Make Sense and Lots of Cents from Cloud and Managed Services Offered to Enterprise Customers Wayne Cullen, Senior Manager Service Provider Architectures PSOSPG-1007 Agenda • Introduction • The Cloud and Managed Services Opportunity Beckons • What a Difference SDN and NFV Can Make • Implementing Cloud and Managed Services Using SDN and NFV • Conclusion The Cloud and Managed Services Opportunity Beckons Or Why You Should Care Digital Transformation When it comes to digital transformation, the real cost lies in not digitizing. PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 5 Why You Should Care $2 By 2019: 83% $116 Billion SP Value at Stake 2015-2024⁴ Employee Productivity, $680B of global data center traffic from cloud services/apps¹ Cloud network services opportunity Trillion Innovation, $530B 2 Asset Utilization, $460B Customer Experience, $220B collaboration $24 Billion cloud opportunity. 55% are growth customers³ Supply Chain & Logistics, $60B Sustainability, $40B 1. Cisco Global Cloud Index 2. Cisco MOI, 2015 3. Cisco Consulting, 2015 4. Combined Research including Frost & Sullivan, DMG, Gartner, Infonetics, Synergy, Wainhouse, Cisco PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 6 Why Your Business Customers Care • A frictionless experience: Easy ordering, fast self-provisioning On-demand capacity Consumption based billing Protect their data and services • A personalized experience 47% NA CEE WE 47% LATAM • 44% 31% 34% Data sovereignty and low latency advantage network operators MEA 68% APJC PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 7 What Difference Can SDN and NFV Make? Helping to Answer that Question • We worked with Access Markets International (AMI) Partners to find out • How do business service customers perceive potential NFV/SDN benefits? • Would their views change their buying behaviors? • Would there be any resulting marketing impact for service providers? • AMI-Partners surveyed more than 350 businesses of all sizes across 11 countries • They combined these results with their ongoing research into the business customers’ view of ICT & Cloud services markets PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 9 What Your Business Customers Want* and What They Will Do WhenThey Get It Personalized experience: Easy ordering, fast self-provisioning On-demand capacity Adopt additional services Expand services to more users Consumption-based billing Recommend across industry Protect their data and services Switch from current provider * 60%-70% rated desirable or highly desirable PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 10 $116B Forecast Impact of NFV / SDN on WW Managed and Hosted Services Market 15% market increase from expansion 400 $351B 350 $ billions 300 CAGR 18% 250 69 50 150 100 153 166 50 0 2014 180 194 215 236 23% market opportunity from switching providers $305B 15 14 200 25 31 36 $116B 47 continue using current provider 2015 2016 2017 2018 2019 Source: AMI-Partners, Inc. PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 11 Forecast Revenue Impact of NFV / SDN by Region NA MEA $4B LATAM $9B $35B WE ITaaS $116B APJC $19B CEE $4B $44B PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 12 Implementing Cloud and Managed Services Using SDN and NFV An Open Digital Network Architecture for Service Providers Programmable PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 14 An Open Digital Network Architecture for Service Providers Automated Programmable PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 15 An Open Digital Network Architecture for Service Providers On-Demand Automated Programmable PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 16 Unified An Open Digital Network Architecture for Service Providers On-Demand Automated Programmable PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 17 Layer Service After Service For Greater Value Intelligent (Hybrid) IWAN services More applications Cloud collaboration services Higher value security services Mobile Private Network Cloud VPN services PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 18 Several Technology Efforts Coming Together Each Addressing an Aspect of the Challenges and Opportunities 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 PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 19 Cisco NFV Infrastructure Solution Leading Industry Partnerships Easy Access to Support Single Point of Contact Integrated Design and Validation Certified Joint go to market High and predictable Performance Hardware and Software Cisco NFV Infrastructure Solution Virtualized Compute Compute (Cisco UCS) Virtualized Storage Storage Virtualized Network Network (Cisco Nexus) VIM SDN Controller Management Assurance Automated Installer 2016 Cisco and/or its affiliates. All rights reserved. PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 20 Cisco NFV MANO Solutions Orchestration Network Services Orchestrator manages the network service Service Lifecycle: Design, Configure, Modify, Deactivate Orchestrate end to end across physical and virtual SDN Control Virtual Topology System connectivity The virtual cabling: Wire the boxes together VNFM Elastic Services Controller manages the appliances The Virtual Appliances: VNF Lifecycle: Onboard, deploy, monitor, scale, heal, update, remove PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 21 Our Expansive Virtualization and Orchestration Portfolio Services Video Evolved Services Platform (MANO) NETWORK SERVICES ORCHESTRATOR (Tail-f) Evolved Programmable Network Network Functions Virtualization Infrastructure (NFVi) Network Mobile Orchestration Engine Control