Don't outsource IT! Bring your own Cloud with SDN

Don't outsource IT! Bring your own Cloud with SDN Education Session 19 Herman Chao Systems Engineering Manager, Cisco State of CA Government May 2015

Agenda Industry Need and Trends The Network Challenge SDN Defined Recommendations Benefits 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

Intelligent Connections the Heart of Business Connectivity Digitize Access to Information Email Web Browser Search Networked Economy Digitize Business Process E-commerce Digital Supply Chain Collaboration Intelligent Connections Immersive Experiences Digitize Interactions (Business & Social) Social Mobility Cloud Video Internet of Everything Digitize the World Connecting: People Process Data Things 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

The Internet of Everything 4.9B in 2015, 25B in 2020, ~3 devices per person Internet video traffic quadrupled in 2015 Parking Meters / Cars Utility Grids HVAC Video surveillance Sprinklers Cows 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

IT Complexity & Security BYOD, Cloud, Mobility, Big Data Visibility & Control, End-to-End, Real-time Automation, Agility, Efficiency 0% LEVEL OF IMPORTANCE 100% 0% LEVEL OF IMPORTANCE 100% 0% LEVEL OF IMPORTANCE 100% Strong Use-Cases Needed to Show SDN s Value 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Why Cloud? Control DC/Private Clouds Security Striking the perfect balance Data Sovereignty Economics Speed Scale Provider Clouds Hybrid Fixed workloads Choice to build / rent across providers Workload portability Consistent security Elastic workloads 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

Customers Want Hybrid Clouds, Not Just IaaS Will your enterprise be pursuing a hybrid cloud strategy by 2015? Enterprises seek to augment on-premise servers with service provider clouds YES 70%* 70% Which statement best describes your firm s current or planned strategy regarding the use of of service providers for cloud IaaS? Use IaaS for peak workload or special demand to complement in-house servers and storge 43% No 70%* 7% Use IaaS as primary, complemented by on premise server and storage for special demands 33% Use IaaS for all server and storage needs 16% MAYBE 70%* 23% We don't have an IaaS strategy yet 7% Source: Gartner DC Summit, December 2012 (Base 400+ Enterprise customers) Source: Forrester, 2013 (study commissioned by Cisco) 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

Hybrid Cloud Adoption and IT Departments Serving as Cloud Brokers Are Accelerating Q6. Has your organization configured any of the following clouds for interoperability. (Check all that apply) % of Hybrid Users On premise PRIVATE cloud with a HOSTED private cloud 60.8% No 51% Yes 49% On premise PRIVATE cloud with a PUBLIC cloud HOSTED private cloud with a PUBLIC cloud 42.1% 39.6% IT will act as a broker of cloud services across internal and external clouds for LOBs* 0% 20% 40% 60% 80% n=2002 Hybrid Users (n=989) Source: 451 Research Hosting and Cloud Study 2014 *Cisco-Intel Cloud Study, Sep. 2013 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

Hybrid Cloud Business Model and ROI: Buy the Base, Rent the Peak Most suitable for a blend of fixed and variable workloads Fixed cost CapEx model for private cloud Subscription based OpEx model for public cloud Up to 50% cost reduction over Private only or Public only models $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Total Monthly Cost of 200 VMs: 100 Sustained, 100 Variable Same Cost Structure for Fixed and Variable Expensive for Fixed, Cost Effective for Variable Private Only Public Only Hybrid with InterCloud 100 VMs - Monthly 24X7 100VMs - Monthly 50 hrs Fixed in Private, Variable in Public: 35 50% TCO Reduction ILLUSTRATIVE 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9

The Networking Challenge Networks are complex! Manual Process People Single Points of Failure Organization Silos Thrown Over the Wall Time to Deployment 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

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Scale up vs. Scale out Traditional: Stateful Systems of Record Hyperscale: Stateless Systems of Engagement SCM ERP/Financial Client/Server CRM Email Online Content Gaming Mobile IoT E-commerce Server Hypervisor Single Server Single Application Many Applications Many Servers James Staten, Cloud Analyst from Forrester says that it will be 5 years before the majority of "systems of engagement, are cloud native, and 7-10 before the majority of "systems of record are cloud native.

Leverage an OPEN ECO-SYSTEM RECOMMENDATION OPEN SOURCE OPEN STANDARDS VXLAN OpFlex NVGRE GENEVE OPEN INTERFACES JSON XML REST OpFlex 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

Stay FLEXIBLE! Investment Protection EXISTING 3-TIER DESIGNS PROGRAMMABLE SDN OVERLAY MODEL APPLICATION PROFILES & POLICIES RECOMMENDATION APIC DC Core DC PODs Existing 2-Tier & 3-Tier Designs Open API: Programmability Modernized Operating System Nexus OS VXLAN Bridging & Routing Integrated Network Virtualization OpenFlow Support Application Centric Infrastructure No VM Tax: Any Hypervisor Physical & Virtual Open API s & Controller 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17

Embrace CHANGE and LEARNING! RECOMMENDATION 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18

INNOVATE SYSTEMS AND PLATFORMS RECOMMENDATION APIC Policy Engine Advanced Role Based Access Control Import / Export Policy via API (Support for External Policy Engines) Policy Separated from Network Forwarding Automated Services Chaining Encrypted Controller Communication Complete Isolation with Full Scalability and Security Engineering Sales HR Finance Legal Marketing ENABLING A DYNAMIC ENTERPRISE WITHOUT COMPROMISE Centralized Compliance and Auditing Cisco Confidential 19

APIC

APIC Software or Appliance Based Open Daylight, RESTful, OpenFlow, CLI, OnePK Existing & New Installations Catalyst, ISR, ASR Agile Integration Model Masking Network Complexity, Exposing Network Intelligence In EFT Today! 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

QoS Network-Wide Rapid Threat Detection and Mitigation (Sourcefire) ACL Management Automation Easy QoS Follow Me QoS Compliance Assurance Automated Performance Routing (PfR) Configuration Automated WAN Policy Compliance Assurance Solving the Most Pressing, Complex and Tedious IT Problems 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22

Network Wide Security Deployed Rapidly REMEDIATION ACTION UPDATE APIC Defense Center THREAT DETECTED 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23

SDN: Business Outcome and Benefits for Cisco IT Greater Business Agility Lower Capital Expenses Reduced Costs/ Complexity Lower Operating Cost Resource Optimization 58% Reduce Network Provisioning 25% CAPEX Reduction 21% Reduce Management Costs 45% Reduce Power and Cooling Costs 10 20% Compute and Storage Optimization 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24

Thank you.