Introduction!!!Sandra Palumbo, Yankee Group!Research Fellow !Palumbo reports into Yankee Groups Research Council. Her research focuses on cloud computing, enterprise mobility and service provider strategies, with particular emphasis on software as a service (SaaS), mobile applications, Web portals, managed services, professional services and wholesale.!Terry OʼBrian, Windstream !Enterprise Product Development!OʼBrian currently leads Windstreamʼs Enterprise Product Development team and has over 25 years experience in voice and data technologies, business development, and product marketing. !
Today s Business Environments! ! New Economic Realities • Global Economy • Shareholder Expectations • New Business Models • Business Boundaries Blurring Social Trends Accelerating • Blend Lifestyle • Social Networking • Environmental responsibility Technology Enablers • Network, device, and application everywhere • Automation/standardization • Presence and Mobility • Virtual office 3!
Selection Criteria for WAN/MAN Network Services! Which are the most important criteria when selecting networking services? (n=240) ! Service r eliability 19% 15% 13% Security 13% 17% 13% Service a vailability 11% 8% 7% Price points 9% 4% 4% Operation c osts 9% 13% 9% Adequate bandwidth 9% 10% 11% Flexibility/scalability 7% 3% 7% Pricing s tructure 4% 4% 9% Network s implification 3% 3% 3%Integration of mobile a nd fixed wireless technologies 3% 6% 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Percent of r espondents 1st r anked 2nd r anked 3rd r anked Enterprises understand that sometimes you get what you pay for.! Reliability! Base: Asked those who use or plan to use (in 12 or 24 months) at least one! WAN or MAN networking service ! Security! Availability! 4!
Improving the Customer Experience ! Is the Highest Strategic Priority for Most CIOs! On a scale of 1 to 10, please rate how strong a priority 91% ! the largest enterprises of the following items are for your business? (n=100) surveyed (10K+ employees) rate “improve customer experience” a Improve customer experience top strategic priority ! Drive business growth No CIO respondent rates “increase Increase employee productivity employee productivity” not a priority; while only third in terms of strategic Reduce business costs priorities, it is still a big driver! Create and agile IT environment While reducing costs and solution Reduce IT costs prices are important to enterprise CIOs, strategic business growth and Execute businesses initatives success goals take top billing! 0 20 40 60 80 100 Percent of respondents Strategic Priority (Rating 8, 9 and 10) Not a Priority (Rating: 1, 2 and 3) 5!
Enterprises: Key connectivity-linked challenges! Legacy infrastructure Disparate technologies are ! lacks capacity and ﬂexibility ! difficult & expensive to manage Need: Granular scalability Need: Simplified of connectivity ! infrastructure New applications demand Workforces are distributed, high network performance! global and mobile Need: Scalable infrastructure Need: Unified management to support across all required standard apps & mash-ups ICT services To address these challenges, look for providers that offer • Simplification via converged voice & data IP VPN Building • Scalability via Network Connectivity blocks • Collaboration, UC & remote access solutions • Business Continuity / Disaster Recovery 6!
Data connectivity is a critical foundation for !other ICT services – and how they perform! !High Streaming Video Video Conferencing Bandwidth requirements FTP Transfer 1000% 10-fold bandwidth network end point growth growth E-mail with attachments User-generated mashups dominate Streaming Audio Voice Text E-mail Predictions Transaction Medical for next 5 years Processing TelemetryLow Enterprise applications Low Latency sensitivity High 7!
Proof Point: The Nature of Work is Transforming!• Collaboration across the • Collaboration outside the enterprise! enterprise! ! • Support dynamic supply• Speeds innovations, makes chains and effective best use of (expensive) customer engagement! human resources! Channel partner EMEA sales Manager Global director APAC sales Manager US office Manager Remote worker 8!
Situation Analysis 1! IP telephony is on the road to mass adoption.! • ! Enterprises understand the beneﬁts of IPT but total adoption does take time! • Vendors should sell IP telephony as part of an end-to-end solution, which includes FMC and UC! For most organizations, the value proposition still revolves around cost savings! • Lowered LD, MAC savings, IT admin savings ! • VoIP remains a nice-to-have more than a need-to-have ! • VoIP as a pure replacement for TDM voice limits the value proposition ! Uniﬁed communications has become the latest wave with VoIP as the underlying platform ! • Integration of voice, data, collaboration tools and mobility! • Promises to streamline many communications processes with a high degree of human latency ! • Brings VoIP out of the network and up the next desktop ! • Microsoft has created another wave of interest in UC! 9!
