Verizon: Lessons Learned from Managed SD-WAN Deployments

Use Cases in Retail & Finance

Join us and our strategic partner Verizon for an on-demand webinar discussing our Managed SD WAN solution. This session will explain how Managed SD WAN can help increase bandwidth, agility and reliability while maintaining security through real life use cases and in-field deployment scenarios in the Retail & Finance sectors.

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Presenters

Scot Allen Director of Managed and Professional Services, Verizon

20+ years of experience in product management and innovation. Scot currently leads a global team responsible for $5.2B in revenue management, go-to-market, promotions and digital marketing.

Brian Promes Senior Director of Product Marketing, SevOne

Brian leads product and solution marketing team to shape and drive success of the SevOne Digital Infrastructure Management Platform through the execution of go to market activities for SevOne products, solutions and industry partnerships.

Ramesh Prabagaran VP of Product Management, Viptela

Transcript

Female: Good morning and good afternoon, everyone. Thank you so much for joining us today as we discuss the Lessons Learned from Managed SD-WAN Deployments. We have a lot of great information, so let’s just get started. We’ll be taking questions through the chat and after the presentation we’ll also have a live Q & A session. Let me introduce you to our speakers, we have Ramesh Prabagaran from Viptela. Ramesh is Vice President of Product Management and Partnerships. We also have Brian Promes, who is the Senior Director of Product Marketing in SevOne. And lastly from Verizon we have Scott Allen, who is the Director of Managed and Professional Services. So again, everyone, welcome and Scott I’ll turn it over to you.

Scott: Thank you very much, thank you all for joining today. I still see a number of people spooling up, so I expect it will probably crescendo a few minutes into this. We’re taking a follow-up from our last, doing a quarterly series around software defined networking as sort of an educational case study perspective. And this time really focusing on retail and finance perhaps an odd pairing, but I think for those people in the business, the similarities being around the multiple locations, so you know branch, small office locations being in stores, obviously, being kind of the similarity footprint. And then also the heavy amount of transaction activity combines or is a common ground between retail and finance against redundant data center models.

So, a lot of similarities that relates to how customers are deploying software defined wide area networks. And then again, it’s really important to me that we continue to develop the relationship and the partnership out in the field with Viptela. So Ramesh joining me again, thank you for that. And, like we said, we’ve got Brian Promes from SevOne, now this is a new exciting, I guess formal partnership. We’ve actually been doing work for almost a year now, in terms of the operational and the visualization, troubleshooting and performance management with that one huge partner, large portion of our go-forward business around software defined wide area networking. So I’m happy to have Brian come in and present a couple slides on the perspective and capabilities there, so thank you gentlemen for joining me. We’ll switch the video around.

This is our standard proprietary statement around the content that’s being viewed today. So I’ll leave this with you all. And get right into the heart of the matter. Today the customers that I speak to on a regular basis are rapidly looking at the before picture and realizing it doesn’t scale to today’s networking and user demand model. Customers today, obviously you all know, are facing, down here, the Smartphone, the tablets, laptop, mobile users against a wireless LAN infrastructure that’s becoming much more complicated. Here in the middle section and then traversing a number of public and private network connections, sometimes rogue connections, sometimes corporate connections, ultimately terminating on the top of the now slide into public, private co-location centers; any myriad of those.

So the importance of policy-driven application routing, policy-driven wide area networking is becoming increasingly important, if you look at the demands that go on here. I’ll share with you a quick anecdote was related to a customer I spoke to a couple months back, it talked about hosting a analyst, excuse me, a financial call for all of their shareholders, what’s the word I was looking for, shareholder call. Probably a couple months back and his issue was that while he was on an analyst call, somebody started using a lot of bandwidth down in the administration portion of the building and it really caused a hiccup right in the middle of the analyst call, if you can imagine.

You’ve got all your shareholders and perspective proxy voters on one call, and all of a sudden, you’re network starts hiccupping and it was 15 seconds of sheer terror for this guy as he was recalling the story. Policy-driven networks prevent that, right, they prevent the unpredictable, they prevent that which you can see, that which you can control and that which you want to direct within your network as it relates to that 80/20 rule. It’s the 20 percent of those applications that are really critical and drive 80 percent of your business. Those are applications that you absolutely need to have a policy wrapped around. And SevOne gives you the visualization and the capability of seeing how that performance goes and we’ll share a little bit about that.

I’ve used this slide in a number of areas, my favorite is really going kind of horizontally across the top. From the expanded service perspective, I can’t not go to a meeting today and not hear about Office 365 and the deployment. It used to be really for smaller companies, but we just had a customer advisory board and this … some of our top manufacturing customers at a customer advisory board just a couple weeks back. And the gentlemen across the table from me saying, “You know I’ve deployed 15,000 Office 365 users.” So it’s not the medium business, small business user that’s deploying Office 365, anymore, it’s corporate, it’s mainstream. It’s certainly IM & P, it’s instant message and presence, but it’s expanding rapidly into how do I deploy voice peer to peer video, like you saw on the other slide.

