NTT Survey Read-out, NFV-enabled Services April 29, 2015.

NTT Survey Read-out, NFV-enabled Services

April 29, 2015

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Survey Overview

3 Regions: North America, Europe, Asia Pacific 8 Countries:

• USA, Canada, UK, France, Germany

• Hong Kong, Singapore, Australia

201 Respondents 20 Questions (including screeners) Target: IT mid-senior personnel, LOB managers


Distribution of Respondents

36%

39%

25%

RegionAmericasEuropeAsia

32%

4%13

%13%

12%

8%

8%

8%

CountryUSACanadaUKFranceGermanyHong KongSingaporeAustralia

N = 201

22%

27%36%

15%

Company Revenue

$100M to $500M

$501M to $999M

$1B to $4.99B

$5B to $10B

19%

24%

20%

20%

17%

Industry

Manufacturing

Healthcare

Distribution/Retail

Services

Transport/Utilities


Distribution of Respondents by Job Title

Vice President of TelecommunicationsDirector of Telecommunications

Director of Datacenter OperationsChief Financial Officer (CFO)

Director of FinanceDirector of Operations

Manager of OperationsManager of Finance

Manager of Datacenter OperationsManager of Telecommunications

Vice President of ITPresident or Chief Executive Officer (CEO)

Chief Information Officer (CIO)Chief Technology Officer (CTO)

Manager of ITDirector of IT

0 5 10 15 20 25 30

Percent of Respondents

N = 201


Summary of Key Findings

Top WAN Concerns• Security, Reliability and Redundancy

Top Pain Points• In-house resources, Security, Global consistency of services

WAN Services Purchasing Criteria • Secure Internet, SSL VPN, CPE Support

Service Provider Capabilities• Quality of Service, IT capabilities, Innovative capabilities

WAN access to Cloud Hosts• Infrastructure management, security


Summary of Key Findings Continued

Enterprise views on SDN/NFV • 90% Familiar with SDN/NFV concept

CSP current/future SDN/NFV capabilities• 91% will require these capabilities

Deployment Plans for Managed NFV enabled services• 71% of enterprises will deploy in 1-2 years

What the most desired SDN/NFV Services• Over 55% prefer SSL/Cloud-based VPN

Enterprise views on benefits of SDN/NFV• 60% choose Better Cost efficiency & Flexible Pricing

Enterprise views on top challenges of SDN/NFV• Security is key issue and #1 for 38%

Top 3 Challenges for Network Function Deployment• Migration & High Network CPE Costs both 39-40%


Top Concerns with WANQ: Which of the following are the top 3 concerns that your company faces in maintaining the corporate WAN?

Security risks relating to internet browsing or access

Network outages (network reliability)

Backup solutions

Higher TCO of network devices

Operational complexity due to multi-CSP connections

On-site support for offices

Maintaining many distribute network hardware devices

Lack of visibility and governance over each locations

Latency

Poor Application Performance

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

N=201Base=All Respondents

Q14


Top WAN Challenges: 1) Security, 2) User Experience, 3) In-house Management of the WAN are leading challengesQ: Which of the following best reflects your view of the following WAN challenges as they relate to your company?

Management of branch offices connectivity

Audit and compliance related to the network

Need for better analytics about the applications and resources using the network

Time to deploy a new service to a site

Complexity associated with interconnecting multiple transport types (MPLS, Ethernet, Internet, leased lines, DSL, LTE)

Growing annual costs to provide additional bandwidth

Managing consistent user experience for enterprise WAN-Cloud Connect and cloud applications

Security requirements relating to internet browsing or access

In-house management of enterprise WAN networks

0% 20% 40% 60% 80% 100%

This is a critical priority because it directly impacts business performanceThis is important for IT, but it does not directly impact business performanceThis is of moderate impor-tance for the IT organizationThis is not an important issue for the organization

N = 201

Q4

Business IT


WAN Service Purchase CriteriaQ: In priority order, which of the following CSP network WAN services needs to be addressed before your company would be ready to make a purchase commitment?

Secure Internet Access

VPN access for travelers & home offices (SSL access)

Hardware maintenance

Management of local ISPs

Integration of BYOD and CYOD

Internet offload for all offices

Network Congestion/Slow throughput

QoS Settings

MPLS VPN

0% 10% 20% 30% 40% 50% 60%

Total (N=201)


#2 in Europe

#1 for Manufacturing

45% Distribution Vertical

Q15


Top Issues Impacting Networking Purchasing Decision: (Regional & Functional Perspective) Q: When purchasing telecommunication, wide area network and Internet services for your company, what are the most important aspects to consider?

“Top 3” Aspect Americas Europe Asia

Quality of Service/Support a a aAbility to provide IT and application services as well as network services

a a aTechnology innovation a aPerformance and service level agreements a

“Top 3” Aspect IT Business

Quality of Service/Support a aAbility to provide IT and application services as well as network services

a aTechnology innovation aContract Pricing/Flexibility a

Full List of choices:(ordered by frequency of selection by respondents)

1. Quality of service and support 2. Ability to provide IT and application

services as well as network services

3. Technology innovation 4. Performance and service level

agreements 5. Pricing 6. Contract/pricing flexibility 7. Cloud services strategy 8. Geographical coverage 9. Ability to provide wireline and

mobile/wireless services 10. Service management features via

self-service portal 11. Ease of doing business with the

provider 12. Vertical/industry expertise

N = 201

Q1


Key Drivers for WAN access to cloud hostsQ: What type of enterprise WAN functionality will likely require delivery of WAN access to cloud hosts?

