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Cisco Named Supplier for New Verizon Next-Generation Metro Optical Network Build

By Bill Gartner, Vice President Cisco’s Optical Systems and Transceivers Group

At Cisco, we pride ourselves on being true business collaborators with our service provider customers.

And we relish any opportunity to work side-by-side with a leading global service provider on a technology program with the potential to advance the entire telecommunications industry.

These opportunities are rare indeed. And today at OFC, the largest global conference and exposition for optical communications and networking professionals, Cisco was fortunate enough to receive such an opportunity.

Verizon announced that it would be working with Cisco and one other supplier to design and build a next-generation 100G metro network in the United States that will deliver improved scalability, functionality and efficiency. To meet Verizon’s mission of offering its customers high-capacity video and wireless solutions, it has decided to modernize its metro optical network.  Cisco is honored to be part of this important network transformation.

Using 100G flexible CDC ROADMs and packet aggregation will enable Verizon to advance and scale its network while maintaining existing services and reducing service-activation times as well as network operation and maintenance costs.

“Deploying a new coherent, optimized and highly scalable metro network means Verizon stays ahead of the growth trajectory while providing an even more robust network infrastructure for future demand,” said Lee Hicks, vice president of Verizon network planning. “Cisco met not only our technology requirements but the aggressive timeline to deploy our next-generation 100G-and-above metro network.”

Verizon will test and deploy the Cisco Network Convergence System and the second NCS4000supplier’s equipment on portions of its 100G metro network this year, with plans to turn up live traffic in 2016. Supplier volumes will be guided by ongoing testing, support and performance.

Verizon and Cisco are long-standing technology and business partners, and we are pleased to play a key role in Verizon’s optical network modernization program.

Cisco has made investments in next-generation optical technologies to help Verizon realize its vision to transform its network architecture to achieve the speed and operational efficiency required to meet the demands of today, while capturing growth opportunities over the next decade.

This new architecture gives Verizon advantages in its metro network including increased capacity, superior latency and improved scalability.

Verizon is a leader in 100G technology having successfully completed several industry firsts, beginning in 2007 with a successful field trial of 100G optical traffic on a live system.

Cisco is very pleased to be working closely with Verizon on its landmark network build-out, and we are committed to making it successful so that Verizon customers will reap its benefits for decades to come!

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Celebrating STEM with a Piece of “Pi”

Tomorrow is Pi Day! We make this a fun day in our household, where we celebrate the mathematical constant of π—or 3.1415—on March 14. To celebrate, we will make (and eat!) pie and see who can recite the most digits of pi. This year math fanatics are thrilled because it falls on 3/14/15, which aligns to the first five digits of pi. This has created even greater interest in what already is a global phenomenon.

Beyond pie eating and making YouTube videos, Pi Day provides the perfect opportunity to talk about our need for Science Technology Engineering and Mathematics (STEM) education. The gaps we have in highly trained and skilled workers for the next wave of the Internet—or the Internet of Everything—are real. According to research, by 2018 the U.S. will face a projected shortfall of 230,000 qualified advanced-degree STEM workers.

We must get children engaged in STEM earlier and cultivate that interest throughout their entire educational journey. The National Center for STEM Elementary Education notes that a third of students lose interest in science by the fourth grade, and by eighth grade, almost 50 percent have lost interest. By the time students reach high school, only 16 percent of American high school seniors are proficient in mathematics and interested in a STEM career.

To ensure we are ready for the new digital era, Cisco is participating in a number of programs to engage and educate students in STEM areas. One program, US2020, is dedicated to igniting movement of STEM mentorship across the United States. Cisco has pledged that by 2020, 20 percent of our workforce will volunteer in STEM mentoring. We also provide funding for innovative programs like the MIND Research Institute, which is fundamentally changing how math is being taught in underserved communities from coast to coast.

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IoE Can Help Banks Restore Trust and Close the Value Gap with Customers

“Let the buyer beware” is a sentiment that dates back well before consumer protection and truth-in-advertising laws. Yet, the issue of trust continues to permeate all areas of society today. A few weeks ago, I wrote about the “trust cliff” that affects the amount of information consumers are willing to share with retailers in order to have more relevant interactions.

Now, a new Cisco study on retail banking in 12 countries reveals a different kind of trust problem: consumers are getting less value than they expect from their banks, and this “value gap” is impacting customer trust.

The global financial crisis of 2007-2008 greatly damaged consumer trust in financial institutions, and brand equity has fallen along with it. In 2009, one year after the financial crisis, the world’s top 500 brands saw the value of their brands drop by 32 percent. For many banks, their brand value has yet to recover from pre-crisis levels.

