Cisco MPLS Enabling Managed Shared Services for Greater Profitability Azhar Sayeed June 2002

MPLS Is Key technology for delivery of L2 & L3 services IP Services Optical IP+Optical Switch O-UNI MPLS IP Services ATM IP+ATM Switch PNNI MPLS Traffic Engineering: Optimization for Additional traffic =>$$ IP+Optical Integration IP+ATM Integration Frame Relay ATM MPLS VPNs: Build once sell Many Network based VPNs Protection solution Reduction in CAPEX & OPEX Layer 2 Integration for A single converged Network Infrastructure

Agenda Criticality of Selling More Than Connectivity Introducing Cisco MPLS For Managed Shared Services Roadmap Summary

Enabling Managed Shared Services Cisco MPLS Strategy Next wave: Advanced Services Scalability & Availability Enhancements Functionality & Revenue Enabling Managed Shared Services Provide Vanilla IP connectivity Full - Mesh Announcing Today Time

Managed Shared Services Are The Future of Profitability The Key is moving up the value chain by providing new services Managed Hosting Services Managed Application Services Co-Location Managed Services Data Center Space Managed Network Services L2/L3 Connectivity For VPNs L2/L3 Connectivity Basic Hosting Managed Security Platform Services E-Comm App Mgmt Business Logic Customer Relation Revenue “MPLS VPNs can offer an entry for selling managed IP services. The clever service providers will base their business (and long-term profitability) on value-added services, not exclusively on access.” - Gartner Group, May 17, 2001

MPLS/VPN: Before Managed Shared Services Services need to be replicated per VPN Poor efficiency High Traffic Load Management nightmare VPN “A” VPN “B” ERP Internet Gateway Video Server Hosted Content H.323 Gatekeeper ERP Internet Gateway Video Server Hosted Content H.323 Gatekeeper Service Provider MPLS - VPN Network Services for VPN A Services for VPN B VPN “A” VPN “B”

MPLS/VPN: Supporting Shared Services Shared Services for all VPNs ERP Video Server Hosted Content VPN “A” VPN “B” Service Provider Cisco MPLS - VPN Network Internet Gateway VoIP Gateway PSTN Internet VPN “A” VPN “B” IP Services move into Service Provider network and become sharable Increases Enterprise outsourcing flexibility Creates New Service Provider revenue opportunities

Cisco MPLS For Managed Shared Services Makes Money, Saves Money Allows MPLS/VPN customers to access a central service such as Managed Internet Access or Managed Security Managed IP Services Can now monetize baseline IP services inside MPLS VPNS like Network Address Translation Multicast based services Dramatic reduction in complexity yields OPEX savings for enterprise and creates new revenue stream for service providers VPN Selection Opens new broadband market

Enabling Managed IP Services – Cisco MPLS Strategy Provide Vanilla IP connectivity Full - Mesh Enable Managed Shared Services Advanced Capabilities for New Revenues Adds NAT for MPLS VPNs for central services Add Multicast VPN Solution Add Further enhancements to IP Services for MPLS VPNs Provide Security enhancements for IP services Integration and AAA for MPLS VPNs MPLS TE and QoS for better SLAs using QoS based routing Bandwidth Protection Functionality & Revenue Cisco Delivers HSRP for MPLS VPNs DHCP Relay for MPLS VPNs Remote Access to MPLS VPNs Cisco Delivers MPLS (RFC2547) based IP VPNs Cisco Trials Multicast VPN Cisco provides basic debug and monitoring capabilities Time

Cisco MPLS Service Integration Enhancements Features Shipping Today Cisco MPLS For Managed Shared Services: Announcement Highlights Announcing Today Cisco MPLS Service Integration Enhancements Features Shipping Today Q3-Q4CY02 IP Services for MPLS VPNs Dynamic Host Configuration Protocol (DHCP) Relay for MPLS VPNs Hot Standby Routing Protocol (HSRP) for MPLS VPNs Virtual Router Redundancy Protocol (VRRP) for MPLS VPNs Ping & Traceroute for MPLS VPNs Network Address Translation (NAT) for MPLS VPNs On Demand Address Pools (ODAP) for MPLS VPNs Multicast VPN Service Selection for MPLS VPNs VPN Select

NAT Today Enterprise pays for: Leased links & router ports for internet connectivity Operations expenses and manageability of NAT No revenues for service providers for NAT Services or other shared services VPN A VPN A VPN A Internet MPLS VPN Network NAT CE VPN B VPN B VPN B

NAT for Shared Services Reduced CAPEX/OPEX for the Enterprise Leased lines & router ports for internet connectivity go away Reduces network complexity; operations and manageability cost Increased revenues for Service Providers Can provide outsourced NAT services to Enterprises VPN A ERP Video Server Hosted Content NAT PE VPN A Internet MPLS VPN Network Managed Internet or Managed Security Service via managed Firewall VPN B VPN B VPN A VPN B

DHCP Today Replicated DHCP servers per VPN even if co-located No Value add from Service Provider VPN A VPN B DHCP Server VPN A VPN A VPN A MPLS VPN Network VPN B DHCP Request & Reply VPN B VPN B VPN A DHCP Server VPN B

DHCP support for Shared Services Value Add Service Build Once sell many Efficient management of Addressing Outsourcing Flexibility for enterprise customers & New revenue source for SPs VPN B Managed DHCP Service VPN A DHCP Server VPN A VPN A VPN Context added to DHCP VPN B MPLS VPN Network VPN B DHCP Request DHCP Request DHCP Reply VPN B VPN A

