Learn how to apply SDN, NFV, and Open APIs to drive positive business outcomes for Service Providers by visiting any of the following pages: http://www.cisco.com/go/sp http://www.cisco.com/go/epn http://www.cisco.com/go/esp

1. © 2014 Cisco and/or its affiliates. All rights reserved. 1
Making Networks More Agile, Open, and Application Centric
Emerging Industry and Business Trends
July 2014
Ian A. Hood, P Eng.
Service Provider Architecture
ihood@cisco.com

2. © 2014 Cisco and/or its affiliates. All rights reserved. 2
New Infrastructure Model – Open, Agile, Smart
Business Implications
Growth and
Productivity
Opportunities
User Experience
and Expectations
New Business
Models Globalization
Security and
Regulatory
Compliance
Technology Transitions
New Breeds of AppsMobility/Video Cloud Internet of Things
Big Data and
Analytics

3. © 2014 Cisco and/or its affiliates. All rights reserved. 3
Pace of Change is Accelerating
Simplification is Imperative

4. © 2014 Cisco and/or its affiliates. All rights reserved. 4
Opera&onal*
Compe&&veness*
Catching*the*Next*Wave*
of*Cloud*
The*Poten&al*of*Data*and*
Analy&cs*
Profitability*and*Growth*
of*Digital*Media*
Unlocking*The*
Value*of*SMB*
SP*Services*Evolu&on*
Network*Virtualiza&on*&*
Programmability*
Pervasive*Mobility*

5. © 2014 Cisco and/or its affiliates. All rights reserved. 5© 2014 Cisco and/or its affiliates. All rights reserved. 5
Location Services
24% >> $14B
M-Commerce
55% >>> $180B
Public Cloud
27% >> $218B
Internet of Everything
35% >> Incremental $500B
Sources: ABI, IDC, In-Stat, Insight, Ovum, Parks, Screen Digest, Strategy Analytics
Mobile Ads
55% >> $33B
Virtual Desktop
10% >> $18B

6. © 2014 Cisco and/or its affiliates. All rights reserved. 6© 2014 Cisco and/or its affiliates. All rights reserved. 6
Service Providers Sit in the Center of the Internet of Everything
Manufacturing
$140B Addressable
Opportunity
Growing to $24B / yr
(16% CAGR)
Sources: Machina, Infonetics, Cisco BTA, Cisco CCS
Oil and Gas
$10B Addressable
Opportunity
Growing to $1B / yr
(18% CAGR)
Healthcare
$171B Addressable
Opportunity
Growing to $30B / yr
(38% CAGR)

7. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Open Source, Open APIs
Enabling Faster Innovation and Wide Participation
Several Industry Initiatives
Each Addressing An Aspect of the Challenges and Opportunities, Examples:
Open
Source
NFVSDN
Beware the hyperbole – Look for the proven experience
Network Functions Virtualization, NFV
Transforming Network Architectures & Operations
Software Defined Networking, SDN
Abstracting to Better Application & Network Interaction

8. © 2014 Cisco and/or its affiliates. All rights reserved. 8
Sources: ACG, ABI, Analysis Mason
SDN/NFV Market Potential
Over $5B Through 2018 (65% CAGR)
0
500
1000
1500
2000
2500
3000
3500
2014
2015
2016
2017
2018
HW
SW
Services
Annual
SDN Market
0
500
1000
1500
2000
2500
2014
2015
2016
2017
2018
NFV Market

9. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Orchestrated with Self-service
App & Network Interaction
Well-known Programmatic Interfaces
Autonomic with Control & Visibility
Open & Pluggable
Configurable
Apps Independent of Network
Command Line Interface
Managed
Proprietary

10. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Our Industry’s Mission: Business Transformation
Cost reduction and agility leads to success for all
Automation, Virtualization and Orchestration Are Required
Virtualized
Resource Pools
(network ready
compute/storage)
Virtualized
Network Functions
Dynamic Set-Up,
Tear Down and
Provisioning
On-Demand Workload
Movement with
Service Profiles
Data Center
NetworkWorkload
Portability
Orchestration
Full Access to
Resource Pools
Anywhere
in the Cloud
Cloud Services

11. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Cisco Evolved Services Platform
Cisco Evolved Programmable Network
VNF VNF VNF
Compute StorageNetworkCoreOptical
Edge
Access
Service
Broker
Catalog of
Virtual Functions
Applications
Orchestration
Engine

12. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Service Broker
Orchestration Engine
Service Profiles
Services Offered
Catalog of
Virtual
Functions
Best of Breed Virtualization and Orchestration
Validated with Multi-Vendor Partners
Video Network Mobile
Quantum
vPC
Quantum
Services
Platform
CSR 1000v
Videoscape
Media Suite
API GW
vWAAS
Videoscape
Distribution
Suite
Quantum
SON
Nexus 1000v
Virtual
Subscriber
Database
vASA
Virtual DPI
Quantum
Analytics
vCPE
Virtual Load
Balancer
vWLC
Virtual
ANDSF
Videoscape
Control Suite
vISE
Virtual IOS XRQvBNVirtual IPS
Virtual
SaMOG
Quantum
Policy Server
Quantum
Service Bus
Orchestrator
NFV
(CloudBand)
Compute & Storage
Prime Suite
OpenStack
Provisioning / Management
Cloud
and more to come
WAN Automation
APIC
InterCloud API
Open Daylight
Prime Suite
UCS Manager/Director
Network
Citrix
vLB
Arbor
vDOS
VNF
VNF
VNF

13. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
As-a-Service
InterCloud-Based
Scale and Delivery
Simplified Purchasing Models to Transform Business
Repurposed on the Fly Open Interfaces to 3rd PartiesElements that Plug n’ Play
Virtualized Functions +
Orchestration + Element
Integration SLA certified
(Packaged Service Insertion)
Individual Virtualized
Functions
(Drop in Elements)
Virtualized Functions
with Service
Orchestration
(Integrated Capabilities)
OSSBSS
Term-based/Perpetual/Metered pricing Priced as integrated solution Pay-as-you-go

14. It’s All In The Economics
Or Why are We Doing This?

15. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Virtualized Managed Services (vCPE)
Enterprises Focus on Innovating While Realizing Significant TCO Savings
Rev
Uplift
Operations
Savings
Cisco Evolved Programmable Network
Secure
VPN
EnterpriseService Portal
Network Storage Compute
vCPE
Cisco Evolved Services Platform
VFW vNAT vDPI
vWAAS VNF
Service Broker
Orchestration
Engine
Catalog of
Virtual Functions
Service
Profiles

16. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
© 2014 Cisco and/or its affiliates. All rights reserved.
Virtualized Mobile Internet – Premium Mobile Broadband
TCO
Savings
Quantum
Virtualized
Packet Core
Cisco Evolved Programmable Network
Mobile Service Portal
Quantum
Services Platform
Cisco Evolved Services Platform
Quantum
vPC
Quantum
SON
Quantum
Policy
ANDSF
Quantum
Services Bus
Network Storage Compute
Service Broker
Orchestration
Engine
Catalog of
Virtual Functions
Service
Profiles

17. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
© 2014 Cisco and/or its affiliates. All rights reserved.
Location Based Venues
Cisco Evolved Programmable Network
Venue Service Portal Cisco Evolved Services Platform
Quantum
Services Platform
Quantum
vPC
Quantum
SON
Quantum
Policy
vIPS
Quantum
Services Bus
Network Storage Compute
Service Broker
Orchestration
Engine
Catalog of
Virtual Functions
Service
Profiles

18. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Tunnel Balancing
Customers Optimize Long Haul Links
Cisco Evolved Services Platform2
TCO
Savings
Service
Provider
1
Collects Global
Traffic View
2
Requests Load
and Maximizes Utilization
3
Predictive
Analysis with Global
Modeling
4
Auto Rebalance
Traffic
Tunnel
Balancing
1
4
Enterprise
Service Portal
Service
Broker
Orchestration Engine
Management
DeployCollect
3
Operator
Portal
Policy

19. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Bandwidth Calendaring
WAN Automation Enables New “Classes” of Services
Enterprise
Data Center
Enterprise
Data Center
Enterprise
Service Portal
Service
Broker
Cisco Evolved Services Platform
Orchestration Engine
Management
Multi-Vendor Agile Infrastructure
R1
R2Congested!!
DeployCollect
1
2
3
4
1
Auto Collects
Traffic &
Topology
2
Service Request
Made
3
Predictive Analysis
with Network Impact and
Optimization
4
Optimal Service
Deployment
Enterprise
Portal
Revenue Growth
(CAGR)
Policy
Cisco Evolved Programmable Network

20. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
© 2014 Cisco and/or its affiliates. All rights reserved.
Opportunity to Grow Virtual Cloud Services Business
Cisco Evolved
Programmable Network
Enterprise
Portal
Enterprise
Private Cloud
Private
Application
Workloads
VM VM VM
Service Broker
Open Daylight
InterCloud
Virtual Private
Application
Workloads
Telco Cloud Provider
Cisco Evolved Services Platform
VM VM VM
Orchestration Engine
APIC
Public
Application
Workloads
+ Cisco Global InterCloud

21. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
© 2014 Cisco and/or its affiliates. All rights reserved.
Network Virtualization Model Helping Telefonica Transform
Source: Telefonica

22. © 2014 Cisco and/or its affiliates. All rights reserved. 22© 2013 Cisco and/or its affiliates. All rights reserved. 22
• #3 Business Ethernet Services Provider
• Simplify Network – Expand the Offerings
• Consistent Provisioning – Open API
• Dynamic Capacity Business Services
• Improved Customer Experience
• North American Premium Business Services by 2017
• $15B >> 29% CAGR over 5 years
On-Demand
Business
Services
EnablingOnDemandBusinessServicesfromtheCloud
Evolved Programmable Network

23. © 2014 Cisco and/or its affiliates. All rights reserved. 23© 2013 Cisco and/or its affiliates. All rights reserved. 23
Evolved Programmable Network
• Virtualized Private Cloud Services in Data Center
• Policy Driven Bandwidth On Demand
• Intelligent Convergence -- Migration to NCS + CRS + ASR
• Rapid Acceleration of Service Delivery
• Increased Revenue Growth
• Opportunity to Grow Managed IP Business Services
• Current Revenue Growth Rate ~ 4%
Virtualized
Business
Services
Simplifying Cloud Based Delivery forTelstra
Sources: Gartner, IDC, Cisco VNI
Data Center

24. © 2013-2014 Cisco and/or its affiliates. All rights reserved.
It’s all about the business and transforming it successfully
! Imperative to understand where to focus immediate
attention for business benefit to you and your
customers
! Cisco and its Partner community can uniquely help
you in your journey to overcome the business
challenges and seize the opportunities.
! The time to act is now but choose your path
thoughtfully

25. Thank You
Cisco Service Provider Content
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