WAN Optimization: Market Trends and Cisco...
Transcript of WAN Optimization: Market Trends and Cisco...
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1
August 23, 2007
WAN OptimizationMarket Trends and Cisco Strategy
George Kurian, SVP ADBU
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 2
GAAP Reconciliation and Forward-Looking Statements
During this presentation references to financial measures of the Company will include references to pro forma financial measures. Cisco provides a complete reconciliation between GAAP and pro forma financial information on our website at www.cisco.com under “About Cisco” in the “Investor Relations” section.
www.cisco.com/go/gaap_recon
GAAP RECONCILIATION
FORWARD-LOOKING STATEMENTS
This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of the Company, including future operating results. These projections and statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see the Company’s filings with the SEC, including its most recent filings on Forms 10-K and 10-Q, for a discussion of important risk factors that could cause actual events or results to differ materially from those in the projections or forward-looking statements.
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Topics for Discussion
Market Drivers
Technology and Solution Overview
Customer Use Cases
Cisco Strategy
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WAN Optimization:Top of Customer Spending Priorities NOW…
WAFS/WAAS #1 Storage Prediction for 2007:
Consolidation and securing of information at branch or remote offices will be a major issue for IT storage managers
“While there are many ways to tackle the remote data management problem, ESG believes that WAFS has clearly emerged as a front-runner in this battle…”
WAN Acceleration should continue to be one of the most robust growth markets… into 2007”
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“WAN Optimization” Segments
Data-Center to Data-Center– Point to point– Typically backup focused/file transfer applications– Smaller niche market
Data-Center to Branch, Branch to Branch– Hub-and-spoke, increasingly mesh network– By far the largest market segment– Broad range of applications
Mobile Worker/Desktop/SOHO– Very early with several significant barriers to broad adoption– Desktop vs. Application vs. Remote Access
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 6
Today: Remote/Branch Office IT IssuesBranch Office Growth**– 88% of employees now work
AWAY from HQ– Fast growth in # of branches
Data Center and Remote infrastructure Consolidation– File, print and email servers– Storage and backup– WAN bandwidth
Data protection/Compliance– Failing backups / lost data– Costly off-site vaulting
Application performance– Bandwidth, Latency, Packet loss– New application deployments
App/file/printServers
LocalStorage
Backup
Users/Desktops
SwitchRouter
** Source: Nemertes Research
Companies spend $6 Billion per year on branch servers, storage, backup and data management
Source: IDC, Gartner, Cisco Analysis
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The “Big 8” ServicesMost Widely Deployed Remote/Branch Services
1. Email (92%)
2. File Services (88%)
3. Print Services (74%)
4. Security (network and server) (72%)
5. Networking Servers (DHCP, DNS, RADIUS) (63%)
6. Database Servers (62%)
7. Server and Storage Backup (55%)
8. Web Servers (52%)
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The Impact of Latency and Loss
1.544Mbps
500Kbps
Coefficient of Latency and Loss
Thro
ughp
ut
ActualActual
ExpectedExpected
Low
5.02.1
pRTTMSSR =
R : Average ThroughputMSS: Packet SizeRTT: Round-Trip TimeP : Packet Loss
High
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 9
Application-Specific Acceleration
Application and Protocol Optimization– Minimize chatter through protocol
proxy-caching, read-ahead, write-behind, and other optimization
– Safe caching for data coherency– Scheduled, agent-less, pre-
positioning
Server Offload vs. Overload– Caching and optimizations minimize
workload on accelerated servers enabling consolidation along with centralization
– Consolidation enables the ‘green data center’ and power/cooling/ space savings
Remote Office Data Center
WAN
Object Cache VerificationSecurity and ControlWAN Optimization
Server Safely OffloadedFewer Servers NeededPower/Cooling SavingsLAN-like Performance
