The State of the WAN: 2010




Irwin Lazar, Vice President Communications
& Collaboration Research
Nemertes Research
Irwin...
Agenda

About Nemertes
Key Trends Shaping Network Services
Adoption Trends and Drivers
Recommendations




© Nemertes Rese...
Introductions: About Nemertes
Analyze business value of
emerging technologies
Advise Fortune 100-2,000
businesses on criti...
Key Trends Shaping Network Services




© Nemertes Research 2010   www.nemertes.com   1-888-241-2685 DN1062
Distributed Enterprise: Overview

                             89%
                              More virtual             ...
Connectivity to the Cloud


                                          Apps                               Customer Site
   ...
Bandwidth Still Growing
                                  Top Bandwidth Drivers


 Video/telepresence                     ...
IP Video Adoption Rates
                                Videoconferencing Adoption

                                 Using...
Streamlining Communications & Applications

Location doesn’t matter
     Users want applications, access to data regardles...
The Mobilized Workforce Is Here!
More than 75% of companies have or are planning
mobility strategy.
15.8% of employees are...
Formal Teleworking Policy



                                                                      84% increasing
        ...
What are the Drivers for Increasing Telecommuters?
                              Drivers for Increase in Telecommuters



...
Changing WAN Demands

2009 Benchmark data: Average of 34% bandwidth increase year
over year (in a flat economic environmen...
Justification: MPLS

      Key Benefits                                               Why Not?


Cost savings             ...
MPLS Deployment Trends



                                                                       Average access
          ...
Justification: Ethernet & VPLS

        Key Benefits                                        Why Not?

Emerging as next-gen...
Ethernet Deployment Justification




                                                                Ethernet Adoption, 2...
Ethernet Types




© Nemertes Research 2010   www.nemertes.com   1-888-241-2685 DN1062
Justification: SIP Trunking

    Key Benefits                                            Why Not?

Reduced costs          ...
SIP Trunking




                                                                         2008:
                          ...
WAN Optimization Deployment




© Nemertes Research 2010   www.nemertes.com   1-888-241-2685 DN1062
WAN Optimization Functions




© Nemertes Research 2010   www.nemertes.com   1-888-241-2685 DN1062
Building A Strong WAN: Carrier Relationships


  Consider new                      Select carrier                        N...
Bottom Lines and Recommendations

Look at opportunities to save money
    Ethernet
    SIP trunking
    Managed services
F...
Typical Deployment Timeline

                                                                             VOIP/UC


      ...
Thank You
                                                 Questions?
                                         Irwin.lazar...
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10 fn s02

