Transforming Networks for Higher Performance. Technologies and Strategies for Service Providers
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2 Transforming Networks for Higher Performance Technologies and Strategies for Service Providers Volker Tegtmeyer, Sr. Manager Marketing Cloud and Virtualization DEVNET-1018
3 Agenda Digital Transformation Business Opportunity Network Product & Solution Strategy Where to start Conclusion
4 Digitization: The Next Wave of the Internet Digitization Digitize the World, includes IoT Function Networked Economy Digital Business Processes Immersive Experiences Digital Access Connectivity Digital Access ~20 years ago Time Source: Cisco Consulting, Cisco and/or its affiliates. All rights reserved. Cisco Public
5 Digital Disruption Impact to Business 40% 26% Of incumbents are at risk of being displaced in the next 5 years. 1 Of digital value at stake across private industries between How much more profitable are organizations that master digital 1 Digital Vortex: How Digital Disruption Is Redefining Industries. Global Center for Digital Business Transformation, Cisco estimates $14.4 Trillion of digital value at stake across private industries between Where to begin your journey to digital value in the private sector. 3 Leading Digital: Turning Technology into Business Transformation 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public
6 Digital Transformation is Moving IT to the Boardroom UPS My Choice Delivery Control Personalized Service Workforce Efficiency WIP Inventory and Part Tracking Starbucks Apps Order Ahead Skip the Line Customer Experience Physical and Virtual RFID Content American Express Personalized Service Through Mobile 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public
7 Creating New Priorities for Digital Organizations Transform Processes & Business Models Innovations Faster Time to Market Empower Workforce Efficiency and Innovation Increased Productivity Better Retention Personalize Customer/ Citizen Experience Increased Loyalty Greater Insight Mobility IoT Analytics Cloud Mobile traffic will exceed wired traffic by 2017 IoT devices will triple by % of companies planning to or investing in big data 80% of organizations will primarily use SaaS by Cisco and/or its affiliates. All rights reserved. Cisco Public
8 Network Enables New Experiences Workforce Experience Customer Experience Business Operations City Operations Digital Workforce Personalized Workspaces Flawless/effective Collaboration Omni-channel Experience Enhanced Points of Service Personalized Customer Experiences Business Insights Asset Management Facility Management New citizen/visitor services Safety and security Ruggedized infrastructure New Business Capabilities Built on the Network as a Platform 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public
9 IT Priorities for Digital Transformation Faster Innovation Slow IT processes Technology innovation speed Only 30% of digital projects will succeed Reduce Cost & Complexity OpEx 2-3 X the CapEx More devices, apps, users Static budgets Lower Risk New regulations 80 days to discover threats Cost of business disruption IT Must Simplify to Accelerate Digital Innovation 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public
10 Network Requirements for the Digital Organization Faster Innovation Reduce Cost & Complexity Lower Risk Insights & Experiences Visibility and Analytics users devices applications threats Automation & Assurance Speed and Simplicity Security & Compliance Real-time & Dynamic Threat Defense 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public
11 Agenda Digital Transformation Business Opportunity Network Product & Solution Strategy Where to start Conclusion
12 Digital Trends Overwhelming the Branch and WAN IoT Omni-channel Experience Digital Displays HD Video/ Training urce: Gartner: How to Cost-Justify WAN Optimization Branch Office Guest Wi-Fi Cloud/SaaS Apps Thin Client Apps Mobility Remote Experts *Tech Target, Branch Office Growth Demands New Devices, 2013 **US The Census Bureau of the Department of Commerce, 2015 More Users More Devices More Apps More Risk 80% Of employee and customers are served in branch offices* 73% Growth in in mobile devices from ** 20-50% Increase in Enterprise bandwidth per year through 2018** 30% Of advanced threats will target branch offices by 2016 (up from 5%) ** DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 13
13 Service Provider Business Opportunity? Deliver The Experience Customers Want! 70% Turn Services on/off on demand 67% Scale capacity as needed 65% Easy ordering and self provisioning 60% Consumption/Usage Based Billing 56% Automated service/network provisioning, configuration and account management Source: AMI Cisco ITaaS Research DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 14
14 Enterprises Globally Say: We Switch to Cloud Services to get These Benefits DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 15
15 $ billions Forecast Impact of NFV / SDN on WW Managed and Hosted Services Market continue using current provider $351B up from $305B % market increase from expanded services use and new customers in the market 23% market opportunity to capture businesses willing to switch providers to get benefits Source: AMI-Partners, Inc. DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 16
16 And there is more! cisco.com/go/moi DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 17
17 Service Provider Business Facing its Own Transition Battle for Apps Efficiently and Quickly Deliver New Managed Services 4/5 s of workloads moved to cloud by 2019 Delivering Secure and Flexible Hybrid Cloud Management 78% of enterprises pursuing multi-cloud strategy Connecting Explosion of Internet Devices to the Network Fulfilling Security and Data Sovereignty Requirements Over ZB of data per year by 2019 $18B new telco opportunity with 75% enterprises interested Cisco GCI, VNI, MOI STL Partners 2016 Study DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 18
18 Network Transition Several Technology Efforts Coming Together Software-Defined Networking (SDN) Abstracting to Better Application and Network Interaction Open Source Network Functions Virtualization (NFV) Transforming Network Architectures and Operations SDN NFV Open Source, Open APIs Promoting Faster Innovation and Wide Participation The Pace of Change Is Accelerating; Simplification Is Imperative DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 19
