crucial intersection: it converges applications crucial ... · crucial intersection: it converges...

Crucial Intersection: IT Converges Applications Crucial Intersection: IT Converges Applications, Services, & Infrastructure to Support the Distributed

EnterpriseEnterprise

Robin GareissExecutive Vice President, Sr. Founding Partner

www.nemertes.com

Agenda

About NemertesOrganizational TrendsDistributed Enterprise TrendsDistributed Enterprise TrendsVoIP & UC Technology Overview & Adoption TrendsWAN Technology Overview & Adoption TrendsWireless TechnologyRecommendations

© Copyright 2010 Nemertes Research

About Nemertes

Analyze business value of emerging technologiesAdvise Fortune 100-2,000 b i iti l IT t t ibusinesses on critical IT strategiesBenchmark realityh 2,500+ IT executives share strategies,

costs, vendor satisfaction.

A l h 1 30 Analysts have 17-30 years experience, including operationalF d d 2002Founded 2002


Organizational Trends


Organizational Changes

I t ti b t t h l Integration between technology “silos” (apps, networking, security)

Interaction with groups outside IT (HR, legal, personnel, facilities)

More matrixed structure

Balance openness with Balance openness with effectiveness--limit who’s in the critical path!


Business Unit Partnership

Identify business/technology liaisons within ITIdentify “grassroots” helpBudget time for discussions with business-unitsh Leaders in HR, sales, finance, service, legal, etc.h Also discuss with managers and staff

D ’t k t h l ti f bl th h i ith th i j bDon’t ask technology questions—focus on problems they are having with their jobsUnderstand business problems, and relate your technology knowledge to solve themAssemble UC teamAssemble UC teamhMulti-disciplinary team—network, telecom, application development, contact

center, security, business unitsEngage team in all UC-related decisions


Reporting Structure Option


10 Steps for Identifying Business Issues


Distributed Enterprise Distributed Enterprise Trends


Distributed Enterprise: Overview

89%M d S iMore virtual

workers

89%Managed Services

atio

ns

More branch 9.2%

MPLS & Ethernet(Solid network 57%

mm

unic

a

offices performance is vital)More centralized

apps & dataOptimization

ed C

om

85%Branches with 18%

ream

line

Decreased or Flat IT budgets

IT personnel More bandwidth demandsSt

r


budgets

Worker Characteristics and Needs

Worker Bandwidth Security WirelessTeleworker Moderate Moderate Low

Small/Branch/New High Moderate ModerateOffice

Customer Site High High LowWorker

Road Warrior Moderate High HighRoad Warrior Moderate High High

Field Force Moderate High High


Connectivity to the Cloud

Customer Site VOIP

Ethernet TeleworkerDSL

Worker VOIP Server

MPLS Cloud

DSL

MPLS CloudIPsec/SSL

MPLS CloudInternet

DSL/T1

MPLS Cloud

R d Small/New

OfficeWireless

(3G/4G/LTE)TeleworkerRoad

Warrior

Field Force( )


Formal Teleworking Policy

84% increasing the number of telecommuters telecommuters they support.

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


What are the Drivers for Increasing Telecommuters?Drivers for Increase in Telecommuters

82%Improve EmployeeRetention

61%Save Facilities Costs

53%Advance Green Policy

Assist/Advance Virtual 53%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Assist/Advance VirtualWorkplace Policy


Virtual Workplace Business Drivers

Facilitiesh Moving from expensive headquarters to remote site saves $h Major metro area: $11,000-$20,000 per employee/yearh Suburban area: $7,000 - $10,ooo per employee/yearh Telecommuter: virtually zero

Agilityh Can respond more quickly to competitive pressuresh Can attract, retain employees by allowing them to work close to home or at home

Cultureh Virtual workplaces foster culture of responsibility, loyalty, employee productivity


Streamlining Communications & Applications

Location doesn’t matterhUsers want applications, access to data regardless of location

Trend toward centralization of apps, datapp ,hEase of management key driver

All-in-one devices gaining momentumAll in one devices gaining momentumh48% of organizations use/want to use Two types of devices

Routing/switching/security/wireless/IPT/compression– Routing/switching/security/wireless/IPT/compression– App acceleration/WAFS/DHCP/DNS/Print & file servers

More attention toward robust WAN & optimizationMore attention toward robust WAN & optimization


