ip innovation for customer success · fix the basics: make the network intelligent $ / bit tco of...
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© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 0
IP Innovation for Customer Success
Paolo Campoli
Head of SP Architectures and Vertical Sales
Cisco, European Markets
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1
John Chambers,Chairman and CEO, Cisco
―Cisco’s strategy is based on catching market transitions—the market transitions that affect our customers. With the proliferation of video and collaborative Web 2.0 technologies, the network continues to evolve from the plumbing of the Internet—providing connectivity—to the platform that will change the way we work, live, play and learn.‖
The Network as the Platform…
Western Europe IP Traffic Growth Consumer IP traffic outpaces business IP traffic (traffic volume and growth rate)
36% CAGR 2009–2014
87%
13%
© 2010 Cisco Systems, Inc. All rights reserved. 2
Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014
Global Consumer Internet Traffic GrowthVideo replaces P2P as top traffic type in 2010
36% CAGR 2009–2014
46%
10%
27%
15%
© 2010 Cisco Systems, Inc. All rights reserved. 3
Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014
* VoIP, Online Gaming, and Video Calling contribute 1% or less in 2014.
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Challenge of Shifting Environment
MonetizationNew revenue streams
OptimizationEfficient delivery
Profitability
Traffic
Revenue
Animated slide
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Monetizecore assets
Innovate in Rapidly Changing
Environment
Optimize Costs
Service Provider Business ChallengesValue Shifting from Simple Access to Service Enablement
Reduce Operational Complexity
Optimize costs
$
perGig
1997 2000 2002 2004 2006 2010
93%
E.g. Core
Routing
PacketTransport
Reduced Price per Bit
Fix the basics: make the network
intelligent
$ / bit
TCO of traffic
TCO of Intelligence
i
i
i
i
DistributedCentralized L4-L7 intelligence
© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialP.CAMPOLI 8© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential
Focus on core assets
2.The Mobile InternetMobile Packet Core, IP RAN, Monetization, 4G / LTE, Mobile video
1.IP NGN Infrastructure
Access
RoutingIP+Optical NGA - FTTH IP Edge IP Core
4.Communication
& Collaboration
Web collaboration
Hosted Communication
B2B Telepresence
Application aware VPN
5. DC / Virtualization
Datacenter
consolidation
Automation
Virtualization
DC Interconnect, IP
SustainabilityFinancial Engineering
3. IP & TV
HeadendsIP STB
RF overlay
Videoscape
Content Distribution
Collaboration Broadcasters / OTT
VQE
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 9
Disruptors
Responding to ChangeCapturing Market Transitions
Video
Collaboration
Video
Mobility
Virtualization
Pervasive mobile Internet
Content sharing among communities
Lifestyle optimization
From mainframe to minicomputer to client-server Web and cloud
Blurring of private and public value chains
40% of ICT to be delivered via Cloud, XaaS
Rapid business-model innovation
Intra-company and inter-company collaboration
Millennials: Balancing privacy & opennessFutu
re
of W
ork
Futu
re o
f
Com
puting
Futu
re o
f
Connecte
d L
ife
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
Quality of Experience
PlanningAuto
Configuration
Visibility and
MonitoringOptimization
Any to Any
Video Adaptation
Automation and rapid problem resolution in the network to deliver
application quality of experience, particularly video
Rapid
Problem Resolution
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
A remote expert joins a TelePresence session
between the VP of sales and the customer ad-hoc via TelePresence
Hmmm… Mediatrace identifies the
bottleneck to be between NY and London
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
• IP Video SLA
• IP embedded video monitoring (VidMon)
• IP Multicast for SD and HD streams, Multicast VPN
• End to end design and consistency
Value shifting to Cloud and Devices
CE/Over The Top
Brand power
Building application & content eco-systems
New Streaming subscription services
Service Provider
Multi-screen offering becoming table stakes
Partnerships &Vertical Integration
Rising churn and Subscriber acquisition cost
Broadcasters and Media
New distribution platform & interactive content –
Sky Sport TV on iPad / RTL on iPhone & iPad
Hybrid Broadcast Broadband TV: HbbTV
New business models –Hulu 2009 revenue: $100M
1st half 2010 revenue: $100M
Consumer Behavior
Netflix = 20% of US downstream internet traffic in peak times
Online Video Snacking 11.4 Hour /month
Video = 91% of consumer IP traffic by 2014
20%
Connected TV Forecast (2009-2014)
Source: Quarterly TV Design and Features Report
Use of connected devices
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 16
Video moving to Cloud
STB will become pure commodity
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 17
Google TV
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 18
Cloud + Network + ClientQuality of Experience
Introducing Cisco Videoscape
Investment ProtectionExtended to Legacy Infrastructure
Videoscape
Integrated TV ExperiencesAcross Devices, Networks & Content
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 19
Competitive Differentiation
Unified experience beyond TV Universal Guide
SP customized UI & UX
Did We Mention DVR?
