1 © 2003 cisco systems, inc. all rights reserved. 111111 next generation services redefining...

1© 2003 Cisco Systems, Inc. All rights reserved. 111111

Next Generation Services Redefining Interpersonal Communication

Robert LloydPresident, EMEA OperationsCisco Systems, Inc.


The Evolution of SP NetworkingThe Evolution of SP Networking

The Network as a PlatformThe Network as a Platform

Next Generation Voice ServicesNext Generation Voice Services

SP Move to Converged ServicesSP Move to Converged Services

Agenda


A Future Outlook for Service Providers

I2N

I2N I2N

InternetInternet

VPNsVPNs TransportTransport

ContentContentVoice &Voice &VideoVideo MobilityMobility

EnterpriseEnterprise ConsumerConsumer

SmallSmall BusinessBusiness

Service ProviderService Providerofof

The FutureThe Future

Connecting Customers with Services, Services with Networks, and Networks with Each Other

© 2003 Cisco Systems, Inc. All rights reserved.


Cisco Strategy for Enabling SP Success

ACCELERATE Demand

Accelerate Demand by Connecting SMB

and Enterprises to SP Services and

Leverage Cisco Routes to Market

ACCELERATE Demand

Accelerate Demand by Connecting SMB

and Enterprises to SP Services and

Leverage Cisco Routes to Market

BUILD Networks

Extensible and Efficient Carrier

Class Packet Infrastructures for

Lower TCO

BUILD Networks

Extensible and Efficient Carrier

Class Packet Infrastructures for

Lower TCO

OPTIMIZEBusinessOPTIMIZEBusiness

Expertise to Support Business & Network Transitions and

Improve Operational Efficiencies

Expertise to Support Business & Network Transitions and

Improve Operational Efficiencies

DEPLOY Services

Layer Existing and New Services for

Revenue and Profit Growth, Faster Time to Market

DEPLOY Services

Layer Existing and New Services for

Revenue and Profit Growth, Faster Time to Market


Service Provider Network EvolutionPacket Consolidation

Past: Circuit

LeasedLine

PSTN

Mobile

Dial-UpInternet

Present: Hybrid

Broadband Services

PSTN

Mobile

Optical

FR/ATM

High-Speed Internet

Future: Packet

Next Generation Packet

Architecture

Mobile

PSTN Broadband

555© 2003 Cisco Systems, Inc. All rights reserved.


SP Move to Converged ServicesSP Move to Converged Services

666


What is Driving Operators to Migrate to Packet Voice Infrastructure?

13%

21%

25%

46%

0% 10% 20% 30% 40% 50%

13%

21%

25%

46%

0% 10% 20% 30% 40% 50%

Source: Yankee Group 2003Source: Yankee Group 2003

Competitive Advantage for New Service

Offerings

Competitive Advantage for New Service

Offerings

Customer Demand for New Services

Customer Demand for New Services

TDM Switch ExhaustTDM Switch Exhaust

Corporate Strategy to Converge Voice and

Data Networks

Corporate Strategy to Converge Voice and

Data Networks

Yankee Group Survey, Autumn 2003


71%

59%

13%

4%8%

25%

21%4%4%

17%

Wide-scaleMigration

Pilot

Lab Testing

71%

59%

13%

4%8%

25%

21%4%4%

17%

Wide-scaleMigration

Pilot

Lab Testing

Today 3 years

< 12 months 1-2 years 2-3 years 3+ years

Evidence that operators are combining lab and

pilot activities

Evidence that operators are combining lab and

pilot activities

Pace of wide-scale migration peaks

Pace of wide-scale migration peaks

Timeline to Convergence… Yankee Research



Benefits Operators Expect from Packet Voice

42%

29%

25%

21%

0% 10% 20% 30% 40% 50%

What Benefits Do Operators Expect to Gain with Packet Voice?

42%

29%

25%

21%

0% 10% 20% 30% 40% 50%

What Benefits Do Operators Expect to Gain with Packet Voice?


