Cisco Systems, Inc. Presents at Deutsche Bank Securities' dbAccess 2012 Technology Conference, Sep-11-2012 02:30 PM - NasdaqGS:CSCO

NasdaqGS:CSCO

David Ward, the Chief Architect and CTO of the Service Provider division of Cisco, discussed several key points during the presentation at the Deutsche Bank Technology Conference:

1. Definition and Current State of SDN: Ward defined SDN (Software-Defined Networking) as programmatic interfaces to the internet, which are in a nascent stage. He noted that standardization and development are ongoing and will likely take 3 to 5 years to achieve fully interoperable standards.

2. Challenges and Cisco’s Approach: Ward identified challenges including standardization timelines, emerging architecture, and the need to expand SDN beyond the data center to service providers and enterprises. Cisco aims to out-execute standards by prototyping, researching, and working with customers to understand how to effectively use programmatic interfaces.

3. Physical Attributes of SDN: Ward emphasized the importance of the physical network in SDN architectures, explaining that virtual networks must traverse physical infrastructure, and the physical network’s attributes are crucial for delivering specific service requirements.

4. Cisco’s SDN Strategy: Cisco’s strategy involves building application programming interfaces (APIs) across its operating systems, including onePK (One Platform Kit), which provides a common data model for programming network devices. The company is also investing in virtualization layers and cloud orchestration technologies, particularly OpenStack.

5. Enterprise vs. Carrier SDN Architectures: Ward explained that the functionality and needs of enterprise and service provider SDN architectures are similar, with a focus on tracking users, sessions, applications, and tuning the quality of experience. However, the scale and specific use cases differ.

6. Product and Services Fit into SDN Landscape: Cisco’s products and services fit into the SDN and network virtualization landscape through the provision of APIs, virtualization layers, and orchestration mechanisms. The company sees white spaces in these areas and is investing in multiple layers to support different customer needs.

7. Relationship with VMware: Ward discussed the partnership with VMware, including the integration of Cisco’s Nexus 1000V virtual switch and controller into VMware’s stack, and the resale of VMware solutions on Cisco’s Unified Computing System (UCS).

8. Insieme and Cisco Strategy: Ward declined to comment on Insieme Networks, which was not yet launched at the time of the presentation.

9. Hybrid Cloud Use Cases: Ward provided examples of hybrid cloud use cases where SDN enables the movement of workloads between private and public clouds, highlighting the need for remote control approaches.

10. Interoperability with Non-Cisco Controllers: Ward indicated that Cisco supports interoperability with non-Cisco controllers, emphasizing the importance of open standards and published APIs. He also mentioned the company’s involvement in standardizing interfaces for IP routing, MPLS, and other network functions.

11. Customer Comfort and Standardization: Ward addressed concerns about customer comfort with opening up interfaces, stating that control and security remain paramount. He also discussed the balance between standardization and Cisco’s proprietary features, suggesting that Cisco aims to provide a broader range of standardized interfaces.

12. Choice of OpenStack: Ward explained Cisco’s decision to focus on OpenStack due to its industry momentum and alignment with customer demands. The company is actively contributing to OpenStack and leveraging it to extend its offerings.

13. Dialogue with Verizon: Ward described the close collaboration between Cisco and Verizon, particularly in developing technologies that integrate compute, storage, and cloud services with routing systems to create a more agile and flexible network.

14. Network Intelligence and Analytics: Ward highlighted Cisco’s strategy for incorporating network intelligence and analytics across its product portfolio, emphasizing the importance of extracting and utilizing the vast amounts of data stored in Cisco’s ASICs (Application-Specific Integrated Circuits).

15. Monetization Through Analytics: Ward outlined how Cisco plans to monetize network analytics by integrating analytics directly into its systems, developing custom silicon, and orchestrating parts of its portfolio to create more value.

16. ASIC Development: Ward confirmed that Cisco continues to invest heavily in ASIC development for its products, particularly in the provider, enterprise, and data center segments.

17. Future of Networks: Ward envisioned a future where routing gateways, compute, and storage are combined into a single unit, and where new services can be rolled out in weeks rather than years, enabling service providers to compete more effectively with over-the-top (OTT) providers.