Unified experience beyond Android & Apple devices
Quality of Experience
QoEsp vod catalogue
Search with VoD catalogue & DVR recordings
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Assisted living
Home office
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Open Services Platform– App-stores ?
prezo4Telecomprezo4Telecom
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 22
IP Managed ServicesHome GatewayMulti-use Options
Deployment & Services:SmartPlug
Internet Enabled TV / DMA
Family RoomSTB
USB Flash Drive / Disk
StorageFile Server
Thermostats
AlarmPanels
UPnP-AV / DLNA Media Server
Internet Radio
USB 2.0
VoIP SIP/IMS Analog Phones
FXS
Broadband Internet
802.11n WiFi
Network Printer
ComputerInternet Enabled
TV / DMA
10/100/1000Ethernet
Z-Wave / ZigBee
Sensors
Smoke Detector
Radiator Valve
eHealth
3G/4G
MobileData
Internet
Smart Meter
Business toBusiness
NGNInfrastructure
Cisco’s Service Provider
Business ArchitecturesRedefining the SPs’ Value Proposition in Two Key Value Chains
Managed/Cloud Services
Video and Connected Home
MobileInternet
Business toConsumer
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24
Working with
Simon Orme, BT Wholesale
Jean-Christophe Dessange, Cisco
September 2010
Next Generation Content Delivery Platforms- Customizing CDN for the marketplace
Current thinking. Subject to change.
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 26
End-to-End Network IntelligenceNetwork Monetization, Optimization, and Service Velocity
HTML, XML, IMS, XMPP, etc.
Open Standards
IETF, IEEE, GSMA and Others
Network
Cisco solutions help you attract new customers, retain existing
customers, and move all customers up the value chain
ApplicationDevelopers
Broadcasters
Advertisers
Content Aggregators
Retailers
Cloud Services
ClientDevices
© 2010 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialFinland Mobile Cisco Days, April 2010 27
Source: Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 2009–2014
Mobile Internet : It’s there…
>5B devices + M2M 39-fold traffic increase
Mobile outgrows Fixed 2.4X
By 2014 …
Video = 66% of traffic mix
EnhancedComputing
More Mobile DataMore Mobile Devices
Rich Media Apps/Content
3,900% Increase in Data Traffic
from 2009–2014
© 2010 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialFinland Mobile Cisco Days, April 2010 28
Packet Core Economic Value
RadioBackhaul
Intelligent
Packet Core
RNC
2G/3G
LTE
Cost Savings Monetization
RAN
CA
PE
XR
even
ue
OP
EX
Incremental Core
Investment
“On-Net”
Managed/Hosted Content
“Off-Net”
Over-The Top Content
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 29
MONETIZATION: Maximize Revenue With Tiered PricesHigh ARPU from power users; Grow TAM to low-end
A business case developed by Cisco with Network Strategy Partners projects a US operator with 1.5 million
mobile data subscribers would grow to 2.2 million subscribers (47% growth), increase revenue by US$22.9
million per month, and realize an ARPU increase of US$6.85 per month (14% increase in ARPU).
