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Insourcing Enterprise WAN : Gaining flexibility and saving costs with IP/MPLS •Dominique Verhulst •October, 2010 •1 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Agenda 1. Some Definitions 2. The Enterprise WAN Challenges 3. WAN : Insourced vs Ousrourced 4. Alcatel-Lucent WAN Solution 5. Customer Examples 6. Conclusion •2 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 1 •3 | Presentation Title | 2010 Some Definition Setting the stage All Rights Reserved © Alcatel-Lucent 2010 What is MPLS and Where does MPLS play a role ? MPLS is a transport technology. MPLS allows transport of TDM, IP or Ethernet traffic MPLS can be transported over Ethernet or a Layer 2 protocol (PPP, …) PBX PBX Voice, Video, Data IP Ethernet SDH MPLS Ethernet PPP, … WDM or SDH / optical or MW Eth Switch IP Router Mux •4 | Presentation Title | 2010 MPLS Switch All Rights Reserved © Alcatel-Lucent 2010 What are those trends leading to ? Today, an enterprise has 2 choices to build an infrastructure to interconnect sites: Native IP MPLS IP IP / MPLS Zero Downtime Convergence time around 5-10sec <50ms failover Security Not traffic isolation in the core Traffic isolation (VPNs in the core) Enhanced QoS Yes Yes (same as Ethernet enhanced with traffic engineering) Unified networks Standard technology •5 Presentation Title | 2010 5 ||7750 SR Overview IP application only can be transported IP and non IP (TDM, …), can be (or through complex tunneling) transported. Multiservice support. Can Use Ethernet end to end in the Can Use Ethernet end to end in the backbone backbone. All Rights Reserved © Alcatel-Lucent 2010 What are those trends leading to ? Today, an enterprise has 2 choices to build an infrastructure to interconnect sites: Native IP MPLS IP IP / MPLS Zero Downtime Convergence time around 5-10sec <50ms failover Security Not traffic isolation in the core Traffic isolation (VPNs in the core) Enhanced QoS Yes Yes (same as Ethernet enhanced with traffic engineering) Unified networks Standard technology •6 Presentation Title | 2010 6 ||7750 SR Overview IP application only can be transported IP and non IP (TDM, …), can be (or through complex tunneling) transported. Multiservice support. Can Use Ethernet end to end in the Can Use Ethernet end to end in the backbone backbone. All Rights Reserved © Alcatel-Lucent 2010 2 •7 | Presentation Title | 2010 The Enterprise WAN Challenges All Rights Reserved © Alcatel-Lucent 2010 Business Imperatives Attract Customers Increase the Bottom Line Innovate Deploy architectures Make Money Understand the Facebook Generation Target New Markets Invest in new Technologies Gain Market Share OutPace the Market Resist to Competition Be Green Cope with Save Money Address Emerging Markets Understand Customers Needs Invent New Products & Services Report to the Financial Market Execute faster than the others Business Imperatives offer an opportunity to rethink how to deliver on the priorities •8 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Cost Reduction Programs Data Center Consolidation and Global Network Unification Reduced CAPEX Reduced OPEX Reduced Real Estate Costs Higher Flexibility Increased Service Sophistication IPT Regional Office Data Center HQ Business Applications Communication Applications The Wide-Area Network becomes a Key Asset •9 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Branch Drivers for WAN Projects Enabling new IP applications Web services Increase Security for data protection and compliancy ERP CRM •10 | Presentation Title | 2010 Network consolidation after organic growth or M&A Increase Data center resiliency and flexibility Video conferencing IP Contact Center Unified comm & collaboration All Rights Reserved © Alcatel-Lucent 2010 VoIP Challenge 1 : Network consolidation after organic growth or M&A A new acquisition always requires very fast ROI from all departments. IT integration can be very long, but needs at least a network integration. Impact on an IP Network : integration becomes immediately complex because of Overlapping IP addresses Security rules required This can take several month before triggering the use of the same infrastructure Impact over an IP/MPLS Network : Integration can be fast, immediately generating immediate cost savings on bandwidth. IT integration can be the second phase •11 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Challenge 2 : Enabling new IP applications The R&D department launches a new application. The IT network department needs to rethink all the prioritization model, taking in account : Characteristics of the new application (bandwidth, protocols, …) Existing application quality of service model and existing bandwidth Impact over an IP Network : classification of ALL applications, a reconfiguration of ALL rules. Impact over an IP/MPLS network : the hierarchical QoS model allows to : Maintain QoS model between departments (ie R&D vs Sales) Modify rules within R&D applications only •12 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Challenge 3 : Data Center Flexibility