Transcript Verizon Enterprise Solutions Group

Convergence Overview
Presented by Verizon
© 2005. Verizon. All rights reserved.
Agenda
Verizon Overview
Convergence Market Sizing
Enterprise Convergence Strategy
Data Implications
Voice Implications
Impact of Wireless Data
© 2005. Verizon. All rights reserved.
2
Verizon Overview
Fortune ranking: Fortune 20 Globally/
14 Domestically
#1 communications company domestically
A Dow 30 company
47.4M Wireless voice and data customers (2Q05)
1.2M+ SuperPages advertisers
Wireline Markets: 94 out of top 100
Wireless Markets: 97 out of top 100
Relationships with 2/3 of the Fortune 1000
>$75B in infrastructure investment since ’00
>$26B in debt reduction since ’01
Our solutions and expertise deliver, so you can:
• Reduce costs and boost the bottom line
• Maximize operating efficiencies
• Concentrate on growth and expansion to gain
competitive advantage
© 2005. Verizon. All rights reserved.
Did You Know?
 1.5B+ calls handled nationwide each
day
 Operate one of the largest call center
operations in North America managing
over 275M calls annually
 Maintain one of the largest internal IP
networks – larger than any hosting firm
 11.2 Million miles of fiber
 2,337,000 long distance lines
 Added 1,240,000 DSL lines in 2004,
adding 100,000+ every month
 Added 278,000+ broadband
connections in 2Q05 for 4.1+M
 Added 600+ new Enterprise Advance
contracts in 2Q05
 18M+ line equivalents managed
or maintained
 IT budget of approximately $1.5B
3
Today’s “Top of Mind” Enterprise Concerns
LOWERING
COSTS
• Focus on TCO
• Doing the same
functions for less
• Focus on headcount
• Focus on core vs.
context
ADDRESSING
UNCERTAINTIES
• Being prepared for the
unpredictable
Disaster at HQ
Displaced users
• Security concerns
• New laws, regulatory
changes
• “Change ready”
infrastructure (new
apps, new interfaces)
PROFITABLE
© 2005. Verizon. All rights reserved.
PROTECTED
INCREASING
PRODUCTIVITY
• Decreasing
wasted time
• Increasing
responsiveness
• Doing more for
the same or
incremental cost
• Focus on core vs.
context
• Partner/supplier
interface
PRODUCTIVE
4
Convergence Defined
Enterprise
Convergence occurs in three primary areas:
Video
Applications – Voice
Access – SONET, Ethernet
Core Network – VOIP, IP-VPN
Extranet
Voice
VPN
TCO benefits only occur when migration:
Involves all three areas
Evolves over time
Driven by business strategy
WAN
Internet
PSTN
Enterprise
Verizon differentiation based upon:
Hybrid strategy – premise & network
Level of service integration
Breadth of portfolio
Converged Network
Internet
PSTN
© 2005. Verizon. All rights reserved.
Applications
5
Convergence
What We’ve Learned From The Market
Top Concerns
Extend applications to remote
employees
Streamline administration and network
management complexities
Reduce costs, leverage investments
Increase customer satisfaction
Enhance productivity
Competitive position – access real-time,
information
Regulatory mandates
Consolidating networked applications
and e-commerce
© 2005. Verizon. All rights reserved.
Top Applications Driving
Convergence:
 Conferencing (61%)
 IP phone-based productivity
applications (58%)
 Remote access to applications
(52%)
 User mobility (52%)
Source: Meta Group 2004
6
Convergence Market Sizing
$58.9M $194.2M
$1375.8M
$1515.5M
$1139.6M
Hosted Voice
VoIP VPN
IP PBX
IP VPN (Ntwk)
IP VPN (CPE)
CAGR ’05 – ‘09
2005 Total Market = $4.3B
 Hosted Voice – 106.1%
Composite
CAGR = 24.5%
 VoIP VPN – 56.3%
 IP PBX – 19.4%
$759.1M
$2078.8M
$3200.2M
$1040.2M
$2787.3M
2009 Total Market = $9.9B
© 2005. Verizon. All rights reserved.
Hosted Voice
VoIP VPN
IP PBX
IP VPN (Ntwk)
IP-VPN (CPE)
 IP VPN (N) – 34.2%
 IP VPN (C) – 10.6%
7
Convergence Marketing Sizing
$M
7,000
6,000
Managed WAN
5,000
4,000
Managed LAN
3,000
2,000
Managed VPN
1,000
0
2004
2005
2006
2007
2008
2009
Managed IP Voice
Traditional Managed WAN
services being replaced
by Managed VPN
Managed IP Voice lifting
Managed LAN utilization
IP-PBX maintenance
eclipsing traditional PBX
maintenance
$M
1,200
1,000
800
TDM PBX
Maintenance
600
IP-PBX
Maintenance
400
200
Verizon is not investing in
growth drivers of CPE
Services
0
2004
2005
2006
© 2005. Verizon. All rights reserved.
