Cisco MPLS
Enabling Managed Shared Services
for Greater Profitability
Azhar Sayeed
June 2002
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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MPLS Is Key technology for delivery of L2
& L3 services
IP
Optical
Services Services
IP
ATM
Services
Services
IP
IP
PNNI
O-UNI
MPLS
IP+Optical Switch
IP+ATM Switch
IP+ATM Integration
Traffic Engineering: Optimization for
Additional traffic =>$$
IP+Optical Integration
Frame
Relay
MPLS VPNs: Build
once sell Many
Network based VPNs
MPLS for Managed Shared Services
Customer Presentation, June 2002
MPLS
Protection solution
Reduction in CAPEX & OPEX
© 2002, Cisco Systems, Inc. All rights reserved.
Frame
Relay
ATM
Layer 2 Integration for
A single converged
Network Infrastructure2
2
Agenda
• Criticality of Selling More Than
Connectivity
• Introducing Cisco MPLS For
Managed Shared Services
• Roadmap
• Summary
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Functionality & Revenue
Enabling Managed Shared Services
Cisco MPLS Strategy
Next wave:
Advanced Services
Scalability & Availability
Enhancements
Enabling Managed
Shared Services
Provide Vanilla IP
connectivity
Full - Mesh
Announcing
Today
Time
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Managed Shared Services Are The Future
of Profitability
The Key is moving up the value chain by providing new services
Managed
Hosting
Services
Co-Location
Managed
Services
L2/L3
L2/L3
Connectivity
Connectivity
For VPNs
Data
Center
Space
Basic
Hosting
Managed
Security
Managed
Network
Services
Managed
Application
Services
Platform
Services
E-Comm
App Mgmt
Business
Logic
Customer
Relation
“MPLS VPNs can offer an entry for selling managed IP
services. The clever service providers will base their
business (and long-term profitability) on value-added
services, not exclusively on access.”
- Gartner Group, May 17, 2001
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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MPLS/VPN:
Before Managed Shared Services
• Services need to be replicated per VPN
VPN “A”
Internet
Gateway
ERP
VPN “B”
Poor efficiency
High Traffic Load
Management nightmare
Video
Server
Internet
Gateway
Hosted
Content
Service Provider
Video
Server
ERP
Hosted
Content
MPLS - VPN Network
H.323
Gatekeeper
H.323
Gatekeeper
Services for VPN A
Services for VPN B
VPN “A”
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
VPN “B”
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6
MPLS/VPN:
Supporting Shared Services
Shared Services for all VPNs
ERP
Video
Server
Hosted
Content
VPN “A”
VPN “B”
Internet
Gateway
Internet
Service Provider
Cisco MPLS - VPN Network
VoIP
Gateway
VPN “A”
PSTN
VPN “B”
• IP Services move into Service Provider network and
become sharable
Increases Enterprise outsourcing flexibility
Creates New Service Provider revenue opportunities
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Cisco MPLS For Managed Shared Services
Makes Money, Saves Money
Allows MPLS/VPN customers to access a central service
such as Managed Internet Access or Managed Security
• Managed IP Services
Can now monetize baseline IP
services inside MPLS VPNS like
Network Address Translation
• Multicast based services
Dramatic reduction in complexity
yields OPEX savings for enterprise
and creates new revenue stream
for service providers
• VPN Selection
Opens new broadband market
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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8
Enabling Managed IP Services – Cisco
MPLS Strategy
Enable Managed Shared
Services
Provide Vanilla IP
connectivity
Full - Mesh
Advanced Capabilities for
New Revenues
•Adds NAT for MPLS VPNs for
central services
•Add Multicast VPN Solution
Functionality
&
Revenue
•Cisco Delivers
•HSRP for MPLS VPNs
•DHCP Relay for MPLS VPNs
•Remote Access to MPLS
VPNs
Cisco Delivers MPLS
(RFC2547) based IP VPNs
•Add Further enhancements to IP
Services for MPLS VPNs
•Provide Security enhancements
for IP services
•Integration and AAA for MPLS
VPNs
•MPLS TE and QoS for better
SLAs using
•QoS based routing
•Bandwidth Protection
•Cisco Trials Multicast VPN
Cisco provides basic
debug and monitoring
capabilities
MPLS for Managed Shared Services
Customer Presentation, June 2002
Time
© 2002, Cisco Systems, Inc. All rights reserved.