PlaneAPPLICATION POLICY INFRASTRUCTURE Components CONTROLLER (APIC) WAN AUTOMATION ENGINE (WAE) INTERCLOUD FABRIC Cloud Security Service Broker OSS / BSS CLOUD MANAGEMENT (Meraki) Applications PRIME MANAGEMENT Simulation and Test PRIME FULFILLMENT PRIME SERVICE CATALOG (Carrier + DC) Cisco Policy Suite Nexus 1000v vWAAS ASAv vISE vESA vWSA Location Analytics CMX vDDOS Arbor Cisco Service Bus Virtual SaMOG Videoscape Media Suite Virtual LB Citrix Virtual ANDSF vMME vSGSN IMS (VoLTE) Video Optimizer OpenWave Cisco Services Platform Virtual Subscriber Database Videoscape Distribution Suite Mobile Analytics vSAE vGGSN vPE vCCAP API GW Virtual DPI vSCE Control Routing Suite Switching vWLC Gateways vRoute Reflector vBNG CSR1000v Virtual IOS XR vNAT/ CGN (IPv4/IPv6) V2P (4K/HEVC) vEPC SGW/PGW vCPE CSR 1000v User Plane Components SON vIPS vDNS vDHCP Videoscape Current through December 2015 Network Control vSECGW vM2M Virtual ePDG Virtual HNBGW 2016 Cisco and/or its affiliates. All rights reserved. PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 22 Use Cases – Business Services with vMS Cloud Managed Services Operators SetUser up Cloud Network Site Management TrafficManaged Site Map Service workflow Orchestration Business Services Video Services Broadband Services DOCSIS MAC Encoding Scheduler Record Business Subscribers User selects VPN options Virtual Router Playback Routing Store Statmux Web Security Tunnel Termination Encrypt Ad Insert Virtual Firewall Cloud Business Services Infrastructure Virtual Router Virtual Router Security WebWeb Security Compute Virtual Firewall Virtual Firewall Storage Network Customer routers cisco.com/go/vms PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 23 Use Cases – Mobile Cloud with Cisco Ultra Operators Set up Mobile Private Network Business Subscribers Mobile Services Orchestration Business Services Video Services Element Manager NSO NSD Policy Platform Service Catalog VNFD Gateway Platform VNF Catalog VLD Services Framework NFV Instances VNFFGD Infrastructure Compute Storage Network cisco.com/go/ciscoultra PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 24 Cisco Intelligent WAN Enterprise Value Uncompromised Experience Over Any Connection Private Cloud Hybrid Cloud Any User Any Location Any Application Any Site Public Cloud Application Experience Secure Access Lower Costs IT Simplicity Higher Value Branch Services At Lower Cost Reach More Clients, Add More Value to Existing Ones Profitable WAN Capacity Improved App Performance Smart Security Secure, Flexible, On-demand transport Protect network revenues, create new ones PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 26 Cisco Intelligent WAN Helps To: Automate delivery Cut costs Make branch network services easier © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public Helping You Achieve Revenues By 2019: $116 Billion 1. ACG Research Report 2015 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public Helping You Achieve Revenues and Savings By 2019: $116 Billion 10 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 9% 8 7 6 5 4 3 2 1 1 Savings 1. ACG Research Report 2015 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public Delivery Options to Cover Business Branch Needs Cisco Meraki Cloud-Managed Zero touch provisioning, cloud-based network management Cisco On-Premise ISR On-premise management with customizable features Cisco Virtual Managed Services Programmable services automation © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public Layer Service After Service For Greater Value Intelligent (Hybrid) IWAN services Higher value security services Cloud VPN services PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 31 Layer Service After Service For Greater Value Intelligent (Hybrid) IWAN services Higher value security services Mobile Private Network Cloud VPN services PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 32 Simply Communicate Better One Service, One Experience, for Every Employee HD Audio and Video Conferencing File Sharing 1:1 and Team Messaging in Virtual Rooms PSOSPG-1007 Mobile App / Client Desk and Room Services © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 33 Cisco Next Generation Cloud Collaboration • A complete collaboration service that enables customers to message, meet or call Anyone, Anywhere, Anytime Grow Profit Differentiate One Easy Offer $24 Billion Open Platform Globally by 2019 Application Integration Partner Services Spark Hybrid Services © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public Open Digital Network Architecture Cloud Collaboration Intelligent WAN Cloud Security Services Mobile Private Network Cloud Managed Services Internet of Things Applications Cloud VPN Voice over Wifi PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 36 Get Your Share of Enterprise Revenues with New Cloud Services $1.5 Trillion 83% Frictionless Experience $24 Billion $116 Billion Cisco Partnership PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 37 Want to Learn More and Dig Deeper? • More about the research and data about other services opportunities: go2.cisco.com/moi • Cisco NFV: www.cisco.com/go/nfv • Cisco VMS: www.cisco.com/go/vms • More Cloud Solutions: www.cisco.com/go/spcloud PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 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 PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 39 Continue Your Education • Demos in the Cisco campus • Walk-in Self-Paced Labs • Lunch & Learn • Meet the Engineer 1:1 meetings • Related sessions PSOSPG-1007 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 40 Thank you