Unified Communications and Collaboration: Technology

and Overviewand Overview


Technology Architecture & Evolution

VoIP IP CCCom

User InterfacesIP audio VoIP

IP VidPWeb

conferencing

IP CC

Social Computing

mm

on ProWeb portals

IP audio conferencing

IP VideoPresenc

conferencing Computing otocols (SI

DashboardDesktop videoTelepresence

E-mail

ce

IM UM

IP,SIMPLE

Office productivity

appsFixed Mobile Convergence

Communications-Enabled Business Process

E,XMPP)

Handsets

Management, Directory, Security


Typical Deployment Timeline

TelepresenceWeb Conf. CEBP

IP Video

IP Audio Conf IP Contact Center

Social ComputingUnified Messaging

Presence/Unified Dashboards

VOIP Pilot VOIP Production

IP Audio Conf IP Contact Center

36 months24 months 60+ months48 months12 months

Planning

Corporate Buy-in

Upgrade WAN infrastructure

Validate Business Case Upgrades

Mobile Extensions

Training, Management, Reporting, Security

Corporate Buy in

Pre-deployment benchmarking



What Triggers a Move to UC?

Move to new facilityR l i TDM i f t tReplace aging TDM infrastructureNeed to centralize voicemailNeed integrated call features across multiple Need integrated call features across multiple locationsWorkforce becomes more mobileWant virtual contact centerWant virtual contact centerTime for a network upgradeVoice survivability/disaster recoveryy yRenegotiate telecom contractCost reduction opportunities/responseGreen initiatives


UC Trending

UC Adoption, 2007-2011

80%80%

90% (Projected)

60%

70%

60%

70%

47%

30%

40%

50%

17%10%

20%

30%

0%2007 2008 2009 2010 2011


Must-Haves

Business Drivers for Implementation

TechnologyCost Savings

Sales Increase

Competitive differentiator

Improved productivity

Expedite business transaction

Falling behind without it

p

gy g p y

VoIP ● ● ● ● ● ●IP Room ● ● ●Videoconferencing ● ● ● ● ● ●Webconferencing ● ● ● ● ● ●Instant Messaging ● ● ● ● ● ●P ● ● ● ● ●Presence ● ● ● ● ● ●


On the Drawing Board


TechnologyCost Savings

Sales Increase

Competitive differentiator

Improved productivity

Expedite business transaction


IP Contact Center ● ● ● ● ● ●IP audioconferencing ● ● ● ● ● ●Unified Messaging ● ● ● ● ● ●Telepresence ● ● ● ● ● ●Telepresence ● ● ● ● ● ●

Social Computing ● ● ● ● ● ●

UC Dashboards ● ● ● ● ● ●


UC Deployment: Key Challenges

Challenge 1: Ever-shrinking IT budget Challenge 1: Ever shrinking IT budget h In 2009: 85% of organizations had decreased or flat budget vs. 46% in 2008

Challenge 2: Staff decreasesChallenge 2: Staff decreaseshOn Average by 17%

Ch ll 3 I t bilit Challenge 3: Interoperability concerns h Limiting adoptionh C t d d lih Concerns over standards complianceh Added cost & complexityh Need for additional upgrades just to achieve backwards complianceNeed for additional upgrades just to achieve backwards compliance


Challenge 4: Management

Why is Management Becoming So Important? h Network Complexityh New Application Plans

M bilih Mobilityh Fewer IT resources internallyh End user demandsEnd user demandsh Globalizationh More remote workers & branch offices

UC adds more complexityh Presence management VOIP managed services grew from h Integrated rich mediah Application integration

VOIP managed services grew from 22% in 2007, to 42% in 2009


Challenge 5: WAN Demands

2009 Benchmark data: Average of 34% bandwidth increase year over year (in a flat economic environment benchmark conducted during worst months of flat economic environment—benchmark conducted during worst months of recession, January to April 2009)Increases driven by:yh Bandwidth-intensive applicationsh Multimedia applications (voice, video)h Distributed/collaborative applications

Optimization techniques can mitigate but not eliminate need for increased bandwidthbandwidthBottom line: WAN architectures must accommodate growth