So, a bit portion of the new expanded services and actually Ramesh is going to talk about that, because they got real sharp about this early and said, “Hey, we probably should start doing some messaging and marketing to help people understand,” very directly how does Office 365 get impacted by a software defined software defined wide area networking? So I think in a slide or two we’re going to get straight into that and let you see how that works from a SevOne and a Viptela perspective. Obviously we’re using WebEx today, a business critical function for me being an office worker, a knowledge worker, I’m on WebEx probably four … anywhere from four to six hours a day, remote, mobile or even in the office. So a critical policy that Verizon uses in terms of making sure that we deliver those video and collaboration applications reliably and with a high priority because they are critical to our business.

As we look at the enhanced digital experience, especially as it relates to retailers and the financial. I see a lot more video, digital display, digital signage in the stores globally, no matter where I’m shopping, where I’m visiting, you’re starting to see those display ads. They’re dynamic, they’re not static, they’re not scrolling, they’re not just updated nightly anymore. They’re getting midday pushes on sales specials and trends, just Wi-Fi and BYOD. I think BYOD has been around for about five years, but I think it’s really, again, hitting an apex of congestion on the network. I look at the number of devices sitting here on my desk and I’ve got my Smartphone, my mobile, excuse me, my Smartphone, my tablet, my laptop, any of those can be connecting to the wireless LAN at any given time.

And competing with a number of contractors we might have in the next room, so having those policies set up is critical from a digital experience perspective. And one of the very first use cases that Verizon ever had, we’ve covered off ONUG last spring was around the business unit acquisition or divestiture. Being able to write policies and segregate business units as they’re being spun off or acquired, was easy policy and LAN segmentation, the security that comes with a software defined wide area networking deployment is a critical use case that we find over and over. I saw something on the order of, I think, 33,000 M & A’s go on every year, globally. But no concept of 33,000 mergers and acquisitions for going on globally.

So if I look at every industry, every business, certainly retail and finance acquiring localized or smaller segments of their competition, this is something that I think is going on every day, whether or not it’s a portion of your business. And then we talk about network modernization, you probably been getting a lot of conversations or a lot of questions around how people are doing digital and digital transformation. We’ve got a lot of customers who are looking at how do I mix a hybrid environment during an end of life or during a [CP] [unintelligible 00:09:16] cycle? Does it make sense? Or when does it make sense to engage Verizon and Viptela in talking about what should be at the edge? And how do I get those services to work in a comingle hybrid environment?

So we’ve got a lot of experience around that today that we’re engaging customers and helping solve that problem. Like when, where how? What policies, what locations, how to bring it in, in a non-disruptive and a creative value to the overall long-term strategy. So that’s why and where we see customers caring about SD-WAN. But let’s get into the Office 365, because you launched a recent social media campaign on this, on LinkedIn, Ramesh. You all have been doing your own webinars, it was on your website last night poking around. Talk to me a little bit about how prominent and how much of this you’re seeing and how you’re solving for it, please.

Ramesh: Yeah, absolutely. So Office 365 is one of those interesting [staff] applications that’s single handedly driving the need for a new age wide area network. And at the outset, initially when customers came to us and said, “Oh 365 is killing my WAN,” I was really scratching my head too on this time. What is it that’s really killing it? And that’s when we started to dissect O-365 into the various applications. You have exchange, you have Skype for business, you have a whole bunch of other things, each with its own set of requirements, each with its own set of latency, laws and network-specific requirements, as well. And then we tried to just sell it down to what’s really killing the wide area?

It’s really simple; if you have workers, employees, or whatnot at the end of a remote site, or a branch or a store, and they need to access O-365, and you’re using really skinny pipes or low SLA pipes to access the service, and your internet exit point, and this is critical, the internet exit point is not placed correctly, then you will see the spinning wheel of that. And invariably when you do a trial with 10 sites and 10 employees, let’s say, you don’t hear this as a problem. The minute you start to scale to a few hundred and thousand and certainly going back to your numbers, Scott, on 15,000, and so forth, then the numbers start to add up pretty quickly. And it becomes a CIO’s number one problem. And when email stops working, or experience is bad, you know everybody complains. And so it’s single handedly driving quite a bit of the discussion around wide area.

Now let’s look at the particular picture and see what is it that we need to do in the wide area in order to address this? Now I spoke about the need to have a proper internet exit point. And today everybody has internet exit points, they’re out of their data centers or [DNZ’s] and that’s how it has been. If you’re browsing cat videos on YouTube, for example, it’s less important if your user experience goes [unintelligible 00:12:23], but if you’re accessing O-365, salesforce.com and so forth, then it does start to impact it pretty aggressively. So customers have said, “Hey, what is my natural recourse here? When I open up traffic out of the internet locally at the branch location itself?”

