Managed Services in a Dynamic Cloud-Connected World Nav Chander: Research Manager, Telecom Services & Infrastructure June 10, 2016

© IDC Visit us at IDC.com and follow us on Twitter: @IDC The Move to Digital Transformation Source : IDC © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Enterprise Networking Trends © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Hybrid Cloud Growth

This the current model. Is a mix of physical network, virtual networks and on-premise and off-premise services A complex web of highly traffic between public and Private Clouds, Data Centers, CDNs, Multiple Transport Protocol , including Packet, SSL, MPLS, Ethernet It’s the classic alphabet soup that takes an army of engineers to manage with very little automation and standardization. Add mobility and mobile BYOD/CYOD adds even more complexity!! As you will see in the next slide Drivers Branch offices and budgets do not allow MPLS. Mobile users expect access from any internet-enabled device. Cloud services. Traffic patterns shift from corp. data center only to data center and cloud. New Needs Optimization for premise and cloud-based applications. Heightened sensitivity to security & privacy. Cost optimized. Fast service provision. On-demand/elastic bandwidth. Lines of Business tug of war with CIO teams

Top Managed Network Services Trends Reduce Operating Costs Significant spend required to internally maintain legacy environment Implementation of new technology drives opex higher {NOTE: The text boxes and graduated screen are all separate pieces and are GROUPED. Bullets are embedded in text box Resized the text boxes to correspond with the size available. Templates can not have boxes extending past where the author can type. The background shading is part of the slide.} Slide Concept: Globes with 3 related concepts in relationship to each other Individual 3 bulleted lists with main heading Depicts relationships, interdependencies, global reach Technology Complexity 24x7 support Lack of in-house skills “Sweating Existing Assets” Security Concerns Evolving threat landscape High cost of building and maintaining internal security staff © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Global Managed Services © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Evolving Enterprise Hybrid Networks small sites warehouses sales offices xDSL/Cable & ISP access leased line Ethernet network mobile (3G or LTE) @ remote (satellite) Cloud Connect MPLS VPN/Internet cloud services Datacenters Ethernet SD-WAN Ethernet Datacenters Connecting to Cloud-hosted applications driving SD-WAN © 2015 Versa Networks • Company Confidential • All rights reserved •

Demand Drivers for SD-WAN Enterprise WANs are costly and complex to manage 15% of IT budgets 40-60 % of enterprise data traffic is migrating from WANs to the internet Cloud drives requirement for increased WAN agility and flexibility Use of different networks (Internet broadband, 4G/LTE, MPLS) Automated provisioning Specification and prioritization of network connection on per-application basis Improved visibility © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Cloud Brings Changes to the WAN Driving Need for SD-WAN Q. You mentioned that you currently use cloud IaaS and/or SaaS. What changes have you made or do you expect to make to your WAN as a result of your organization's cloud computing usage? © IDC Visit us at IDC.com and follow us on Twitter: @IDC Source: U.S. Enterprise Communications Survey, IDC, December, 2015

SD-WAN Managed Services Robust & Secure Infrastructure 1 Application Aware Networking 2 Operational simplicity & ease 3 Business Logic and Compliance Policies WAN path control App Classification Network QoS Automation, Orchestration and Operations Monitoring and Visibility MPLS Internet 4G /LTE VPN 1 VPN 2 VPN n Hybrid WAN connectivity Zero-trust edge Fully encrypted secure fabric End-to-end network segmentation Intelligent network services insertion Mesh Star Hub Segment- based networks © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Nearly 70% Expect to Use SD-WAN in Next 18 Months Q. Does your organization currently use or plan to use SD- WAN? Source: Software-Defined WAN (SD-WAN) Survey, IDC, April, 2016 © IDC Visit us at IDC.com and follow us on Twitter: @IDC

IDC Recommendations for Selecting a MSP Breadth of Managed Communication Service portfolio Security & Application Management Expertise Hybrid WAN & Cloud Connectivity Experience Rapid Service Deployment & Service Agility Transport-agnostic solutions for branch office network connectivity Global support and solution expertise © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Public Clouds, Private Clouds, Traditional IT IBM’s services portfolio can help meet the networking challenges you have in moving to a more agile, Software Defined Network infrastructure. Consulting Project Managed Network Strategy & Planning Network Optimization Software Defined Environments/Networks Network Analytics / Network Infrastructure Cost Optimization MobileFirst Network Services including NextGen Campus Network Cloud Network Services Network Integration Services Communications Service Provider Network Services Data center networks, campus and local area, wireless networks, enterprise-wide area networks Communications infrastructure (unified communications, IP telephony, video and telepresence, conferencing) Network Transport (MPLS, Broadband, SIP, Dark Fiber) Enterprise infrastructure is fundamental to a successful organizations—and a strong network is the backbone of that success. If a network is stagnant and continuously inefficient and/or unsecure, vulnerabilities lead to liabilities. Today this could not be more true and more challenging across sectors and industries. Public Clouds, Private Clouds, Traditional IT