Preparing your business for SDN. Jason W. Rupe, Ph.D. Director, Operational Modeling Polar Star Consulting, LLC

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1 Preparing your business for SDN Jason W. Rupe, Ph.D. Director, Operational Modeling Polar Star Consulting, LLC

2 Network access control Network virtualization Virtual customer edge Dynamic interconnects Virtual core and aggregation Datacenter optimization

3 Service cases Network Disaster Recovery, extreme business event protection, emergency response Arbitrage, free market trade Enterprise Integrated Services

4 Trends Current use cases are isolated, solving specific problems in contained scopes. But as efficiencies get proven, application will spread to other parts of the business, and across enterprises, providers, vendors. Larger efficiencies happen as the core of the network begins to support the edge capabilities where SDN is living largely today.

5 Network Disaster Recovery Access control = Enable GETS Virtualization = Provide special emergency capabilities where needed, including broadcast information, special access, increased bandwidth Customer edge = special capabilities at the edge, including Dynamic interconnections Datacenter optimization

6 Arbitrage Each customer sets and hides their willingness to pay, calculated based on revenue and cost perhaps, and may be dynamic (change over time, updated frequently). Each customer may have more than one option that may or may not be competitive, with pricing updated with different frequencies, maybe overlapping with other customers, even some of the same ones. Goal is to set pricing for an optimal goal, sayprofit.

7 Optimize net utility A simpler arbitrage scenario is one where a set of customers compete for limited bandwidth of a single link. Each customer has a hidden willingness to pay. The question is how to set pricing to meet the overall best utility of the customer set. Unfortunately, we may not want this approach: an optimization with reasonable inputs results in a high availability product and a very low quality best effort product as optimal for a single link. However, this may give insight into how to price a link for protection only: sell a primary user the capacity at full price, and give access to spare bandwidth for those who need failure protection at a discount of about 20% price, and offer an availability SLA of about 0.4. A customer who wants better protection availability than 0.4 can purchase multiple protection circuits and still likely save money.

8 Broker box Many access interfaces, some of which may carry no traffic most of the time, but will be active. SDN controllable switching. Rapidly reconfigurable network bandwidth. Can be extended for one or a few access points to utilize multiple networks. Extendable to a broker network. Telstra PEN announcement yesterday? primary protect primary Provider one s broker box Multiple customers Broker provider Provider two s broker box Multiple providers

9 MANO Management and Orchestration layer, between applications and controller, or as an application Collapsing network layers Managing services over a unified network Optimization too difficult to not be automated Newly emerging products: Packet Design

10 Decision Analysis Real Options Analysis : A proven method for determining the value of a future stock option. Decision Trees: each branch in the tree is a decision, followed by a branch of outcomes, leading back to the trunk representing the immediate decision. yes Purchase SDN capable switches no ($$$$) ($$) P=.85 P=.15 P=.85 P=.15 Enable service X Don t enable service X Service X becomes imperative Market for service X doesn t develop $$$$$$ $$ ($$$$) $$$ $$$$$ ($)

11 Yield Management Bandwidth capacity is a constantly expiring commodity; like seats on the airline, bandwidth pricing can be managed accordingly. So is the networking world heading for a disruption like yield management was to the airline industry?

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