Essentially get an internet pipe, connect it to the branch and open it up to the internet, do what is traditionally done with [split tunnel]. Now for those of you that have had security conscious conversations it’s quite apparent that’s not the easiest of answers, because now I’ve just gone from opening up two sites across my entire network to the internet to a few hundred, if not a few thousand sites. And so security guys immediately come in the way and say, “Hey, no this cannot be done ,I need to put a lot of controls around it and so forth.” So customers are grappling with, I have the need for a direct internet access, because Microsoft says, I need to access O-365 directly over the internet.

But I need to strategically place the internet exit points and make sure that’s secure, make sure there’s no inbound DDOS and so on and so forth. So that’s really where we see SD-WAN along with the partner, such as Verizon come together and say, hey I can offer you the full experience here. I give you the ability to choose the applications that need the right level of performance. And so you can exit out to the internet either locally at the branch if my security allows me to. I can have a regional caller or a popup starts and then exit out or maybe out of my [unintelligible 00:13:55] depending on how far these things are. So another option to see the numbers one, two and three you have multiple options here and the tradeoffs here really are between expedience, security, performance and learning curve.

And that’s where we have really honed in on with our customers to understand why this is important. In the data [unintelligible 00:14:18] case, that’s the one we spoke about, get a pipe, connect it to the site and then exit out to the internet. It gives you the best performance, but certainly not the best in terms of security controls and so forth. And at the same time, you’ll have the unreliable internet to deal with, especially if you’re too far away from a [unintelligible 00:14:39] one, provider [upstart]. Now the … in our [unintelligible 00:14:42] problem, you can actually go to a carrier in your facility and then exit out to the internet using an internet exchange, that makes sure that the last internet is just one pop away. And you have essentially the SD-WAN telemetry that’s provided by the network to jump from the branch to the intermediate point.

Or you can go down the path of actually using an extra [unintelligible 00:15:06] which is what Microsoft recommends for a small sliver of their customers where you can actually jump onto either a DNL or an STI type connection and then exit statically into O-365, all the way from the branch going to O-365, everything is secure. So there’s actually an entire topic of conversation by itself. We should probably do an entire webinar on this, but it’s single handedly driving a lot of the wide area transformation discussions.

Scott: Yeah. Did you … I mean do you find that it’s both people who are just using the exchange function as well as people who are trying to do voice and video? Or is it only for people trying to do voice and video that this is an issue? I mean, to me, and I’m really embarrassed to say this, but like exchanges is a pretty important business function for me. Like if I don’t have email for the day, there will be problems. If you can’t see somebody like yourself on video so the world doesn’t stop, but man a female goes down, we got real business problems. So is it a mix, does it like mostly people just doing instant message presence in exchange? What do you see as far as the business application out of O-365, currently?

Ramesh: Absolutely. So the exchange is number one, mainly because of the prevalence as you mentioned. If I don’t access my email for a few minutes during a working day, I get very jittery and I’m sure a lot of the people in the audience feel the same, as well. So proper functioning email is absolutely critical, not just for personal sanity, but to run the business as well. So that, I would place that at the very, very top. Now the second one is share point, especially as you start to talk about file sharing and the need to link files to emails and efficient transfer of emails and files and so forth, so once again, that’s another one. With respect to the other two, especially [wide] video calls and also instant messaging, that absolutely is important. Instant messaging in particular is not as bad when it comes to loss and latency in the network because you do get it back eventually, maybe a second out.

But it’s not as annoying as a spinning wheel that runs for like a few seconds, right. And so in terms of variety, I would say, it’s exchange followed by share point, followed by voice and video and then IM after that as well.

Scott: Thanks, I hadn’t factored in share points. You know I think you’ve got in here the other message that Verizon does have the secure cloud interconnect offer which we do wrap security around. So the customers can connect directly [unintelligible 00;17:51] if desired into the Office 365 environment without having to buy more or different access or bandwidth or have to even deal with the internet version. But there’s a lot of … there are a lot of different architectures and a lot of different considerations as you pointed out. So thanks for that. So I’m going to do one question and give it right back to Ramesh. So get ready, Ramesh, we’ve got I think a few case studies you’re going to walk us through, both retail and financial, as it relates to the challenge statement and how we delivered.

So from our perspective, Viptela brings to this relationship a lot of the innovation, a lot of the technology, a lot of the policy understandings around how their clients are interested in moving applications. Obviously these are our clients as well, really, like I said, the strength being around the technology, the intellectual property, in that monocular focus that Viptela has on software defined wide area networking, makes them a great partner. And you know it’s not a small company, you guys are dealing with Fortune 500, I think you were name one of the top companies to watch to hit one billion dollars. Did I get that right, Ramesh?

Ramesh: Yeah, that’s right, that’s actually a blessing and a curse, as I’ve said … [unintelligible 00;19:10].

Scott: SevOne we’re going to talk a little bit about. There’s kind of the unsung heroes, right, you don’t see them as much within our infrastructure, because they’re built into the performance and the troubleshooting delivery, which is why we asked for them to come out and kind of speak forward and talk a little bit about that. So Brian’s going to hit that. And then from Verizon’s perspective, we have great relationships with our customers. We have a global backbone and a wide array of services, so we don’t just have to go in with one point technology. Customers aren’t looking just for a policy, or a box, or an edge device or a report. They’re looking for somebody to bring this together and bring it together with the access options that we offer.

