software-defined networking (sdn): understanding the threats and opportunities
DESCRIPTION
Software-defined networking (SDN) continues to gain momentum, threatening to upend the networking landscape. While the technological advantages of SDN compared to traditional network architectures are clear, enterprise customers have been slow to adopt the technology due to its complexity, immature standards and a limited amount of vendor solutions, as well as the lack of a quantifiable business case. Still, vendors are evolving their portfolios, strategies and messaging around SDN to capitalize on customer spending as it occurs. The TBR Network & Mobility research team hosted a thought leadership webinar on Tuesday, June 17, 2014, where they delved into the future of software-defined networking. Senior Analyst Scott Dennehy shared his perspective on the market and provide additional insight into vendor performance and the future of SDN. Questions for discussion will included: 1. What is SDN, and why is it important? 2. What are the opportunities and challenges presented by SDN? 3. What is the impact of SDN on the vendor landscape, both now and in the future? 4. Who are the major vendors pursuing the SDN opportunity, and what strategies are they using?TRANSCRIPT
TBR
T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .
Software-defined Networking (SDN): Understanding the Threats and Opportunities
Technology Business Research Webinar Series
June 17, 2014
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Software-defined Networking: Presenter
Scott Dennehy Senior Analyst, Data Center
Email: [email protected]
Twitter: @scottdTBR
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Key Takeaways
Software-defined Networking Adoption Curve
Software-defined Networking Enterprise Benefits, Costs and Impact to Vendors
Server Virtualization versus Network Virtualization
Vendor Strategy Comparison
Vendor Solution Summary
Software-defined Networking Development Organizations
Future Outlook
Agenda
Software-defined Networking: Threats and Opportunities
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Key Takeaways
While SDN is gaining traction in the enterprise market, customer education and a stronger business case will enable widespread adoption
Software-defined networking (SDN) has moved beyond the hype and into real-world network deployments. However, challenges remain for SDN to proliferate within the broader enterprise market and meaningfully contribute to supplier revenue.
Unlike past network-specific technology transitions where the competitive landscape consisted solely of hardware providers, SDN has attracted a host of software vendors whose approaches threaten to commoditize network hardware over the long term.
SDN will progress over the next 12 months in the form of more use cases, vendor solutions and customer success stories. Suppliers will focus on educating customers on the benefits of SDN on their unique solutions and helping IT make a strong business case as spending reaches critical mass in 2015 and 2016.
Software-defined Networking: Threats and Opportunities
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SDN adoption will accelerate in 2014 and 2015
Realization that virtualization
can benefit data center networks
2011
Deployments in major cloud
and content providers 2012
2013 Proof-of-concept stage
2014
Early
adopter
spending
increases
Vendor
consolidation
and attrition
2015
2017
2018 2019
Adoption by late
majority and
laggards
2016
Software-defined Networking: Threats and Opportunities
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SDN provides a variety of benefits compared to traditional network architectures
Enterprise Costs
• Higher software capex
• Higher professional services capex/opex
Enterprise Benefits
• Lower hardware capex
• Lower deployment and maintenance opex
• Increased operational efficiency
• Increased network efficiency, flexibility and uptime
SDN versus Traditional Network Architectures
Software-defined Networking: Threats and Opportunities
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SDN provides a variety of benefits compared to traditional network architectures, potentially resulting in lower vendor revenue
Enterprise Costs
• Higher software capex
• Higher professional services capex/opex
Enterprise Benefits
• Lower hardware capex
• Lower deployment and maintenance opex
• Increased operational efficiency
• Increased network efficiency, flexibility and uptime
SDN versus Traditional Network Architectures
Software-defined Networking: Threats and Opportunities
Vendor
Opportunity
Vendor
Challenge
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Complexity in technology and decision making is inhibiting widespread enterprise adoption of SDN
• Complex technology not yet fully understood by broader enterprise market
• Business case not yet clearly defined
• Standards and vendor solutions still evolving
• Some internal conflict in IT organization
• Simple for IT to understand and implement
• Easily quantified and justifiable business case
• Established vendor solutions
• Clear decision-making process for IT
Network Virtualization Server Virtualization
