IP Innovation for Customer Success · Fix the basics: make the network intelligent $ / bit TCO of...

© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 0

IP Innovation for Customer Success

Paolo Campoli

Head of SP Architectures and Vertical Sales

Cisco, European Markets


John Chambers,Chairman and CEO, Cisco

―Cisco’s strategy is based on catching market transitions—the market transitions that affect our customers. With the proliferation of video and collaborative Web 2.0 technologies, the network continues to evolve from the plumbing of the Internet—providing connectivity—to the platform that will change the way we work, live, play and learn.‖

The Network as the Platform…

Western Europe IP Traffic Growth Consumer IP traffic outpaces business IP traffic (traffic volume and growth rate)

36% CAGR 2009–2014

87%

13%

© 2010 Cisco Systems, Inc. All rights reserved. 2

Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014

Global Consumer Internet Traffic GrowthVideo replaces P2P as top traffic type in 2010

36% CAGR 2009–2014

46%

10%

27%

15%


Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014

* VoIP, Online Gaming, and Video Calling contribute 1% or less in 2014.


Challenge of Shifting Environment

MonetizationNew revenue streams

OptimizationEfficient delivery

Profitability

Traffic

Revenue

Animated slide


Monetizecore assets

Innovate in Rapidly Changing

Environment

Optimize Costs

Service Provider Business ChallengesValue Shifting from Simple Access to Service Enablement

Reduce Operational Complexity

Optimize costs

$

perGig

1997 2000 2002 2004 2006 2010

93%

E.g. Core

Routing

PacketTransport

Reduced Price per Bit

Fix the basics: make the network

intelligent

$ / bit

TCO of traffic

TCO of Intelligence

i

i

i

i

DistributedCentralized L4-L7 intelligence

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialP.CAMPOLI 8© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Focus on core assets

2.The Mobile InternetMobile Packet Core, IP RAN, Monetization, 4G / LTE, Mobile video

1.IP NGN Infrastructure

Access

RoutingIP+Optical NGA - FTTH IP Edge IP Core

4.Communication

& Collaboration

Web collaboration

Hosted Communication

B2B Telepresence

Application aware VPN

5. DC / Virtualization

Datacenter

consolidation

Automation

Virtualization

DC Interconnect, IP

SustainabilityFinancial Engineering

3. IP & TV

HeadendsIP STB

RF overlay

Videoscape

Content Distribution

Collaboration Broadcasters / OTT

VQE


Disruptors

Responding to ChangeCapturing Market Transitions

Video

Collaboration

Video

Mobility

Virtualization

Pervasive mobile Internet

Content sharing among communities

Lifestyle optimization

From mainframe to minicomputer to client-server Web and cloud

Blurring of private and public value chains

40% of ICT to be delivered via Cloud, XaaS

Rapid business-model innovation

Intra-company and inter-company collaboration

Millennials: Balancing privacy & opennessFutu

re

of W

ork

Futu

re o

f

Com

puting

Futu

re o

f

Connecte

d L

ife

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

Quality of Experience

PlanningAuto

Configuration

Visibility and

MonitoringOptimization

Any to Any

Video Adaptation

Automation and rapid problem resolution in the network to deliver

application quality of experience, particularly video

Rapid

Problem Resolution


A remote expert joins a TelePresence session

between the VP of sales and the customer ad-hoc via TelePresence

Hmmm… Mediatrace identifies the

bottleneck to be between NY and London


• IP Video SLA

• IP embedded video monitoring (VidMon)

• IP Multicast for SD and HD streams, Multicast VPN

• End to end design and consistency

Value shifting to Cloud and Devices

CE/Over The Top

Brand power

Building application & content eco-systems

New Streaming subscription services

Service Provider

Multi-screen offering becoming table stakes

Partnerships &Vertical Integration

Rising churn and Subscriber acquisition cost

Broadcasters and Media

New distribution platform & interactive content –

Sky Sport TV on iPad / RTL on iPhone & iPad

Hybrid Broadcast Broadband TV: HbbTV

New business models –Hulu 2009 revenue: $100M

1st half 2010 revenue: $100M

Consumer Behavior

Netflix = 20% of US downstream internet traffic in peak times

Online Video Snacking 11.4 Hour /month

Video = 91% of consumer IP traffic by 2014

20%

Connected TV Forecast (2009-2014)

