Cumbre PR/AR sobre el mercado Telco en America Latina

Lucas Olocco Managing Director Services Provider Latam

June, 2014

SP Summit - BsAs 2014

Cisco Confidential 2 © 2013-2014 Cisco and/or its affiliates. All rights reserved.

Market Transitions

T E C H N O L O G Y T R A N S I T I O N S

B U S I N E S S T R A N S I T I O N S

1.  Outcomes & Results

2.  Cloud & New Consumption Models

3.  Software Replacing Hardware

4.  OpEx Replacing CapEx

B O T H : Cloud… IoE

Big Data / Analytics

1.  Public Cloud

2.  SDN / ACI / NFV… Software Defined Integrated Architectures

3.  Mobility

4.  Security

5.  Collaboration

6.  Technology Architectures


Pace of Change 2

IT Industry Disruption

Public Clouds

SP Model Disruptions

Software Defined Integrated Architectures

White Label & Open Source



Brutal Industry Shake Out… Service Providers & IT

What does it take to lead through this transition?


ACI… Industry Leading TCO

ACI vs. SDN

75% Total Cost of Ownership Savings

NETWORK VIRTUALIZATION +

MERCHANT SWITCHES

$40 OpEx*

$100 VM Tax

$14 Network $25 OpEx $15 Network

$154

$40

APP CENTRIC CISCO

CapEx 27%

OpEx 73%

Before ACI

ACI Network OpEx

35% OpEx savings with ACI


White Box & Hidden Cost… No CapEx Benefit

CAPEX Switch Hidden Costs

§  Cost of Integration HW, OS, Overlay

§  Multiple SW release trains & Features

§  Multiple Vendors / Maintenance & Support

§  Troubleshooting

NO WHITEBOX ADVANTAGE

3 Year CapEx ToR Example

$5,500* $4,000*

Whitebox $2,500

Standalone Sw/Rtr

SW $1,000 per year Branded

Switch w/ integrated HW/SW

27%

Source: * Deutsche Bank 9/27/2013: “Whitebox Switches Are Not Exactly a Bargain”


Cisco “The Disruptor” Technology Transitions

Network Centric

Unconnected

Video Mobile

Packet Switched Routed

DC

$8B $14B $1B $2B $4B $2.5B

Application Centric

Cloud

Internet of Everything

Voice & Data

Bridged Fixed Circuit Shared


#1 TelePresence

#1 Web Conferencing

#2 X86 Blade Servers

#2 Storage: Area Networks

#1 Network Security #1 Cloud*

Competitors Lacking Breadth & Architecture

#1 ENT Routing

#1 Wireless LAN

#1 Switching: Modular/Fixed #1 Voice #1 SP

Routing

Cisco Network Security share does NOT include Sourcefire Competitors listed above are not the only competitors in these markets and share shown is relative share versus listed competitors

Customers’ Problems… OpEx à Integrator, Speed of Services Delivery #1 = 12 #2 = 4 #3 = 2

Cisco Citrix Microsoft Adobe IBM Intercall Other

Cisco Brocade HP Qlogic Juniper Other

Cisco HP IBM Dell Other

Cisco HP Juniper Huawei Brocade Other

Cisco Alcatel-Lucent Juniper Huawei Other

Cisco HP Juniper Huawei Other

Cisco HP IBM Dell EMC Other

Cisco Avaya Unify Alcatel-Lucent Aastra Other

Cisco Aruba Ruckus HP Other

Cisco Polycom Huawei Logitech Vidyo Avaya Sony Other

Cisco Checkpoint Juniper Fortinet McAfee PaloAlto Other


Cisco Lead The First Two Transitions… We Must Lead the Next One

2010 2005 Today

VIRTUALIZATION IP CONVERGENCE

APPLICATION ECONOMY


Architectures & Silicon Differentiated ASICs…Custom & Merchant Strategy

Set-top box:

1 ASIC

UCS:

7 ASICs

Cat3K:

2x ASICs

Cat4500 Linecard: 4x ASICs

Nexus 2-7K:

30 ASICs

100G DWDM: Optical ASIC

CRS-3

Linecard: 7 ASICs

CRS-3 Fabric

card: 3 ASICs

MDS 9K: 9 ASICs

Custom Silicon Merchant x86


Enterprise & Commercial

Service Provider

Cisco’s Cloud Evolution – Moving to Our Second Phase

PUBLIC

PRIVATE

#1 in Cloud Infrastructure

HOSTED / MANAGED

#1 in Application Centric Cloud

HYBRID

Enterprise Priorities §  Flexibility §  Lower TCO §  Agility §  Security

PUBLIC

NFV

Service Provider Priorities §  Lower OPEX §  Time-to-Revenue §  Service Innovation