WAN Bandwidth Savings
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Eliminates redundant data patterns being re-transmitted and compresses data that must traverse the WAN– Data Redundancy Elimination (DRE): Application-agnostic
compression eliminates redundant data from TCP streams providing up to 100:1 compression
– Persistent LZ Compression: Session-based compression provides up to an additional 10:1 compression even for messages that have been optimized by DRE
Scalability, search effectiveness, disk-based history
DRE DRE
LZ LZ
Advanced Compression
SynchronizedCompression
History
WAN
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TCP optimization to improve throughput (“fill the pipe”) and shield end-nodes from unruly WAN. – Bandwidth scalability - help certain applications ‘fill-the-pipe’– Connection fairness - ensure bandwidth is allocated fairly amongst flows– Loss mitigation - selective acknowledgement and retransmission– Slow-start mitigation - improve connection setup time
TCP Proxy architecture enables flow compression as opposed to per-packet compressionEnd-users experience fast acknowledgement
TCP Optimization
LAN-like TCP Behavior
WAN DREPLZ
DREPLZ
TCP TCPTCP TCP
LAN-like TCP BehaviorOptimized TCP Connections
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TCP Convergence - Cisco vs. CompetitorSe
gmen
ts/R
TTcw
ndSe
gmen
ts/R
TTcw
nd
TimeTime
HS-TCP causes bandwidthstarvation for non HS-TCP
flows
HS-TCP causes bandwidthstarvation for non HS-TCP
flows Segm
ents
/RTT
cwnd
Segm
ents
/RTT
cwnd
TimeTime
HS-TCP implementation provides bandwidth scalability but can not provide fairness across multiple connections especially when there is an RTT disparity
Cisco WAAS TFO, on the other hand, provides fairness across connections and bandwidth scalability even with RTT disparity
Competitor HS-TCP Cisco WAAS TFO
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Results: Powerful Acceleration of Key Applications
Category Applications 2X 5X 10X 25X 50X 100X+
File Sharing CIFSNFS
Email Microsoft ExchangeLotus NotesInternet Mail
Web andCollaboration
HTTPWebDAVFTPMicrosoft Sharepoint
Software Distribution
Microsoft SMSAltirisHP Radia
EnterpriseApplications
Microsoft SQLOracle, SAPLotus Notes
BackupApplications
Microsoft NTBackupLegato NetworkerVeritas NetbackupCommVault Galaxy
Data Replication EMC SRDF/AEMC IP ReplicatorNetApp SnapMirrorData DomainDouble-TakeVeritas Vol Replicator
2-20X Avg >100X Peak
2-5X Avg 20X Peak
2-10X Avg 100X Peak
2-20X Avg >100X Peak
2-5X Avg 20X Peak
2-10X Avg 50X Peak
2-10X Avg 50X Peak
Category Applications 2X 5X 10X 25X 50X 100X+
File Sharing CIFSNFS
Email Microsoft ExchangeLotus NotesInternet Mail
Web andCollaboration
HTTPWebDAVFTPMicrosoft Sharepoint
Software Distribution
Microsoft SMSAltirisHP Radia
EnterpriseApplications
Microsoft SQLOracle, SAPLotus Notes
BackupApplications
Microsoft NTBackupLegato NetworkerVeritas NetbackupCommVault Galaxy
Data Replication EMC SRDF/AEMC IP ReplicatorNetApp SnapMirrorData DomainDouble-TakeVeritas Vol Replicator
2-20X Avg >100X Peak
2-5X Avg 20X Peak
2-10X Avg 100X Peak
2-20X Avg >100X Peak
2-5X Avg 20X Peak
2-10X Avg 50X Peak
2-10X Avg 50X Peak
• Centralize or deploy applications directly from the data center• LAN-like branch user experience• No changes to clients, servers, applications• Preserve network and security policies
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 14
Two Different Strategies for WAN OptimizationINTEGRATED APPROACH
(Cisco WAAS + IOS)
WAN Optimization integrated with packet network to “share the WAN with other traffic”– Out-of-band deployment– Packet traffic management
services left on packet platforms e.g. QoS remains on router
– Fairness to other non-optimized network flows
– Integrate WAN Optimization traffic routing with the routing topology
– Integrate WAN Optimization with Security policies
OVERLAY STRATEGY(e.g. Traditional Vendors)
WAN Optimization built separate from packet network & “owns the entire WAN link”– Inline deployment– Try to migrate all packet traffic
management services onto acceleration devices e.g. QoS on WAN Optimization device
– Limited concern for other non-optimized flows
– Separate WAN Optimization traffic routing from packet routing topology
– Either build security into Optimization engines or tunnel traffic through security devices