Source: Quarterly TV Design and Features Report

Use of connected devices

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 16

Video moving to Cloud

STB will become pure commodity

http://static.slidesharecdn.com/swf/ssplayer2.swf?doc=netflixoncloudfordevandops-101106230811-phpapp01


Google TV


Cloud + Network + ClientQuality of Experience

Introducing Cisco Videoscape

Investment ProtectionExtended to Legacy Infrastructure

Videoscape

Integrated TV ExperiencesAcross Devices, Networks & Content


Competitive Differentiation

Unified experience beyond TV Universal Guide

SP customized UI & UX

Did We Mention DVR?

Unified experience beyond Android & Apple devices

Quality of Experience

QoEsp vod catalogue

Search with VoD catalogue & DVR recordings


Assisted living

Home office


Open Services Platform– App-stores ?

prezo4Telecomprezo4Telecom


IP Managed ServicesHome GatewayMulti-use Options

Deployment & Services:SmartPlug

Internet Enabled TV / DMA

Family RoomSTB

USB Flash Drive / Disk

StorageFile Server

Thermostats

AlarmPanels

UPnP-AV / DLNA Media Server

Internet Radio

USB 2.0

VoIP SIP/IMS Analog Phones

FXS

Broadband Internet

802.11n WiFi

Network Printer

ComputerInternet Enabled

TV / DMA

10/100/1000Ethernet

Z-Wave / ZigBee

Sensors

Smoke Detector

Radiator Valve

eHealth

3G/4G

MobileData

Internet

Smart Meter

Business toBusiness

NGNInfrastructure

Cisco’s Service Provider

Business ArchitecturesRedefining the SPs’ Value Proposition in Two Key Value Chains

Managed/Cloud Services

Video and Connected Home

MobileInternet

Business toConsumer

Working with

Simon Orme, BT Wholesale

Jean-Christophe Dessange, Cisco

September 2010

Next Generation Content Delivery Platforms- Customizing CDN for the marketplace

Current thinking. Subject to change.


End-to-End Network IntelligenceNetwork Monetization, Optimization, and Service Velocity

HTML, XML, IMS, XMPP, etc.

Open Standards

IETF, IEEE, GSMA and Others

Network

Cisco solutions help you attract new customers, retain existing

customers, and move all customers up the value chain

ApplicationDevelopers

Broadcasters

Advertisers

Content Aggregators

Retailers

Cloud Services

ClientDevices

© 2010 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialFinland Mobile Cisco Days, April 2010 27

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 2009–2014

Mobile Internet : It’s there…

>5B devices + M2M 39-fold traffic increase

Mobile outgrows Fixed 2.4X

By 2014 …

Video = 66% of traffic mix

EnhancedComputing

More Mobile DataMore Mobile Devices

Rich Media Apps/Content

3,900% Increase in Data Traffic

from 2009–2014

© 2010 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialFinland Mobile Cisco Days, April 2010 28

Packet Core Economic Value

RadioBackhaul

Intelligent

Packet Core

RNC

2G/3G

LTE

Cost Savings Monetization

RAN

CA

PE

XR

even

ue

OP

EX

Incremental Core

Investment

“On-Net”

Managed/Hosted Content

“Off-Net”

Over-The Top Content


MONETIZATION: Maximize Revenue With Tiered PricesHigh ARPU from power users; Grow TAM to low-end

A business case developed by Cisco with Network Strategy Partners projects a US operator with 1.5 million

mobile data subscribers would grow to 2.2 million subscribers (47% growth), increase revenue by US$22.9

million per month, and realize an ARPU increase of US$6.85 per month (14% increase in ARPU).