Situation Analysis 2 ! Conferencing is on the rise; video and web conferencing will see uptake. ! ! Cloud based services are becoming better understood by customers ! • It s not just centrex! Virtualization allows for branded cloud based services! Although Microsoft has gained mind share, enterprises are still hesitant around MS OCS business readiness. ! • Business will expect enterprise grade IP telephony and UC. And therefore may look to full service providers for assistance.! Solution providers must create simple migration paths for enterprises hat want to add mobility and UC in the future.! • Technical speciﬁcations, integration and ease-of-use lead for end-user selection criteria.! 10!
IT Priorities for CIOs!Securing and Protecting the Business from Outages or Failure Leadthe! IT Priorities for CIOs! Strategic IT priorities focus on On a scale of 1 to 10, please rate how strong a priority the following items are for your IT organization? core foundational areas that (n=100) support, protect and insure the Back-up and disaster recovery business! Security technologies Virtualization Storage IT management tools MPLS networks provide Collaboration tools or unified communicationsenterprises with the right type of Mobility solutions foundation to achieve these Network upgrades priorities. ! Cloud computing Managed services and outsourcing 0 20 40 60 80 Percent of respondents Strategic Priority (Rating 8, 9 and 10) Not a Priority (Rating: 1, 2 and 3) 11!
Cloud services have many interdependencies ! Holistic service management! • Physical & virtual IT assets ! • Self-service & monitoring portalHigh-speed network! Next-gen data centers!• Ubiquitous coverage • Converged data centre fabric• Access-agnostic • Rapid dc-to-dc interconnect service persistence Cloud access device Security!Interconnect! • Audited controls• Cloud interoperability • Identity mgmt and portability • Intrusion detection • etc...• 3rd party billing & settlement Dual stack IP! • IPv6 for virtual machine provisioning Few cloud services are road tested for mission-critical reliability 12!
Top Applications for Cloud Computing! Cloud use cases Production-ready apps point to the ! maturity and widespread adoption of Production-‐ready a pplication deployment 2010 (n=138), 2011 (n=295) 49% 55% SaaS! Storage, backup and recovery are Application d evelopment a nd tes ting 2010 (n=124), 2011 (n=197) 33% 44% still top use cases ! • Slight increase from 2010! Storage 2010 (n=129), 2011 (n=325) 44% 54% Beyond SaaS, cloud is viewed as a Acces s ing to e xtra computing p ower o n 39% way to outsource commodity IT demand 2010 (n=105), 2011 (n=233) 43% tasks! Backup/recovery 2010 (n=134), 2011 60% Drop in PaaS demonstrates SMB (n=361) 40% inﬂuence on survey! Data m ining/analys is 2010 (n=112), 35% • SMBs less likely to seek custom 2011 (n=203) 39% development! Databas e p rovis ioning 2010 (n=102), 33% 2011 (n=197) 30% Batch p roces s ing 2010 (n=85), 2011 22% (n=134) 26% 0% 10% 20% 30% 40% 50% 60% 70% Percent o f res pondentsBase: Organizations that already deployed or plan to deploy PaaS or IaaSwithin 24 months 2010 2011 13!
Barriers to Cloud Adoption: Existing IT Investments,!Migration and Security Concerns! Barriers to cloud adoption Existing IT investments and migration trump security as chief ! Existing IT investments (n=309) 61% barriers to cloud adoption! Lack of confidence in data protection (n=280) 58% Concern about reliability of cloud Costly and difficult data migration (n=294) 55% platforms increased slightly from Reliability/availability of cloud platforms (n=248) 52% 2010! • Impact of recent high-proﬁle Regulatory compliance/corporate governance (n=195) 45% outages! Lack of measurable business benefits (n=190) 41% ! Interoperability between cloud computing 37% Cloud service providers need to platforms (n=182) improve and better Contract lock-in with cloud provider (n=182) 35% communicate migration skills! Lack of transparency and auditability (n=180) 34% • Opportunity for systems integrators! Vendor sustainability/financial health (n=162) 33% Lack of performance and availability monitoring 31% Base: Organizations that already deployed or plan to (n=142) deploy PaaS or IaaS within 24 months 0% 10% 20% 30% 40% 50% 60% 70% Percent of respondents 14! 2011
Top Service Provider Selection Criteria! What are the most important criteria when selecting a connectivity/networking services provider? (n=251) ! Service reliability/quality of service (QoS) 17% 14% 8% Price points 14% 10% 8% Adequate bandwidth availability 13% 12% 8% Customer support 12% 10% 12%Current with connectivity/network technology 8% 7% 6% Service reach/footprint 8% 4% 4% Comprehensive packaged solutions 6% 4% 5% Customized solutions 6% 3% 2% Value-‐added services/support 4% 6% 5% Brand name/reputation i n the i ndustry 4% 3% 4% Single provider offers all telecom needs 3% 8% 6% SLAs 3% 1% 3% Market vertical-‐specific e xperience 1%2% 2% Third-‐party recommendation 1%2%1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Percent of respondents 1st ranked 2nd ranked 3rd ranked Base: Asked all respondents! 15!
