Richard Costello

Senior Research Analyst

IDC

The Connected Enterprise:

An Overview of Today‟s Key Enterprise

Network Technologies

Summary

This session takes a market perspective and explores

the growth of key network technologies that enterprises

are weaving together to support the distributed

enterprise in remote and mobile offices. Areas of

discussion include VoIP and enterprise telephony,

unified communications (UC) and collaboration, WAN,

wireless and mobility technologies.

Agenda

• Dynamics of the Cloud Era

• Market Landscape

• Vision for the New Network

• Essential Guidance

Key Themes Driving Enterprise Network

Evolution

Virtual

Social

Mobile

The enterprise network is evolving from a fixed, data-centric,

client server topology to an application-driven, multi-media and mobile

network, that is more closely aligned with business needs than ever before.

Continued Growth in the WW Enterprise

Network Equipment Market

U.S. Unified Communications

Market Forecast

*2009 to 2014 U.S. UC CAGR = 13.3%

2010 Market Size = $7.7b

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000

2009

2010

2011

2012

2013

2014

IP Telephony

Messaging (e-mail/IM/UM)

Web Conferencing

Video Conferencing

Integrated/Team Collaboration

Enterprise Social Networking

Mobility (FMC/mobile PBX)

Contact Center

Worldwide IP Telephony - Forecast

$6,460$6,991

$7,681

$8,583

$9,688

$10,766

$11,937

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2009 2010 2011 2012 2013 2014 2015

WW IP Telephony Revenue ($ millions)

- CAGR of 10.7% for forecast period – Source: IDC, 2011

Video and More Video:

Impact on the Enterprise Network

Video and related applications proliferate:

– Video-conferencing no longer niche

– Video surveillance and other streaming apps

– Enterprise video collaboration (training, marketing,

events, etc.)

IT will react to this video explosion:

– Throw more bandwidth at the problem

• Vendors will roll out 40/100G sooner

– Improved compression technologies (H.264 SVC

and H.264 High Profile – uses 50% less b/w)

– Deploy intelligent networks

IDC Enterprise Videoconferencing Equipment

Forecast, 2010-2015

- CAGR of 18% for forecast period – Source: IDC, 2011

$2,975

$3,629

$4,355

$5,139

$6,012

$6,914

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

2010 2011 2012 2013 2014 2015

WW Videoconferencing Revenue($ millions)

Key CIO Initiatives - Networking

•Need to reduce/optimize IT resources in

a tough economic environment

•Support for new emerging applications

(VoIP, Video, WLAN) and devices

(smart-phones, tablets)

•Integrated, seamless manageability

across the network and remote sites

•New virtualization services for both data

and communications (UC)

•Scalable infrastructure

- increased traffic

- new sites

- new services

Exploding Traffic Growth Stressing Networks:

Datacenter to the Edge

• Data centers have become the cornerstone of business…

MORE

APPLICATIONS

MORE

ON-DEMAND

ACCESS

MORE

DEVICES

MORE

CONTENT

…but the edge of the network is undergoing its own transformation.

Enterprise Networking Forecast by Technology

– 2011

The New Enterprise Network

The New Enterprise Network is an efficient, intelligent, converged fabric that extends from the edge to the data center

The New Enterprise Network is also VIRTUAL

Data centerApp Virtualization

Converged Infrastructure

Edge/BranchRemote Branch

Real-time applications

CampusSimplicityWired/Wireless Increased Bandwidth

Mobile AccessRemote/Teleworker

Smart Device User

1

4

3

2

Virtual Services Fabric

• Extends from the edge to the Datacenter, Core

• Provides integrity of identity from the user to the datacenter

• Adds Intelligence to your network infrastructure

– Orchestration of Data, Management and Control Plane

Home Offices, Mobile Users

Branch Offices

Regional Offices

Virtual Network Services – Examples

Visibility & Reporting + Visibility/Monitoring, Reporting on events based on severity

Identity Management + Authenticate user and provide appropriate application access

Device Intelligence + Auto-discovery of device on wired or wireless network

One-Click Provisioning + Automated provisioning and configuration of network devices

Content Filtering + Enforcing policy based on content (or user, location, device, etc)

Traffic Shaping + Bandwidth limiting, traffic optimization, etc.

Diagnostics + Cloud-based diagnostic tools, auto-remediation

Virtualization and the Network:

Best Practices Emerge

• Network managers evaluating

best practices

– Default build for IT

– Simpler, efficient provisioning,

configuration

– Optimized Traffic Separation,

Shaping

– Automation

– Regulatory, Compliance

• Built-in Intelligence based on user, device, application

and location

Adding Network Intelligence

Management

Control

Data

Centralized

Hybrid?