2007
2008
2009
8
Enterprise Convergence Strategy
Vision
Enablers
Benefits
Applications
Converge Voice &
Data over common
LAN Infrastructure
(IP/PBX, SIP, Unified
Messaging, Wireless)
Access
Converge Disparate
Technologies over a over
single access facility
Core Network
Utilize common Core
Architecture to provide
flexibility across
geographies
© 2005. Verizon. All rights reserved.
HOSTED NETWORK APPLICATIONS enable enterprises to
outsource non-core activities to focus on activities that
enable their business strategy. Verizon’s strategy is to offer
a full compliment of hosted voice and network security
hosted application services accessed from Verizon’s secure
private MPLS IP-VPN network.
Reduced
Equipment &
Platform Costs
METRO ETHERNET services provide cost effective, highly
scalable solutions to Enterprise’s growing bandwidth and
convergence requirements. Verizon offers a full range of
Metro and WAN Ethernet services integrated with it’s MPLS
based IP-VPN offering to enable Enterprise site to site
connectivity requirements, business continuity and
convergence strategies.
Reduced Access
Costs
Simplified
Operations
OPTICAL INFRASTRUCTURE is the foundation on which
high bandwidth, high-availability networks are built.
Verizon’s fiber infrastructure with 11.2 million route miles
and 6000 SONET rings translates into unmatched service
availability and reliability backed by strong SLA’s.
MPLS IP-VPN enables fully meshed connectivity between
sites, choice of multiple access technologies and Class of
Service capabilities to support converged applications.
Highly Efficient
Eliminates Multiple
Networks
9
Traditional LAN/WAN Evolution
Legacy Unconverged Edge & WAN
Legacy Voice
Avaya PBX
ISDN-PRI’s
SD
D E F I N I T Y
0 3 4
PSTN
Telephone
Telephone
Telephone
Telephone
DS1 PBX Tie Lines
Telephone
Lucent Definity ECS
Polycom Videoconferencing
ISDN-BRI’s
Video
Conferencing
Video
Conferencing
Video
Conferencing
Public
Internet
SD
Web/Ecommerce & Internet Access
CONSOLE
OK
WIC 0 OK
FDX
BRI
S/T
100
LNK
DSU
CPU
S3
LP
B2
B1
LOOP
WIC 1 OK
AUX
DS3 Internet Access
Cisco 1720
PROLIANT
SD
1850R
PROLIANT
SD
1850R
Cisco 2691
SD
CONSOLE
WIC 0 OK
FDX
BRI
S/T
100
DSU
CPU
S3
LP
SD
1850R
B1
PROLIANT
B2
SD
1850R
OK
LOOP
PROLIANT
LNK
WIC 1 OK
AUX
Cisco 1720
Cisco PIX 525
Local Area Network
SD
DLT
SureStore
Autoloader
718
HEWLETT
PACKARD
DS3 Frame Relay
Power Supply 0
CISCOSYSTEMS
Power Supply 1
SD
Catalyst
8500 SERIES
SD
HEWLETT
PACKARD
DLT
SureStore
Autoloader
718
Switch
Processor
SD
HEWLETT
PACKARD
DLT
SureStore
Autoloader
718
Fast Packet
Network
IBM Compatible IBM Compatible IBM Compatible
Cisco 3660
Storage Area Network
SD
SD
SD
SD
SD
Centillion 1400
Bay Networks
P*8x50
OOO130
A O N
6
ETHER
RST
LINK
RS 232C
INS
ACT
DS3 Private Line
ALM
PC CARD
PWR
ALM
ALM
FAN0 FAN1 PWR0 PWR1
SONET/TDM
EMC Symetrix
McData Eclipse 3300
© 2005. Verizon. All rights reserved.
10
Convergence – Role of Ethernet
Cisco IP Voice
7971-G
7971-G 7971-G
7971-G
PL to
IP-VPN
Cisco IPTV Videoconferencing
Internet
IPTV 3540
Web/Ecommerce & Internet Access
PROLIANT
SD
1850R
PROLIANT
SD
1850R
PROLIANT
1850R
1850R
SD
DLT
SureStore
Autoloader
718
SD
HEWLETT
PACKARD
DLT
SureStore
Autoloader
718
SD
HEWLETT
PACKARD
CoS Enabled Metro
Ethernet / IP
SD
Local Area Network
SD
HEWLETT
PACKARD
PROLIANT
DLT
SureStore
Autoloader
718
IBM Compatible IBM Compatible IBM Compatible
Storage Area Network
ISR 3845
Call Manager Express
Firewall/IPSEC
Cisco EtherSwitch
Gigabit
Ethernet
VoIP
SD
SD
SD
MDS-9216 FCIP
Verizon is primary provider for all network infrastructure and related applications
© 2005. Verizon. All rights reserved.
