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New Global Customers Adopt Cisco Emerging Solutions Advisory Services

Developers and communities in Toronto, Canada, the Delhi Mumbai Industrial corridor in India, and the City of Guayaquil in Ecuador are now placing Cisco and its certified partners at the heart of their urban planning initiatives, adding to the company’s roster of global greenfield and brownfield Smart+Connected Communities™ (S+CC) projects.

As competition between cities for talent, business, investment and tourism increases, city leaders see a growing role for technology to enable the development of communities that champion social, environmental and economic sustainability. A Smart+Connected Community is designed with technology at the center to improve the efficient management of city operations, and the development and delivery of new services to citizens.

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More Switching Innovations from Cisco –delivering cloud-ready networking

Earlier this month, London played host to Cisco Live EMEAR where a key announcement was made from our switching team crossing data center, campus and service provider.  Cisco’s latest switching innovations are aimed at enabling our customers to address the megatrends of video, virtualisation, Bring Your Own Device (BYOD) and cloud, by delivering on their scale, services, and reduced total cost of ownership requirements.

With Cisco’s Cloud Index indicating that more than 50 percent of computing workloads in data centers will be cloud-based by 2014, and global cloud traffic will grow more than 12 times by 2015, to 1.6 zettabytes per year, this is clearly a trend that cannot be ignored and one that customers are often asking for support on.

To address the scale needs, Cisco announced it has updated its switching portfolio with 100 Gigabit Ethernet (GE) and 40 GE capabilities, the next speed limits for networking. In doing this, Cisco has just become the most extensive provider of 1/10/40/100 Gigabit Ethernet and converged networking switching solutions.

According to Rob Soderbery, senior vice president for Cisco’s Enterprise Networking Group, “A strong network foundation is central to today’s evolving corporate IT strategies, and this period of rapid change is an exciting time to be in the enterprise network and data center switching business.   Today’s industry-leading performance and services innovations demonstrate Cisco’s leadership, as we transition our customers to cloud, video, mobility, big data and virtualized infrastructures.”

Last summer, we had discussions with a number of you around the latest supervisor for the Catalyst 6500 switching line.  With this latest news, Cisco is continuing to deliver investment protection to its customers by adding 40 GE performance options to its Catalyst 6500 switching line, and 40 GE and 100 GE capabilities in its Nexus 7000 portfolio for interconnecting data centers to service providers.  To expand its campus aggregation and data center top of rack switching, Cisco also announced two new fixed-configuration platforms that provide high-density 10 GE switching.

Making it easy to enable new services, Cisco announced simpler network virtualization functionality for its Catalyst 6500, 4500 and Aggregation Services Router (ASR) 1000 product lines with a new technology called Easy Virtual Network, as well as scalable virtual services with a new Nexus 1010-X appliance for the data center.

So, what do Cisco’s customers think?  According to Jeroen van Ingen of the University of Twente, We like the Catalyst 6500 platform because it’s a true workhorse with a wide range of features. With a tight budget and little advance notice of new requirements from our researchers or our administration, we prefer a flexible solution to increase performance. The new 40 Gigabit module for the Catalyst 6500 with Sup 2T supports both 10 Gigabit and 40 Gigabit Ethernet and provides a seamless upgrade from 10 Gigabit today to future 40 Gigabit to meet the growing bandwidth demands, without any network disruption and forklift infrastructure change – true to the investment protection capability 6500 is so well known for.”

Together, all of these enhancements will help businesses scale their networks, simplify operations, and continue to derive value from their existing Cisco switching investments – many of which have been deployed for a decade or longer. Next time you get asked about TCO, consider how many vendors you could say that about.  At Cisco, we say that TCO is about more than cost of acquisition and this latest announcement clearly shows our on-going commitment to delivering long-term value and business benefits for our customers.

We welcome your thoughts and feedback.  If you would like more detail on these announcements, additional resources are available below:

Announcement: http://newsroom.cisco.com/press-release-content?type=webcontent&articleId=657081
Shashi Kiran’s Blog: http://blogs.cisco.com/news/cisco-switching-leadership-and-innovations/#more-58670

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Updated! – Cisco Mobile Visual Networking Index

Over the past several years, Cisco introduced and has regularly updated and expanded its well-received Visual Networking Index (VNI), which projects IP traffic trends based upon independent analyst forecasts, mobile data usage surveys from operators and other primary research. 

