How-to-Sell Data Center [January 2010] Agenda Why You Should Care Business Trends Value proposition What to sell Selling Tips Competitive Snapshot Resources to Help You Succeed ©2010 Avaya, Inc. All rights reserved. 2 Why You Should Care Data Centers are key to organizations as it hosts their critical data and applications Avaya’s switches are depended on in fortune 500 Avaya switches provide deterministic sub-second network failover from server to network core for maximum resiliency Controlling the Data Center will improve selling to campus and branch offices The combined offering of data and voice can provide customers a total solution from one vendor that can enhance the relationship and keep competitors away ©2010 Avaya, Inc. All rights reserved. 3 Ethernet Switch Market Size* Fixed 10GbE switches will represent the majority of port shipments in the Data Center FCoE has a huge potential growth in the coming years * Source = DellO’ro, WW 5yr Ethernet Forecast July 2009 Data Center port shipments represent ~25% of overall total Ethernet market According to Gartner, virtualization is #1 in IT trends in 2009 Data Center Market Will be The Growth Engine for 10GbE Switches ©2010 Avaya, Inc. All rights reserved. 4 More facts… “One large data center can consume enough juice to power a small city of 30,000 to 40,000 people.” - A major financial newspaper, June 2006 IDC predicts cost to cool and power servers globally will increase from $26Billions to $44Billions in 2010 Most servers run at 10-15% utilization ! – A server costs $300 to $600 each year in direct energy costs, and another $300 to $600 a year in cooling costs Power company in Boston will write check for $4M if you break ground and move Data Center outside city ! In London, Mumbai, Tokyo and New York City, data center operators can't get more power to their sites 12-15% and growing IT typically represents 30 to 40% of a company’s energy consumption Network HVAC Loss ICT contributes to ~2% of Global CO2 emissions which is roughly equivalent to the Aviation Industry and if left unchecked it’s growth is unsustainable 5 Servers & Storage Lighting ©2010 Avaya, Inc. All rights reserved. 5 CIO & Data Center Manager Challenges Strategic & Tactical Pain Points DC CAPEX/OPEX DC OPEX 6 (Expensive Aging DC) • Effective (Server) Resource Utilization • WAN Bandwidth Utilization • Managing Growing Circuit Costs • By 2010, 50% of DCs need refresh • Disparate Networks; Maxed-Out Facilities • Power & Cooling Costs • Today: Hosting; 09/10: Large DC • Application Consolidation Imperative • Implementation Issues Multi-faceted REDUCE TCO – Total Cost• of Power Ownership & Cooling up from 1:0.5 to 1:2 Agile Data Center • (adapting to Business Changes) Operational Simplification (including Process Automation) • Flexible with Business Growth Data Center Managers & Operations CIO – Chief Information Officer (Physical / Environmental / I/F) Secure B2B / e-Business • (Managing non-existent Perimeter) Proliferation of different Devices & Users (without ubiquitous security enforcement) • • Need for control at a granular level ALIGN TO BUSINESS – Raise Productivity Ease in Access to Resources • Single Sign-On needed for B2B Ops • Virtual Office (Mobility) Business Enablement • Need Dynamic Mgmt & Orchestration Operational Complexity • (ability to Deliver Value) Disaster Recovery / Business Continuity • Meeting Security & Compliance Needs • DELIVER TTS – In ‘min/hrs’ Not weeks/months’ Extranet B2B / eBusiness Connectivity • Globalization; Cross Border Businesses (Adherence to HIPPA, PCI, COBIT) • • (integrating Silos of Solutions) Complex Day2Day Management Dynamically Adapt to Growth & Contraction of Business • Network, Server, Storage – 3 Silos • Infrastructure not Application/Biz Focused ©2010 Avaya, Inc. All rights reserved. 6 Avaya Data Center Switches Value Proposition Uninterrupted business services that meet the increasing demand of consolidated and virtualized Data Centers to reduce operational costs, improved time to service & drive revenue – Supported by advanced carrier-like reliability, performance, scalability and network simplicity resulting in maximizing network & application uptime • Unified Communication Management for all devices Platforms: – Ethernet Routing Switch 8300 for server access layer – Ethernet Routing Switch 8600 for medium core – Virtual Services Platform 9000(1H10) for large to very large core – Ethernet Routing Switch 5500/5600 for server access layer ERS 8300 ERS 8600 VSP 9000 ERS 5500 ERS 5600 Your Dependable Platform for the Consolidated and Virtualized Data Center ©2010 Avaya, Inc. All rights reserved. 