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 15
WAN Optimization Trends
Taneja Group 250 IT Director Survey, May 2007
0% 10% 20% 30% 40% 50% 60% 70%
Industry-leading perfo rmance
Converged capabilities to address more than one issue
Transparent integration with network elements
M odularity to meet my specific operating environment
M easurable and immediate data recovery
End to end security fo r my remote environment
Zero data loss guarantee
Centralized management capabilities
High scalability across many sites
Integration with existing network technologies
0% 10% 20% 30% 40% 50% 60% 70%
Industry-leading perfo rmance
Converged capabilities to address more than one issue
Transparent integration with network elements
M odularity to meet my specific operating environment
M easurable and immediate data recovery
End to end security fo r my remote environment
Zero data loss guarantee
Centralized management capabilities
High scalability across many sites
Integration with existing network technologies
Enterprise Purchasing Priorities for WAN Optimization
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Cisco WAAS – Integrated with Cisco IOS
Security- Stateful Inspection- Firewall Policies- Signature Matching
Control- Classification- Drop or Mark- Policing
Visibility- NetFlow
Intercept- WCCP
Optimize- L7 Acceleration- Compression- Flow Optimization
Secure- Disk Encryption- Firewall Compliance
Routing- Static- Dynamic- Optimized
Security- Stateful Inspection- Firewall Policies- Link Encryption
Control- Shaping
Visibility- NetFlow
WAN
Cisco Integrated Services Router (ISR)Integrated Security and WAN Optimization
Egress Security,
Control, and Visibility
RouteSelection
Intercept and
Optimize
Ingress Security,
Control, and Visibility
LAN
Cisco WAAS integrates seamlessly and transparently into network security, visibility, and control functionsCisco WAAS integrates seamlessly and transparently Cisco WAAS integrates seamlessly and transparently into network security, visibility, and control functionsinto network security, visibility, and control functions
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Traditional WAN OptimizationDisruptive to Packet Network Services
Security- Stateful Inspection- Firewall Policies- Signature Matching
Control- Classification- Drop or Mark- Policing
Visibility- NetFlow
Routing- Static- Dynamic- Optimized
Security- Stateful Inspection- Firewall Policies- Link Encryption
Control- Shaping
Visibility- NetFlow
WAN
Egress Security,
Control, and Visibility
RouteSelection
Ingress Security,
Control, and Visibility
LAN
WAN Optimization Tunnel:
Client and Server IP/TCP header data replaced with WAN Optimization header = WAN Optimization Tunnel
Cable break to insert appliance
WAN Optimization Tunnel:
Client and Server IP/TCP header data replaced with WAN Optimization header = WAN Optimization Tunnel
Cable break to insert appliance
No stateful inspection on original flow
Firewall policies not adhered to due to tunnel! All optimized traffic funneled through a new port that must be open!
Virus and other malicious traffic not blocked by IDS/IPS due to inline compression!
No stateful inspection on original flow
Firewall policies not adhered to due to tunnel! All optimized traffic funneled through a new port that must be open!
Virus and other malicious traffic not blocked by IDS/IPS due to inline compression!
Classification and control fails due to use of tunnels!
Traffic that should be dropped is permitted through, flows not marked correctly and not policed!
Classification and control fails due to use of tunnels!
Traffic that should be dropped is permitted through, flows not marked correctly and not policed!
Limited Visibility
NetFlow reports only pass-through traffic & tunnel traffic -network monitoring fails!
Limited Visibility
NetFlow reports only pass-through traffic & tunnel traffic -network monitoring fails!
Static Routing only
Router unable to make dynamic or optimized routing decisions due to tunnel!
Static Routing only
Router unable to make dynamic or optimized routing decisions due to tunnel!
No stateful inspection on original flow
Firewall policies not adhered to due to WAN Optimization tunnel!
No stateful inspection on original flow
Firewall policies not adhered to due to WAN Optimization tunnel!