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Cisco MPLS For Managed Shared Services:
Announcement Highlights
Announcing Today
Features Shipping
Today
Cisco MPLS
Service
Integration
Enhancements
• Dynamic Host Configuration
Protocol (DHCP) Relay for
MPLS VPNs
• Hot Standby Routing Protocol
(HSRP) for MPLS VPNs
• Virtual Router Redundancy
Protocol (VRRP) for MPLS
VPNs
• Ping & Traceroute for MPLS
VPNs
IP Services for
MPLS VPNs
Service Selection
for MPLS VPNs
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
Q3-Q4CY02
• Network Address
Translation (NAT) for
MPLS VPNs
• On Demand Address
Pools (ODAP) for MPLS
VPNs
• Multicast VPN
• VPN Select
10
10
NAT Today
• Enterprise pays for:
Leased
links & router ports for internet connectivity
Operations expenses and manageability of NAT
• No revenues for service providers for NAT Services or other shared services
VPN A
VPN A
VPN A
MPLS VPN Network
NAT CE
Internet
VPN B
VPN B
VPN B
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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NAT for Shared Services
• Reduced CAPEX/OPEX for the Enterprise
Leased lines & router ports for internet connectivity go away
Reduces network complexity; operations and manageability cost
• Increased revenues for Service Providers
Can provide outsourced NAT services to Enterprises
VPN A
ERP
Video
Server
Hosted
Content
NAT PE
VPN A
Internet
MPLS VPN Network
Managed Internet
or
Managed Security Service
via managed Firewall
VPN B
VPN B
VPN A
MPLS for Managed Shared Services
Customer Presentation, June 2002
VPN B
© 2002, Cisco Systems, Inc. All rights reserved.
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DHCP Today
• Replicated DHCP servers per VPN even if co-located
• No Value add from Service Provider
DHCP Server
VPN A
VPN A
VPN B
VPN A
VPN A
MPLS VPN Network
VPN B
DHCP
Request &
Reply
VPN B
VPN B
VPN A
DHCP Server VPN B
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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DHCP support for Shared Services
•
•
•
•
Value Add Service
Build Once sell many
Efficient management of Addressing
Outsourcing Flexibility for enterprise customers & New revenue source for SPs
VPN B
Managed DHCP Service
DHCP
Server
VPN A
VPN A
VPN A
VPN B
MPLS VPN Network
VPN B
DHCP Request
DHCP Request
DHCP Reply
VPN A
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
VPN B
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IP Address Management
• Independent but inefficient Address Management
• Providers need to manage addresses manually and allocate them to
RADIUS or DHCP servers
• Once site thresholds are reached – address are manually allocated
VPN B
DHCP Server
VPN A
VPN A
VPN A
VPN A
MPLS VPN Network
VPN B
VPN B
DHCP Request & Reply
VPN B
VPN A
MPLS for Managed Shared Services
Customer Presentation, June 2002
DHCP Server
VPN B
Configure Address Pools per server
© 2002, Cisco Systems, Inc. All rights reserved.
