cloud services - rick dodd at carrier ethernet world congress 2011

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© Ciena CEWC Amsterdam 2011 It’s About the Services Differentiating Yourself in a Competitive Market Rick Dodd Sr. VP, Marketing CEWC 2011

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© Ciena CEWC Amsterdam 2011

It’s About the Services Differentiating Yourself in a Competitive Market

Rick Dodd – Sr. VP, Marketing

CEWC 2011

2 © Ciena CEWC Amsterdam 2011

Average Metro Ethernet MRC in Western Europe

€ -

€ 500

€ 1,000

€ 1,500

€ 2,000

€ 2,500

€ 3,000

2009 2010 2011 2012 2013

100M

1G

10G

Source: Ciena Analysis, Ovum Forecast Enterprise Ethernet Services, Global, Sept., 2010

• 2009-10 saw steep price declines for

1G and 10G

- 1G :dropped 20-24%

- 10G: dropped 26-30%

3 © Ciena CEWC Amsterdam 2011

Three Differentiation Ideas

Target an underserved market: the Mid-Market Customer

Stickiness: Service quality and visibility

Elastic bandwidth for cloud offerings: The Cloud Backbone

Ma

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4 © Ciena CEWC Amsterdam 2011

Who is the Mid-Market Customer

Typically a company of 20-

500 employees

Spends €500-3000 per

month on data service

Wide range of industries

Education, health, financial,

hospitality, legal,

manufacturing, retail,

utilities

Often more willing to adopt

hosted or xaaS products

Wireline Data Market Spend

by Number of Employees

Source: Instat & Ciena Analysis

5 © Ciena CEWC Amsterdam 2011

Automation leads to 75% less installation and configuration time with zero-touch upgrades

Service templates enable

point-and-click provisioning

Switch installed with no configuration

required by field personnel

NOC creates

work order

NOC pushes service profile to server

Ethernet switch

self-configures

Automation is Key for Mid-Market ROI

6 © Ciena CEWC Amsterdam 2011

Three Differentiation Ideas

Target an underserved market: the Mid-Market Customer

Stickiness: Service quality and visibility

Elastic bandwidth for cloud offerings: The Cloud Backbone

Ma

rke

t

Se

gm

en

t S

LA

C

lou

d

7 © Ciena CEWC Amsterdam 2011

Is Service Quality a Differentiator?

Resiliency & uptime is a given today …

But there’s an opportunity in delivering ongoing performance

“My network is up but it seems slow today”

How to proactively monitor, non-intrusively:

Bandwidth, latency, jitter, frame loss

Relative to SLA

Relative to initial “service quality benchmark”

8 © Ciena CEWC Amsterdam 2011

Differentiating on Verified Service Quality

Enhanced 2544

In-service or out-of-service

Port or EVC-based

Throughput

Latency

Frame Loss rate

Frame Delay Variation

Pre-configurable test profiles

Configurable test iteration and

duration

Subscriber services portal

Customer web-based view of

their service information

Real-time performance &

trending

Inventory/services/alarms

9 © Ciena CEWC Amsterdam 2011

Three Differentiation Ideas

Target an underserved market: the Mid-Market Customer

Stickiness: Service quality and Visibility

Elastic bandwidth for cloud offerings: The Cloud Backbone

Ma

rke

t

Se

gm

en

t S

LA

C

lou

d

10 © Ciena CEWC Amsterdam 2011

Problem Statement:

Enterprise Data Center A

Provider Data Center D Enterprise Data Center B

Provider Data Center C

Can elasticity of

network resources

provide an

advantage to the

network owner?

11 © Ciena CEWC Amsterdam 2011

Cloud Traffic Characteristics

Traffic Attribute:

Flow size

Other key attributes

Small - Hosting

- SD/HD video

- Software as a Service

- Interactive Services

< 1GbE Interactive

# of Service Endpoints ~ 1000s

Short duration

Total size of objects <10GB

Medium - Small VM migrations

- File transfers

1GbE– 10GbE Can be Scheduled

# of Service Endpoints ~ 10s

> E.g. Inter-DC, R&E, Healthcare

Total size of objects< 1TB

Large - Large VM migrations

- Large Backup/File Transfers

- Super Hi Vision (7680 x 4320)

>10GbE Can be Scheduled

# of Service Endpoints ~ 10s

> E.g. Inter-DC or R&E

Unplanned events (?)

Total size of objects > 1TB

SD: Standard Definition

HD: High Definition

VM: Virtual Machines

12 © Ciena CEWC Amsterdam 2011

Cloud Backbone: Service Parameters Configured by

Cloud OS

“Network Hypervisor”

FC

Virtual Machine (VM)

applications

Enterprise Data Center Provider Data Center

Ethernet

FC

Ethernet

FC

SAN

SAN

Ethernet

FC

SAN

Server

SAN

Switch

SAN

Storage

SAN

Server

VPLEX

SAN

Switch

SAN

Storage

VPLEX

Control Plane

Provider “Cloud OS”

13 © Ciena CEWC Amsterdam 2011

TMForum Demo: Billing info for Cloud Backbone

Infonova – R6

ZimoryManage

ZimoryConnect ZimoryConnect

Ciena – Network Hypervisor

vCenter vCenter

API API

API

Storage

Compute

Data Center Network

Storage

Compute

Ente

rpri

se D

atac

ente

r Pro

vider D

atacenter

Enterprise

Provider

Ciena - Cloud Backbone (Infrastructure) Network

Storage

Compute

Data Center Network

Storage

Compute

Network Awareness Resource Activation BillingTickets Event Management

Network Awareness Resource Alignment Event Management

Customers: Web Service Portals

Layer7 CloudControl - API security

and management

© Ciena CEWC Amsterdam 2011

L0 innovations for elastic

services

15 © Ciena CEWC Amsterdam 2011

Optical Processors Make Underlying Layer 0 More

Programmable

Watts Power

µsec Latency

km Reach

I don’t need reach.

I’ll turn down Soft FEC

to cut latency & power.

I’ll ramp up Soft FEC to

restore around this

failure.

16 © Ciena CEWC Amsterdam 2011

Layer 0 Photonic Spectrum

Coherent = Tunable Receivers = Optical Elasticity

Coherent

Optics

17 © Ciena CEWC Amsterdam 2011

Summary: Ideas for Differentiating Ethernet Services

Address mid-market customers with lightweight low-cost install &

maintenance

Create customer engagement and satisfaction with verified real-time

service quality

Build sufficient software reconfigurability to support future network

elasticity

Coordination of multiple network layers for maximum flexibility

© Ciena Confidential and Proprietary

Thank You.