Toward a Software-Defined WAN. March 2015

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Toward a Software-Defined WAN

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Business Transformation Shifts Technology

Buying Centers

The 3rd Platform creates the

underpinnings for business-process,

transformation, and, increasingly,

business-model transformation:



How they

engage

with customers



The

speed

at which they deliver their

products and services



How they

innovate



Their

resiliency



The

reliability

of their operations

With such high stakes, the business

is increasingly driving technology

initiatives

Inversion of business from

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3

Cloud Services: at the Center of Growth

Cloud using enterprises

expect to increase their

Cloud spending by

34%

over the next 24 months

Businesses

will spend

$122B

on Public Cloud IT

services in 2018

80%

of

US

companies

are at least

considering Public

or Private Cloud

Developers

90%

_{of new commercial apps now developed specifically for cloud}

Enterprise & Service Provider IT infrastructure spending to build/enable

cloud services are growing at 20% per year, reaching $65B in 2017

Service Providers

By 2020, more than 40% of all servers will be in Service Providers’

data centers – up from 19% in 2014 (most of expansion from cloud)

“Arms Dealers”

Everyone’s doing it already

Most plan to do a lot more

Driving most budget growth

Source: IDC CloudView Survey 2014, Public Cloud Tracker, December 5, 2014, other IDC resources, 2014

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Insights: Three Approaches to Cloud

Deployments

D.I.Y

.

Private

 Designed for, and access restricted to, a single enterprise (or extended enterprise)

 An internal shared resource, not a commercial offering

 IT Org is the “vendor” of the shared/std service to its users

Resource Isolation

Single enterprise/ extended enterprise

(dedicated)

Hybrid

 Enterprise’s cloud services portfolio includes both private and public cloud services

 Some specific services are delivered in a combination of public and private models (e.g., private cloud “bursting to” a public cloud service)

Virtual and physical (non-cloud) resources and

applications

Public

 Designed for a market, not a single enterprise

 Open to a largely unrestricted universe of potential users

 Customers buy at specific level of abstraction (server, application, platform)

 Single-vendor or multi-vendor Multiple unrelated enterprises (shared)

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 Public cloud is

transformative

and challenges all our notions about how IT is bought, staffed, operated, and capitalized  Private cloud is

evolutionary for the vast majority of enterprises, and the likely on-ramp to cloud for the next 24 months  Hybrid

approaches to IT delivery are already a standard, but cross-platform management is the next frontier

Insights: How Does Cloud Figure into

Enterprise IT Sourcing Plans?

[Q3] Please estimate what percentage of your organization’s total annual IT budget is allocated to each of the

following procurement/management models.

5

In-house Private

Cloud 10.7%

External Cloud: 40.8%

(29.8% growth)

Today

In 24 Months

Traditional Outsourced (eg., Application Management) 21.5% Traditional Outsourced (eg., Application Management) 21.5%

External Cloud: 31.4%

Provider Site: 52.9% Customer Site: 47.1% Provider Site: 56.8% (7.5% growth) Customer Site: 43.2 Traditional In-house 36.4% Dedicated Private Cloud 6.5% Virtual Private Cloud 5.5% Public Cloud 19.5% Virtual Private Cloud 10.8% Dedicated Private Cloud 12.0% Public Cloud 17.9% Traditional In-house 27.5% In-house Private Cloud 15.7% In-house Private Cloud 10.7%

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Cloud: A Strategic/Key Resource

For Nearly 80% of Respondents

Q. Which of the following best describes your organization's view of cloud computing/IaaS?

N=504

Base: currently use OR plan to use cloud computing for IT infrastructure Source: 2014 IDC U.S. Enterprise Communications Survey

45%

35%

18%

2%

0% 10% 20% 30% 40% 50%

A strategic part of our IT environment moving forward

Another IT resource that we will use as part of our portfoli

We will take a wait and see approach on how best to use clou

We don't understand how cloud computing/IaaS could be used b

6

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Rise of Software-Defined Networking

7



Software Defined Networking (SDN) is emerging as a new

architectural approach to networking in the cloud era



Establishes clear abstractions for automation and

programmability, and orchestration, resulting in business

and operational agility.