But the roots of distrust go deeper than that. Our study shows that there is a fundamental disconnect between banks and their customers, and many customers no longer look to their banks to help them meet their financial goals. In fact:

  • 43 percent of customers say their bank doesn’t understand their needs
  • One in four would choose another provider for their next account or service
  • Only 40 percent of respondents worldwide turn to a financial professional for advice, and of these, 28 percent believe the advice is ineffective

IoE Trust and Value Gap graphic

Meanwhile, a growing cadre of disruptive “non-bank” innovators is exploiting this value gap between banks and their customers. They range from technology companies such as Apple and Google, to retailers such as and Tesco, to mobile and digital-only banking services, payment companies, and automated investment services. A surprising 80 percent of consumers surveyed said they would trust a non-bank for their banking services. In eight out of the 12 countries surveyed, more consumers would actually trust a non-bank than their own bank.

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Hybrid – The Next Wave of Cloud Innovation

Today more than ever, CIOs are tasked with creating technology strategies that fuel the business and help their organizations achieve positive business outcomes. At the same time, they must be mindful that the new technologies or services they use to achieve those outcomes minimize security risks and maximize choice and control. This careful due diligence can create an inaccurate impression that IT is slow to respond, often says “no,” or is out of touch with the fast pace of business. To avoid the strict regulations imposed by IT, many line-of-business leaders use cheap IT and cloud services available on public clouds without the CIO’s knowledge thus creating a situation known as ‘shadow cloud.’ The quick and easy use of public cloud services hosted on cheap infrastructure is an attractive and inexpensive option at first. However, the workloads put on public cloud services are not always secure or encrypted. Also, as that cloud usage increases exponentially over time, so does the cost which can easily drive up a company’s operating expenses.

The inexpensive, commodity infrastructure services driven by the public cloud players is the first wave of cloud innovation, and this is a very popular option for many companies today. However, the proprietary cloud model of larger public vendors like Amazon and Google operates on the belief that companies will only need one vendor for their cloud services.

We believe the next wave of cloud innovation will come in the form of open, secure connectivity that drives a globally connected network of clouds—a model which we call the Intercloud. The Intercloud is a hybrid cloud model based on a mix of private, public and partner clouds that offers flexibility, security and policy management to CIOs. Our definition of hybrid cloud doesn’t just mean connecting public clouds to private clouds. It also includes connecting to partner clouds as well. Since this model is open it also allows CIOs to move workloads between all these different clouds, versus locking them into using one single cloud environment as many public cloud companies do. With hybrid cloud models such as Cisco’s Intercloud, organizations can enjoy both the level of control offered by on-premise private cloud solutions and the freedom to choose public clouds for other workloads.

As CIOs begin to assess their own hybrid cloud strategy, they should factor in two key attributes: securing control, and maintaining flexibility and choice.

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Reflections on Mobile World Congress 2015: Transformation Through Innovation

As I reflected on a very memorable Mobile World Congress 2015 during the plane ride home from Barcelona a few days ago, it became clear that the transformation Cisco has been seeing in the telecommunications service provider industry is now a global movement.

Screen Shot 2015-03-10 at 9.47.11 AM

It’s not just happening in Europe, or Latin America, or Asia. It’s quite literally everywhere.

“Transformation through Innovation” was Cisco’s theme for this year’s Mobile World Congress, and at heart of our service provider strategy. It’s quite clear we’re onto something.

In countless conversations last week with leaders of forward-thinking global service providers in Barcelona, I heard two familiar themes over and over again –“Transformation and Innovation.” They’re all seeking to transform their architectures and businesses – and ultimately their customers’ experiences – to capture new opportunities in the Internet of Everything (IoE) era. In fact, the IoE – the networked connection of people, processes, data and things – is expected to create a $1.7 trillion market opportunity for service providers over the next decade.

With large networks that deliver mobile, video, collaboration, and other offerings to individual subscribers and businesses of all sizes, service providers are in an enviable position, sitting at the center of the IoE. They alone have the unique opportunity to take advantage of all kinds of new IoE connection types, and integrating them to deliver rich new applications, services and experiences.

What a truly exciting time to be in this industry!

That said, existing operational complexity can stifle service providers’ abilities to reduce costs and become more agile in bringing new capabilities to market. The reality is, today most new applications and services take months to roll out. If this pace does not rapidly accelerate, the entire industry will be left behind.

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