7 Unified Communications Management Unifying Application Components ©2010 Avaya, Inc. All rights reserved. ERS 8300/8600 ERS 5600 ERS 5500 VSP 9000 ERS2500 CS1k/2k SR 4134 8 Avaya Data Center Switches Key Benefits REDUCE TCO – Total Cost of Ownership ALIGN TO BUSINESS – Raise Productivity DELIVER TTS – In ‘min/hrs’ Not weeks/months’ Reliable Infrastructure – Five 9’s reliability Simplified Network – Easy to mange and deploy ©2010 Avaya, Inc. All rights reserved. 9 What Questions Should I Ask? Data Center What are your plans for consolidating and virtualizing Data Center...? Are you looking at combating infrastructure complexity to minimize IT management cost? Are you experiencing performance or availability issues with your business critical applications? Is real estate and power consumption a concern? Do you want to fully utilize switching capacity of HA systems to maximize your investment? Are you experiencing high operational cost? How prepared is your network for the bandwidth & quality demands of modern applications..? ©2010 Avaya, Inc. All rights reserved. 10 Who Needs It? Data Center Switches Enterprise and Hosting Data Centers that: – Are consolidating and virtualizing – Are growing and require scalability – Are suffering from poor application availability and/or performance – Need best-of-class resilient solution to extend server virtualization (VMware/Hyper-V) to the network – Need to simplify managing the network infrastructure – Need to support multiple customer environments (hosting) ©2010 Avaya, Inc. All rights reserved. 11 SWOT Analysis: ERS 8300 vs. Cisco C4500 Avaya Strengths Competitive Weaknesses > Versatile product: deployable in the Core or in the Access > Core Switch Clustering technology for high-availability network solution > Superior Convergence features: PoE, QoS with 8 queues, and Standardsbased auto-discovery (802.1AB) > High performance switching architecture with in-built system redundancy > Innovative Access Control security > 8300 has better pricing > 8300 has better QoS – C4500 only supports 4 Queues, and performance is very low (6Gbps per Slot) meaning high over-subscription > 8300 has more consistent Chassis & Module capabilities – C4500 has too many options for both, making planning and investment protection difficult > C4500 relies on Spanning Tree… Avaya Opportunities > 8300 has strong performance, port diversity, & feature-set capabilities > 8300 is outstanding as the Enterpriseclass Access Switch in the large network > 8300 is gaining strength as the Core Switch, & ideal for the medium-sized Enterprise > 8300 provides a compelling solution providing consistent hardware & software in both Core & Access Competitive Threats > Brand, Brand, and Brand > Entry-level (low-performance) Supervisor Engine pricing, giving a false impression of good pricing > Superficially high levels of software functionality; but Customers should not by wowed by the fact that premium features are configurable; C4500 leverages IOS, so many features are available but few are required. ©2010 Avaya, Inc. All rights reserved. 12 SWOT Analysis: ERS 8600 vs. Cisco C6500 Avaya Strengths Competitive Weaknesses > Leverage installed base of more than 50,000 chassis. > Core “Switch Clustering” technology for high-availability network solution > Simple and cost effective IP VPN solution > A mix of high density and diversity port module options > Flexible 10G RSP network processor for future SW upgrade without network forklift > 8600 has better pricing > 8600 provides sub-second network failover without price premium > 8600 has lower TCO > 6500 has complex and expensive virtualization options > 6500 lacks investment protection as limited interoperability exists between Sup Engines, daughter cards & linecards Avaya Opportunities Competitive Threats > Huge market opportunity (~$6.5B/yr) for modular switches to pursue and leverage our installed base > 8600 supports up to 96 10GbE ports for the high growing 10G market > 8600 offers advanced features & modules that enable us to go after new applications > Brand, Brand, and Brand > C6500 is a little denser but too expensive > Entry-level (low-performance) Supervisor Engine pricing, giving a false impression of good pricing > C6500 offers a wide range of specialty modules ©2010 Avaya, Inc. All rights reserved. 