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1

Ethernet Alliance
Technology Exploration Forum 2013
“The Future of Ethernet”

SDN: Science Project or Promised Land for...
2

This presentation has been developed
within the Ethernet Alliance, and is
intended to educate and promote the
exchange ...
3

Introducing Solarflare
• Startup based in Orange County, CA and
Cambridge, UK
• High-performance 10GbE/40GbE
network in...
4

Level Setting
• VMware is the network challenger to Cisco
• IT consumption by Web 2.0 companies = ½ of the market for s...
5

SDN is a Science Project…or
• Google has been very public about going
operational with its OpenFlow WAN. Other Web
2.0 ...
6

SDN is the Promised Land
• Google has been very public about going
operational with its OpenFlow WAN. Other Web
2.0 com...
7

Emerging Structure of SDN Industry
Customers: Web 2.0,
Fortune 50 and many
SPs trialing SDN

Legacy Network
OEMs

> 49 ...
8

What Does All This Mean
• Web 2.0 giants and service providers aligning to
support SDN, NFV, OpenFlow
• Bargaining Powe...
9

The Desert---Perdition
• IETF and IEEE lose their hegemony on
networking
• Virtualization makes all Hardware plain vani...
10

A Brave New World
• Competition breeds innovation
• Every legacy network OEM has announced
“Open” SDN products
• Multi...
11

Conclusions: Hardware Still Matters
• Virtualization / Software abstractions rule
▫ But hardware still matters

• Diff...
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SDN: Science Project or Promised Land for the Networking Industry

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A business analysis of the state of software-defined networking and its potential impact on the networking industry using Michael Porter's "Five Forces" analytical framework. It also includes a prediction of what could happen over the next 5 years.

Published in: Technology
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SDN: Science Project or Promised Land for the Networking Industry

  1. 1. 1 Ethernet Alliance Technology Exploration Forum 2013 “The Future of Ethernet” SDN: Science Project or Promised Land for the Networking Industry Bruce Tolley, PhD October 15, 2013
  2. 2. 2 This presentation has been developed within the Ethernet Alliance, and is intended to educate and promote the exchange of information. Opinions expressed during this presentation are the views of the presenters, and should not be considered the views or positions of the Ethernet Alliance 10/17/2013 www.ethernetalliance.org
  3. 3. 3 Introducing Solarflare • Startup based in Orange County, CA and Cambridge, UK • High-performance 10GbE/40GbE network interface software and hardware • Partnerships with Altera, Arista, Azul, Cisco, Couchbase, Fusion-io, Juniper, Oracle, Red Hat, VMware • Maintainer of Linux ethtool • Delivering multiple OpenSource software products • Over 900 customers worldwide • NYSE, NASDAQ, and CBOE run Solarflare • Complete server I/O solutions for Virtualization, OpenFlow, SDN • Red Hat OpenStack Partner 10/17/2013 www.ethernetalliance.org
  4. 4. 4 Level Setting • VMware is the network challenger to Cisco • IT consumption by Web 2.0 companies = ½ of the market for switching, ½ of the market for servers • Deployment of Virtual Machines growing faster than bare metal servers (IDC) • Virtual switch ports growing very fast. Approaching cross over with bare metal switch ports (Crehan) • July 23, 2013. VMware acquires Nicira for approximately $1.05 billion in cash plus approximately $210 million of unvested equity awards • SDN acquisitions to date: 8 companies if we count Fulcrum • SDN = layers of software abstraction on top of bare metal hardware • SDN = Not just OpenFlow but also orchestration, management, service chaining, Network functions virtualization (NFV), Cloud Oses, programmability, automation of compute, network, and storage 10/17/2013 www.ethernetalliance.org
  5. 5. 5 SDN is a Science Project…or • Google has been very public about going operational with its OpenFlow WAN. Other Web 2.0 companies close behind • 10 to 20 POCs at Fortune 100 enterprises • 20+ POCs at Public Cloud companies • 10 to 20 POCs at Service Providers in US, EMEA, and AsiaPac 10/17/2013 www.ethernetalliance.org
  6. 6. 6 SDN is the Promised Land • Google has been very public about going operational with its OpenFlow WAN. Other Web 2.0 companies close behind • 10 to 15 proof of concept tests (POCs) at Fortune 50 enterprises (esp on Wall Street) • 20+ POCs at Public Cloud companies • 10 to 20 POCs at Service Providers in US, EMEA, and AsiaPac • Dell’Oro Forecast SDN impact on Switches $498M 2013 growing to $2.2B in 2017 10/17/2013 www.ethernetalliance.org
  7. 7. 7 Emerging Structure of SDN Industry Customers: Web 2.0, Fortune 50 and many SPs trialing SDN Legacy Network OEMs > 49 Open Source Projects Competitive Rivalry within networking industry VC Investment= $445M IN 2012 www.ethernetalliance.org New Entrants: 225 vendors listed on SDN Central Substitute SDN Products Can Replace Legacy Network 73 SDOs and Non Profits 10/17/2013
  8. 8. 8 What Does All This Mean • Web 2.0 giants and service providers aligning to support SDN, NFV, OpenFlow • Bargaining Power of Customers growing • Bargaining Power of Vendors diminishing • Many new entrants • Multiple standards organizations • Competing consortia • Intense industry rivalry between legacy network OEMS and new comers 10/17/2013 www.ethernetalliance.org
  9. 9. 9 The Desert---Perdition • IETF and IEEE lose their hegemony on networking • Virtualization makes all Hardware plain vanilla (merchant silicon and custom network ASICs) • Networks built from industry standard servers and cheap HW • Legacy network OEMs disintermediated • Big Web 2.0 companies and telcos buy directly from value chains that start in AsiaPac • Can you spell OCP 10/17/2013 www.ethernetalliance.org
  10. 10. 10 A Brave New World • Competition breeds innovation • Every legacy network OEM has announced “Open” SDN products • Multiple startups get face time with F50, Web 2.0, Public Cloud, and SPs/Telco's • Customers like traffic engineering, circuit management capabilities • Customers like the promise of lower cost • Customers want one throat to choke 10/17/2013 www.ethernetalliance.org
  11. 11. 11 Conclusions: Hardware Still Matters • Virtualization / Software abstractions rule ▫ But hardware still matters • Differentiation and innovation: ▫ Intel–VT, SR-IOV, ▫ Server adapters MUST support multiple SR-IOV VFs and vNICs • If analogous to Linux, there will be an 80/20 rule ▫ 20 % of the networking market will go SDN in 5 years ▫ Muchof it will be hybrid ▫ Both OpenSource and commercially licensed products 10/17/2013 www.ethernetalliance.org

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