VOIP/UC Architecture: Network Becomes More Important

2008 2009

62%60%

70%

53%

40%

50%

41%

30%30%

40%

10%

20%

6% 8%0%

Centralized Distributed or Regional Hosted


WAN Technology and OverviewOverview


Typical Deployment Timeline

VoIP/UC

Optimization

All-in-One Branch/New sites & upgradesBranch standardization

Switch/router upgrade

WLAN

MPLS,Ethernet, VPLS deploymentData-center consolidation

OptimizationSwitch/router upgrade

36 months24 months 60+ months48 months12 months

Planning

Corporate Buy-in

Carrier RFP & negotiations


Mobile Extensions

Training, Management, Reporting, Security

Corporate Buy in

Pre-deployment benchmarking



Must-Haves

B i D i f I l t tiBusiness Drivers for Implementation

TechnologyCost savings

Sales increase

Broadly available

Managed services widespread

Enables virtual workplace

Falling behind without itTechnology savings increase available widespread workplace without it

MPLS ● ● ● ● ● ●Ethernet/ VPLS ● ● ● ● ● ●Broadband A ● ● ● ● ● ●Access ● ● ●Optimization ● ● ● ● ● ●


On the Drawing Board


TechnologyCost savings

Sales increase

Broadly available

Managed services widespread

Enables virtual workplace


Wi-LAN ● ● ● ● ● ●4G ● ● ● ● ● ●4G

Branch All-in-One Box ● ● ● ● ● ●

SIP Trunking ● ● ● ● ● ●


MPLS and Carrier Ethernet Taxonomy

MPLS-Based ServicesServices

Layer 3 Layer 2 Layer 1 (optical)

ATM/FrameEthernet

RFC 4364 VPLS P2P PWE3 GMPLS


Network SemanticsMPLS is a technology, not a serviceWe say “MPLS” when we mean “layer 3 RFC 2547/4364 We say MPLS when we mean layer 3 RFC 2547/4364 MPLS”—not any of the others (which are also MPLS)We say “Carrier Ethernet” to mean three separate service We say Carrier Ethernet to mean three separate service types:hEthernet connectivity to layer 3 MPLS (which is also MPLS)Ethernet connectivity to layer 3 MPLS (which is also MPLS)hPoint-to-point Ethernet connectivity (which may be delivered over an

MPLS fabric)hMultipoint Ethernet connectivity (which must be delivered over an

MPLS fabric)

Th f i i lt l b “MPLS” d Therefore, a service can simultaneously be “MPLS” and “Carrier Ethernet”—or be one or the other


Justification: MPLS

Key Benefits Why Not?

Cost savings Global coverage from single carrier


h Range is 10%-40%Ability to integrate multiple traffic types on one network

g gnot “truly” availableCosts associated with upgrade (network equipment, installation,

Any-to-any ability/DRCOS: Better manage capacity

( q p , ,training)No application driversh I t t VPN till h i h 50% don’t use COS

h 23% use 4 or more classesLess overhead than ATM/Frame

h Internet VPN still cheaper in some cases

Solid managed services available


Justification: Ethernet & VPLS

Why Not?Key Benefits

Emerging as next-generation WAN Can’t get it!


g g gtechnologyLower per MB costs vs. MPLS

g

Greater bandwidth & flexibilityBetter customer satisfaction vs. MPLSMPLSh 79% extremely satisfied, compared

to 67% with MPLS


Justification: SIP Trunking


Reduced costs Can’t get it!


h PSTN: 20%-60% savings, depending on current, future networkN d t b t

gSecurity concernsh IP connection opened to PBX; need

h No need to buy gateways

Ability to share trunksVirt al N mber Ser ices

SIP firewall

PBX doesn’t support SIP or requires costly upgradeVirtual Number Services costly upgrade


WAN Optimization Deployment


WAN Optimization Functions


The Role of Wireless


Enterprise-Wide Mobility Strategy?

Mobility Strategy 2008

Mobility Strategy 20092008 2009


The Mobilized Workforce Is Here!

Over 75% of companies have or are planning mobility strategyAverage anticipated 12-month growth in number of mobile devices is 421% (median = 100%)hOf those with discrete budget, currently spending 4%-4.5% of overall IT

budget on wireless/mobility

Enterprise user populations are shifting from “special-purpose” (sales, logistics, onsite repair) to “general” A li i d d i i i d i llApplication demand is increasing dramaticallyDevice requirements are more complex (multimode, security, etc.)