19 Benefits to Adding SDN, NFV, Programmability Greater agility in adapting to service demand Faster innovation Development of new business models Increased network supplier choice Greater participation in 3 rd party apps / services Greater outsourcing of network operations Great insourcing of software development Source: Heavy Reading 2014, Survey of >50 independent providers 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 20
20 Drivers for NFV Agility and Flexibility Easily tear down, move, scale and configure services as the demands of customers or the business changes gives organizations the ability to bring up services anywhere in the world, any time. Source: SDx Central NFV Mega Report 2016 DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 21
21 Agenda Digital Transformation Business Opportunity Network Product & Solution Strategy Where to start Conclusion
22 Everything Needs To Go Faster DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 23
23 Cisco Challenges Open Network Architecture for Service Providers Unified Fragmented, Fragile Comprehensive Video Cloud DVR VOD Broadband Services Routing Services On-Demand Slow, Outdated Software Based Automate Manual, Complex Orchestrated Capture xcode Splice Route Virtual Network Functions Orchestration Encrypt Ad Insert Package Playout Virtual Network Functions Programmable Static, Siloed Elastic & Scalable Compute Compute Storage Storage Network Network DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 24
24 One Strategy Many Solutions (2015) Cloud Service Exchange Marketplace On-Demand Services Cloud Managed Services Cloud VPN User-Defined Network Cloud Virtual Video Delivery SDN Service Mapping Network-Aware Applications Business Agility Automated, Multi- Vendor Support Dynamic Capacity Management Virtual Video Processing Demo (NAB 2015) Virtual Digital Content Manager Virtual Evolved Packet Core Virtual Evolved Packet Core LTE in a Box Virtual Evolved Packet Core Virtual Evolved Packet Core Software Defined WAN Virtual Video Processing Cloud-Based Voice over LTE Network on Demand Cloud VPN and more DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 25
25 Agenda Digital Transformation Business Opportunity Network Product & Solution Strategy Where to start Conclusion
26 How Fast is Digital Business Today? Example Changes Change Rate Applications Latest Code for Web-shop software change daily Platform New patch for Database server SW release, SW patch weekly Network Function New VPN, add leg to VPN, NEW VAS, New QOS Config change 1000s per day DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 27
27 For Digital Business Network Operations Must Evolve to Cloud Scale Large Scale Network Examples* Day 0 Traditional Network DevOps Operations Cloud Scale Network Operations 30k Configuration INSTALL changes per month Day 1 20k Command Line issued and scrapped every five minutes CONFIGURE Manual Automated services Provisioning Simple to scale Agile, open software Inflexible SW SW Modularity & Extensibility Automation 8 Million objects polled Day 2 every five minutes MANAGE & OPTIMIZE Fragmented Topology View and Complex Routing Visibility & Control * Source: Google DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 28
28 Innovations for the Digital Business Leveraging Cisco APIs Simplify operations New service Automate operations New application DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 29
29 Innovate In many Areas Applications Video Mobility Business IOT Portals Security SPARK Collab Software Platform NSO ESC OpenStack NFVI / OPNFV FD.IO WAE ODL / OSC ConfD Virtual and Physical Network Infrastructure IOS NX UCS E DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 30
30 Infinite Toolkit Overview (How) Tool Kit For Infinite Service Provider, Partners, Third-Party Developers [Add Generic Heads] Cloud APIs Sandbox Content Management Identity Management Offer Management Catalog Management Policy & Resource Management Covers all the Cloud APIs needed to build a TV oriented EPG or app Application Server Client Interaction with Cloud APIs Unmanaged Client Content Protection cdvr Device Management Client Messaging Customization Apps Apps Apps Apps Access through Cisco DevNet Provisioning Third-party Applications Recommendations CMAF Open Application environment for any Cloud and any UI Managed Client DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 31
31 Network Services Orchestrator enabled by Tail-f single network-wide interface to all network devices, applications and services Source: DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 32
32 WAN Automation Engine (WAE) Predictive SDN Platform designed for Wide Area Networks (WANs) Source: DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 33
33 Open SDN Controller (OSC) integrate business applications with the underlying network devices Source: DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 34
34 And more DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 35
35 Agenda Digital Transformation Business Opportunity Network Product & Solution Strategy Where to start Conclusion
36 Digital Transformation Better Networks Delivering Better Experiences DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 37
37 Thank You More information at: Monetization and Optimization Index: cisco.com/go/moi Evolved Services Platform: cisco.com/go/esp Network Services Orchestrator: cisco.com/go/nso Virtual Managed Services: cisco.com/go/vms Cisco Cloud Architecture: cisco.com/go/ccamcp Mobile Solutions: cisco.com/go/mobile Video Solutions: cisco.com/go/spvideo Virtualized Video Processing: cisco.com/go/v2p DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 38
38 Complete Your Online Session Evaluation Give us your feedback to be entered into a Daily Survey Drawing. A daily winner will receive a $750 Amazon gift card. Complete your session surveys through the Cisco Live mobile app or from the Session Catalog on CiscoLive.com/us. Don t forget: Cisco Live sessions will be available for viewing on-demand after the event at CiscoLive.com/Online DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 39
39 Continue Your Education Demos in the Cisco campus Walk-in Self-Paced Labs Lunch & Learn Meet the Engineer 1:1 meetings Related sessions DEVNET Cisco and/or its affiliates. All rights reserved. Cisco Public 40
40 Thank you
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