Distributed

The Datacenter Network Challenge:

Not Optimized for Today‟s Traffic

• Traffic patterns in the datacenter have changed due to

new application designs AND virtualization

– Explosion in VMs

• The network has not changed

• Current network has:

– Multiple Tiers and Uses

– Limitations of Spanning Tree: Slow to reconfigure, adds

multiple layers

• Multiple networks in the datacenter add costs and is

inflexible

Enterprise Data Center

High availability—always on

Pay as you grow

Ultra high capacity

Predictable performance under load

End-to-end solution

Some degree of automation

Drivers Requirements

Reduce TCO

Find means to simplifying the network

– Cost effective aggregation

– Investment protection for 10 GbE

Offer best in class services, need to control costs but deliver high availability

Quickly scale to meet demand, roll out new services

Campus LAN: Refresh Drivers

• More bandwidth, scalability in network infrastructure

– Growth of enterprise data and multi-media traffic

– 100Mb to 1GbE, 1GbE to 10gbE Upgrade

– Only 31% IT managers expect network to meet performance requirements in

next 12 months*

• Need for PoE and PoE+

– Driven largely by VoIP and 802.11n WLAN Upgrades

• Move to “Flatter” Networks

– Take distribution layer out where possible

• Introduce NAC-like capabilities

• Energy efficiency

Remote, Branch Office Needs

• Desire for unified communications and collaboration (UCC)

applications in an affordable footprint

• Improve customer walk-in experience (branch)

• Increase employee productivity and revenue per customer

• Access experts anywhere to increase customer transaction close

rate

• Flexible architecture to enable local adaptability through local

install or scale through delivery from a centralized location

• Leverage UCC apps to maximize customer interactions,

satisfaction, revenue

• Reduce cost of doing business

Remote Branch Network

• Strategic opportunity for IT to add business value

• Need for “many-to-many” even greater with real-time access needs, exponential

transaction growth

• Traffic partitioning, shaping, bandwidth controls, content filtering

• Delivering network as a cloud-based service?

Branch office

Internet

Cloud

ServicesCloud

Applications

Datacenter

Smart Mobile Devices

• Revenge of the consumer

– 2011 brings a different level of

legitimacy to mobility in the enterprise

• Mobility

– Healthcare, retail best use cases but

penetration becoming universal

• Collaboration

– Communicate with employees,

partners and suppliers globally

– Cross-platform mobile apps for

business applications

– Unified communications &

collaboration (UC&C)

– Videoconferencing

Smart Mobile Devices: Diversity, Explosion

• In 2011, 2x „smart‟ mobile devices

ship than laptops

• Drive an explosion in social

interactions, mobile transactions

and digital content creation

• Server and network infrastructure

needs to support resulting edge,

application and database workloads

• Collaborative, Web and security

infrastructure also important

Emerging WLAN Architectures

• Variants of centrally managed wireless

LANs continue to proliferate:

– Direct forwarding, controller-based

– Centralized vs. distributed control,

controller-less

• Unified- wired and wireless

• The differentiation still mostly around how

to handle the control and the management

plane

• Seamless WiFi – cellular handoffs,

improved in-building coverage using

DAS/other solutions

• Branch of one/teleworker

– Provisioning, secure access

Wireless At The Network Edge:

Will it Remain An Overlay Network?

26% of all APs

95%of all APs

• Increased diversity in 802.11n

deployments

- Single radio to multi-radio, multi-

spatial streams

• Tablets, smartphones drive demand

• Architectures become relevant

• Wireless best practices migrate

over to unified network

Source: Worldwide Enterprise WLAN Equipment 2010–2015 Forecast and Analysis, IDC, March 2011

Campus, Network Edge

Unify wired/wireless at the edge

Built-in redundancy

Device visibility, management

Energy efficiency

Security across the network

Traffic optimization, shaping

Drivers Requirements

Reduce TCO

Simplify; minimize overlay networks

Mobile device explosion

Video

Multi-site, geographic expansion

Regulatory compliance

Essential Guidance

• The dynamics around “Virtual, Mobile, Social” require a new way of

rethinking the network

• Today‟s new normal is dynamic

– Enterprises are investing in the network- data center to the network edge

– New ways of deploying the network includes virtual network services.

– Rethink the network; take costs out & increase flexibility

• Architect your network for tomorrow‟s needs

– An intelligent, secure network that excels in application performance

• Cloud will drive change on the network

– Unified fabric is becoming a reality

– Many-to-many

– 40/100G is coming- the drivers are there

– WAN is still complex and needs to be an enabler

Contact Information

E-mail me at rcostello@idc.com

Twitter: @rcostelloIDC