1. Competing on TCO: Superiority of the Cisco Solution
Cisco Knowledge Network
Sanjeev Mervana, Sr. Director, Product & Solutions Marketing, Cisco Systems
Ray Mota, Managing Partner, ACG Research
7-24-12
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2. Sr. Director – Managing Partner,
Product and Solutions Marketing, ACG Research
Cisco Systems, Inc.
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3. • Introduction
• Network Evolution
Industry Trends
Shifts in Technology
• Cisco’s Solution
Refresher of Network Virtualization (nV)
Cisco’s Application of nV
• Importance of TCO
ACG Report and Whitepaper
Cisco’s UCE&MB TCO Tool
• Q&A
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4. 110 EB
per mo
94 EB
per mo
77 EB
per mo
59 EB
per mo
44 EB
per mo
31 EB
per mo
2011 2012 2013 2014 2015 2016
Source: Cisco VNI Global Forecast, 2011–2016
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5. Application Virtualization
Management
Network Virtualization
Core Edge Agg Access
Optical
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6. Now topology agnostic and all the way to access and mobile networks
ASR 9000 System
nV
ASR 9922/ 9010 Simplify Operations
9006 / 9001
Reduce overall TCO
nV
Integrated A to Z Management
nV
ASR 903 ASR 903
ASR 9000v
Multi-dimensional Scale
ASR 903 System and services scale
nV
ASR 901
Increased Service Velocity
Quickly deploy new services
Simplifies the Network
Improves Network Economics
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7. ASR 9000 System is compared to a competing routing solution
Core Network Core Network
100 GE Up Links 100 GE Up Links
nV ASR 9922/9010/9006 ALU 7750
10 GE Up Links 10 GE Up Links
ALU 7450 ESS-6/
nV nV nV nV ALU 7705 SAR 8
GE Access GE Access
Ports Ports
nV: Network Competing Routing Solution
Virtualization
ASR 9000v
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8. Cost comparisons are made by modeling a aggregation/access network build-out
over a 5 year period
Modeling Process
Assumptions Traffic Projection & Network Configuration TCO Comparisons
Engineering
• ASR 9000 System
• Network Demographics • CapEx Calculations
o ASR 9922/9010/9006
• Network Topology • Traffic Forecast • OpEx Calculations
o ASR 9000v
• Network Equipment Type & • Traffic Engineering • TCO Comparisons
• Competing Router
Models • Port Requirements • Financial Metrics
o Aggregation
• Equipment Prices
o Access
• OpEx Parameters
• Modeling process is “bottom-up” similar to design and build-out of actual network
• Network demographics are for a typical aggregation network—1000s of households
• Traffic projection models triple and quad play usage
• Each network element is configured down to the line card using vendors’ data sheets
• Equipment prices are at market rates—heavily discounted
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9. Traffic projections are used to dimension network requirements
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Residential Subscribers 250,000 300,000 350,000 400,000 450,000 500,000
DSLAMs 350 400 450 500 550 600
GE Ports per DSLAM 8 9 10 10 10 11
GE Access Ports 2,800 3,600 4,500 5,000 5,500 6,600
ASR 9000v 114 132 153 164 175 200
10 GE Ports on Single ASR 9000 Cluster Node 114 132 153 164 175 200
Number of ASR 9000 Clusters 1 1 1 1 1 1
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10. A detailed OpEx model is used—it is driven by the network configuration outputs
from the modeling process
OPEX Breakdown
$20
$18
$16
Savings 71%
$14
$12
Millions
Savings
$10
60%
$8
$6
$4
$2
$-
ASR 9000 System Vendor A Vendor B
Power Cooling Floor Space Tech Support & Service Network Care
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11. CapEx and OpEx estimates are used to create a cash flow analysis
Cisco ASR 9000 System Cash Flow
Revenue OPEX CAPEX Cumulative Net Cash Flow
$35
$30
$25
$20
$15
Millions
$10
$5
$0
-$5
-$10
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
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12. A Business Case for Scaling the Next Generation Internet with the
Cisco ASR 9000 System
• Cisco ASR 9000 System achieves
dramatically reduced TCO through its
network virtualization (nV) technology
• CapEx is reduced due to high port
densities and more card slots per
Available for download: chassis
http://blogs.cisco.com • The ASR 9000 System’s network
virtualization design simplifies network
& operations and reduces operations
expense (OpEx).
http://www.acgresearch.net
• TCO is reduced by up to 73% over
And search for competitive solutions that lack nV
technology.
“ACG Business Case for Next- • The payback on the investment in a
Generation Internet” complete ASR 9000 System is less
than one year.
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13. • Cisco’s UCE&MB architectural
approach for mixed access solutions
(Mobile, Fixed, T1, Ethernet) is up to
37% lower TCO than competition
• Cisco’s solution has the lowest
CAPEX due to high port density,
scalability, and unified access for
mobile, fixed, T1, and Ethernet – up to
36% lower CAPEX than competitors
• Cisco’s innovation provides significant
OPEX reductions:
 Cisco nV contributes to lower OPEX by up
to 59%
 Cisco’s solution has the lowest power
consumption - up to 38% lower than
competition
• Tool available via your Cisco
Representative
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14. • Scenario-specific view of
financial and non-financial
metrics: TCO, OpEx,
CapEx, Cash Flows, NPV,
Chassis Count, etc.
• Ability to export input/
output/ assumptions for
particular scenarios
• Tool available via your
Cisco Representative
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15. • We’ll be happy to answer them.
• Please use the Q&A box to the right of the screen.
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16. Thank you.
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