Many revolutions have happened recently with complex impact on network. Server Clustering, Server Virtualization What’s next ? SAN integration, … What do they share ? A requirement for a seamless High performance LAN across Data Centers (Layer 2 transport). Impact over an IP Network : Come back to last century’s technology (Spanning Tree), with no control and inadequate failover times. Impossible over an outsourced network. Impact over an IP/MPLS network : Embedded transparent Layer 2 services (Virtual Private Lan Services) •13 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Challenge 4 : The Security Challenge More and more control needs to be put on the network, in order to prevent data and applications from internal and external threats. Impact over an IP Network : One router = One need for protection (internal ACLs, internal FW, external FW). Security rules are very dispersed and management … a nightmare Impact over an IP/MPLS network : Limited needs for ACLs, thanks to embedded traffic separation. concentrate FWs in fewer locations, simplifying management thanks to VPN backhauling capabilities •14 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 3 •15 | Presentation Title | 2010 WAN insourced vs Outsourced All Rights Reserved © Alcatel-Lucent 2010 Current WAN Pains COSTS SERVICES AVAILABILITY AGILITY AND FLEXIBILITY COST-EFFECTIVE NETWORK REDUNDANCY •16 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Wide Area Network : External or In-House ? •Connexion type of all sites in the study •Satisfaction with Managed IPVPN Features Overall Source : IDC 2009 The Real Debate is owned versus Shared ot in-sourced vs out-sourced Network •17 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 In-Sourcing Enabler – Access Technology Availability To insource service, requirement is to buy point to point links. Fiber is present between large cities across the world Transparent Layer 2 services are available eveywhere. It is possible to buy a mix of point to point links. Do not rely on a single carrier (security) Use the best carrier for each connection (metro, nation, international) •18 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Tailored Network – Advantages and Drawbacks Advantages Drawbacks WAN Costs cut CAPEX (MPLS routers) Increased bandwidth OPEX (build, train and maintain dedicated WAN team) Quicker Moves, Adds, Changes Risk & responsibility insourced (could be outsourced) Full QoS/Security control Security by design Easier security Higher availability Multi-carrier redundancy ROI 12-18 Months – WAN OPEX cut by 20-30% •19 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 ROI Calculation from Customer Example Customer with 5,000 employees in 24 offices across 15 countries Project Drivers : SAP Implementation, WAN Costs Reduction Outsourced WAN Costs / Year IP-VPN WAN Carrier Insourced WAN Costs / Year 1 2,000,000 € Ethernet over SDH links * 1,000,000 € MPLS Equipment CAPEX 0€ MPLS Equipment CAPEX 600,000 € In-House WAN Team 0€ In-House WAN Team ** 400,000 € Equipment installation 0€ Equipment installation 60,000 € Service activation 0€ Service activation 85,00O € TOTAL 2,000,000 € TOTAL 14 MONTHS ! 30% WAN COSTS SAVINGS / YEAR •20 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 2,145,000 € * Bandwidth X 4 ! N+6 Link redundancy ** NOC + Helpdesk «G.E.A.R » methodology to Implement your MPLS private network GO / NOGO •Gather Financial collect Applications & sites & Datacentres Constraints Objectives & Priorities •By the customer Engage •Act Security control Set of Workshops Transformatio n Guidelines Solution-Design Milestones Transformation REQUIREMENTS Program route management Operation/NOC ROI & budgetary quote Sites & Data-centre Implementation NOC activation Redundancy tests Pilot phase Financial Follow-up •Customer with BP + ALU •BP + ALU Financial proposal •21 | Presentation Title | 2010 •Roll-out All Rights Reserved © Alcatel-Lucent 2010 •BP + ALU 4 •22 | Presentation Title | 2010 The Alcatel-Lucent WAN solution All Rights Reserved © Alcatel-Lucent 2010 Alcatel-Lucent IP: Unmatched Market Momentum 5 product families 13 products 5620 SAM 5750 SSC 5650 5670 CPAM RAM Unified Management platforms 2 products Creation of IP Division 11 customers 8 countries Rapid Revenue Growth >300 customers >100 countries Triple Play 1% market share 2003 •23 | Presentation Title | 2010 1,100 systems shipped $37m Installed Base #2 Worldwide IP/MPLS Edge Routing 2004 VPNs Mobile Convergence IP 45,000+ systems shipped >$3Bn >40 networks Installed with 100+ Base Routers 2010 All Rights Reserved © Alcatel-Lucent 2010 Alcatel-Lucent’s Award-Winning Service Router Portfolio Service Router Portfolio: Award Winning Technology 2007 Winner 2008 Winner 2008 Winner 2009 Winner 2009 Winner 2009 Winner 2009 Winner 2010 Winner Best New Product Concept (7705 SAR) Excellence in Technology Innovation (FP2 Silicon) Metro Network Technologies (FP2 Silicon) Best Telecom Equipment Award (7705 SAR) Vendor of the Year - Best Infrastructure Product (SR Portfolio) 100 GE on the Service Router Portfolio Best Carrier Ethernet