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IP Address Management as a Shared Service
•
•
•
•
Use IOS DHCP Server
Request address pools on demand when a threshold is reached
Much more efficient IP address management for MPLS VPNs
Less network load and new revenue opportunity for SP
Request an address
pool for VPN A
VPN A
IP Address
Management
Server
DHCP Request & Reply
VPN A
VPN A
MPLS VPN Network
VPN B
DHCP Server
Cisco IOS
Request an address
pool for VPN B
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
VPN B
Use this new pool 10.10.1.x
VPN B
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HSRP & VRRP Today
• CE Redundancy Only
• Dual homing to PEs can also be done but does not provide fast failover
VPN A
CE Redundancy Only
VPN A
HSRP/VRRP
Running between CEs
VPN A
MPLS VPN Network
VPN B
VPN B
VPN B
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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HSRP & VRRP support for MPLS VPNs
• Dependency on Shared Services requires better network availability
• Cisco IOS “GRIP” features can be used to improve availability
• CE & PE Redundancy
• Reinforces GRIP Story with MPLS
• Dual homing to PEs can now provide fast failover
CE Redundancy
VPN A
VPN A
MPLS VPN Network
VPN B
VPN B
HSRP/VRRP
Running between PEs
VPN A
VPN B
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Multicast Today with MPLS VPNs
•Scalability – An issue
•Highly inefficient
Multicast Source
VPN A
VPN B
VPN A
VPN A
VPN B
VPN A
MPLS VPN Network
VPN B
VPN B
GRE Tunnels
CE-CE
VPN A
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
Multicast Source
VPN B
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Multicast VPN
•
•
•
•
Allows MPLS VPN customers to access Multicast content
Uses “Ships in the night” approach
Highly Efficient – Multicast tree built dynamically in the core
Standards based
Multicast Source
VPN A
VPN B
VPN A
Multicast in the core
VPN A
VPN A
MPLS VPN Network
VPN B
VPN B
VPN B
Multicast VRF
VPN A
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
Multicast Source
VPN B
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VPN Selection
Broadband
access network
VPN1
PE
20.1.1.1
PE
30.1.1.1
CE
ISP1 owns 20.x.x.x
network
VPN1
VPN2
MPLS
VPN
VPN3
VPN2
CE
ISP2 owns 30.x.x.x
network
PE
40.1.1.1
VPN3
CE ISP4 owns 40.x.x.x
Customers with high speed (broadband) links can connected
to any ISP providing VPN capabilities
network
New market: Service Providers can offer corporate VPN
connectivity to broadband users
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Agenda
• Criticality of Selling More Than Connectivity
• Introducing Cisco MPLS For Managed Shared
Services
• Roadmap
• Summary
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Cisco MPLS For Managed Shared Services:
Feature Availability by Platform
Feature
Platform Support
Availability
NAT for MPLS VPNs
All Cisco MPLS-VPN Enabled Platforms;
C12000, C10000 in CY03
Q4 CY02
DHCP for MPLS
VPNs
All Cisco MPLS-VPN Enabled Platforms;
C12000, C10000 in CY03
Shipping
ODAP for MPLS
VPNs
All Cisco MPLS-VPN Enabled Platforms;
C12000, C10000 in CY03
Q4 CY02
HSRP/VRRP for
MPLS VPNs
All Cisco MPLS-VPN Enabled Platforms
Shipping
Multicast VPN
All Cisco MPLS-VPN Enabled Platforms
Q3 CY02
VPN Select
C12000
Q3 CY02
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Agenda
• Criticality of Selling More Than Connectivity
• Introducing Cisco MPLS For Managed Shared
Services
• Roadmap
• Summary
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Cisco MPLS Is Proven
100 125 140 Deployments Today
Americas
MPLS for Managed Shared Services
Customer Presentation, June 2002
EMEA
© 2002, Cisco Systems, Inc. All rights reserved.
APT/Japan
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Managed Shared Services Are The
Future of Profitability
Cisco IOS - Key enabler to Value Add Services
Managed
Hosting
Services
Co-Location
Managed
Services
L2/L3
L2/L3
Connectivity
Connectivity
For VPNs
Data
Center
Space
Basic
Hosting
Managed
Network
Services
Managed
Security
Managed
Application
Services
Platform
Services
E-Comm
App Mgmt
Business
Logic
Customer
Relation
Multicast VPN
IP Address Management
VPN Aware NAT
VPN Aware
HSRP/VRRP
VPN Select
Value Added Services
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Cisco MPLS For Managed Shared
Services
• Demand for value added services delivered over Cisco
MPLS VPNs is the future of service provider profitability
• Cisco MPLS delivers enabling technology for managed
shared services
• Only with Cisco MPLS VPNs can you:
Monetize baseline IP services inside MPLS VPNS
Leverage multicast in MPLS VPNs to dramatically reduce Enterprise
OPEX and create new revenue streams
Leverage Cisco IOS features such as QoS to offer multimedia services
Open a new market by offering corporate VPN connectivity to
broadband users
Only with Cisco IOS Software!
MPLS for Managed Shared Services
Customer Presentation, June 2002
© 2002, Cisco Systems, Inc. All rights reserved.
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Resources
• http://www.cisco.com/go/mpls
• MPLS for Managed Shared Services
mpls-shared@cisco.com
• MPLS deployment
mplsd@cisco.com
• Other aliases
MPLS for Managed Shared Services
Customer Presentation, June 2002
tag-vpn@cisco.com
© 2002, Cisco Systems, Inc. All rights reserved.
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© 2002, Cisco Systems, Inc. All rights reserved.
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