Cap ex reductionCap ex reduction

Phasing out legacy equipment

Phasing out legacy equipment

New Features Available

New Features Available

Op ex reductionOp ex reduction


Which Converged Services are Offered Today or Will Be Offered Within Three Years?

17%

29%

33%

46%

83%

0% 20% 40% 60% 80% 100%Percentage of respondents

17%

29%

33%

46%

83%

0% 20% 40% 60% 80% 100%Percentage of respondents


Service Provider – managed IP Telephony

Service Provider – managed IP Telephony

Video ServicesVideo Services

Unified MessagingUnified Messaging

IP Contact CentresIP Contact Centres

Broadband DSLBroadband DSL


VoiceVoice

InternetInternet

DataCenterData

CenterSecuritySecurity

StorageStorage

VideoVideo

MobilityMobility

IP-VPNIP-VPN

Services Resulting from Next Generation Packet Architecture


BroadbandBroadband


The Network as a PlatformThe Network as a Platform

121212


LastingLasting Architecture

Generational ApproachInvestment Protection

FasterRouters and Switches

Silicon, HardwareLower cost

SmarterQuality of Service, Availability

Security, Manageability,Convergence

The Intelligent Information Network…


New Demands on the NetworkEnterprise, Government & SMB Dynamics

Business ImperativesBusiness

ImperativesIT

ApplicationsIT

ApplicationsNetwork

ImplicationsNetwork

Implications• Collaborative apps

• B2B Applications

• Web services

• IP telephony

• Consolidation

• Storage / back-ups

• Content distribution

• Distributed data centers

• Collaborative apps

• B2B Applications

• Web services

• IP telephony

• Consolidation

• Storage / back-ups

• Content distribution

• Distributed data centers

• Reduce cost

• Increase productivity

• Enable BPR

• Improve customer responsiveness

• Increase citizen centricity

• Build resilience

• Reduce cost

• Increase productivity

• Enable BPR

• Improve customer responsiveness

• Increase citizen centricity

• Build resilience

• Any-to-any

• Scalable bandwidth

• Convergence

• QoS

• Security

• Availability

• Mobility

• Web integration

• Manageability

• Any-to-any

• Scalable bandwidth

• Convergence

• QoS

• Security

• Availability

• Mobility

• Web integration

• Manageability

8379_07_2003 Copyright Cisco Systems, Inc. 2003


Network as a Service Delivery Platform

Packet Layer Services

Network-EmbeddedServices

Voice

Security

Wireless

Storage

• Single point of control

• Ubiquity of implementation

• Services are end-to-end

• Cost advantage


Packet Layer Services

IncreasedComplexityIncreased

Complexity

DatabaseRouting, Multicast

DatabaseRouting, Multicast

ClassificationContent Awareness

ClassificationContent Awareness

TransformationEncryption, FilteringTransformation

Encryption, Filtering

QueuingQoS

Traffic Shaping

QueuingQoS

Traffic Shaping


Secure Converged

Network

PBX and Key Systems

PBX and Key Systems

Firewall and VPNs

Firewall and VPNs

Storage Virtualization

Software

Storage Virtualization

Software

MobilityManagement

MobilityManagement

Service Beyond Packets: Network-Embedded Applications


Managed Service—Phase 3: Enhanced Services

Managed Service—Phase 3: Enhanced Services

Managed Service—Phase 2: Convergence Network Integration

Managed Service—Phase 2: Convergence Network Integration

Managed Service—Phase 1: Managed LAN Services

Managed Service—Phase 1: Managed LAN Services

Managed CPE IP VPNManaged CPE IP VPN

CPE ResaleCPE Resale

Bundled Managed Services Strategy

ConnectivityConnectivityRevenue

Customer Churn



Partnering to Deliver Blended Mobility Experience


Next Generation Voice ServicesNext Generation Voice Services

202020


InternetInternet

DataCenterData

CenterSecuritySecurity

StorageStorage

VideoVideo

MobilityMobility

IP-VPNIP-VPN


BroadbandBroadband

Services Resulting from Next Generation Packet Architecture

VoiceVoice


SP Voice Strategy and Segmentation