And like I’d mentioned before, the software, excuse me, the secure cloud interconnection to those applications, like Microsoft or also goes to some of the others, like Google Apps and things like that. We’ve got a whole other discussion lying around software, excuse me, the secure cloud interconnect. All right before I get too deep into that, let’s go straight back to Ramesh, talk a little bit about the digital transformation from a retailer bank experience perspective. But you can start talking and I’ll move the ball over to you here.

Ramesh: Absolutely, yeah and if there is a textbook example of why somebody needs the SD-WAN, especially as a managed service, this would be it. Right? And to just give some context leading up to how we won this customer together; it was really this particular retailer has a pretty large footprint, as you say, [unintelligible 00:20:49] plus stores. They had a few problematic sites where really the business was getting impacted pretty badly. People are not coming into work because they were always skinny pipes, the experience was pretty bad, the sales was pretty bad and so forth. And so when we embarked on this initial conversation with the customer, it was really a test and a challenge back to us. Make it work on these problematic sites and then let’s start to talk about how this transformation can work.

And so very quickly we spun things up, I think it was less than a week and the whole thing was up and running and the customer was blown away. And very simply what is the transformation that we went through? It was just not stick to a single skinny pipe, a [T1] essentially at all of the stores, but rather augment that with a couple of things. One is a pretty large broadband pipe; in the customer’s case it was a mix of 20 mg and 50 mg. In some cases actually a 100 mg internet pipes as well. And then also augment that with 4G LTE. So right off the bat the customer got transport diversity, so it was a combination of MPLS and broadband and 4G LTE. Now on top of that, the customer was embarking on things like Retail Analytics and Office 365 and a whole bunch of other high bandwidth applications, even things like digital signage.

They said they had vendors knock on their door every single day to provide profiled digital signage videos, whereby you walk by a screen profile view in a nice way and then put a picture of what is it that you would be interested in seeing there, as well. And so increasingly retailers are extremely digitizing their network, going back to what Scott was mentioning. It’s about digitizing the infrastructure, it’s about adding the transport diversity, it’s about applications, as well. One of the examples that this particular customer gave us was a iOS 9 [head] exchange and as you all know within two days everybody downloads the new application onto their phones and starts upgrading.

So they said that was pretty much choking the network and killing the store network, so very simply, they put quality that said match on traffic gone to Apple, especially iTunes upgrade and then throttled that down to a Mac. So it’s a classic example of how to get application visibility, to get application-based controls, as well, that you can put back into the network. Now certainly going back to the 80/20 rule, this particular customer cared about a few applications, certainly point of sale. If all else fails, that’s okay, point of sales cannot because that’s where they make the money. So point of sale was absolutely the highest priority, next up was some of the analytics pieces, and then some of the streaming [mills] the streaming video type applications.

And then certainly, all of the laser guns and everything that takes care of inventory and so forth. So they actually had a pretty interesting [unintelligible 00:24:03] list of applications that needed prioritization through the network, and what kind of latency, loss guarantees do they need through the infrastructure as well. So it provided the network architecture was built based on these things in mind. Essentially transport diversity, all of the retail things that you see on the right side of the picture on signage and guest Wi-Fi, [unintelligible 00:24:27] and so forth. Access to the cloud and then the whole thing was bundled into a managed service that’s been offered back to the customer.

The rollout actually is kind of where we got pretty excited, apparently we were excited about winning the opportunity but we saw this customer go from two stores a night, using the traditional technology. To roughly about 25 to 40 stores a night in terms of rollout using this new technology. So it was very simply send a box to a remote location, ask somebody to [rack/stack] the device, connect the blue cables to one of the ports, the red cable to a different port and power it on; and that’s about it, then everything was just up and running. They go through the full testing and the store was alive. So it was really a combination of the architecture, the ease of operations that really led to this transformation. And on an ongoing basis, the customer continues to see quite a bit of value.

They added a whole bunch of new high bandwidth applications as well to this infrastructure mainly because they have [unintelligible 00:25:37] pipes going into each one of these locations, and they aren’t paying nearly as enough as what they said even earlier. And so the transformation was pretty great from that standpoint. And they also got the transport diversity, so that if there’s a conduit going to a particular store and that gets cut, guess what happens; all the connections that you have going in, go for [toss]. And that’s where LT kind of kicks, as a kick off last resort, and says, hey my two primaries, or my primary and secondary are down, and so I need to bring the LT connection up and I need to have the store on live.

So customer went from nearly about 97 percent visibility to about [unintelligible 00:26:22] of availability in the infrastructure. So that was a pretty great transformation, again a textbook example of the [unintelligible 00:26:30] value that SD-WAN can provide. You make the infrastructure ready for innovation to accommodate all of the things that you want to do, and at the same time, make it route ready as well.