  1. 1. The State of the WAN: 2010 Irwin Lazar, Vice President Communications & Collaboration Research Nemertes Research Irwin.lazar@nemertes.com
  2. 2. Agenda About Nemertes Key Trends Shaping Network Services Adoption Trends and Drivers Recommendations © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  3. 3. Introductions: About Nemertes Analyze business value of emerging technologies Advise Fortune 100-2,000 businesses on critical IT strategies Benchmark reality 2,500+ IT executives share strategies, costs, vendor satisfaction Analysts have 17-30 years experience, including operational Founded 2002 © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  4. 4. Key Trends Shaping Network Services © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  5. 5. Distributed Enterprise: Overview 89% More virtual Managed Services Streamlined Communications workers MPLS & Ethernet 9.2% More branch (Solid network 57% offices Optimization performance is vital) More centralized apps & data 18% 85% Branches with IT personnel Decreased or More bandwidth Flat IT demands budgets
  6. 6. Connectivity to the Cloud Apps Customer Site Worker Teleworker Ethernet DSL IPsec/SSL MPLS Cloud Internet DSL/T1 Road Small/New Teleworker Wireless Warrior Office Field Force © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  7. 7. Bandwidth Still Growing Top Bandwidth Drivers Video/telepresence 36% New collaborative 29% apps New enterprise apps 27% More multimedia 25% Web apps Centralized apps 23% 34% Growth in 2009 IP telephony 18% 0% 5% 10% 15% 20% 25% 30% 35% 40% © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  8. 8. IP Video Adoption Rates Videoconferencing Adoption Using Evaluating Not Using 100.0% 15.8% 90.0% 31.9% 80.0% 6.6% 50.0% 70.0% 60.0% 15.3% 50.0% 40.0% 77.6% 22.2% 30.0% 52.8% 20.0% 27.8% 10.0% 0.0% Desktop Room-based Telepresence © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  9. 9. Streamlining Communications & Applications Location doesn’t matter Users want applications, access to data regardless of location Trend toward centralization of apps, data Ease of management key driver More attention toward robust WAN & optimization More focus on mobility and the needs of the teleworker Growing interest in hoteling, virtual workplaces Cloud / data centric / virtualized applications / voice/video require optimization, pro-active performance management © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  10. 10. The Mobilized Workforce Is Here! More than 75% of companies have or are planning mobility strategy. 15.8% of employees are mobile, on average (range is 0 to 55%) Median mobility spend up 16% percent ($670,000 in 2009 vs. $560,000 in 2008) Median spend per mobile user = $2,833 (about the same as in years past) Enterprise user populations are shifting from “special- purpose” (sales, logistics, onsite repair) to “general” Desire to integrate wireless and wired worlds
  11. 11. Formal Teleworking Policy 84% increasing the number of telecommuters they support. Only 37% had a teleworking policy in place in 2008. © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  12. 12. What are the Drivers for Increasing Telecommuters? Drivers for Increase in Telecommuters Improve Employee 82% Retention Save Facilities Costs 61% Advance Green Policy 53% Assist/Advance Virtual 53% Workplace Policy 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  13. 13. Changing WAN Demands 2009 Benchmark data: Average of 34% bandwidth increase year over year (in a flat economic environment—benchmark conducted during worst months of recession, January to April 2009) Increases driven by: Bandwidth-intensive applications Multimedia applications (voice, video) Distributed/collaborative applications Optimization techniques can mitigate but not eliminate need for increased bandwidth Bottom line: WAN architectures must accommodate growth © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  14. 14. Justification: MPLS Key Benefits Why Not? Cost savings Global coverage from single Range is 10%-40% carrier not “truly” available Ability to integrate multiple traffic Costs associated with types on one network upgrade (network equipment, Any-to-any ability/DR installation, training) COS: Better manage capacity No application drivers 50% don’t use COS Internet VPN still cheaper in 23% use 4 or more classes some cases Less overhead than ATM/Frame Solid managed services available © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  15. 15. MPLS Deployment Trends Average access bandwidth growth: 27% 81.4% Using © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  16. 16. Justification: Ethernet & VPLS Key Benefits Why Not? Emerging as next-generation Can’t get it! WAN technology Lower per MB costs vs. MPLS Greater bandwidth & flexibility Better customer satisfaction vs. MPLS 79% extremely satisfied, compared to 67% with MPLS © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  17. 17. Ethernet Deployment Justification Ethernet Adoption, 2007-2009 80% 73% 70% 60% 53% 50% 46% 40% 30% 2007 2008 2009 © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  18. 18. Ethernet Types © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  19. 19. Justification: SIP Trunking Key Benefits Why Not? Reduced costs Can’t get it! PSTN: 20%-60% savings, Security concerns depending on current, future IP connection opened to PBX; need network SIP firewall No need to buy gateways PBX doesn’t support SIP or Ability to share trunks requires costly upgrade Virtual Number Services Resiliency/DR © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  20. 20. SIP Trunking 2008: 47% no plans 12% using © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  21. 21. WAN Optimization Deployment © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  22. 22. WAN Optimization Functions © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  23. 23. Building A Strong WAN: Carrier Relationships Consider new Select carrier Negotiate WAN technologies with a vision! stronger SLAs MPLS Mobility integration MTTR Hosted collaborative apps VPLS Uptime Professional services Metro Ethernet Unified communications Packet loss Managed services SIP Trunking App-specific Management portals 3G/4G wireless Policy-based prioritization Stringent penalties © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  24. 24. Bottom Lines and Recommendations Look at opportunities to save money Ethernet SIP trunking Managed services Focus on application performance management, optimization Integrate mobility planning with WAN planning Plan for expansion! The keyword here is “more” applications, bandwidth requirements, branch-office sites, expectations from users, etc. Follow a formal procurement/negotiations process (no matter how small you are) © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  25. 25. Typical Deployment Timeline VOIP/UC WLAN Branch standardization All-in-One Branch/New & upgrades WLAN + Switch/router upgrade Optimization Data-center consolidation MPLS, Ethernet, VPLS deployment 12 months 24 months 36 months 48 months 60+ months Planning Carrier RFP & negotiations Mobile Extensions Corporate Buy-in Validate Business Case Upgrades Pre-deployment Training, Management, Reporting, Security benchmarking © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062
  26. 26. Thank You Questions? Irwin.lazar@nemertes.com @nemertes.com © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 DN1062

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