energy Efficiency Need for PoE and PoE+ Driven largely by VoIP and n WLAN Upgrades Move to Flatter Networks Network simplicity brings operational cost savings Virtualization and the Datacenter Server Aggregation Converged infrastructures *Source: Enterprise Communications Infrastructure Survey, IDC, March, 2010

19 Campus LAN/WAN Attributes Note: N=135 % of respondents rated important and extremely important Source: Enterprise Communications Infrastructure Survey, IDC, March, 2010

20 Remote Branch Network Closest to end customer Strategic opportunity for IT to bring business value Increased demand for real- time access to data Focus on users and transactions Business analytics Network-centric applications 1/3 will increase the number of branch offices 1/4 of IT budget associated with branch 1/2 will invest in network changes

21 Remote Access Work at home Branch of one Globalization Enter new markets Expansion of customer base Seeking competitive advantages Collaboration Leverage employee talent globally Communicate with partners and suppliers globally

22 Old School Traffic Flows Data Center Branch WAN Client Server Focus Regional Internet Branch Branch

23 Today s Traffic Flows Data Center Internet Software as a Service Campus Branch Peer to Peer IP Communications

24 Emerging Mobile Architectures Revenge of the consumer- With the rapid growth of smartphones and tablets, 2011 will bring a different level of legitimacy to mobility in the enterprise Variants of centrally managed Wireless LANs continue to proliferate: Direct Forwarding, Controller-based Centralized vs. Distributed Control, Controllerless The differentiation still mostly around how to handle the control and the management plane 2011 will bring focus, and pressure on operators, vendors and enterprises to finally resolve in-building coverage issues Unified- Wired and Wireless

25 The Ala Carte Approach to Applications Service Assurance/SLA, Managed Services Vertical specific applications, Compliance Niche Customer requirements Outdoor Multi-vendor Management WIPS Video Forensics Availability Retail- PCI Compliance Virtual Branch Services HIPAA Compliance User profile and policy Location Self care Voice FIPS-140 Guest Access Spectrum Analysis NAC Mesh/ Backhaul

26 The Role of The Network in Efficiency 1. Voice and video 2. Network based business 3. Intelligent networks are winning over dumb pipes 4. End point growth 5. Cloud Computing, SaaS and Virtualization

27 Essential Guidance Today is the New Normal Enterprises are investing in the network to jump ahead of competition They are open to new ways of deploying the network including virtual network services. They are ready to rethink the network; take costs out & increase flexibility The dynamics around Virtual, Mobile, Social require a new way of rethinking the network Architect your network for tomorrows needs An intelligent, secure network that excels in application performance Cloud will Drive Change on the Network Unified Fabric is becoming a reality 40/100G is coming- the drivers are there WAN is still complex and needs to be an enabler Takes costs out and increase flexibility

28 Questions I m easy to find: Twitter: rmehraidc

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