Managing Mobile Devices


Mobile App Time Savings Impact


The Mobility Transformation

Old NewSpecial-purpose network

Service IntegrationGeneral purpose network

Choice of DevicesDevice Proliferation

Special-purpose devices

Separate from Integrated with

devices

IT Infrastructure IT InfrastructureTransparency to User

M d bManaged by IT

IT IntegrationManaged by

Silos


Justification: WiLAN


Productivity Enhancement Security concerns


yServes contractors, visitorsCan add wireless VoIP

yNewness of 802.11n standardOpportunity to save costs by moving cellular voice to WiLAN may erode as cellular voice to WiLAN may erode as Femtocells become available.


Justification: 3G/4G


Serve virtual workforce Performance


Disaster recoveryRedundancy for leased line access

4G still unavailable widelyStandards rapidly changingy

Potentially less expensive than carrier landline services

p y g g

54% using/planning fixed broadband; 89%

mobile broadbandmobile broadband


Closing Thoughts & Closing Thoughts & Recommendations


Technology OutlookVideo distribution 3D telepresence Hologram

telepresence

Social computing integration

CEBP

Intense mobile integration

VoIP rollouts / UC integration continues; increased penetration in large companies

p g g g

20112010 2013+20122009

More managed services

More hosted apps

Second life integration

UC virtualization Mobile multimedia


Bottom Line

Consider key emerging WAN technologies.Standardize products capabilities at your Standardize products, capabilities at your distributed enterprise.Plan for expansion! The keyword here is “more” applications, bandwidth requirements, branch-office sites, expectations from users, , p ,etc.Leverage wireless—fixed and mobile.Understand business problems VoIP & UC can solvesolve.Spend time up front educating IT, business units, executives.h Win support internally.

Tie UC to corporate green initiatives.h Enables telecommuting

Prioritize: You can’t do it all now!Consider MSPs, third parties.Know your numbers!


Thank You!

Robin GareissExecutive Vice President, Sr. Founding Partner

[email protected]

Addendum


Characteristics of Canonical MPLS

Enterprise WAN device (CE) must be a router Enterprise WAN device exchanges routing info with carrier WAN device (PE)Routing across cloud handled by carrierPackets are mapped into pathsPackets are mapped into pathsPath topology is defined by carrier hO ti i f h t i ti f ll l dhOptimizes performance characteristics for all users across cloud

Connection between CE and PE may be either standard telco interface (T1 fractional T3 T3 etc) or alternative interfaces (DSL interface (T1, fractional T3, T3 etc) or alternative interfaces (DSL, Ethernet.. or even Ethernet-over-DSL…)


Three Flavors of Carrier EthernetEthernet access to MPLS networkh This is just canonical (RFC 2547/4364) layer 3 MPLS service with an Ethernet

connection between the CE and the PE h CE must still be a router; still exchanges routing information with PE

Ethernet point to point across MPLS (or other) networkEthernet point-to-point across MPLS (or other) networkh “Virtual private wire services”—VPWS (Martini RFC)h CE may be a (layer 3) router or a (layer 2) switchCE may be a (layer 3) router or a (layer 2) switchh Carrier emulates “Ethernet in the cloud” between any two points in the WANh No routing information is exchanged between user and carrierg g

Ethernet Virtual Private LAN Services (VPLS)h CE may be a router or a switch; customer handles routingh No routing information is exchanged between user and carrierh Carrier emulates “Ethernet in the cloud” between multiple points in the WAN


Scalability

MPLS has successfully scaled to support 10,000-node networks; multi-thousand node networks are not uncommonLargest known Carrier Ethernet network is ~ 200 nodesOne reason: OSPF route adjacencies max out at 50 (therefore you can’t have any-to-any connectivity of more than 50 sites)Users can engineer hierarchical routing across Carrier Ethernet (same as with private lines in the old days)This takes some degree of routing skill and expertise from users MPLS generally doesn’t require the same level of expertiseMPLS generally doesn t require the same level of expertise

© Copyright 2010 Nemertes Research© Nemertes Research 2009 www.nemertes.com 1-888-241-2685 DN0448

Canonical (VPLS) Carrier EthernetUser handles routing across cloud

LANCE

Site 1

LANCE

Site 3Site 1

LANCE

Site 2

LANCE

Site 4Site 2

WAN access circuits are Ethernet(may be over telco cabling, eg DSL)

No routing information exchanged between carrier and user!