Will not require WAN access to cloud hosts

IP PBX

Messaging/collaboration/unified communications

Desktop management (e.g., PCs, laptops)

Mobility (remote access)

LAN/WLAN management/monitoring

WAN optimization

IT infrastructure management

0 10 20 30 40 50 60

Percent selecting each option

N = 201

Desktop mgmt rises to #2 in

North America

WAN Monitoring is a strong #1 for very large enter

& #2 Europe

WAN optimization is #1 for Healthcare

LAN monitoring is top pick for

Retail/distribution

Q9


CSP SDN & NFV CapabilitiesQ: How important are the SDN and NFV capabilities of a Communications Service Provider (CSP) to your company's current or future plans to implement NFV-enabled services?

$100M to $500M $501M to $999M $1B to $4.99B $5B to $10B0%

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

100%

Not important

Little importance

Important

Very Important

91% of ALL respondents believe SDN and NFV capabilities of CSP are important or very important

for future NFV services

N = 201

Q6


Plans for Managed NFV-enabled servicesQ: When do you expect managed NFV-enabled services and solutions to be deployed by your company?

Americas Europe Asia0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Plan to use in more than 2 years

Plan to use within 12-24 months

Plan to use within 1 year

Use now

With a late start, Europeans appear poised to make a strong push into

NFV in 2015

N = 201

Q7


Enterprise Ranking of NFV-based ServicesQ: For which of the following NFV-enabled solutions is your company likely to consider using a CSP?

Cloud-based Application Acceleration Service

Virtual CPE Branch office connectivity

Data center interconnect

Cloud-based IPSEC VPN Gateway

Cloud-based Secure Web Gateway

Virtualized or Cloud VPN

Cloud-based SSL VPN

0 10 20 30 40 50 60 70

Percent selecting each option

DCI and Virtual CPE are ranked a couple of steps

higher by respondents

from Asia

Cloud SSL is the overwhelming favorite across

regions and verticals

N = 201

Q8


Top benefits of NFV enabled ServicesQ: What do you see as the three most important benefits of carrier SDN and NFV-enabled solutions?

No dependency on specific hardware vendor

Flexibility for short term projects

Avoid the cost and challenge of in-house communication equipment set-up, configuration, maintenance

More rapid installation and deployment

Flexible pricing/subscription-based pricing

Better cost efficiency

0 10 20 30 40 50 60 70

Cost rises to the top on the list of business-centric attributes

Percentages are computed from respondent’s top-3 choices

Services sector strongly favors flexible pricing as their #1 (82%)

Healthcare respondents rank in-

house replacement as their strong #1

N = 201

Cost, Pricing and rapid deployment seen as top 3 benefits of NFV enabled Services

Q11


Haven't heard about other companies already using the service

SLAs for NFV-enabled services

Availability of services throughout footprint

Lack of interoperability of services

Lack of understanding of the benefits of NFV-enabled services

CSP expertise with NFV & SDN solutions

Migration costs

Relatively new technology

Security related concerns

0 10 20 30 40 50

11

14

18

19

19

25

26

27

38

N = 201

Migration costs the #1 concern for smaller enterprises

(<$500M) and Americas region

CSP expertise rises to #2 in Europe

Security is #1 or #2 concern across all regions, sectors and

sizes of company

Q12

Top concerns for adopting NFV-enabled network servicesQ: What are the top 2 concerns for your company to adopt NFV-enabled network services?


Top 3 Challenges for Network Function DeploymentQ: Which of the following are the top 3 challenges that your company encounters when deploying new network functions (ex. QoS, Application acceleration, etc.) or new locations to your corporate WAN?

Migration issues between old and new provider

High network CPE costs

ISP management

High connectivity charges

Lead time for service delivery

In-country staffing/in-region IT personnel

Non-disruptive installation

Reaching/supporting remote locations

Lead time for signing the contract (legal discussions)

Lead time for quote

0% 5% 10% 15% 20% 25% 30% 35% 40%


Top issue in APAC

#1 for Healthcare

#1 $1-5B Business

Q13


Survey Highlights & InsightsSurvey

question Insight / highlight

Q1 Interesting to see CSP’s Application & IT services expertise as #2 priority for enterprise buyers (all regions)

Q3 Pay-per-use is #1 option for APAC & WE, whereas US wants to move to outside hosting of services

Q4 Which of the following best reflects your view of the following WAN challenges as they relate to your company?, No surprise that Security is # 1, and that enterprises are recognizing that consistent user experience will be a big challenge as #2

Q6 Surprised that 91% of ALL respondents believe SDN and NFV capabilities of CSP are important or very important for future NFV services given that many enterprises have not yet even been exposed to NFV and that NFV services are nascent. Also 90% had familiarity with SDN & NFV

Q7 Europeans appear poised to make a strong push into NFV in 2015

Q8 DCI high in U.S. and APAC reflecting the high amount of content and web 2.0 companies based in those 2 regions, vCPE high in APAC which is interesting

Q9 Diverse responses: WANop & Infra Mgmt # 1 as important WAN Access to Cloud for U.S., LAN/WAN monitoring in EMEA, Security & IT Infrastructure in APAC

Q10 Security policy mgmt and full managed solutions top attributes for a NFV service in all segmentsSelf-deployment, self-management capabilities fail to make the top three

Q11 Cost efficiency & flex pricing top 2 business attributes- no surprise

Q12 Concerns with NFV: Security & migration for U.S., Security & NFV CSP expertise in EMEA, Security & SLA for NFV for APAC

Q13 Migration between providers & High CPE cost key inhibitors for WAN functionality enhancements

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NTT Survey Read-out, NFV-enabled Services April 29, 2015.

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