As part of its VNI initiative, Cisco also developed the Global Mobile Data Traffic Forecast, and the most recent update has just been issued.

The updated forecast includes findings such as:

  • By 2016, global mobile data traffic will reach 10.8 exabytes per month (or 130 exabytes annually). Global mobile data traffic will increase 18X from 2011 -- 2016 (78% CAGR from 2011 -- 2016).  The 130 exabytes is 4.5 times more than all IP traffic (fixed and mobile) generated in 2005 (29 exabytes).
  • Based on Cisco VNI research, global mobile data traffic increased 133% from calendar year-end 2010 to calendar year-end 2011 (CY2011 = 597 petabytes per month or nearly 149 million DVDs per month).
  • In 2011, global mobile data traffic grew 3.4 times faster than global fixed broadband data traffic.  From 2011 to 2016, global mobile data traffic will grow 3 times faster than global fixed broadband data traffic.

Other pertinent points include:

  • In spite of uncertain economic conditions in many parts of the world, the demand for mobile services and content has in fact grown in every global region.
  • An increased amount of mobile traffic being offloaded to fixed networks, and the implementation of tiered mobile service pricing and data caps have not had a significant dampening effect on global mobile data traffic growth (the top 1% has been throttled to some degree).
  • In 2011, global mobile data traffic more than doubled (2.3X growth) for the fourth year in a row.

Following are links to relevant documents and information:

We welcome your questions . . . for greater detail, email traffic-inquiries@cisco.com.

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Operators Consider CDN Federations

As consumers continued demand more high-quality content over the Internet, service providers are finding it difficult to increase revenues while containing costs. This is due mainly to two trends: (1) over-the-top (OTT) content providers having outsourced delivery of content to pure-play content delivery network (CDN) companies and (2) traffic growth (with no resulting revenue benefit), increasing network build-out and maintenance costs.

In response, many SPs have begun to utilize CDNs within their networks.  While this approach has helped, results have been limited.   Now, SPs are exploring the potential of CDN federations, which Cisco’s Internet Business Solutions Group (IBSG) defines as multi-footprint, open CDN capabilities built from resources owned and operated by autonomous members.

IBSG has developed a paper that addresses this issue.  Titled “Content Delivery Network (CDN) Federations: How SPs Can Win the Battle for Content-Hungry Consumers”, it can be found on the Service Provider Thought Leadership section.  At this site, you will find a number of interesting, provocative papers on various subjects relating to the service provider segment.  

This paper provides an overview of the trends and challenges facing SPs today with regard to content delivery, describes a Cisco-led CDN federation pilot and results to date, and lays out the next steps for the pilot in an effort make CDN federations a reality.

Check it out, and the others, as well . . .

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Usage-Based Billing by Service Providers?

In the past five years, consumer monthly Internet usage has grown nearly three-fold, but users spend little more than in 2006. According to Cisco’s Visual Networking Index Global Forecast 2011, consumption per U.S. user grew 278 percent. In that same time frame, according to published research, the monthly U.S. cable broadband ARPU remained virtually flat.

As consumers increasingly rely on their broadband access for more of the basic everyday needs, broadband has become the most important core service provider service when compared to pay TV, mobile voice, landline phone and mobile data. But these broadband service providers are struggling to get consumers to equate the value of their online experiences with the value of their broadband service. To that end, SPs are actively considering usage-based billing strategies as a tool to align consumer value perceptions with their underlying networks. Anecdotal evidence from non-U.S. SPs that have introduced usage-based billing indicates that it can drive new value creation.

To help explore consumers’ perspectives, Cisco’s Internet Business Solutions Group (IBSG) conducted a survey of broadband users in the United States, Canada, France, and Italy to determine current views on usage-based billing policies and approaches.

This particular document is titled “Usage-Based Billing Strategies Can Enable SPs to Align Customer Value Perception with Network Investments”.   It can be found on the Service Provider Thought Leadership section of the website of Cisco IBSG.  At this site, you will find many interesting, provocative papers on various subjects relating to the service provider segment.  

Check this and others out . . .

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