1) SDN is evolving networking and data centers by virtualizing hardware and automating processes. This will transform businesses by allowing flexible combinations of resources. 2) Within 5 years, small data centers will disappear as services are automated and orchestrated in the cloud using SDN. SDN will distribute loads optimally across different cloud vendors. 3) SDN will change economics by shifting costs from fixed infrastructure to usage-based models and allowing loads to be distributed flexibly across networks and partners. This will lower capacity planning costs for providers.

1. | |August 2015
38CIOReview
or several years we have
watched orchestration and
automation grow to become
the new hardware in both
the network and data center.
Network Feature Virtualization
(NFV) is a step toward Software
Defined Networking (SDN); the
paradigm is evolving to one of
systems of engagement brought about by cloud, the
Internet of Everything (IoE) and where technology is
going over the next ten to fifteen years.
What does this mean for us, the impact upon our
business and how do we leverage SDN to do something
to transform the way we conduct business? SDN is the
enabler, but it is not about the tech. It is all about the
money.
In approximately five-years, the small data center
is going to disappear, driven out by service provider
orchestration, automation and SDN. Software spins
up any and every element of the provider resource
grid on-demand as a simple virtual machine (VM),
automated within the configuration management
database (CMDB). Calls, data queries, collaboration,
transactions–everything, is connected, set up and torn
down millions of times each second. Discussion of
this process is giving rise to the concept of Lifecycle
Service Orchestration (LSO)…but we’ll leave that for
another time!
SDN remains in its infancy; going beyond four hops
is a stretch for most, as is the tear down of signaling
for things like a video conference, but it is coming
along. What I find interesting is the next step where we
see similar virtualization and automation of business
processes such as: ERP, FFA, ERP and business
SDN: A Results-
based Economy
By Bennet James Bayer, Executive, Marketing & Strategy “Chief,” Board Advisor, Development & Strategy, EarthLink
Bennet James Bayer
intelligence. Now we can do something different in unique
combinations. We could Combine IM, video conferencing with
mobile and callers in a supply chain application and information
in a SharePoint site. Computer-enabled business processes makes
sense and are scalable. We can orchestrate endless combinations
of cloud, devices and users with information. SDN makes these
pairings possible and changes the paradigm positioning for the
future evolution of technology from M2M and the Internet of
Everything (IoE) to nanite technologies within a decade.
What I find really cool is the potential around the economics
generated by SDN. As the small data center disappears, SDN
transports everything to clouds. The load is distributed to who
F
CXO Insights
| |August 2015
39CIOReview
As the small data center
disappears, SDN transports
everything to clouds. The
load is distributed to who
does what best, at what is
the most favorable cost at a
given time
"
does what best, at what
is the most favorable
cost at a given time.
A high transaction
website might use one
cloud vendor ideal for
seasonal transactions
but keep its information
in another cloud along
with customer data and
resource planning in
others. Everything is
coordinated with SDN
connecting the resources as required. For service providers
this changes the way the money goes around the table. SDN
combines with cloud in new ways, changing the economics of
the industry, channel and end-users.
Historically, carriers and network service providers
provision their services just ahead of the required capacity.
Capacity planning CAPEX is a significant expense and
concern, representing approximately 30 percent of investment.
SDN changes this by shifting the load to others. In the
future service provider provisioning is likely to be reduced
to 60 percent or even less. The resources, compute cycles,
storage, bandwidth, etc., will come from peering network
relationships, partners and us, the user. The economic model
shifts to one whereby cost is shared and charged by use in a
system of swapped credits very similar to what we see in the
energy market today.
One of the most significant changes will be around the
Internet of Things (IoT) giving way to the wider IoE and the
adoption of Personal Cloud;
specifically, I believe, in
Personal Cloud Appliances.
Privacy and who controls all of
these new end-points providing
information to improve our
lives, blends with the ability
to provide any aspect of voice
and/or data communications on
a personalized basis.
Marketers drool over the
prospect of such intimate
relationships; however, I see
privacy driving a fundamental change toward permission-
based marketing. The evidence is legislation passed in China,
Japan and being drafted in the UK and EU. Changes are
coming.
Talking with service providers, I advise consideration of
the SDN and cloud as significant opportunities to turn into
new advantages. Instead of selling the user data to advertisers
why not keep it safe and “give” it back to the user? After all,
it is their data. Why not be the arbiter of privacy and safety?
Then offer a menu of goods and services that help the user to
better manage their energy consumption, finances, healthcare
or the healthcare of their aging parents. Again, it’s all about
the money.
Positioning SDN business models are critical for the
future. The IoT and IoE are just stepping-stone technologies.
Twelve to fifteen years from now, these give way to nanite
technology. Sand-sized processors mixed in the paint; the
wall or tabletop becomes the screen, device and sensor.
Wearables? We become the device as nanites are woven into
our clothing and even embedded into our bodies. Mobility
combines with SDN, location and biometrics to bring about
true secure anytime, everywhere computing. Think of
the world envisioned in the Tom Cruise movie, “Minority
Report,” but without the eye implants.
I first saw nanites in the lab five-years ago; the PhD
demonstrating to me, forecast the technology would become
mainstream by 2024; however, I anticipate more like 2030 for
deployment.
The technology does not really matter in all this, it is
really about the money and shifting flow of infrastructure,
information and how it is applied. For business, a change in
billing; rather than charging for access and infrastructure
consumption, is how we will be able to align IT with business
outcomes and charge based on the value delivered between
parties. How can the future be anything other than a results-
based economy?
| |August 2015
1CIOReview
CIOReview
SDN SPECIAL
In My Opinion
Andre Fuetsch, SVP,
Architecture & Design,
AT&T
Disruptive
Innovation
Re-Defining
Data Security
Mark O’Hare,
Founder, President & CEO
Security
First Corp
CIOREVIEW.COMAUGUST-14 - 2015