Scott: But in your whole narrative, with Viptela, you have story after story after story like this. I mean this is not … we’re picking one slice, but you go to your website, you hear the different marketing discussions around Viptela’s case studies. This story keeps happening over and over, right. It’s about the agility, it’s about the flexibility and it’s made a huge impact, I think, for a number of customers, who also are pretty outspoken about the partnership. So …

Ramesh: Absolutely, yeah exactly. And I mean it’s a great model, I mean you have the [guts] provided by the technology to enable the transformation, but that alone does not complete the story. You need to have the infrastructure in place to support it and at the same time you need to have the operational model on top of it to serve. And that’s really where the killer combination is. And switching gears from retail to financial services, you …

Scott: – I was just going to say; to do that. We picked this, because this is a smaller example. Like I don’t want everybody to think you have to have 750 or 500 locations to do a transformation and do 40 a night just to make an impact with software defined wide area networking. Right?

Ramesh: Yeah, absolutely. This actually is … even though it’s a much smaller network and some of you might be wondering okay what does SD-WAN have to do here? It is once again the use case is really interesting. This is a publicly trading financial services organization, and as you can imagine, really small in terms of number of sites and actually some number of people as well. But they are in every possible continent and have all of the major cities in the world covered. So you can list down the top entities that come to your mind, in terms of developments and then they would have a presence there. And the challenge that they have was very simple. They inherently completely distributed geographically, and so they couldn’t just afford to connect all of their infrastructure using just one provider.

And so inherently they were looking for a combination of providers there to connect their infrastructure together. And they said, “I need financial organizations certainly, it’s not just about trading.” There are a whole bunch of other high bandwidth things that were flowing through the network. And they said, “You know what, I need to look at an [automated] model.” They said, “I need one person to kind of manage my entire infrastructure,” and then underneath the covers you can have multiple circuit provides. And so that’s really what makes this use case interesting, because you can fundamentally change the paradigm of connectivity that used to be whoever owns my circuit, also owns the service, to one owns the service and a bunch of other guys underneath the covers that provide the circuit.

And so, again SD-WAN [unintelligible 00:29:43] these two, and a managed service can be provided on top of anybody’s infrastructure. Right? And so it may not be just a service provider, provided circuit, it’s great because you can then offer an SLA as well. But if that provider does not have presence in that particular country, then it’s not the end of the world. You can actually use a third party, [unintelligible 00:30:07] or broadband or whatnot, and then still provide a ubiquitous managed service on top of it. So the use case is actually quite different, but at the same time, you can see the examples here. Right?

I mean the customer again came and said I have two locations, one in the middle east and one in Europe and actually one out in Southeast Asia, and those are my three problematic sites, give me a solution to make these things work. And as with the retail case, we made those three work and then low and behold, it expanded to their entire footprint as well. So …

Scott: Hey, Ramesh, I want to double click down on something you just said, because people are … I don’t know what on people’s minds, but I have heard questions before from audiences that oh [unintelligible 00:30:53] in other places. Well, wait a minute, Ramesh is up here talking about somebody other than Verizon providing access to sites. Hey we have a great network, certainly global footprint, you know best in class service from a wireless, from a MPLS, and internet connectivity perspective, but we do recognize that people have other accesses and circuits into a location. When we deploy software defined wide area networking, it is about that edge in policy experience, and the availability of the service.

We provide SLA’s for sites that have third party circuits added. Right? We do recognize that maybe not every location needs two MPLS circuits, maybe you need that internet broadband, maybe you can get 500 or maybe you can get 50 mg from your local cable provider and that’s a suitable thing for you to route some of that non-critical traffic. So we’re in it for the big game, right, the long haul and the customer experience. And we recognize three’s not … we’re not always going to be the … both of those access circuits or wireless providers plugging into that device. It’s going to come in many forms but we do have the responsibility from a managed service perspective on the SD-WAN to provide that singular experience commitment in SLA’s. So I appreciate you bringing that up and …

Ramesh: Yeah, absolutely. And that’s key, right, because the value is not just about connectivity, the value is about, can I make my applications work? Can I make it work, based on the SLA requirements that have? And that can be provided, [of your own] underlying circuit or if you don’t own the underlying circuit as well, because that technology gives you the ability to measure in real time largely can see a whole bunch of characteristics and then make all these decisions based on that. And so you’re naturally-leveling the competition, as you can see from, I want to own the service, I want to own cloud connectivity, I want to take care of operations and management and certainly the circuits and underlying infrastructure is a piece of the overall thing.

And that’s a transformation that we see across nearly all the [unintelligible 00:33:05] and we were talking about retail and financial services here, it’s equally applicable to manufacturing, as you can imagine. Manufacturing tends to be, especially the large ones, tend to be globally dispersed and so this is a natural game that you can avail yourself of, as well.