Software-defined Networking: Threats and Opportunities
SOURCE: CATSTECHNOLOGY.COM SOURCE: GL.ACCESS-COMPANY.COM
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SDN has altered the networking landscape to include a host of new competitors using different strategies
• Solutions are hardware-agnostic
• Leveraging success in server virtualization
• Combination of proprietary hardware and SDN controllers
• Platforms provide traditional switching and SDN and programmable functionality
• Support of OpenFlow standard
Software-defined Networking: Threats and Opportunities
Brocade Cisco
HP Juniper
Microsoft Oracle
IBM VMware
Comparison of Vendor SDN Strategies
Enterprise
Customers
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Vendor solutions are broad and diverse, consisting of SDN-enabled legacy products and custom-built platforms Vendor Solution Name Key Products
Alcatel-Lucent Application Fluent Networking Nuage Networks Virtualized Services Platform and Gateway (VSP/VSG)
OpenFlow- and OpenStack-enabled switches (e.g., OmniSwitch 6800)
Brocade N/A Vyatta 5400/5600 vRouter
OpenFlow-enabled routers and switches (e.g., MLX/ICX/VDX families)
Cisco Application-centric Infrastructure (ACI) Nexus 9000 switch
Application Policy Infrastructure Controller (APIC)
Dell N/A
Z9500 Fabric Switch
Active Fabric Controller
OpenFlow-enabled switches (e.g., N and S Series)
HP N/A
7900 Switch
OpenFlow-enabled switches (e.g., FlexFabric family)
Virtual Application Networks (VAN) SDN Controller Software
IBM SDN for Virtual Environments (SDN-VE) SDN-VE KVM, VMware and OpenFlow editions
OpenFlow-enabled switches (e.g., RackSwitch family)
Juniper N/A EX9200 switch
Contrail SDN Controller
Microsoft N/A Hyper-V Network Virtualization
NEC ProgrammableFlow Networking PF Series Switches
PF6800 SDN Controller
Oracle Oracle Virtual Networking Oracle Fabric Interconnect/Manager/Monitor
Oracle SDN
VMware N/A NSX
Software-defined Networking: Threats and Opportunities
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SDN industry organizations share the same goal, although their methods and approaches vary
Comparison of SDN Development Organizations
• Founded in 2013
• Primarily a vendor-driven organization
• Focused on developing an open-source SDN controller
• 40 member companies
Accelerate adoption of SDN through open architectures
• Founded in 2011
• Primarily a user-driven organization
• Introduction and support of OpenFlow standard
• 130 member companies
Software-defined Networking: Threats and Opportunities
OpenDaylight Open Networking
Foundation
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SDN remains a significant revenue opportunity for vendors, but fierce competition and long sales cycles remain obstacles to success
• Enterprise demand
for SDN solutions is
growing.
• Customers will want
to consult with
vendors before
deploying SDN
products.
• SDN standards and
vendor solutions will
continue to mature.
•Widespread adoption
of SDN will be slowed
by long sales cycles.
• Competition in the
SDN market will be
intense, with both
hardware and software
vendors vying for
customer wallet share.
Inhibitors and Competition
Growth and Opportunities
Software-defined Networking: Threats and Opportunities
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Software-defined Networking: Webinar Contact Information
Scott Dennehy Senior Analyst, Data Center
Email: [email protected]
Twitter: @scottdTBR
Telephone: 603.758.1822
Questions?
James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166
Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel LinkedIn: www.linkedin.com/company/technology-business-research
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NMP Syndicated Research Coverage
Telecom Vendors Operators Benchmarks
• Accenture Telecom & Mobility • Alcatel-Lucent • Cisco Systems • Ericsson • HP Telecom & Mobility • Huawei • IBM Telecom & Mobility • Juniper Networks • Nokia Solutions and Networks • Samsung Telecommunication
Systems • ZTE
• AT&T • Sprint • T-Mobile USA • Verizon Enterprise Coverage: • AT&T Business Solutions • BT Global Services • Orange Business Services • Verizon Enterprise Solutions • Vodafone Enterprise Services
• Telecom Vendor Benchmark
o Telecom Infrastructure Services (TIS)
Telecom Infrastructure Services Benchmark
Telecom Infrastructure Services Margin Benchmark
Telecom Infrastructure Services Addressable Market Forecast
Telecom Infrastructure Services North America Addressable Market Forecast
• Enterprise Network Vendor Benchmark
o Enterprise Networking Addressable Market Forecast
o Network Infrastructure Services (NIS) Benchmark
• U.S. & Canada Mobile Operator Benchmark
Enterprise Networking Cable Providers
(Reports include content on Ent. Networking)
• Accenture Telecom & Mobility • Cisco Systems • HP Telecom & Mobility • Huawei • IBM Telecom & Mobility • Juniper Networks
• Comcast • Time Warner Cable
Internet Companies
• Google • Microsoft Telecom & Internet
TBR Networking & Mobility Practice Syndicated Coverage
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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .
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