Configure Address Pools per server IP Address Management Independent but inefficient Address Management Providers need to manage addresses manually and allocate them to RADIUS or DHCP servers Once site thresholds are reached – address are manually allocated VPN B DHCP Server VPN A VPN A VPN A VPN A MPLS VPN Network VPN B VPN B DHCP Request & Reply VPN B DHCP Server VPN B VPN A Configure Address Pools per server

IP Address Management as a Shared Service Use IOS DHCP Server Request address pools on demand when a threshold is reached Much more efficient IP address management for MPLS VPNs Less network load and new revenue opportunity for SP Request an address pool for VPN A IP Address Management Server VPN A DHCP Request & Reply VPN A VPN A MPLS VPN Network VPN B DHCP Server Cisco IOS VPN B Use this new pool 10.10.1.x Request an address pool for VPN B VPN B

HSRP & VRRP Today CE Redundancy Only Dual homing to PEs can also be done but does not provide fast failover VPN A CE Redundancy Only VPN A VPN A HSRP/VRRP Running between CEs MPLS VPN Network VPN B VPN B VPN B

HSRP & VRRP support for MPLS VPNs Dependency on Shared Services requires better network availability Cisco IOS “GRIP” features can be used to improve availability CE & PE Redundancy Reinforces GRIP Story with MPLS Dual homing to PEs can now provide fast failover CE Redundancy VPN A VPN A MPLS VPN Network VPN B VPN B HSRP/VRRP Running between PEs VPN A VPN B

Multicast Today with MPLS VPNs Scalability – An issue Highly inefficient Multicast Source VPN A VPN B VPN A VPN A VPN A MPLS VPN Network VPN B VPN B VPN B GRE Tunnels CE-CE VPN A Multicast Source VPN B

Multicast VPN Allows MPLS VPN customers to access Multicast content Uses “Ships in the night” approach Highly Efficient – Multicast tree built dynamically in the core Standards based Multicast Source VPN A VPN B VPN A Multicast in the core VPN A VPN A MPLS VPN Network VPN B VPN B VPN B Multicast VRF Multicast Source VPN B VPN A

Broadband access network VPN Selection Broadband access network VPN1 PE ISP1 owns 20.x.x.x network CE 20.1.1.1 VPN1 PE MPLS VPN VPN2 30.1.1.1 VPN2 Customers with high speed (broadband) links can connected to any ISP providing VPN capabilities New market: Service Providers can offer corporate VPN connectivity to broadband users ISP2 owns 30.x.x.x network CE VPN3 PE 40.1.1.1 VPN3 CE ISP4 owns 40.x.x.x network

Agenda Criticality of Selling More Than Connectivity Introducing Cisco MPLS For Managed Shared Services Roadmap Summary

Cisco MPLS For Managed Shared Services: Feature Availability by Platform Platform Support Availability NAT for MPLS VPNs All Cisco MPLS-VPN Enabled Platforms; C12000, C10000 in CY03 Q4 CY02 DHCP for MPLS VPNs Shipping ODAP for MPLS VPNs HSRP/VRRP for MPLS VPNs All Cisco MPLS-VPN Enabled Platforms Multicast VPN Q3 CY02 VPN Select C12000 VRRP is in 12.2(PI_5)T, and supports the following platforms: 12000; 1400; 1600; 1700;1710; 2500; 3620; 3640; 3660; 5300; 5350; 5400; 5800; 5850; 7100; 7200; 7500; 820; 828; C5RSM; RSM; MC3810;ubr7200; ubr905; ubr925 VRRP is scheduled for RLSE1 of 12.2S on the following platforms: 7100; 7200; 7400; 7500; 7600; C6MSFC2; C6SUP11; C6SUP12; C6SUP22 VRRP is already in 12.0(18)ST on the 10000; 10700; 12000; 7200; 7500 GLBP is scheduled for RLSE1 of 12.2S on the following platforms: GLBP is scheduled for 12.2(PI_6)T, and supports the following platforms:

Agenda Criticality of Selling More Than Connectivity Introducing Cisco MPLS For Managed Shared Services Roadmap Summary

Cisco MPLS Is Proven 100 125 140 Deployments Today Americas EMEA APT/Japan

Managed Hosting Services Managed Network Services Managed Shared Services Are The Future of Profitability Cisco IOS - Key enabler to Value Add Services Managed Hosting Services Managed Application Services Co-Location Managed Services Data Center Space Managed Network Services L2/L3 Connectivity For VPNs L2/L3 Connectivity Basic Hosting Managed Security Platform Services E-Comm App Mgmt Business Logic Customer Relation Multicast VPN IP Address Management VPN Aware NAT Revenue VPN Aware HSRP/VRRP VPN Select Value Added Services

Cisco MPLS For Managed Shared Services Demand for value added services delivered over Cisco MPLS VPNs is the future of service provider profitability Cisco MPLS delivers enabling technology for managed shared services Only with Cisco MPLS VPNs can you: Monetize baseline IP services inside MPLS VPNS Leverage multicast in MPLS VPNs to dramatically reduce Enterprise OPEX and create new revenue streams Leverage Cisco IOS features such as QoS to offer multimedia services Open a new market by offering corporate VPN connectivity to broadband users Only with Cisco IOS Software!

Resources http://www.cisco.com/go/mpls MPLS for Managed Shared Services mpls-shared@cisco.com MPLS deployment mplsd@cisco.com Other aliases tag-vpn@cisco.com

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