Scott: Great segway to my next slide. We’re going to move forward quickly, because I want to get to Brian’s stuff. You just talked about global expansion, the use of third party circuits, the need to have that uniform experience, even though it may have come, like I said, globally through another carrier, from a broadband in China, or even a broadband in the U.S. provider accessing a secondary or even a primary circuit plugging into a managed Verizon SD-WAN solution. Talked about the digital experience upgrade, I think pretty healthy coverage on the retail piece. One of the things that this anchors for me is; in the mergers and acquisitions; I want to really just focus for one maybe 60 … 90 seconds on the data breach investigation reports.

I’ve got a couple posters up here, I was fortunate enough to get from the marketing team. So the data breach investigation report talks about the need to lock down your network in a way that doesn’t allow people to traverse and snoop and gives specific access to specific user groups and declines … and … excuse me, prohibits others from accessing those applications unless there’s roles and policies that enable it. So while we talk about prioritization, we talk about the application accessibility, the important thing that this provides in addition to all those performance attributes is really a security function of being able to segment and create user group experiences that are unique. And like I said, in the data breach investigation report and I put in here, the actual page numbers for you if you want to check them out, it’s over on Verizon’s Insight Lab, on verizonenterprise.com.

Talks about, what is … you know the importance of assets and network segmentation and this is about how SD-WAN delivers that for our customers. Really an important, I think, probably an under-sung element of the service that more and more companies are starting to realize is a primary benefit, not even a secondary benefit. Quick talk on the roadmap, so for a roadmap perspective, we find customers certainly preceding this step in the internet space, still using internet, as we talked about. But MPLS allowed people to create full mesh networks, create QOS run applications, define the path they want to travel either hub and spoke, mesh, etcetera. Software defined allows you …software defined networking allows you to, by policy, by application, by business unit need, select the path that you want to take in a dynamic way. Right?

So old is static, primary and secondary, new is dynamic policy and performance driven aware networks. And then on top of that, being able to make the path and expand the path. So for those of you who don’t know, and hopefully a lot do, we have over 13,000 users entitled with dynamic bandwidth manager today on our network, 13,000 different corporate entities using the dynamic bandwidth manager. So this is the ability to go online, use the SD-WAN to define your policy and then dynamically allocate increased port, increased capacity logically in minutes. Like being able to open the path and close the path on your ports for those Ethernet connected locations is really critical in terms of being able to immediately fix the problem or hopefully be able to predicatively increase capacity for your network in preparation for something like this, like a large webcast.

And finally, I’m not going to talk a lot about this, but we’ve really ventured into the virtualization of those applications, like software defined wide area networking including security and WAN optimization. So a huge portion of the business as customers are trying to figure out what is the total cost of ownership here. And this is about investing in the tools. Right? So real nice that we’re rolling out technology, but if you can’t experience it, manage it and access it and use it in the context of your business, it’s kind of … a little bit of a so what. So our manage services platform uses the integration of the sock and the knock, uses that dynamic bandwidth manager, right, that’s the online tool.

You can go in and expand your ports at the data center, enterprise location certainly would’ve been a good idea right before that investors call, I just talked about earlier to go in and expand the port, maybe double your capacity for that one day. And then size it back down the next day, so you don’t get hit with a bunch of charges on bandwidth you’re not using. And then from a SevOne perspective, within our network application performance management, this is where you can start to see an individual user’s experience on an application, rather than at a pipe level or at a application level, this is individual user. So I’m not going to go into each one of them, but this is really the experience layer for our customers in the managed services space, as they interface and want to get eBonding feeds out of this or API feed.

Or just, like I say, manage their network in a central location for all their services, be able to see security network, advanced communication, [unintelligible 00:39:14] reporting and performance all in one place; so pretty excited about that. I’m going to, like I said, skip through this, if your network isn’t helping you address these challenges today, it’s not a matter of if, it’s a matter of when. Right? You will, I truly believe in the Gartner and the IDC stuff supports this. I truly believe that getting involved and adopting this technology is critical to a long-term success of the business and the IT operations working together. You don’t want to wait until it’s something that has to be done.

You want to start getting into this technology now, build it into your budget [unintelligible 00:39:58] cycle, I mean we’re coming up on 2017 here at the end, or excuse me, the beginning of Q4, if now is your budget cycle, now is the time to start considering what is a proposal look like to replace my Edge devices with a Viptela DS-WAN device. And how might that technology be used in a pilot or a lab here in the next couple months? Certainly for retailers after the heavy season is coming up, but January, February we need to get this stuff in a lab and start using it. So, Brian, talked you up in this discussion here, now I’m ready to hand it over, let me … like I said, let me introduce Brian, he’s out joining us from California this morning; huge partner. Like I said, can’t do this without you, because otherwise it, like I said before, it’s just technology.

If we can’t see and manage the performance and user experience, it’s just like fun science. But talk to me about the user experience and the SevOne benefits, please.

