Evolving Enterprise Networks for Future Initiatives - The Importance of a Lifecycle Approach


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Watch the video where IDC and Dimension Data explain these slides here: https://plus.google.com/u/0/events/cst8n88thku8for3odj6vihj8bs

The ICT industry is in the midst of a shift to a new technology platform for growth and innovation, a shift that occurs once every 20-25 years. IDC terms this the '3rd Platform' - built on mobile devices and apps, cloud services, mobile broadband networks, big data analytics, and social technologies.

By 2020, when the ICT industry reaches USD 5 trillion - USD 1.7 trillion larger than it is today - at least 80% of the industry's growth, and organisations' highest-value leverage of IT, will be driven by these 3rd Platform technologies. In addition, there'll be an explosion of new solutions built on the new platform and rapidly expanding consumption of 3rd Platform technologies in emerging markets.

Today, 3rd Platform technologies and the services around them generate only about 20% of all IT spending, but they are growing, collectively, at about 18% per year - six times the rate of the rest of the IT industry. As we look toward 2020, it's easy to see that these technologies will inevitably become the 80% of all IT spending.

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  • The impact of the 3rd platform will drive transformation and innovation within the network architecture, as well as the attendant PS, as enterprises move from an equipment-centric to a solution-centric approach to their IT investments. IDC believes over time at NCIS delivery model will transform to meet the needs of the customer in this new paradigm.Formerly people intensive processes and logistics will be replace with innovations in software, tools, processes and methodologies to better serve this fast pace order of change. This will help improve efficacy, cost efficiency while increasing the ability for customer self-service and faster deployment and resolution times for enterprises
  • Beginning an engagement requires and understanding of the enterprise’s “as is” state and their goals of the “to be” state not only from an IT perspective, but importantly from a business process and perspective. A holistic view of IT and business alignment is essential for success. Understanding what the business’ goals are and what future and current technologies will impact the network critical. Most 3rd Platform technologies such as mobile, collaboration and cloud rely on an optimized network infrastructure and will affect and impact the traffic across the network as workload, capacity, velocity and security concerns increase. Ensuring that the network can deliver to the business will be critical in the Third Platform.Services that provide insight into the readiness of the network, which include inventory of assets, ranking of their useful life and the status of all devices on the network is an important first step. Then the development of a plan to prioritize, maintain and replace assets in strategically ensures consistency and allows for cost effective planning while minimizing any impact, risk or threat to the network and its ability to deliver to the business.
  • The development of a plan to prioritize, maintain and replace assets in strategically ensures consistency and allows for cost effective planning while minimizing any impact, risk or threat to the network and its ability to deliver to the business.According to IDC research, assessment services represent 4.9% of the US NCIS market and will grow at a CAGR of 7.2% illustrating the value that enterprise customers are seeing in these services. The growth in these service activities illustrates the importance that enterprises place on understanding, tracking and prioritizing their networking investments.As part of the life cycle, the development of a plan for regular and consistent visibility, management, and optimization of network assets is essential. Without a strategy for consistent review of the network, enterprises run the risk of limiting business agility by not operating optimally, increasing the potential of being surpassed by competitors or even opening the business to unforeseen threats.
  • IDC believes a life cycle approach toward network assets allows IT manager to smartly strategize network priorities and intiatives for current and future projects. A life cycle approach ensure alignment:Business objectivesIncreasing business agilityLower risk in adopting new network based technologiesReduced cost ( capex and opex)
  • Dimension Data conducted 233 Technology Lifecycle Management Assessments during 2012, covering over 59 000devices. Disruptive technology trends such as enterprise mobility, cloud computing and ICT outsourcing are changing the way organisations deliver and consume ICT services. Consequently, the IT infrastructure as we know it will need to undergo a ‘facelift’ to accommodate these changes. It will be a necessary and radical adjustment, but it won’t happen overnight. In fact, many of the changes we predicted in previous years’ Reports are occurring slower than expected. This could be as a result of either ongoing economic pressure, or perhaps a ‘sit back and wait’ attitude to see these technology trends and consumption models evolve ... or perhaps a combination of both.
  • Today, most campus networks consist of approximately 80% wired ports serving individual users, and 20% wireless LAN (WLAN) ports supporting multiple users. But users simply don’t want to be tethered to their desks any longer and, as a result, organisations are under growing pressure to facilitate enterprise mobility. So while there is some refresh going on in the access layer, it doesn't seem to be as much as we thought it would be. A potential reason for this could be that clients are simply repurposing existing GE/PoE ports that used to be connected to individual workstations that would serve a single user to WLAN APs supporting multiple users. Rather than incurring the cost to refresh the whole wiring closet, simply repurpose a port or two.* Traditional campus networks consist of 80% wired ports (serving individual users) and 20% WLAN (serving multiple users generally at less QoS than the wired network)* Increased Mobility/BYOD (i.e. users don't want to be tethered to a desk) will flip this ratio such that future networks will be 80% WLAN (serving multiple users - in fact, more than in traditional networks) and 20% Wired.* Moreover, there is a financial benefit to this flip with future networks costing 1/3 the price of traditional networks (less capex) and providing opex savings in the form of ease of management through unified access, less power and cooling costs4. So the network of the future that is predominantly accessed via WLAN will not stand for only 1/3 of the access ports supporting PoE and 49% of the ports supporting GE. Every port will need to be GE/PoE capable. 5. In addition, this 80/20 to 20/80 flip will have an impact on the uplink as well. Since there will be fewer access switches serving the end users, more bandwidth will be required from the access switch into the core. Today, only 13% of access switches (by chassis) support 10GB uplinks. This, along with GE and PoE support on the line side should ifnally push clients to accelerate the refresh in the access layer.
  • It is inevitable that Enterprise Mobility will change networks, especially access switching networks – as discussed in the previous slide.However, so far, that hasn’t been the case – while Wireless Networking is clearly in the adoption phase (as evidenced by our 30% pa growth in WLAN bookings), this refresh has so far not extended to the access switching network as evidenced by our discovery data for access switching and their support for PoE, GE and 10GB uplinks. So, client’s may be “forgetting the network”We fully accelerate this to change in the next couple of years as 1) Enterprise Mobility continues to change the end user landscape and 2) as the older access switches move from “just” EoS to EoE and LDoS
  • Evolving Enterprise Networks for Future Initiatives - The Importance of a Lifecycle Approach

