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IDC Quantifies Massive Business Value for Data Centers Using ACI

At the recent CiscoLive event in San Francisco, Soni Jiandani, Senior Vice President of Cisco INSBU, expanded on the industry momentum for Application Centric Infrastructure (ACI).  She highlighted wide ranging customers and ecosystem partners that are discovering ACI’s architectural potential to drive enormous simplification of cloud and application delivery.

Now it’s possible to quantify ACI benefits in economic terms.  IDC has just completed an in-depth analysis projecting ACI’s three year return in one of the largest data center environments in the world, Cisco’s own IT Elastic Infrastructure Services (CITEIS).

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Cisco IT runs over 4000 applications, on both virtualized and bare-metal machines, stores  40 PB of data and inspects over 27 TB of traffic daily. CITEIS is a private cloud environment integrating ACI for policy driven network provisioning and operations for a variety of dynamic workloads.

IDC points out that Cisco IT’s decision to use its Cisco ACI technology “was not a foregone conclusion — Cisco’s IT team uses many technologies and solutions from other vendors” to meet its primary responsibilities of improving company-wide productivity, security and asset utilization while reducing the risk of business transitions over time.  Now that “ACI testing and trial runs have been completed, the results yield detailed calculations of ACI’s impact on IT operations, including IT infrastructure spending, the efficiency of IT operations including application deployments, and the incidence of downtime.”

Specifically, IDC found “Automated provisioning in areas such as datacenter access (62.1% projected time savings), access control lists (53.0%), local server load balancing (55.5%), global server load balancing (72.4%), and fleet provisioning (58.0%) will be achieved through the creation and maintenance of provisioning templates.”  Cumulatively, this results in a 41% savings on both Opex and Capex, using a conservative bottom-up approach. IDC also quantified (20%) downtime reduction and (45%) power and space savings.  “IDC believes that the projections are well founded and that these benefits are of the type and scope that organizations can reasonably expect to attain by deploying a policy-based infrastructure solution.  IDC conducted several interviews with IT managers and analyzed “Before” and “After” metrics for common provisioning tasks as well as Capex reductions due to ACI’s dynamic isolation capabilities within a shared production environment.

According to Rebecca Jacoby, SVP and CIO, Cisco, “ACI’s policy based architecture will bring the promise of infrastructure programmability to the masses. It makes every datacenter operator able to effectively create policies that can be used, reused, and deployed in a much simpler and more efficient manner — and use the staff that is currently spending all their time in running the network and the security protocols, to do much more strategic things.”

Download the IDC analysis here.  And for a background of ACI’s architectural approach take a look at the white paper from Enterprise Strategy group.

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How the Shift to Mobility & Location-Based Services is Changing Hospitality & Guest Services.

Mobility trend in Hospitality

A recent TripAdvisor survey found that over 40% of travelers use their smart phones to plan a trip and over 46% use their smart phones to enhance their trip while traveling.

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No longer is it just an idea or an aspiration for the hospitality industry to use innovative methods to engage with their guests, for example Marriott Hotels, just this year, announced the addition of mobile checkout to its industry-leading Marriott Mobile app for smartphones. Clearly mobile check-out is just the latest innovation from the brand as a new service designed for today’s connected travelers. Read More »

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Mobile Retail Evolution and Location Based Services

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This is part of a series of how location services is a core part of the mobile evolution in various industries. In a previous post I looked at the growth of mobile  location, data and context based advertising, and there is no doubt from the evidence that this market space is already big, and predicted to grow exponentially over the next 4 or 5 years.

While this is very interesting at a macro level, for most of us what does that really mean, what can it be used for, how can we get some value or benefits from it….

Let’s look at this from the point of view of various industries, both looking at the uses of the consumer and of the business in a practical manner.

Today we look at the Retail Industry, and ask a few questions to understand the landscape.

  • How are consumers habits changing
  • What are retailers doing about this
  • What can we expect to see in the coming year(s)?

How are consumer habits changing?

We already know that today over two-thirds of all U.S. consumers have a smartphone (expected to be >90% in about 3 years) and the capabilities that this brings is changing the face of retail business as we know it. Specifically looking at mobile retail and advertising the patterns are undeniable, we as mobile retail consumers are doing things differently and happy to engage and be engaged in new ways.

◦    Remember the coupon cutting days…well mobile coupons are starting to become the norm…recent research among mobile users shows significant numbers redeemed mobile coupons… 41% at grocery stores, 41% at department stores, and 39% @ clothing stores (source: Business Insider 2014) Read More »

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What CXOs Need to Know About the Cloud

The Internet of Everything (IoE) is changing the business and IT landscape, fueling unprecedented growth and disruption. As such, just thinking about cloud deployment is not enough. Organizational leaders need a cloud strategy to help future-proof their business and better meet objectives.

In fact, according to Gartner, organizations that continually monitor cloud computing trends and subsequently update the enterprise’s cloud strategy, will likely avoid costly mistakes and garner the most value from market opportunities over the next few years.

Cloudy Future SlideShow by Gartner

 As CXOs adopt cloud strategies, what key trends should they keep in mind?

Here’s a short list for consideration:

Trend #1: Prepare for Growing Cloud Workloads

Today’s world isn’t just a world of many clouds, but also a world of growing cloud workloads.

According to Cisco’s Global Cloud Index:

Annual global cloud IP traffic will reach 5.3 zettabytes by the end of 2017. By 2017, global cloud IP traffic will reach 443 exabytes per month (up from 98 exabytes per month in 2012).

Global cloud IP traffic will increase nearly 4.5-fold over the next 5 years. Overall, cloud IP traffic will grow at a CAGR of 35 percent from 2012 to 2017.

Global cloud IP traffic will account for more than two-thirds of total data center traffic by 2017.

In this video, find out how these growing cloud workloads are driving IT to become a broker of cloud technologies.

Read More »

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#HigherEdThursdays: Changing How IT is Consumed on (and off) Campus

Universities are driving the need for IT consumption-based pricing models more than any other market segment.  This is natural given the unique characteristics of their IT environments.  First off they are at the forefront of the IT consumerization movement driven by new generations of students and work habits. With one fourth of the undergraduate population and half in most graduate programs changing every year, one can easily understand why this is the case. While BYOD has emerged in the enterprises over the past few years it has been a commonplace in higher education since campus networks were built in the 80s.  When public cloud-based applications emerged college students were the first to embrace them and driving some to a prominent position in the industry.  Facebook comes to mind.

It is not just students that make the universities very different than other markets.  On many campuses you find different layers of IT functions and associated decision making.  You have the central IT like all enterprises do.  But then you have some lines of business having their own IT function either at the college or department levels.  Most major research centers have their own IT groups especially if they house a supercomputing facility.  Some grant-funded projects make their own separate decisions on IT services unique for such projects or for very short terms needs.

So what are the pricing models the higher education market is asking for? The answer is of course consumption-based pricing models but the devil is in the details.  A simple subscription style “all-you-can eat” model may not be sufficient in most cases  (and it is not really consumption-based after all, is it?).  We see these in traditional enterprise applications that are converted to a SaaS offer. A utility style “pay-as-you-go” model while provides most flexibility might not have the cost predictability the universities require (remember long distance phone service?). Read More »

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