11
Convergence – Role of Ethernet
Service Type
Service Class
Ethernet Private Line
Service
Service Type
Point to Point
Ring-based
E-Line
Ethernet Virtual Private
Line Service
E-LAN
Ethernet LAN Service
Verizon Ethernet Virtual
Private Line Service
Switched Ethernet
Ethernet Packet Ring
Multiple flavors of Ethernet described by the Metro Ethernet
Forum
No single Ethernet product can support all enterprise
network requirements
© 2005. Verizon. All rights reserved.
12
Convergence – Role of IP-VPN
Mesh networks SIMPLIFY the dynamic WAN environment
One Virtual Circuit per location allows complete Any-to-Any communication between
customer locations
Routing Protocols allow the network to automatically adapt to network changes,
simplifying the change management process
No change necessary to existing sites when bringing a new site online
Connection-Oriented
VPN Topology
VPN B
Connectionless
VPN Topology
VPN A
VPN C
VPN B
VPN C
VPN A
Mesh Network
Simplification
VPN C
VPN A
VPN B
VPN C
VPN B
MPLS
IP-VPN
VPN A
VPN A
VPN B
VPN C
VPN B
VPN C
VPN C
VPN A
© 2005. Verizon. All rights reserved.
VPN C
VPN A VPN B
VPN B
13
Convergence – Role of IP-VPN
Native IP-VPNs
Multi Protocol Label Switching (MPLS) – IETF RFC 2547
Provides unique networking options
•
•
•
“Any-to-Any” connectivity (FR, ATM, Ethernet, Optical, Private Line, etc.)
IP enabled Frame Relay and ATM
IP Multicast
Internet Protocol Security (IPSec)
Defines a security standard IP networking
•
•
•
Authentication
Encryption
Tunneling
Transparent Layer 2 MPLS VPNs
Enable Layer 2 protocols to be tunneled (encapsulated) across Layer 3 (IP)
networks
Point–to–Point (i.e., Martini Draft)
Preserves Virtual LANs (VLAN) across the IP network
IP–VPN enables customers to construct secure, access independent
Intra/Inter/ExtraNet infrastructures, backed by SLAs. Customers will have
access to the Internet, as well as, vertical services (i.e., firewall, VoIP).
© 2005. Verizon. All rights reserved.
14
Customer Example – MPLS IPVPN/Switched Ethernet
National Banking Customer
Combination of Ethernet & IP-VPN drives
flexibility and value
1.5Mb Private
Line Sites
Existing and New Switched E
Sites Metro NY
Albany, NY
100 Mb
New York, NY
100 Mb
TLS
Arkansas
6509
Illinois
EMS
6509
New York, NY
10 Mb
SER
New York, NY
100 Mb Backup
MPLS IP-VPN
California
.
Chicago, IL
VLAN-xyz
SER
SER
SER
New York, NY
10 Mb
New York, NY
10Mb
Florida #1
Local/National Convergence
Philadelphia PA
Florida #2
Los Angeles, CA
IP-VPN i-VC’s
Florida #3
© 2005. Verizon. All rights reserved.
California #2
Bay Area, CA
Bank’s Service Point
Layer 2 PVC, Ethernet frames
15
Convergence Redefines Voice Services
Traditional Voice Perspective
Defined by state and federal jurisdiction
Defined by technology and network
infrastructure
Limited by regulatory and network
infrastructure
Traditional Marketing Strategy
Driven by technology platform and
jurisdiction
Traditional Sales Strategy
Point Solutions
© 2005. Verizon. All rights reserved.
16
Convergence Redefines Voice Services
Traditional Voice Perspective
Defined by state and federal jurisdiction
Defined by technology and network
infrastructure
Limited by regulatory and network
infrastructure
Traditional Marketing Strategy
Driven by technology platform and
jurisdiction
Traditional Sales Strategy
Point Solutions
© 2005. Verizon. All rights reserved.
New Voice Perspective
Defined as an application
Independent of jurisdiction
Independent of transport medium or
network infrastructure
New Marketing Strategy
Driven by customer requirements
defined features and functionality
New Sales Strategy
End-to-end Solutions
Features and benefits
17
Convergence – Voice Applications
User
Interface
Features/
Applications
Service
Platform
Resources
Access
Infrastructure
GUI/Soft Client
Calliobi
Management Unified Messaging
Centrex
Productivity
PBX/IP PBX PBX/IP PBX
PSTN
VoIP VPN
Conferencing/
Multi-media
Hosted IP Telephony
VoIP VPN
IP-VPN
with QoS (MPLS-based)
IP-VPN
with QoS
PrivatePrivate
Line Line
T1/T3 T1/T3
ATM
Switched Ethernet
Service
Voice Applications are separated from underlying transport creating an
opportunity to enhance flexibility, value and speed to market
© 2005. Verizon. All rights reserved.