© 2010 Cisco Systems, Inc. All rights reserved. 30
MonetizationZero/Lower
RateBandwidth
ManagementPriority
HandlingContent Filtering
One Network,Any G,
Any Screen
On-Net Apps
Speed Tiers
Day pass
Family Data Plan
Cultural Norm Compliance
P2P App Management
Parental Controls
Freemium
Off-Peak Usage
Data Roaming
Turbo Boost
Corporate Work/Play Plan
Cloud PriorityServices
Premium Video
Cisco Policy & Charging Control (PCC) Solution
Deep Packet InspectionEnhanced Charging
App Detection and OptimizationContent FilteringHeader Enrichment Ad Insertion
Fir
ew
all
NA
T
Data Center
Cell siteRAN
Backhaul CarrierEdge
Packet Core
In-line Services IP Core
Broad Portfolio of Data Monetization Use Cases
Mobile TV
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 31
2000 2005 2011
Adoption CurveCloud Computing
Public or PrivateTraditional
Data Centers
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cloud total addressable
market estimated at
$70B in 2010—10% of
Data Center market … IDC 2011
By 2015, 50% of all CIOs expect
to operate the majority of their
applications/infrastructures
via the cloud … Gartner 2011
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 32
Service
Providers
Systems Integrators &
Server Vendors
• End-to-End Network/IT
• Security & SLAs
• Application QoS to CPE
• Priced higher than OTTs
• Professional service
capabilities vs. large SIs
Typical
Players
Challenges
Unique Assets
-
Competitive
Advantage
• Global Footprint
• Massive Scale
• Fast Moving
• Stability Concerns
• Security & privacy
• Strong SI Capability
• Enterprise Trust
• SMB Channels/Brand
• No End-to-End
Control
Service Providers: Unique opportunity in converged Network-IT Cloud services
Source: Cisco IBSG SP
Internet Companies
(“OTT”)
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 33
Deliver products, solutions & services to organizations to build secure Clouds
Enable Service Providers to deliver secure Cloud + Network solutions and services to customers
Advance the market for Cloud by driving technology innovation, open standards and ecosystem development
Cisco’s Cloud StrategyAddressing Our Customers’ Business Challenges
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 34
Customer
Unified Service Delivery: Transforming Services with a Secure Virtual Experience
Unified Service
Delivery
SP Data Center IP NGN
Collaboration
Information
Entertainment
Secure Virtual Experience
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 35
Unified Service Delivery Trusted Pathway to Cloud Service Offers
Unified Service
Delivery
SP Data Center
DC—CO—VHOCommunication
IP NGN
Unified
Computing
Virtualization
Unified
Fabric
Nexus Family
Nexus 1000V
Unified
Computing System
Media Aware
Distribution
Peering and
Interconnect
Network
Intelligence
and Quality
Security and
Application
Performance
Video Delivery Product Suite
IOS, IOS-XR, Medianet
APM, WAAS, Mgd. Security
CRS / ASR Families
Foundation Technologies
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 36
Error Repair &
Fast Channel
Change (VQE)
Internet Cache
Video Probe
TV Cache
Personalized
ExperienceVirtual personal
channelsPersonalized ads
FlexibleMultiple
applications –scalable and
adaptable architecture
Content
ChoicesVoD, Online,
User generated content
Ensured
ExperienceIntegration of Error repair at
edge
Best-in-Class Multicast
Replication & QoS for
Broadcast Video
High Density for VoD
Bandwidth Requirements
Inline Video Monitoring
Integrated Caching &
Streaming
VQE – Error Repair & Fast
Channel Change
Innov ation
Monetization Optimization
Operational Excellence
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 37
Focus on Key Market Transitions
Consumer Video/
Connected Home
Mobility & Connected
Life
VideoSolutions
HostedSoftwareServices
TelePresenceand Managed
Services
Next Gen Service Provider
Infrastructure
Mobile
Internet
Managed and
Cloud Services
IP NGN Architecture
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 38
Innovation
Monetization Optimization
Operational
Excellence
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 39