Switch/ Router Infrastructure (SR Portfolio) Network Infrastructure Wide Area Network (7750 SR Mobile Gateway) 24 | IPD Marketing | March 2010 •24 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Alcatel-Lucent IP/MPLS Portfolio 5620 SAM, 5650 CPAM, Unified management Multiservice edge routing 7750 SR-c4 7750 SR-1 7750 SR-c12 7750 SR-7 7750 SR-12 Common SR OS across portfolio Metro service edge and aggregation 7450 ESS-1 7705 SAR-F 7450 ESS-6 7210 SAS-X 7705 SAR-8 7210 SAS-E 7450 ESS-7 7450 ESS-6v 7210 SAS-M 2 Gb/s 12 Gb/s •25 Presentation Title 2010 Markets | 2009 25 ||IP 7750 PD SR Enterprise Overview and| Vertical 18 Gb/s 40 Gb/s 7450 ESS-12 90 Gb/s 320 Gb/s All Rights Reserved © Alcatel-Lucent 2010 500 Gb/s 1 Tb/s half-duplex Alcatel-Lucent Complete WAN Solution Data Center Campus Main Building Factory Branch Office OmniSwitch 6400/6850 OmniSwitch 6855 OmniSwitch 10000 Ethernet or SDH Hitless Upgrade Fast Re-route H-QoS 7210 SAS OmniSwitch 9000E 7705 SAR Alcatel-Lucent invented VPLS 7750 SR 7750 SR 7750 SR OmniAccess /Omniswitch Segregates Traffic Increases Resiliency Eliminates BGP 7750 SR Private WAN/MAN Simple deployment w/ carrier-class, easy-to-use, end-to-end, best-in-class provisioning system •26 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Easy Provisioning and Troubleshooting with 5620 SAM 5620 SAM Service Provisioning Voice Video Data IP/MPLS Voice Video Data Service Assurance Tests OAM Tests Service-Aware and OAM leverage the concept of “Service” 5620 SAMProvisioning allows for end-to-end provisioning of individual servicesRouters •27 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 5 •28 | Presentation Title | 2010 Customer Examples All Rights Reserved © Alcatel-Lucent 2010 Finance – WAN In-sourcing WAN Costs cut by 30% - Higher Network Flexibility ? Challenges Banco Santander – Portugal 650 Branches, 17 main offices Reduce complexity & cost of Service Provider VPN Implement faster new security policies & network changes Offer new services to affiliates (multi-tenants) Centralised ICT services, SAN, eLearning Solution MPLS network managed in-house for main offices Maintain L3-VPN for small branches Implement VLL, VPLS for new services – SAN, Video, Webcast, Disaster recovery, IP Telephony Benefits Reduce costs by 30% (replacement of outsourced VPN) Faster implementation of new security & compliance rules New innovative services to business lines •29 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 Services – WAN In-sourcing WAN Costs cut by 30% - Higher Network Flexibility ? Large SI – Europe 35 main offices Challenges •support the deployment of a lot of new applications •provide us the full control on our IT •Improve performance and availability Solution MPLS network managed in-house Implement VLL, VPLS for new service or VPRN Include all applications : Corporate Tools, Corporate ERP, Communication tools Benefits •30 | Presentation Title | 2010 ROI over 14 months Avarage Availbaility grew from 96.4% to 99.8% New innovative services to business lines Increased bandwidth with cost decrease All Rights Reserved © Alcatel-Lucent 2010 Healthcare – WAN In-Sourcing WAN agility enables collaboration between hospitals ? Three hospitals in three cities in Luxemburg 640 beds, 230 doctors, 1,700 employees Challenges Merge the three different campus LANs into a single LAN Limit complex configuration changes driven by growing number of sites / users / applications Limit topology changes (Spanning Tree issue) Solution Affordable MPLS core network with 3 x 7710SR run over dark fiber 5620 SAM service provisioning GUI managing also existing LAN switches (OS6850) VPLS, VLL, full MPLS redundancy, Traffic Engineering Benefits Optimized bandwidth on WAN links Fast provisioning and troubleshooting of new services Full redundancy and easy upgrades without service interuption •31 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 6 •32 | Presentation Title | 2010 Conclusions All Rights Reserved © Alcatel-Lucent 2010 Conclusion Tailored WAN is a real answer to the entreprise challenges IP/MPLS brings more than what is available as outsourced offerings More than 150 new IP/MPLS Enterprise / Government Customers Alcatel-Lucent and Business Partners have extensive experience in these markets Government Energy & Utilities Transportation Defense & Security Finance Citynets Electricity Highways Army Banks Education Water Railways Police Insurance Hospitals Oil / Gas Airports Civil Protection Trading •33 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 A •34 | Presentation Title | 2010 Evaluation of this session All Rights Reserved © Alcatel-Lucent 2010 Evaluation of this session Please take 2 minutes to fill out the evaluation form, distributed to you by the speaker Please fill out as title of this presentation: « IP/MPLS » Submit the form when leaving the room or put it in one of the boxes that you find everywhere in the venue THANK YOU •35 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010 www.alcatel-lucent.com •36 | Presentation Title | 2010 All Rights Reserved © Alcatel-Lucent 2010