No routing information exchanged between carrier and user!

VoIP


Cost savings TDM works fine. Why mess with it?


gh MACsh WAN network & access

yType of business doesn’t need advanced telecom features/appsLack of robust WANh Telecommuting

Application developmentImprove productivity

Lack of robust WAN

Improve productivityIntegration with UCAbility to take advantage of SIP Ability to take advantage of SIP trunking 74% using;

21% planning


Justification: IP Videoconferencing


Save on travel costs & time Capital investment can be costly


Makes meetings more productiveDecipher facial expressions

p y(particularly telepresence)Need ample network capacityp p

Keep increasingly virtual staff connected

Not many/any remote locations

Competitive disadvantage without itServices enable communications with business partnerswith business partners


IP Video Adoption Rates, 2009Videoconferencing Adoption

Using Evaluating Not Using

6 6%31.9%

15.8%90.0%

100.0%

15.3%

6.6%50.0%

60 0%

70.0%

80.0%

77.6%

15.3%

22.2%40.0%

50.0%

60.0%

52.8%

27 8%

20.0%

30.0%

27.8%

0.0%

10.0%

Desktop Room-based Telepresence


UC: Video Reduces Travel Time


UC: Video Management


UC: Video Networks


Webconferencing


Share documents, spreadsheets, No need to share desktop


desktopMakes meetings more productiveKeep increasingly virtual staff

applications.

Keep increasingly virtual staff connectedSee who is on call, attentive, not tt ti 67% attentive

Easier to sell products/servicesOn premise saves more than

67% + using/planning

On-premise saves more than services


Instant Messaging & Presence Dashboards


Get quick answers to important questions Compliance/security/regulatory issues


questionsHelp close dealsImproves customer service at contact centers

p y g y

centersKeep increasingly virtual staff connectedCost reduction through lower phone usageusageDashboards provide quick glance and integrated communicationsRemote supervisor tool (What’s your Remote supervisor tool (What s your availability?)Know how to contact whom (presence)

68% + using/planning IM


IP Contact Centers


Customer service Training essential for success


Virtual contact centerImprove productivity

gCapital investment requiredMust have a contact center p p y

Integration with UC h Important/critical part of business

Specific Needs


IP Audioconferencing


Eliminate CPM for audioconferencing Capital investment required


gservices (internal calls)Integrate with IP telephony system

p qFew or no internal conference callsNo IP PBX yet

No separate bridge required for 6-12 endpoints (included in IP PBX)When integrated to dashboard can

y

When integrated to dashboard, can view who joined rather than taking roll call.


Unified Messaging


Saves time Voicemail becomes data in terms of


Better loggingIntegration

complianceRequires integration with IP telephony systemg telephony system

53% + using/planning


Social Computing


Unique marketing opportunities Can be a time-waster


q g ppReach people quicklyWord gets out through networks

Legal responsibilities for postingsCompliance regulationsg g

Keep increasingly virtual staff connected

p g

38% + 38% + using/planning


Business Case: Rapid Restock

Challenge: Competition for retail g pshelf space Solution: Integrating mobile data g gdevices with inventory system applicationOutcome: One sales person replaced $70,000 worth of product instantly


Business Case: Another Margarita, Please!

Challenge: Increasing top-line revenue at restaurants at restaurants Solution: Wireless-enabling waitstaffOutcome: Measurable increase in alcohol sales and margins

Note: Also works in high-end coffee b ith t bl i !bars with table service!


Business Case: JITFTEChallenge: Obtaining real-time subject matter expertisej pSolution: Integrating data devices with presencepOutcome: Measurable increase in close rates and decrease in sales cycles


Business Case: Smarter Spies

Challenge: Validating intelligence tips faster (DIA)intelligence tips faster (DIA)

Solution: Wiki-enabling analysts

Outcome: Streamlined speed of pinformation validation by 20%-25%, maintained historical record of analysis (vs email record of analysis (vs. email trail)


Business Case: Cutting Support Costs

Challenge: Fast, low-cost tech support for challenged users support for challenged users (consumer technology retailer)

Solution: Presence and instant messaging capabilities for first and messaging capabilities for first and second-level help desks

Outcome: Increased productivity of second-level help desk by sevenfold second level help desk by sevenfold (700%): fewer (expensive) experts


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