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The State of the WAN: 2010

Irwin Lazar, Vice President Communications
& Collaboration Research
Nemertes Research
Irwin.lazar@nemertes.com

Agenda

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

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

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


Key Trends Shaping Network Services


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

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


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%


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


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


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

Formal Teleworking Policy

84% increasing
the number of
telecommuters
they support.

Only 37% had a
teleworking policy
in place in 2008.


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%


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


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


MPLS Deployment Trends

Average access
bandwidth growth:
27%

81.4% Using


Justification: Ethernet & VPLS


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


Ethernet Deployment Justification

Ethernet Adoption, 2007-2009

80%

73%
70%

60%

53%
50%

46%

40%

30%
2007 2008 2009


Ethernet Types


Justification: SIP Trunking


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


SIP Trunking

2008:
47% no plans
12% using


WAN Optimization Deployment


WAN Optimization Functions


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


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)


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


Thank You
Questions?
Irwin.lazar@nemertes.com
@nemertes.com


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