Brian: Yeah, thanks Scott. It’s … if you think about SD-WAN and what’s going on in the delivery of your services to the market, customers are going through this opportunity to transition from some traditional WANs into these policy-driven WANs. And being able to do that, right, is folks just don’t transition overnight. Right? They are … there’s a need to be able to visualize the health and status of an environment and be able to do it in a way that taps directly into both the existing infrastructure and this new software defined infrastructure. The new software defined infrastructure it brings agility to the business, but requires agility back on the operational tools that support it. So we’ve been working closely with Verizon and Viptela to make sure that we’re tapped into the API’s that drive the agility of the Viptela solution and offer the SD-WAN services.

But also making sure that we’re tied into the rest of the infrastructure of the service delivery that customers come to Verizon for. And making sure that the Verizon operations teams have that … the visibility to help make that transition possible. But it goes beyond just that visibility, it goes into understanding how the SD-WAN infrastructure is operating. When … how well are the … is the system operating? And if there’s issues, to be able to know that which things need to go … pay attention to, so really to help validate this policy and be able to understand the user experience in real time. But if you think about the work that SD-WAN does, right, it’s doing it in a matter to meet certain business goals. And to be able to do that, you need to understand what you want to do in the future, so planning for future policies you can use the underlying infrastructure of the data we collect in SevOne from the entire infrastructure, to help plan those policies out.

And finally, I think the last piece that begins to tie it together is we’ve talked really about the SD-WAN, but the SD-WAN is there to enable connectivity across the entire infrastructure. Right? Ramesh you were talking about the retail experience, right, so whether it’s the person with the gun doing the inventory analysis or point of sale machine, those are accessing application services across that WAN into the appropriate data center. And you need to have … and what SevOne delivers the Verizon operation team is the ability to understand that entire path from the retail branch back to the data center. Let’s go ahead to the next slide, Scott and we’ll …

Scott: yeah you’ve got some juicy screen shots, I know the guys in operations love this tool. The last two times I’ve even seen anything about the SevOne, I mean our internal teams have started taking over and doing all the demos. I don’t think we’re even using the SevOne engineers to do it, they’re so involved with this at this point. So walk me through … I don’t … yeah I’ve never heard you actually give this …

Brian: To give an idea about some of the visualizations we have, is we’re really there to help the Verizon operations team deliver the service they need to. And when you’re doing that, you need [unintelligible 00:44:41] depth of information. If you’re monitoring that at a customer level with 15/20, hundreds of branches, you can build out scenarios of, what we call, [live mass] the ability to have a level …near world level view of the health of the entire infrastructure. And it led to the drill own based upon exception level reporting of how things are operating. Whether you need to dive back down into what’s happening on the WAN or dive down into a data center and understanding what’s happening inside an organization.

It’s about the ability to enable the transition, so I can visualize all my existing WAN infrastructure and the SD-WAN, because in the end together we’re providing the service for the environment. But then getting down into levels of understanding what users are accessing what applications at what times. Make sure that, you know do I need to make adjustments to the policies that I’ve set up. Maybe [unintelligible 00:45:47] applications are being used more than others and it’s this level of ability for SevOne to gather the data and help our customers visualize it that becomes real important. And I think some of the … as we move forward in this partnership, the ability for the Verizon operations team to be able to deliver these services requires the ability to work even closer on backend operation capabilities, make sure we’re tied in directly with service provision and activation into alarm and [unintelligible 00:46:19] ticketing types of components.

But also delivering the right amount of data that you can make available to your customers through the Verizon Enterprise Center. And having the [level of] reports that can be available for the customers. So in the end we’re really pleased to be able to be working with both Verizon and Viptela on enabling this level of visualization and helping your customers achieve this agility that they have.

Scott: Well thanks, Brian, like I said, this was the missing link; we didn’t have this … I mean we were working on it and the operations team had it, but as far as the go to market, we didn’t have this certainly the last time we did the webinar to be able to talk at this maturity stage. And there’s some exciting stuff coming out, I think, in the press about our partnership and the go to market strategy. So I feel as though this is something that you’ve got policy, you’ve got performance, you’ve got innovation and technology coming from Viptela, you’ve got Verizon’s managed service and professional service teams delivering it. And now you’ve got SevOne empowering my operations organization and the customers with a visualization of the network and how the topology and the performance of each element fitting in.

There’s really no element left out of the equation at this point. So I’m exceptionally happy that we’re able to partner with you all, bring it to our customers and really not only [you missed] it by the whole experience for them, but really start to make it look like a very mature operational experience for retailers, financial services. And as Ramesh mentioned, certainly any industry. My closing slide, this is it folks, then we’ll go straight to questions, my closing slide is really where do you start the relationship? Certainly we want you to talk to your Verizon team, the account teams that serve each and every one of you today. We have a quick start promotion that allows you to get in, put the technology at a location today.

Basically, the full managed implementation, getting the Viptela gear out at a crazy discount price for any customer is … so that it’s such a low to no burden to entry. That for people who know they want to start with digital, excuse me, software defined wide area networking, we’re ready. So that’s exciting, that’s the lower half of this [unintelligible 00;49:00] that’s kind of creepy. And then on the top track, if you don’t know where you want to start or how software defined wide area networking fits into your environment, we have the digital advisory services. So these are the people you see in the middle square down here at the bottom, awareness and strategy workshop, let a team come in, let us talk about how you want to map the applications. Let us talk about how you might fit this into your environment.

