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Myth-busting: White-box Switches are No Bargain

In the last episode of our myth-busting series, Cisco SDN expert Frank D’Agostino and I are debunking the myth of the bargain priced white-box switch. White boxes aren’t a new subject in the market, but customers are just now starting to evaluate them for return on investment. So, where to start? When considering a white-box deployment, it is crucial to do all of the math. You must consider both the capital costs and the ongoing operational costs of this type of solution.

Two independent reports show that the up-front cost savings of a white-box switch are marginal as compared to those of traditional vendors. Deutsche Bank published “Whitebox Switches are Not Exactly a Bargain” in 2013, while Forrester Research recently released a study titled, “The Myth of White-Box Network Switches,” (February 20, 2015).

While the cost of a white-box and traditional switch are fairly similar from a capital expenditure point of view, Cisco analysis shows that white-box switches are more expensive when you include operational expenditures, such as the integration of third party software, tools and support costs. In fact, these real-life deployment factors can result in a total cost of ownership for Cisco that is approximately 20-30 percent less expensive than the full deployment of white-box switches.

Bottom line: White-box switches have hidden costs that make them more expensive than traditional switches when fully deployed. When you add up the cost of hardware, third-party software, integration and support, they are clearly no bargain. Check out our video conversation for more on this topic.

 

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SUMMARY: As Cisco Intercloud Turns One, Two of its Architects Reflect On How The Strategy Was Born

“One year ago this week, Cisco announced a plan and a billion dollar investment to build the world’s largest Intercloud – a globally connected network of clouds from Cisco and our partners. As we arrive at the one-year anniversary, I took a few minutes to chat with Cisco President Rob Lloyd and Cloud SVP Nick Earle – two of the ‘architects of the Intercloud’ – about how the idea came about, and what they have learned in the year since the vision was unveiled.”

Click here to read the full post by David McCulloch
A Q&A with Cisco President Rob Lloyd and Cloud Senior Vice President Nick Earle

 

Intercloud Birthday

Happy Birthday, Intercloud!

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As Cisco Intercloud Turns One, Two of its Architects Reflect On How The Strategy Was Born

A Q&A with Cisco President Rob Lloyd and Cloud Senior Vice President Nick Earle

Rob Lloyd Nick Earle Cisco

 

 

 

 

 

One year ago this week, Cisco announced a plan and a billion dollar investment to build the world’s largest Intercloud – a globally connected network of clouds from Cisco and our partners. As we arrive at the one-year anniversary, I took a few minutes to chat with Cisco President Rob Lloyd and Cloud SVP Nick Earle – two of the ‘architects of the Intercloud’ – about how the idea came about, and what they have learned in the year since the vision was unveiled.

David McCulloch: Can you take us back to early 2014 and remind us why Cisco needed to evolve its cloud strategy?

Rob Lloyd: In late 2013, even as sales of Cisco’s SaaS and cloud enabling technologies continued to rise, we started to see demand for a new cloud model: a hybrid cloud model that took into account our customers’ current IT investments and augmented those with a choice of cloud providers, and access to local and national cloud options to more easily comply with data privacy and industry regulations. We realized that if we could deliver all of that with one holistic hybrid cloud strategy that gave customers a high degree of control over security, policy and application performance, we had a huge opportunity on our hands.

DM:  Enter Cisco Intercloud! How did the idea come about?

Rob: A few weeks before Cisco’s annual executive leadership team meeting, Nick Earle, Edzard Overbeek (head of Cisco Services), Jim Sherriff (chief of staff) and I met to brainstorm what it would take to deliver the hybrid cloud strategy our customers wanted.  We knew we had some valuable assets already: Cisco Application Centric Infrastructure (ACI) was capable of enabling consistent security and policy across clouds. Intercloud Fabric enabled portability of workloads between clouds. And our Integrated Architecture offers in the Data Center were already market leading.  But we realized we could go further still if we fully embraced our extensive global ecosystem of partners. If we could combine Cisco’s strengths together with those of our partners, and move quickly, we knew we could disrupt current cloud models and become the market leader in hybrid cloud solutions.

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The Story of Cisco Virtualized Managed Business Services: How Cisco Evolved its Engineering Teams To Revolutionize Service Provider Service Delivery

I’ll be boarding a flight to Barcelona for Mobile World Congress tomorrow knowing that this year’s event will be like no other for Cisco’s service provider business.

Over the past two years we’ve completely transformed our service provider engineering organization. We’ve overhauled our technology and services portfolio and, as you’ll see from a blitz of announcements we’ll make with world-leading telecommunications service providers next week, we continue to innovate, and customers really like the progress they’re seeing.

Clearly we’re building what they need, but the story of the past 24 months goes far beyond our portfolio. We’ve changed the way we operate. We have removed impediments to rapid innovation, and accelerated the creation of high-performing teams.

If those words sound familiar, then you probably know Agile software development. The principles of Agile have been applied at Cisco for a long while now.  However, what’s really changed in the past two years is summed well in something Agile pioneer Jeff Sutherland wrote in blog marking the 10th anniversary of the agile manifesto:

Individuals adapting to change is not enough. Organizations must be structured for Agile response. Failure to remove impediments that block progress destroys existing high-performing teams and prevents the formation of new high-performing teams.”

I couldn’t agree more. While Cisco was, and still is, structured well to deliver the best routing technology in the industry, we needed to improve our engineering and business structures to be able to dynamically deliver the software products and cloud services customers could use to rapidly implement new businesses models, and drive more profitable outcomes for their customers.

What we’ve done since 2012 represents a massive transformation. I give tremendous credit to Chief Development Officer Pankaj Patel and his Chief Technology Officer Dave Ward, and I’m extremely proud of the results we’re starting to achieve.

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Mobile Traffic from Wearables Explodes as the Internet of Everything Accelerates

Are you Ready?

Cisco first asked this question in a 1999 advertising campaign when the incredible potential of the Internet was just beginning to become apparent.

Our ‘Are You Ready?’ ad campaign carried a simple message to the world’s businesses, telecommunications providers, and public institutions: get your Internet infrastructure ready now or risk being left behind in a world that is rapidly moving towards online-commerce, supply chain digitization and connected workforces.

Some moved quickly, but others failed to heed the warning. 45% of the companies on the Fortune 500 list in 1999 were no longer on the 2014 list, with dozens making way for nimbler more web-savvy competitors..

Today, as Cisco publishes its latest Visual Networking Index (VNI) study, our biannual global study of fixed and mobile data traffic, I see another ‘Are You Ready?’ moment in the making.

It is two years since Cisco quantified the astonishing $19 trillion economic potential of the Internet of Everything at the World Economic Forum in Davos. Today, just twenty four months later, we’re seeing an acceleration of the impact of the Internet of Everything on global networks. Here are some of the highlights of the VNI study:

• There will be eight billion connected mobile devices by 2019
• 3.2 billion of those – 40 percent of mobile Internet – will be machine-to-machine connections, such as wearable devices
• Cisco forecasts an 18-fold growth in mobile traffic from wearable devices (most of it channeled through smartphones) from 2015 to 2019.
• Wearable device traffic growth will be fueled by a five-fold growth in the number of connected devices, reaching 578 million by 2019, up from 109 million in 2014.

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