ResidentialVoice overBroadband

ResidentialVoice overBroadband

Transit /Class 4

Replacement

Transit /Class 4

Replacement

LocalClass 5

Replacement

LocalClass 5

Replacement

SPVOICE

SPVOICE

Data and Voice Convergent Services

TDM to PacketTransformation

Greenfield VoiceInfrastructure

and Applications

Greenfield VoiceInfrastructure

and Applications

ManagedBusiness

Voice

ManagedBusiness

Voice

New RevenueServices

New RevenueServices

Inside OutOPEX savings driven

Inside OutOPEX savings driven

Outside InProfitable revenue growth

Outside InProfitable revenue growth

22© 2003, Cisco Systems, Inc. All rights reserved.

Convergence &ReplenishmentConvergence &Replenishment


TDM to Packet TransformationGathering Momentum

Telecom Italia leads the wayTelecom Italia leads the way

17 billion voice minutes a year 17 billion voice minutes a year 100% of all Telecom Italia’s national voice traffic 100% of all Telecom Italia’s national voice traffic

will be over IP by end of 2003 will be over IP by end of 2003 66% OPEX saved66% OPEX saved

Majority of EMEA Service Providers employ converged services infrastructure today.

Majority of EMEA Service Providers employ converged services infrastructure today.


Fastweb: Residential Voice & Video over Broadband

• About Fastweb

EMEA’s first true broadband operator

Over 220,000 signed subscribers and 35,000 buildings passed

• Converged Services Portfolio

Fiber to the Home

Single high-speed fiber connection for integrated voice, Internet and video Services... ‘future Proof’ technology

IP integration enables second generation Internet applications: i.e., high quality interactive video, telephony and data

• Value Add of this ApproachUnique network assets… large-scale deployment in key metropolitan areas: >30% market share in selected areas and >10% overall

Non-replicable network assetsUnique service offering, welcomed by the market,business model copied by others

• About Fastweb

EMEA’s first true broadband operator

Over 220,000 signed subscribers and 35,000 buildings passed

• Converged Services Portfolio

Fiber to the Home

Single high-speed fiber connection for integrated voice, Internet and video Services... ‘future Proof’ technology

IP integration enables second generation Internet applications: i.e., high quality interactive video, telephony and data

• Value Add of this ApproachUnique network assets… large-scale deployment in key metropolitan areas: >30% market share in selected areas and >10% overall

Non-replicable network assetsUnique service offering, welcomed by the market,business model copied by others



CustomerDeployment Options

ServiceProvider Services

Cisco CallManager (CCM)

Remote CCMIP Phones

(SRST)

Cisco CallManager Express (CCME)

<120 seats

SP Business Voice InfrastructureSP Business Voice Infrastructure

Site-to-Site Voice

PSTNAccess

Enhanced IP Services

UnifiedCommunications

Remote Network Management and Operations

CallAccounting

CallAccounting

PSTN Connectivity

PSTN Connectivity

RegulatoryLNP, LI..

RegulatoryLNP, LI..

Security,QoS

Security,QoSScalabilityScalabilityVPN Call

Routing

VPN Call Routing

VoIP GW withLegacy PBX

A

IAD with Analog Phones

BusinessTelephonyServices

Managed Business Voice Services


Cisco’s Service Provider Strategy

Broad Service Creation Portfolio

Broad Service Creation Portfolio

New Services,Expanded

Market

New Services,Expanded

Market

Unique Position to Accelerate

Demand

Unique Position to Accelerate

Demand

Partnering for

SUCCESS!

Partnering for

SUCCESS!

Managed Services Migration

Managed Services Migration

Increase ROI,

Decrease OPEX

Increase ROI,

Decrease OPEX

262626

Faster, Smarter, Lasting Packet Infrastructure


1 © 2003 cisco systems, inc. all rights reserved. 111111 next generation services redefining...

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