How you might want to stage it, Q1, Q4, ,next year whatever it is. And then for people who really want to go run the stack, like I’d mentioned before innovation program takes virtualization for software defined wide area networking and adds some of the more traditional security band/WAN optimization software into it as well. So trying to make it as easy as possible. Trying to make it as little friction as possible for our sales organization and for their customers, so that people can have this experience and start to let their end users have this enhanced experience on the applications and the things that we focus on today. So with that, I want to hand it back over to [Angie], see if we can solicit some feedback from the audience for the next couple of minutes and as well as turn to m

So [Angie], you still out there?

Angie: Yes we will now begin the question and answer session, to ask a question please press star followed by the number one. And record your name after the prompt. To cancel your question, you may press star followed by the number two. One moment for the first question.

Scott: So [Marish] was asking us over here on the side, while we’re spooling up those questions; specifically around the global availability. So Verizon’s offering the global managed service and certainly anywhere we have the ability, well over a 100 countries, the ability to ship the Viptela solution, as a managed solution to our customers. Like I said, both over Verizon or a third party access circuit, broadband or dedicated otherwise. Certainly there are countries where we’ll face … great question, security restrictions around [DAS] limitations, governments, entities who are not willing. We’re going to follow the regulations and rules. One of the benefits, I feel, in working with the Verizon is, when Verizon says we can service a country, it’s a homologated service.

It’s been through export compliance. It’s going to arrive. It’s going to be configured. You’re not going to get fined or penalized or shut down. This is a service that we’re able to provide globally for our customers. There is a list of countries we serve out on our internet, excuse me, and certainly the Verizon account teams can go out and provide that. You know what I’ll do actually, Joe is probably I’ll even put out a LinkedIn post maybe as a follow up to the exact information so that we can get that out to the team, how many locations and where they would find that. So good question. Angie, do we have anything out there?

Angie: Yes we have … thank you, [Manish] your line is now open.

Manish: Thank you for taking the question. I was the one who posted that question regarding country offering and footprint. Thanks for that information. And it would be really helpful if you can send the link, so we can just look it up online. The reason why I’m asking this, is that we have the customer centers, the list of countries and their locations. And they want to phase this in a phased manner. So they want to see where it is available right away, so we can deploy it on the face manner. So that is the reason to ask if you have the country list. And, okay the second follow-up question I had asked was that the demo that we saw on a couple of slides back, regarding the reporting and what they would see and feel when they deploy SD-WAN.

Is that demo available for our customer to feel and like log in and see how the reporting will be and what they can do from there and not as a managed service provider? So I understand that if you’re operating as a service with Verizon, then the whole [unintelligible 00:53:56] is done by Verizon. But if they want to log in and have a user experience, do they have any kind of a portal access?

Scott: So what we’ve shown, the visualizations are all around managed service. SD-WAN, as a technology, is something that you can, as a customer, you could put together yourself. You can … we sell, resell, maintain, install, even professionally service, implement and walk away, Viptela’s solutions as a technology, happy to do so. The way that we’ve been representing it here as a managed service, you know I showed you that above the … there, whoops almost, too fast with my fingers this morning. As a managed service, so in conjunction with our network operations service, and a nominal fee monthly at a location level to manage the service, we are providing these network application performance management.

To answer your question about demo; absolutely, I’m excited to offer the demo around the network application performance management service. They can see end user experience, end user expected experience. Where the issue is coming; these are … we’re providing this to some of our largest customers and our midsized customers today, so that they can see that end to end user, I can’t stress it enough. Right? Not … it’s not like the LAN or the WAN interface support, it’s the user experience that we’re delivering through [unintelligible 00:55:29]. So that is available, again, as a managed service in our Verizon Enterprise Center, as you heard Brian Promes say.

That’s where it’s delivered for our manage service customers. But customers can piece this stuff together on their own, if they want as well.

Manish: Right but the whole issue is that they came to Verizon, it’s an existing Verizon customer, and we are just providing them with MPLS and they want to move ahead with the SD-WAN. So they wanted to see how we would orchestrate as a managed service, that’s one piece. But how they, being the customer, and they being very network savvy, they wanted to see that if they can get a portal access. I already told them that if we are managing, we are going to lock up the network, so that there is no finger pointing who messes up the network, whoever logs in. So … but they wanted to see how we can have a demo or something. So I’ll definitely take it offline and …

Scott: – Yeah follow up with me, I mean, we’re also doing a lot of stuff around API push platform, so that customers can have that hybrid environment. So thank you for that. Angie, any other questions out there?

Angie: We show no further questions on queue at this time.

Scott: All right, Keith, I think we’re going to close on time today, because our audience is hungry. You want to close this out here?

Keith: Yup.

Female: Yeah everyone, thank you for joining, and you can disconnect.

Scott: Thanks much folks, see you next quarter.

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