Traffic shaping rendered useless due to WAN Optimization tunnel
Traffic shaping rendered useless due to WAN Optimization tunnel
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Deployment Considerations: Cisco +NetQoSIndustry’s Only Trusted WAN Optimization Solution
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• Link utilization before and after WAAS
• Protocol distribution before and after Cisco WAAS
• Client-Side transaction time decreases greatly
• WAN-Side transaction time decreases more
Transaction Time and WAN Traffic DistributionBefore and After Cisco WAAS
Optimize On
Optimize On
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 20
Momentum: 1,000+ WAAS CustomersCisco Strategy is Working
Lowest TCO
Ease of integration through network transparency
Reliable voice/data deployment
Maximized overall security
“Cisco WAAS has proven to be an essential component for the success of our server centralization initiative. Our opex and data integrity have appreciably improved.”Bill Waszak, CIO, Scotts Miracle-Gro Company
“Cisco WAAS accelerated Microsoft Dynamics CRM application better than our incumbent solution, while offering better performance and ease of integration with VoIP infrastructure.”Dave Kizer, Director of IT, Nanometrics
“Other acceleration products use single-point tunneling, but Cisco WAAS protects our existing investments in voice and data policies. Cisco entered the market with best technology in this arena.”Clifford Clarke, CIO, City of Fort Wayne, Indiana
Cisco WAAS is the most transparent and easiest solution to implement and integrate as it does not require us to overhaul our security infrastructure.”Mark Drake, Health Management Associates
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WAAS solves Major remote office IT and Employee Productivity problems
3 Month ROI, $1.3M annual productivity gain5x improvement in app performance“Our staff is elated with the 500 percent increase in application acceleration.”Dave Brady, VP of IT
Remote Application Performance• Productivity improvement for business
applications (email, office, ERP, CRM)
WAN Optimization• Defer bandwidth upgrades• Simplify VOIP deployment on WAN by
recovering bandwidth from data apps
1.3 Months ROI due to deferred WAN bandwidth upgrade“We are seeing an average of 60% capacity improvement for our WAN bandwidth.”
Steve Rains, System Director, Information Technology
Branch Server Consolidation• 4-6 servers per remote location (file, print,
software distribution etc.)• $10K+ savings in opex per server
$144K/year OpExSaving. 6X faster medical image transfer“Cisco WAAS is the most transparent and easiest solution to implement … as it does not require us to overhaul our security infrastructure.”Mark Drake, Network Engineer
Eliminate RoBO Tape Backup• Enables regulatory compliance• Tape backup/restore in the branch is costly
and tapes often get lost
$40K/year Savings60x faster application response time“WAAS clearly met our needs and is the most cost-effective solution among all alternatives that we evaluated.”Paul Babcock, Manager of Network & Computer Operations
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 22
Cisco WAAS Market Consideration
Source: TheInfoPro, July 9, 2007http://www.brainshark.com/brainshark/vu/view.asp?pi=301903117
“Cisco overtakes Riverbed as leading provider under consideration for WAN Data Compression and Acceleration Technologies…”
“TheInfoPro (TIP) today announced that in a reversal from its Wave 2 Networking study, Cisco has assumed the position of lead “in plan” vendor over Riverbed –by a nearly two to one margin…”
“Cisco overtakes Riverbed as leading provider under consideration for WAN Data Compression and Acceleration Technologies…”
“TheInfoPro (TIP) today announced that in a reversal from its Wave 2 Networking study, Cisco has assumed the position of lead “in plan” vendor over Riverbed –by a nearly two to one margin…”
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Forward-Looking StatementsThese presentation slides and the related conference call contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as the development of our markets, the future of networking, Cisco’s strategy and positioning, and our ability to foresee market transitions) and the future financial performance of Cisco that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry and in various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider and other customer markets; the timing of orders and manufacturing and customer lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; increased competition in the networking industry; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks, including risks relating to our continued transition to a new manufacturing model; product defects and returns; litigation involving patents, intellectual property, antitrust, shareholder and other matters; natural catastrophic events; a pandemic or epidemic; achievement of the benefits anticipated from our investments in sales and engineering activities; our ability to recruit and retain key personnel; our ability to manage financial risk; currency fluctuations and other international factors; potential volatility in operating results and other factors listed in Cisco’s most recent reports on Form 10-K and Form 10-Q. The financial information contained in these presentation slides and the related conference call should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco's most recent reports on Form 10-K and Form 10-Q, each as it may be amended from time to time. Cisco's results of operations for the three and nine months ended April 28, 2007, are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in these presentation slides and the related conference call are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of the presentation slides and the related conference call.