Integrates well with major cloud platforms



Can drive OPEX savings in large data centers through

automated network provisioning, configuration



Potential to reduce CAPEX expenditures by allowing for

purchase of industry-standard hardware (x86 for NFV,

switches)

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29

23

21

12

8

4

4 0%

5%

10%

15%

20%

25%

30%

Need the network to have more agility to support

virtualization applications/cloud

Increase ability to deliver new applications or

services across the network

Require better programmability of network for

operational efficiency (OpEx gains)

Increase speed of provisioning the infrastructure

for application workloads

Scale the network to support various and growing

workloads

Simplify moves, adds, changes and

decommissions

Use SDN to lower CAPEX

(initial investment costs).

What’s Driving Today’s SDN

Deployments?

8

Q. Which of the following factors is the primary motivation for considering or implementing SDN?

N=228

Source: IDC's 2014 SDN Survey, April 2014

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Cloud Prompts WAN Changes



Drivers

• Cloud and budgets do not favor

MPLS.

• Multi-connectivity networks

proliferate with MPLS, Internet.

LTE, broadband, etc.

• Traffic patterns shift from corp.

data center only to data center and

cloud.

• Mobile users proliferate.



New Needs

• Consistent monitoring and

reporting across all networks.

• Dynamic path selection by

application template/policy

• Optimization for legacy and

cloud-based applications.

• Cost optimized.

• Fast service provision.

• On-demand/elastic bandwidth.

• Heightened sensitivity to security &

privacy

IaaS

AWS Azure vCloud Air Dropbox O365 Salesforce Marketo Workday Internet connectivity Internet connectivity LTE connectivity

MPLS

Office A Office B Office C

Data Center

HQ

Data Center/

DR Site

Office C MPLS connectivity IPSec VPN connectivity Leased line connections

Remote site

SaaS

Mobile User

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Data Storage for Backup/Recovery

Dominate Cloud-Infrastructure Service

Q77. How do you currently/plan to use cloud infrastructure services?

N=504

Base: currently use OR plan to use cloud computing for IT infrastructure Weighted: No

Source: 2014 IDC U.S. Enterprise Communications Survey

31%

24%

25%

24%

55%

28%

30%

21%

0% 10% 20% 30% 40% 50% 60%

Scale our existing IT infrastructure environment

Testing/development of new applications/services Production environment (existing mission-critical

business applications)

Production environment (existing non mission-critical business applications)

Data storage/backup & recovery

Data mining/business analytics

Additional capacity for variable workloads Production environment (net-new business

applications)

10

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Cloud Connectivity Options Proliferate

11%

13%

14%

16%

17%

28%

Direct public Internet access Internet gateway (Internet backhaul) Integrated cloud connectivity service Dedicated direct network access to multiple clouds

through hubs

Dedicated private network access Connectivity to cloud SP via our enterprise WAN

(MPLS)

Percentage of those using each connectivity type

N = 150

Source: IDC, October, 2014

Q. Which of the following best describes your organization's current network architecture for enabling

end user connectivity to the cloud?

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Cloud to Drive Bandwidth, VPN Services,

WAN Optimization Adoption

Q. What network/WAN changes have you made or do you expect to make in the next 2 years as a result of using cloud computing/IaaS?

N=413

Base: Datacenters Users

Source: 2014 IDC U.S. Enterprise Communications Survey

50%

25%

14%

15%

43%

27%

11%

0% 10% 20% 30% 40% 50% 60%

Increase bandwidth

Buy a higher quality network service

Use a class of service mechanism

Change network service providers

Use cloud services over a VPN instead of the public Internet

Use WAN optimization

No changes as a result of using cloud services

12

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Essential Guidance

13



Workloads are driving new requirements across the entire spectrum of IT

Infrastructure – radiating out from the datacenter to the WAN and branch

• Take an application-centric view of IT Infrastructure to see how workloads are

processed and delivered, and look to automate where possible.



Datacenter is where the greatest pain was felt, so that’s where SDN

disruption hit first, but WAN and branch also benefit from of abstraction,

automation, policy enforcement, virtualization, and orchestration



Mitigating MPLS backhaul for cloud -- using Internet broadband and

cloud VPNs wherever possible -- is a major business driver



Dare we call it the Software-Defined WAN (SDW)?

• Whatever we call it, there’s a definitely need



WAN technologies and services are ripe for disruption

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