Friday, November 8, 2013

How Many Years will the “Year of SDN” last?

The valuation of nascent SDN companies is enormous given the state of the market.  One would be lead to think that the market for SDN solutions is imminent.  Is it?  While the business value proposition, beyond “F’ Cisco, has merit the roll-out of SDN solutions cannot, and will not, occur nearly as rapidly as those with vested interest would lead you to believe.

The primary customers for SDN solutions, service providers (SPs) and large enterprises are by nature risk adverse.  SPs have huge geographic disperses networks, investors and bureaucratic regulators breathing down their necks.  Enterprises worry about, among other issues, earnings per share and business continuity.

Given this environment how can SPs and enterprises rollout SDN rapidly?  Their choices are “Rip & Replace” and “Cap & Grow”.   Is the SDN value proposition so great as to justify the former?  I think not.  The question then is how fast can they cap existing investments can and grow the new SDN solution?

Questions to consider include; how many Class 5 switches have been scrapped? How long did IMS take to be fully deployed?   As I’ve stated in previous article1 SDN is not magical that it can violate innovation adoption conventions.  We know the typical SP sales cycle.  Lab evaluation, Lab trial, field trial, market trial, regional deployments.   Each of these can take 12 to 24 months. 

Let us not forget organizational issues as well.   Who’s in the lead for SDN deployment, IT or network operations?  Whose budget will pay for and support the SDN system? 

SDN is not a simple transition.  It’s not replacing one router with a new generation router and reconnecting the cables.  Thus, the question:  How long many years will the “Year of SDN” last?


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Tuesday, November 5, 2013

Greywale Management Releases First Service Provider Energy Strategy Taxonomy

Service Provider Energy Strategy

The energy consumption of telecommunication networks is emerging as a primary concern among network $0.01 per share in net earnings.  With this in mind, energy strategy has reached the board room! 
operators.   The largest U.S. carriers each spend over $1 Billion per year on energy.   One calculation shows that a savings of just 3% would translate in to
Given the scope, variability and diversity of these networks 

Greywale Management proposes the Greywale Service Provider Energy Strategy Taxonomy® to drive future discussions, research and investments and to prevent random acts of green.  Without a clear strategy map, the industry risk high levels of ambiguity and redundancy in these efforts and delays in implementing the much needed energy management techniques. 

Equally important it will prevent “random acts of green”.   Good “green” ideas are everywhere.   Each one may even have value.  Yet, without an overriding energy strategy driven by the taxonomy, service providers will not maximize their investment and business potential.  The use of scarce corporate resources, finances
and management attention may produce an initial euphoria but will lead to long term disillusionment. Moreover, the taxonomy will ensure that these resources and efforts are spent on the right long term solution that also addresses the current needed energy savings for the business.

To download the Taxonomy go to