13 SWOT Analysis: VSP 9000 vs. Cisco Nexus 7000 Avaya Strengths Competitive Weaknesses > Leverage installed base of 60,000 ERS 8600 > Similar to ERS 8600 CLI that will minimize operational costs for customers. > Terabit Performance and advanced feature sets including virtualization and integrated services > VSP 9000 has much higher architecture capacity 27Tbps vs. Nexus 15Tbps > VSP 9000 has better pricing > VSP 9000 has more consistent Chassis foot print as ERS portfolio > VSP 9000 provides 3 Chassis / rack (720 ports 10GE) or 40% more 10GE ports > VSP has 2x performance -970Mpps IPv4 Avaya Opportunities Competitive Threats > Market forecast is healthy (~ $7B/yr). Projected revenue $1.2B (2H10-12) > Leverage Gigabit migration to the desktop with ultra high density 10 Gigabit uplinks. > Go after Greenfield opportunities (Data Center & Campus LAN) with an advanced platform. > Leverage virtualization market strength > Brand, Brand, and Brand > Nexus 7000 has already been shipping since 2008. VSP 9000 won’t ship till end of Q2 2010. > Customers may migrate to new platforms before this product ships. > VSP 9000 won’t have the virtualization features in first release ©2010 Avaya, Inc. All rights reserved. 14 Did you know? Avaya data is the ONLY vendor that can provide deterministic sub-second network resiliency for server access to core network without price premium Why should you care? – Ensure business continuity and reduce revenue loss – Lower operational costs – Enhance user, customer & partner experience for all – Improve customer satisfaction for all Proof points – http://www.tolly.com/DocDetail.aspx?DocNumber=208275 ©2010 Avaya, Inc. All rights reserved. 15 Did you know? Avaya data is the ONLY vendor that provides CAPEX protection for ALL Data Center switches in high-availability configuration Why should you care? – Higher return on investment – Higher performance that enhances voice and data traffic ©2010 Avaya, Inc. All rights reserved. 16 Did you know? Avaya data is the ONLY vendor that provides a simplified and cost effective IP Virtual Private Network solution across the entire campus and Data Center Why should you care? – Lower operational cost as management, training and troubleshooting is minimal – Lower capital equipment expenditure as no additional equipment is required ©2010 Avaya, Inc. All rights reserved. 17 Did you know? Avaya data is the ONLY vendor that provides no single point of failure (link or unit) and leading stacking performance for Data Center “Top-of-Rack” deployments Why should you care? – Ensure voice and data traffic continuity – Improve network and business uptime – Ease of network scaling as business grows Proof points – – http://www.tolly.com/DocDetail.aspx?DocNumber=205137 – http://www.tolly.com/DocDetail.aspx?DocNumber=206106 ©2010 Avaya, Inc. All rights reserved. 18 Did you know? Avaya data provides up to 40% less power consumption than leading competitor. In addition, new power savings technique that provide additional power savings Why should you care? – Reduce energy bill and invest the savings into IT – Reduce carbon emissions Proof points – http://www.tolly.com/DocDetail.aspx?DocNumber=208298 ©2010 Avaya, Inc. All rights reserved. 19 Did you know? Avaya data provides Best-in-Class connectivity to VMware ESX servers & iSCSI storage ensuring always-on operation for mission critical applications Why should you care? – Lower operational costs – Reduce planned and unplanned maintenance – Flexible configuration options for great investment protection – Efficient network design requires less power and cooling Proof points – http://www.equallogic.com/partnerships/default.aspx?id=8293 – http://www.vmware.com/a/partnercatalog/catalog/ViewProduct.php?pubpr oductid=a0450000008Ze3AAAS ©2010 Avaya, Inc. All rights reserved. 20