18
Convergence – Voice Applications
Enterprise
Flexibility
toNeeds
Address
Customer
Cost Reduction,
Predictability
Single Service Provider
Economies of scale –
network integration
Toll by-pass savings
Business continuity
Keeping current with latest
technology
Lower cost with future
expansion
Productivity improvements
Extension of voice services
Collaboration/Conferencing
Solution
Components Business
Customer’s
Solutions
Packaging
Needs
Interfaces
Applications
Platforms
Networks
Access Points
Customer Specific Solutions
© 2005. Verizon. All rights reserved.
19
Convergence – Voice Architecture
Benefits:
Deliver significant cost savings
through network consolidation,
reduced administrative expense, and
reduced termination costs.
Improve efficiency through improved
self-control of MACDs & the ability to
support hybrid environments that
leverage existing investments until
business demands require a change.
Improve productivity by delivering
unified communications and
collaboration tools via an integrated,
user friendly desktop application.
Minimize the impact on users, support
hybrid environments, maintain carrier
level quality & availability while
retaining feature sets.
© 2005. Verizon. All rights reserved.
Feature
Servers
Feature
Servers
Feature
Servers
Feature
Servers
Softswitch
PSTN Gateway Secure IP/MPLS
Network
G/W
IP
PBX
IP
Enabled
PBX
Internet
IAD
3rd Party VoDSL
PBX
Hosted IP
Telephony
1-800
Mobile
Access
20
Convergence – Mobility Requirements
A single platform to access regardless of location
Mobility solutions:
Teleworkers need access to email, voice mail and corporate data
Remote traveling employees need high customer/corporate
interaction
Occasional corporate travelers need extended communications,
data access, message management
Secure access to organization resources:
Wireless LAN and Remote Access Mobility (RAM)
Remote Access Mobility
Unified Messaging
iobi Enterprise
Centrex and PBXs
Connectivity – Ethernet, DSL
Managed VPN
© 2005. Verizon. All rights reserved.
21
Convergence – Role of Wireless Data
Speed will Drive
Adoption
Speed & Reach are
Key Enablers
1MB File Download Comparison
Technology
Relative Appeal
5
4
Speed*
(Kbps)
Download
Time**
GPRS
20-30
5 min 36 sec
1xRTT
40-60
2 min 48 sec
EDGE
40-120
1 min 45 sec
EVDO
400-600
21 seconds
3
2
1
0
56
144
768
1.5
2.1
Kbps Kbps Kbps Mbps Mbps
Source: Arbor Inc’s survey for VZ Communications
© 2005. Verizon. All rights reserved.
*Average realistic throughputs.
**Assume mid-point of average throughput.
22
Wireline/Wireless Converged Applications
Remote Access Mobility
Frame relay connectivity from Wireless SP data center to customer location
Wireline SP provides network, CPE and management services
Business Continuity
Primary/secondary wireline Backup
EVDO for Wireless Voice/Data Backup
Alternative to ISDN/DSL
Wireline SP provides network integration services
Wireless Office
IP PBX Integration
Seamless Mobility/IP Roaming (CDMA/WiFi Integration)
Adding VoIP as a Feature
Data Roaming Available Today (Enterprise Offer)
Single Software Client
Wireless Data is increasing in feasibility & value
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23
Business Continuity and Remote Access Mobility
Fast Packet/MPLS
AAA
PDSN
1X, EV-DO
Wireless WAN Network
•Branch
•Office
•MobileBridge
•Ethernet
•(10/100 Base •-•T)
Local
IP
Network
•Access
•Router
© 2005. Verizon. All rights reserved.
•Frame Relay
RNC
RNC
•EV-DO Connection
Backup Communications Path
60 – 80K Uplink
Up to 2M Downlink
•Frame or ATM Virtual Channel
•(Primary Communications Path)
•Data Center
Corporate
IP
Network
•Router
24
Convergence Summary
Convergence is a reality today
Real technology – tangible benefits
Requires holistic approach
Applications
Access
Core Network
Creates efficiency for Data networks
Creates flexibility & value for Voice Applications
Wireless Data beginning make an impact
Convergence is an Evolution not a Revolution
© 2005. Verizon. All rights reserved.
25
We Make Your Commitments, Our Commitments.
26
© 2005. Verizon. All rights reserved.
©2005. Verizon. All rights reserved.