#1 Platform for Internet of Everything

Cisco Cloud

Services


Technology transitions

Business outcomes

Market growth

Software is Critical to Cisco’s Growth


Monetization & Usability

Ecosystem

Network Effect

Core Value

Elements of a Successful Software Platform


Cisco Software Platforms to Drive Growth PRELIMINARY

DC WAN Access IoT Evolved

Programmable Network

Enterprise SP OT

DC $6.3B Enterprise Networking $16.4B SP Routing $4.0B Conn’t Ind. $0.1B SP Mobility $0.9B SP Video Inf. $3.8B FY13 Revenue

Infrastructure

Unified Platform

Application


CISCO EVOLVED SERVICES PLATFORM

Infrastructure

Unified Platform

Application

Cisco Software Platforms to Drive Growth

IoT SOFTWARE PLATFORM

PRELIMINARY

DC WAN Access IoT

CISCO ONE SOFTWARE PLATFORM

Enterprise SP OT

DC

Access

WAN

NFV

IoT

SECURITY SERVICES AND APPLICATIONS

Video Mobility

CLOUD ENABLEMENT PLATFORM

IoT Connectivity Platform

App Enablement Platform

3rd party apps 3rd Party

Apps

Service Orchestration

Cross-Domain Orchestration

COLLABORATION PLATFORM

UC TP HCS-LE

Cust. Collab WbX Cloud HCS 3rd Party

Apps IoT

Apps Collab Apps

Evolved Programmable

Network


What’s Wrong? Why Is IT Slow?

Enterprise Infrastructure

Element Management

Controllers Virtual Services Infra Security VM Managers Point Tools

Orchestration Security & Compliance Performance Visibility & Monitoring

Data Center WAN

Provisioning Slow – Poor Agility Difficult to Secure Expensive to Operate

Access




Element Management



Data Center WAN

Provisioning

Access




Element Management



Data Center WAN

Provisioning

Access

Cisco ONE Platform

Cloud Enablement Platform

ACI

Cisco Confidential 19 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19 © 2013-2014 Cisco and/or its affiliates. All rights reserved.

Software Architecture Principles of the Application Centric Infrastructure

Policy-based Configuration-driven

Application-centric Infrastructure-centric

Network-wide management Element management

Built on Powerful Network Platforms


Infrastructure Domains

Enterprise Architectures Suites

Network-wide Policy & Control

Data Center Access WAN

Cisco ONE Software Platform: Enabling Our Architectures

Application Policy Infrastructure Controller (APIC)

Unified Data Center

(UDC)

Application-driven, policy-based automation of network and compute

infrastructure

Intelligent WAN (IWAN)

Deliver a secure, uncompromised user

experience across any WAN connection,

leveraging the Internet

Unified Access (UA)

One network, one policy, one management across

wired and wireless networks

Security Services and Applications


Built on Foundation of Cisco ONE SP Architecture

Applications

Unified Platform Policies and Automation

Infrastructure Physical and Virtual

Applications

Evolved Services Platform Service Broker “Business Intents”

Catalog of Virtual Functions Service Profile “Operational Intent”

Orchestration Engine

Evolved Programmable Network

Storage Network Compute

OPEN

Multi-vendor and based on open standards & API

EXTENSIBLE

Comprehensive modular capabilities spanning

entire SP architecture—cloud, video, mobile

and fixed

ELASTIC

Seamlessly and dynamically scale

services and resources whenever

and wherever needed.


As-a-Service Cloud-based

Scale and Delivery

Simplified Purchasing Models to Transform Business

Repurposed on the Fly Open Interfaces to 3rd Parties Elements that Plug n’ Play

Virtualized Functions + Orchestration + Element Integration SLA certified (Packaged Service Insertion)

Individual Virtualized Functions

(Drop in Elements)

Virtualized Functions with Service Orchestration

(Integrated Capabilities)

OSS BSS

Term-based/Perpetual/Metered pricing Priced as integrated solution Pay-as-you-go


Orchestration Engine

Services

Virtual Functions

Competitors vs Cisco

Orchestrator NFV

(CloudBand)

SDN Controller (Nuage)

Virtual Router (VSG)

vEPC MME/SGW/

PGW

Virtual Router (vPE)

DC Switch QFX

vEPC MME/SGW/

PGW

vGI-LAN

vEPC MME/SGW/

PGW

vGI-LAN vEPC MME/SGW/

PGW

Video Network Mobile

QvPC

Quantum Services Platform

CSR 1000v

Videoscape Media Suite

API GW

vWAAS

Videoscape Distribution Suite

Quantum SON

Nexus 1000v

Virtual Subscriber Database

vASA

Virtual DPI

Quantum Analytics

Quantum WAN Orch.