A Strong Foundation is More Critical than Ever! Consider your future IT needs as you select the best WAN ! infrastructure for your organization! Work with service provider partners to leverage existing infrastructure and investments so a move to cloud will need to be rational and planned! Flexibility and service should be key factors in selecting the best provider partner! Look for jurisdictional knowledge and deep understanding of risk ! 16!
Enterprise trend summary! ! Expand the view of connectivity! • Connectivity as enabler, not end in of itself! Focus on enabling the borderless and diversiﬁed workforce! • Remote working service wrap; mobile solutions! Focus on infrastructure simpliﬁcation! • Datacenter consolidation, hosting & cloud ! Focus on uniﬁed ICT management! • Greater transparency required! 17!
MPLS for Multi-Location Networks! Business Need Business Value Connect your business Enterprises needing secure locations with a secure, cost connections to: effective network. – Share data and information among branch offices, suppliers or partners with maximum security MPLS Options – Connect multiple locations toVPN and VLS are similar services with a share internal businessfew distinct differences: applications, servers, printers VPN VLS – Deploy advanced applications• Windstream manages • Customer manages network routing network routing between locations such as VoIP,• Generally businesses • Generally businesses distance learning, digital with multiple locations with fewer locations medical imaging, and more across a wide (less than 20) in a geographic area more local setting• Multi-protocol access • Ethernet Access 19!
Why MPLS is better! Legacy Solution! Next-Gen Solution! Point-to-Point and/or Frame Relay ! MPLS! • Cost prohibitive! • More cost effective! – Have to buy more T-1s or DS3 to expand – Ethernet makes it easier to increase bandwidth and bandwidth or add more locations! cheaper to add new locations! – Must buy separate voice and data circuit for each – Requires fewer connections; can run both voice location! and data over same pipe! • Complex to manage! • Easier to manage! – Requires more internal or outsourced IT resources! – Requires less IT resources to support (VLS) or • Less efﬁcient performance! Windstream can do it for you (VPN)! – Considerable network overheads with ATM and • Better performance! Frame Relay! – MPLS network more robust and efﬁcient ! MPLS Network Windstream IP/MPLS 20!
How does implementing an MPLS solutionbeneﬁt your business?! Customized Solution – Windstream sales team can customize a solution tailored to your speciﬁc business needs! Operational cost savings – reduce network management expenses by outsourcing to Windstream! Scalability - easy to add new sites and change bandwidth, makes budgeting for network growth simpler! Enhanced Reliability – Windstream s MPLS carrier-grade network is private and secure - offering you improved network resiliency! Minimal Implementation Disruption- solution enables you to retain your current private IP addressing plan! 21
How does implementing an MPLS solutionbeneﬁt your business?! • Reduced Risk - Windstream assumes responsibility for technology management and evolution.! • Network Reporting – Stay informed with network health statistics via our Windstream Network Portal. ! 100% US-based Technical Support available 24/7/365! – Highly-skilled Engineers located in redundant geographical locations that are always available to provide support and trouble resolution! 22
Peering Partner IP Networks Extend Our Reach Off-Net Locations Problem Solved!! Off-Net Locations! No Problem!! Peering! Partner!San Francisco! IP Network! Windstream! IP Network! On-Net Locations! No Problem!! 23!
What is IP Quality of Service (QoS)? ! Quality of Service (QoS) is a protocol that provides preferential treatment to IP-based voice, data, and video packets during times of network congestion.! Why would I need it?! – Not all IP packets are created equal! – Networks must be able to simultaneously transport a multitude of applications, including real time voice, high-quality video and delay-sensitive data. – Networks must provide predictable, measurable, and sometimes guaranteed performance by managing bandwidth, delay, jitter and loss parameters.! Some examples of how QoS is applied to prioritize data:! – Minimize latency for Business Critical applications such as video conferencing, Citrix Applications and SAP! – Enable consistent performance for Real-Time data such as Voice over IP trafﬁc!
Network PortalDynamic Visibility into Service Health 25!
Additional Services Available with MPLS!! Ethernet Internet Access – Windstream s dedicated and symmetrical internet connection that provides speeds up to 10 Gbps.!! Managed Router – MR is a data networking solution with customer edge router provisioning, conﬁguration and maintenance.! Managed Network Security - MNS combines all the stand-alone Internet security services required to protect your network from cyber attack by providing anti-virus software, ﬁrewalls, intrusion protection and detection.!! VoIP Services - Windstream s VoIP and Data Bundle delivers data and voice communications over a single connection, allowing businesses to beneﬁt from the efﬁciency of a converged network! Data Center – MPLS connectivity to remote data centers for disaster recover, cloud computing, hosted and managed services! 26