TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
TBR EVENT PERSPECTIVE
Network equipment suppliers will
work to make the dream of network
virtualization a reality in 2014
Interop Las Vegas
March 31–April 4, 2014
Scott Dennehy (email@example.com), Engagement Manager/Senior Analyst, Data Center
Transformation within the networking industry is occurring rapidly, as networks continue to evolve to
fulfill their role as the delivery mechanism for a rapidly growing number of enterprise applications,
particularly those being delivered via the cloud and mobile devices.
As expected, most of the major network hardware suppliers, including Avaya, Cisco, Dell, HP and
Huawei, had a strong presence at Interop Las Vegas 2014, and software vendors such as F5, VMware
and Citrix have emerged as major players within the networking ecosystem. One notable exception was
Juniper, whose presence was limited to leading a handful of workshops, as the company did not have a
booth in the vendor exhibition hall — further evidence Juniper is de-emphasizing its enterprise business
as it focuses on cutting costs in the short term and charting a course for long-term growth.
Huawei’s presence at Interop, and its complete portfolio of enterprise solutions finally available in the
U.S., proved the company is not ready to abandon the U.S. enterprise market. Huawei faces an uphill
battle, but will remain focused on penetrating the U.S. by building its distribution channel in the country
and delivering true end-to-end ICT solutions.
Network virtualization (e.g., software-defined networking) was again a hot topic at Interop Las Vegas;
TBR was briefed about leading vendor solutions such as Cisco’s Application Centric Infrastructure, Dell’s
Z9500 Fabric Switch and Active Fabric Controller, F5’s Synthesis, and VMware’s NSX. Additionally,
enterprise mobility trends, including bring your own device (BYOD), continue to be a major driver of
enterprise network strategy and spending, and solutions such as Avaya’s Automated Campus and HP’s
Cloud Managed Network will see strong customer adoption in 2014 as a result.
Network Virtualization: Moving Beyond the Hype
At last year’s Interop Las Vegas, vendors were primarily focused on communicating their network
virtualization strategies and demonstrating initial solutions. This year TBR witnessed not only a
maturation of these solutions, but also suppliers presenting real-world customer deployments as proof
points that network virtualization may realize its potential after all. Unlike in 2013, when network
virtualization deployments were found only in the data centers of large cloud providers such as Google
and Amazon, customers in other verticals such as retail and manufacturing are now deploying the
technology in a meaningful way.
TBR believes some significant obstacles remain for network virtualization to proliferate within the
broader enterprise market — namely, the lack of a clear and easily understandable business case and
lack of clarity as to who within the IT organization is responsible for deciding which network
virtualization architecture to implement.
While the evidence is mounting that network virtualization will lower overall network hardware spend,
information to support a robust business case for the technology is lacking. There is also the challenge of
quantifying the true cost of the software, hardware and professional services required to transform
network functions from physical to virtual while still operating at scale with seamless fidelity and
reliability. Widespread adoption of network virtualization will occur when product results can justify
investment and thus provide a foundation for a business case. TBR believes network virtualization
business cases will be forthcoming so long as momentum of vendor solutions and customer
deployments continues, accelerating network virtualization adoption throughout enterprise networks.
Even in situations where the business case for deploying network virtualization is clear, the issue of
exactly who within the IT organization should make the final decision as to which approach is right for
the enterprise remains. During past network-specific technology transitions (e.g., 100 Mbps Ethernet to
Gigabit Ethernet) the network organization had clear responsibility and authority for all decision making.
However, with the emergence of solutions designed to extend server virtualization into the network
domain (e.g., VMware) the server group now has a seat at the table, bringing with it a compelling story
to tell. This is creating friction within the IT organization, which TBR believes will limit the speed at which
network virtualization is adopted.
Suppliers will continue to focus on educating customers on the benefits of network virtualization,
helping IT make a strong business case for adoption and facilitating smooth decision making wherever