Virtual Load Balancer

vWLC

Virtual ANDSF

Videoscape Control Suite

vISE

Virtual IOS XR QvBN Virtual IPS

Virtual SaMOG

Quantum Policy Server

Quantum Service Bus

Provisioning Services

Prime Suite

Orchestrator NFV

(CloudBand)

Compute & Storage Services

Partners &

Network Services


Expanding Our TAM…

Data Mobile Cloud Social Security

LOB OT

Products + Services Outcomes

IoE

IT


Services Evolution

Supplier Operating Model

Product Focused

Basic Offer: Level 1 Supplier

Complex Offer: Level 2

Supplier

Optimized Offer: Level 3

Supplier

Outcome Offer: Level 4

Supplier

Product Connected Product Technical Design Services

Implementation Services Education Services

Support & Maintenance Services

Adoption Services

Cloud

Services

Automate

All-In

Bundle

Manual AS

TS Cisco Cloud Services

Platform Services and Analytics

Outcome Focused

Operate Services

Security Services Consulting Services


Consulting Services – $1B Opportunity B

usiness C

onsulting

Internet of Everything

Industry and Business

Architecture

Analytics / Big Data Te

chno

logy

C

onsu

lting

Next-Generation IT

Mobile (Collaboration)

Cloud Security

Build & Manage

$+++M Fee / Use

Case / Strategy & Plan

Strategy & Plan

Fee Value Assessment

Pre-Sales Executive Exchange


Cloud and Managed Services Offer Evolution Managed Services

Customer-Owned/Cisco-Operated

Hybrid Cisco-Owned/Cisco-

Operated SaaS

Cisco-Owned/Delivered via Cloud

Video / TP UC / UCC, R&S

Security

Mobility

Managed CPE

Data Center

CaaS

Wi-FiaaS

MCPEaaS

DCaaS

MTD

Analytics/SAS

SolvDirect / Service Grid

CPE Brokerage Services (Channel)

CMX

OSSaaS (Fulfillment Only)

Energy Wise / Joulex

FY14 Ready FY14/15 Ready (prelim) FY15/16 Ready (prelim)

Sub

scri

ptio

n B

ased

U

tility Based

People Heavy/Low Automation Software Heavy/High Automation


Platform and Analytics

Mobile Apps | Web Apps | Custom Portals

Engagement / Experience / Self Service

App Security | Federated Identity Management

App Platforms – Cloud, Mobile, M2M, Fog

API Management

B2B Services Process / Vertical Exchanges

Integration Services App-to-app, Cloud-to-Cloud, M2M

Analytics Data @ Rest & Data in Motion

Data Services Virtualization, Management

Infrastructure Services (Network, Compute, Security…)


Automated Testing Built by developers – no separate Q/

A One Team

Dev, PM, QA & Ops work together

Regular Client Updates Client builds part of the process

More Code, Less Talk Light on documentation and process

Continuous Delivery

Fully Automated Daily deployment to

OpenStack


Our Biggest Opportunity: Internet of Everything

Private Sector

$14.4T

Public Sector $4.6T


Mobility (SP)

IoE Route to Revenue… IoE as Multiplier Accelerator

SP Routing

Enterprise Networking

Data Center

Collaboration

Services

Security

Video (SP)

$980M $318M $236M $176M $167M

$72M $19M $13M

$1.97B 46%

FY14

New TAM (Products &

Sales Motions)

$440M 37%

$269M 138%


Cloud service providers

Business process outsourcing

Support services

Influencer

IoT

Inside / outside sales

Financing / credit

Metering and billing

Infrastructure services

Training

Analytics

Technical services

Managed services Process

consulting

Technology provider

Systems Integrator

Delivery and fulfillment

Technical consulting

Distributor

Market Transitions require new Market Capabilities

Flexible Consumption

IT & LoB Customer

Solution Integrator Solution

Integrator

Business Consulting Business

Consulting

Hybrid IT Hybrid IT

SW Developer & ISVs

SW Developer & ISVs

Vertical Expert Vertical Expert


Introduction of the Cisco Partner Ecosystem

Solutions Providers/ Systems

Integrators

Technology Partners

Distributors

Learning Partners

Service Providers

(SPs)

Cloud Partners

IoT Developers

Independent Software Vendors (ISVs)

Consulting Partners

Services Partners


Next Generation of the Channel Partner Program: 4 Key Objectives


Accelerate Global Commerce

Simplify and enrich rewards/profitability

Differentiate with

Solutions

Enable Partner of the Future.

Hybrid IT, LoB selling, Expanded Services

Thank you.

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