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Value Creation with SDN

by Juniper Employee ‎01-14-2013 09:54 AM - edited ‎02-12-2013 09:40 PM

I believe we may have surprised the networking world today with what can be described as an “oh wow” moment.  It is a 4 step plan that we believe will revolutionize how networks are built and managed for years to come based on the 6 principles of software defined networking (SDN) and the corresponding customer benefits which are:

 

  1. Cleanly separate networking software into four layers (or planes) – management, services, control, and forwarding – providing the architectural underpinning to optimize each plane within the network.
  2. Centralize the appropriate aspects of the management, services and control software to simplify network design and lower operating costs.
  3. Use the cloud for elastic scale and flexible deployment, enabling usage-based pricing to reduce time-to-service and correlate cost based on value.
  4. Create a platform for network applications, services and integration into management systems, enabling new business solutions.

Standardize protocols for interoperable, heterogeneous support across vendors, providing choice and lowering cost. Broadly apply SDN principles to all networking and network services including security - from the data center and enterprise campus to the mobile and wireline networks used by service providers.

 

The Opportunity

Now, as we thought through the technology ramifications and requirements of our plan, it became clear to us that a significant new opportunity is developing in the networking market.  An opportunity based on the “S” of SDN.  By separating out and “un-tying” the software services from the underlying hardware  a marketplace of new networking applications, likely packaged in VM’s and hosted in various locations throughout the network, is about to be unleashed. 

 

The Challenge

But the business challenge was also clear to us.  A software app business model is just not how our customers that build networks think of buying the value they get from networking companies like Juniper.  They buy a thing usually in the shape of a metal box; you can call it a router, switch, firewall, line card, or appliance, among other “things”. The point is, the way the networking business model works for the most part has always been about building and buying a box with software already in it, that a customer buys and integrates into their network.  

 

Now, all of-the sudden, Juniper has embraced a future networking model in which the value from management applications, service applications and some control applications will be increasingly found running around the network outside the box.  Granted this is not a new concept.  While PC’s, tablets, gaming consoles, and mobile phones still predominately come pre-loaded with software and are sold as a complete system, enterprise applications transcended their physical ties for the most part over a decade ago with the adoption of server virtualization, this trend was eventually accelerated with the coming of “The Clouds.”

 

The outcome, as we all now know, is that the sever hardware quickly became commoditized. Massive value destruction ensued on the hardware side, and all the subsequent value creation moved rapidly towards the software gals and guys making the software platform, the apps, the virtualization or the stuff that orchestrates it all. 

 

Some that recall this period, erroneously jump to one of what we call at Juniper, “The 7 Myths of SDN.”

 

      #2.  It’s all about reducing CAPEX

 

The underlying assumption they have made is that all hardware in the network will become the same commoditized, undifferentiated x86 servers that struck down the computer server industry.  Because of the nature of networking and the need to distribute capabilities, as well as the continuing need for innovation in embedding functionality in the ASICs and design of the forwarding plane on high performance devices—it’s just not going to happen that way in the SDN network transformation.  Juniper will continue to innovate and drive a great business in this traditional model.   But that’s a whole series of different blog’s and if you are really interested about that discussion go to Bob Muglia’s blog, “Decoding SDN” on the 6 principles of SDN and read the part on Step 4 and the value of hardware optimization.  

 

What is true is that this is new for us all in the networking industry. The potential for value creation in this brave new world of “Network Software Apps” is upon us, and Juniper is ALL IN.

 

The Transformation Begins

“Good artist borrow, great artists steal.” – Pablo Picasso

 

One of the benefits of not going first is that if you pay attention you can learn from those that have, and better yet, learn from their mistakes.  We are using the example of what the server and enterprise app industry went through in the last decade and will blatantly re-use many of their practices with a “networking industry” twist to launch a new software licensing model at Juniper.

 

The “software” licenses of today’s networking industry generally have 4 common and unfortunate customer unfriendly characteristics.

 

BBDiagram1.jpg

 

  1. The software is embedded as part of the hardware device and many times the software is not even called out separately. Therefore, the value of the application or service is just “included” in the price of the hardware itself and not well understood by the customer as to what the hardware value is vs. the software value. 
  2. The software is restricted.  A customer can’t copy and run the application with all the same configurations on a new piece of hardware, they have to buy it with each appliance and configure it individually.
  3. If the software is identifiable on the device, in most cases it’s not transferable.  The software license is bound to a specific hardware device by license rights and many times even needs the hardware serial number to unlock the software to allow it to run.
  4. It has a limited lifetime that is bound to the network device it is running on.  When a customer is ready to rip and replace a networking device, the software goes with it and the customer pays for it again (or more likely a newer version of the software application) with the new replacement hardware.

We think that with our new strategy and following the 6 principles of SDN we can do something MUCH more valuable for the customer, while at the same time creating a new long term business opportunity for Juniper.  We call this new model the Juniper Software Advantage. 

 

 

To start, this approach has the following attributes at its core;

Simple: Simple for the customer to understand the value the software provides as well as simple to buy, use and manage rights by our customers.
Repeatable: License models which facilitate repeatable use among multiple software offerings and usage scenarios.
Measurable:  Licenses that charge based on customer needs and are easy to measure.