MonetizationZero/Lower

RateBandwidth

ManagementPriority

HandlingContent Filtering

One Network,Any G,

Any Screen

On-Net Apps

Speed Tiers

Day pass

Family Data Plan

Cultural Norm Compliance

P2P App Management

Parental Controls

Freemium

Off-Peak Usage

Data Roaming

Turbo Boost

Corporate Work/Play Plan

Cloud PriorityServices

Premium Video

Cisco Policy & Charging Control (PCC) Solution

Deep Packet InspectionEnhanced Charging

App Detection and OptimizationContent FilteringHeader Enrichment Ad Insertion

Fir

ew

all

NA

T

Data Center

Cell siteRAN

Backhaul CarrierEdge

Packet Core

In-line Services IP Core

Broad Portfolio of Data Monetization Use Cases

Mobile TV


2000 2005 2011

Adoption CurveCloud Computing

Public or PrivateTraditional

Data Centers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cloud total addressable

market estimated at

$70B in 2010—10% of

Data Center market … IDC 2011

By 2015, 50% of all CIOs expect

to operate the majority of their

applications/infrastructures

via the cloud … Gartner 2011

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 32

Service

Providers

Systems Integrators &

Server Vendors

• End-to-End Network/IT

• Security & SLAs

• Application QoS to CPE

• Priced higher than OTTs

• Professional service

capabilities vs. large SIs

Typical

Players

Challenges

Unique Assets

-

Competitive

Advantage

• Global Footprint

• Massive Scale

• Fast Moving

• Stability Concerns

• Security & privacy

• Strong SI Capability

• Enterprise Trust

• SMB Channels/Brand

• No End-to-End

Control

Service Providers: Unique opportunity in converged Network-IT Cloud services

Source: Cisco IBSG SP

Internet Companies

(“OTT”)


Deliver products, solutions & services to organizations to build secure Clouds

Enable Service Providers to deliver secure Cloud + Network solutions and services to customers

Advance the market for Cloud by driving technology innovation, open standards and ecosystem development

Cisco’s Cloud StrategyAddressing Our Customers’ Business Challenges


Customer

Unified Service Delivery: Transforming Services with a Secure Virtual Experience

Unified Service

Delivery

SP Data Center IP NGN

Collaboration

Information

Entertainment

Secure Virtual Experience


Unified Service Delivery Trusted Pathway to Cloud Service Offers

Unified Service

Delivery

SP Data Center

DC—CO—VHOCommunication

IP NGN

Unified

Computing

Virtualization

Unified

Fabric

Nexus Family

Nexus 1000V

Unified

Computing System

Media Aware

Distribution

Peering and

Interconnect

Network

Intelligence

and Quality

Security and

Application

Performance

Video Delivery Product Suite

IOS, IOS-XR, Medianet

APM, WAAS, Mgd. Security

CRS / ASR Families

Foundation Technologies


Error Repair &

Fast Channel

Change (VQE)

Internet Cache

Video Probe

TV Cache

Personalized

ExperienceVirtual personal

channelsPersonalized ads

FlexibleMultiple

applications –scalable and

adaptable architecture

Content

ChoicesVoD, Online,

User generated content

Ensured

ExperienceIntegration of Error repair at

edge

Best-in-Class Multicast

Replication & QoS for

Broadcast Video

High Density for VoD

Bandwidth Requirements

Inline Video Monitoring

Integrated Caching &

Streaming

VQE – Error Repair & Fast

Channel Change

Innov ation

Monetization Optimization

Operational Excellence


Focus on Key Market Transitions

Consumer Video/

Connected Home

Mobility & Connected

Life

VideoSolutions

HostedSoftwareServices

TelePresenceand Managed

Services

Next Gen Service Provider

Infrastructure

Mobile

Internet

Managed and

Cloud Services

IP NGN Architecture


Innovation

Monetization Optimization

Operational

Excellence

IP Innovation for Customer Success · Fix the basics: make the network intelligent $ / bit TCO of...

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