    1. 1. Evolving Enterprise Networks for Future Initiatives: The Importance of a Life Cycle Approach Leslie Rosenberg IDC Network Life Cycle Services, Research manager
    2. 2. The ICT Industry's 3rd Platform From IT to Business Productivity 2 Source: IDC  Paradigm shift  Every 20–25 years  Winners and losers  Impact on vendors and channel  By 2020: 40% of revenue from 3rd Platform 3rd Platform Implications for CIOs ServicesSystems Business Agility IT Agility InnovationInformation
    3. 3. A Holistic View of IT, Networks and Applications  Increased network complexity due to the impact of the 3rd Platform • Mobile, Collaboration and Cloud impacts  Understanding workloads, capacity, velocity and security concerns are essential  Development of plan for network consistency and health • Leverage assessments to build an inventory of assets, ranking and status of devices and a roadmap for maintenance © IDC Visit us at IDC.com and follow us on Twitter: @IDC 3
    4. 4. Increasing Visibility, Decreasing Risk  Investments in software and service automation ensure successful delivery on service levels to the business  Intelligent service platforms allow businesses to scale environments more quickly and profitably  Investment in assessment services will grow at a CAGR 7.2% in the US from 2013-2017 © IDC Visit us at IDC.com and follow us on Twitter: @IDC 4
    5. 5. Leveraging a Life-Cycle Approach  Ensures alignment  Limits unnecessary network sprawl  Contains cost  Optimizes networks  Increases competitiveness  Reduces risk © IDC Visit us at IDC.com and follow us on Twitter: @IDC 5 Services and Strategies:  Planning and Design  Consulting and Integration  Carrier Managed Services  Network Support  Partnerships Manage Build Plan
    6. 6. © Copyright Dimension Data 68 April 2014 Reviews the status of networks globally Aggregates data from the 233 Technology Lifecycle Management (TLM) Assessments conducted across the world in 2012 and compares them to the data from the past 5 years. Reviews networks’ readiness to support business by reviewing network device: • End-of-Life status • Security vulnerabilities • IOS Version Management Investigates architectural networking trends The Network Barometer Report looks at how ready networks are to support business Dimension Data Network Barometer Report
    7. 7. © Copyright Dimension Data 78 April 2014 time The Technology Lifecycle Management (TLM) Assessment discovers, catalogues and analyses network devices. Execute business and technical interviews Collect asset list and analyse to milestones Compare against maintenance asset listing Conduct a TLM assessment Discover Execute TLM assessment centralised service to automate discovery and analysis Create a prioritised set of recommend- ations and roadmap Align recommend- ations with long term architecture Analyse TLM assessment output and roadmap list of prioritised projects Construct Present the recommendations based on risk, cost and strategic factors Official report and onsite presentation of findings Present recommendations and roadmap Recommend
    8. 8. © Copyright Dimension Data 88 April 2014 The percentage of client networks that have entered the obsolescence cycle increased in 2012 Average % of devices beyond EoS by Region • This year’s results show that the overall percentage of devices that have progressed to EoS and beyond has increased steadily over the past 4 years.
    9. 9. © Copyright Dimension Data 98 April 2014 More even distribution of devices by lifecycle stage Milestone distribution of devices by end of life cycle stage • The percentage of devices that were only EoS has dropped from 70% in 2011 to 58% in 2012 • The percentage of devices that were ‘late’ in their product lifecycle increased, with EoE increasing from 8% last year to 23% this year and LDoS increasing from 9% last year to 18% this year.
    10. 10. © Copyright Dimension Data 108 April 2014 The Access Network – 80:20 moving to 20:80 !
    11. 11. © Copyright Dimension Data 118 April 2014 What does our discovery data say? 1/2 of all access switches support PoE 1/3of all access switches support GE 11% of all access switches support 10GB uplinks WLAN bookings growing at +30% pa