 

This new license model will provide the following customer benefits:

 

  1. Boundless.  Network software applications and services will be offered in a licensing model that “un-ties” the software from the underlying hardware
  2. Transferrable. License rights that provide the flexibility to transition the software application VM license to different x86 and cloud SDN models across the customers network, dynamically with no penalty and one licensing measurement. This allows customers to migrate to new models faster without fear of losing their investment or the established service chain that is already operating on their network.  They can move a Juniper app across their network from service blade embedded in a Juniper router, to an X86 blade within that same router, to a tethered rack of industry-standard x86 servers, to their private cloud, or to a cloud provider, as they choose, when they choose. 
  3. Elastic.  As a network service demand picks up and more application instances or capability is required, a customer can “turn it on” and start running more of the Juniper software capability without requiring a “lock key” to start.  They pay as they use more with no fear of paying a “true up” penalty later. 
  4. Perpetual Lifetime.   With Juniper Software Advantage license and maintenance, the software will always be current and supported.  No more software expiring with underlying hardware, all updates, bug fixes, version upgrades are included.

These new benefits are precisely aligned to facilitate our customer’s transition to Juniper’s new SDN architecture in their networks; but we did not want to just stop here, because we do believe that more benefits + more simple = more customer value.

 

What’s Next

As we continue to define the roadmap for new management, service and control applications that will be built as part of our SDN strategy; we will roll out the network applications and services licenses in a coherent way.  You will see a new software products naming convention from Juniper to correspond with these new software applications and services products. 

 

The first of these new Juniper Software Advantage application licenses will appear in the first half of 2013, with more to come as applications are built for this exciting new world of SDN networking. 

 

You can expect to hear more from us, and me specifically, in future blog posts over the coming few months. I will expand upon our license model framework, our concept of “fair deal” value pricing, a new simplified approach to software license packages targeted to run the customer network vs. software to host and provide as a managed service offering to others on a customer’s network, the perils of “Free-mium” software models in a mission critical network, and more.

 

You can also expect to read how customers later this year will be able to convert current software licenses they have purchased previously from Juniper to the new Juniper Software Advantage model as they look to Juniper to help them transform to an SDN network future. 

 

It’s exciting times here at Juniper as we build new value for our customers with SDN!

 

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About the Author
  • Prior to Juniper acquisition, Ankur was the Founder and CEO of Contrail Systems Inc - a pioneer in standards based network virtualization and scale-out networking software. Ankur has over 15 years of experience in building world-class networking products and leading high performance teams. Prior to Contrail, Ankur served as Chief Technology Officer and VP of Engineering at Aruba Networks, where he played critical roles in the rapid expansion of team, products, and global businesses. Before Aruba, Ankur helped drive Juniper’s initial entry into and expansion of the Ethernet Switching market. Ankur received his MSEE from Stanford University & BSEE from the University of Southern California.
  • Bob Dix currently serves as the Vice President of Government Affairs & Critical Infrastructure Protection for Juniper Networks. During his career, he has served in senior leadership roles in industry and government, including serving as Staff Director for the House Government Reform Subcommittee on Technology, Information Policy, Intergovernmental Relations and the Census during the 108th Congress. He represents Juniper on the Industry Executive Point of Contact for the President's National Security Telecommunications Advisory Committee ( NSTAC ), where he chaired the Cybersecurity Collaboration Task Force in 2009. He served as Chair of the Information Technology Sector Coordinating Council ( IT SCC ) from 2008 – 2010 and currently remains a member of the Executive Committee. Mr. Dix was elected in May, 2011 as Chair of the Partnership for Critical Infrastructure Security ( PCIS ). He also serves on the National Security Task Force for the U. S. Chamber of Commerce. He is a member of the AFCEA Cyber Security Committee and Chairs the Supply Chain Assurance Subcommittee for TechAmerica. Additionally, Dix has actively worked to insure and coordinate private sector participation and collaboration with the National Exercise Program, intended to test our nation’s preparedness and resiliency. He served as Chair of the National Private Sector Working Group for National Level Exercise 2011 and 2010. In 2007 and 2009, Dix was honored with a prestigious Federal 100 Award, and was recognized in March, 2010 as the recipient of the annual FCW Industry Eagle Award. Dix also served as a local government elected official in Northern Virginia for 12 years and in his spare time coaches AAU/Travel girls basketball.
  • Brad Brooks is Juniper Network's Chief Marketing Officer. He joined Juniper Networks in February of 2011 and in his current role he is responsible for positioning Juniper’s growth strategy, growing opportunities in new and existing markets, and increasing the global demand for Juniper’s solutions by creating and delivering remarkable customer experiences. Prior to this role, he held the position of Vice President of Business Strategy and Marketing for the Software Solutions Division where he was instrumental in the development of Juniper’s software defined networking (SDN) virtualization vision and strategy as well as the creation of the new and innovative Juniper Software Advantage licensing model. Before joining Juniper, Brooks was at Microsoft serving as Corporate Vice President for Windows Consumer Marketing and Product Management leading the $8 billion consumer business for the Windows client. In this role, he oversaw the launch of Windows 7, the most successful launch in Microsoft’s history. He moved into this role from his position as General Manager for the Windows Commercial Business Group where he was responsible for the group’s global enterprise business efforts, including the market introductions of Windows Vista and Windows software assurance and enterprise agreement marketing. Amid a declining enterprise market, Brooks developed multiple solutions sets for enterprise customers and grew the $900 million annual business to $3 billion in three years. He came to Microsoft in 2002 to work on the initial business development and marketing of Windows XP Media Center Edition. Brooks has also held several product management, product development, business development, marketing, sales and operations roles with Enron, Lucent Technologies, and AT&T. Brooks has a master's degree in international management from the American Graduate School of International Management (Thunderbird) and a bachelor's degree in business from the California State University.
  • Bruno Rijsman is VP of Architecture in the Security, Switching and Solutions Business Unit (S3BU). He has been with Juniper for most of the past 15 years working various areas including SDN, BGP, MPLS, broadband subscriber management, and Junos.
  • Calvin brings sixteen years of network and network security experience to his role of marketing solutions for data center switching and routing. His comprehensive understanding of network and industry issues is built through his previous front-line roles across technical, product, solution and marketing. A bay area lifer, he spends what's left of his spare time rooting for another Giants world series title. Follow him @chachi04
  • Chloe Jian Ma leads SDN solution marketing at Juniper Networks, where she is responsible for driving awareness, thought leadership and adoption of Contrail Cloud Networking Automation software.
  • Security strategist, architect, evangelist/prophet, former-CISO, brick layer, priest and short order cook…product manager, product marketeer, CTO, advisor, board member and SQUIRREL! My life? It’s like Blade Runner meets Beautiful Mind w/some Patrick Swayze Roadhouse violence mixed in
  • Harsh Singh is a Senior Product Marketing Manager at Juniper Networks focused on Data Center networks. Harsh has over 15 years of experience in the networking industry. Prior to joining Juniper Networks, he worked at Cisco for 10 years, where he held roles in Product Management and Engineering. He holds a Bachelors degree in Electronics and Communications Engineering, Masters degree in Computer Science, and an MBA in Marketing.
  • Jonathan Davidson is Senior Vice President and General Manager for the Security, Switching and Solutions Business Unit (S3BU). In this role, he is responsible for leading innovation, growth and product development in data center, campus, branch, and cloud. Davidson oversees the development of market-leading security and networking solutions and his team manages both the EX Series and QFX family of switches as well as the SRX line of security devices. Davidson joined Juniper in 2010 as Vice President, Product Line Management for the Edge and Aggregation Business Unit where he was responsible for the product lifecycle management, strategy, implementation, solutions and go-to-market activity for a range of leading edge routing product families, such as the E, M and MX Series. Prior to joining Juniper, Davidson had a 15-year career in various leadership positions at Cisco. He served as Director of Product Management at Cisco Systems where he focused on service provider solutions and led the enterprise routing product management team and service provider Layer 4 through Layer 7 services team. During his time at Cisco, he co-authored the best-selling books Voice over IP Fundamentals and Deploying Voice over IP. He also served as Director, Service Provider Solution Engineering. Davidson has spoken at leading industry events such as Interop and has held certification as Cisco Certified Internetwork Expert #2560. He is active on social media, and frequently shares his observations about the industry on his twitter account @jonathandavidsn and blogs.
  • 20 years technology experience in sales, product management and marketing. 15 in security. Living the good guys versus bad guys fight every day.
  • Mike Marcellin is Senior Vice President of Strategy and Marketing. In this role, he leads business strategy and marketing for Juniper’s industry-leading portfolio of high-performance routing, switching and data center fabric products. Additionally, his team is responsible for go-to-market planning, sales and customer education and information experience, as well as global competitive analysis. Prior to joining Juniper in 2010, Marcellin served as Vice President of Global Managed Solutions for Verizon, where he oversaw product development and marketing of its managed IP networking, hosting, security and IT solutions for businesses around the world. He also served as Vice President of Global Product Marketing for Verizon Business, executive director of Verizon Business’ IP and Ethernet portfolio as well as leading the company’s eCRM marketing division. Marcellin began his career with MCI in 1994. Marcellin is Chairman of the CMO Board for Telecommunications Industry Association and a Board Member of US Ignite, an NSF-sponsored initiative. He was a Rodman Scholar at the University of Virginia, where he received a bachelor of science degree with distinction in systems engineering. He is based in Sunnyvale, California.
  • Paul Obsitnik is Vice President of Service Provider Marketing for Juniper Networks Platform Systems Division (PSD), responsible for the marketing of Juniper’s portfolio of high performance routing, switching, and data center fabric products to Service Providers globally. Paul's team is responsible for marketing strategy, product marketing, go-to-market planning, and competitive analysis worldwide for the Service Provider segment. Obsitnik has extensive experience in marketing, sales and business development positions with a proven track record in creating technology markets. He has served in senior marketing and sales management positions at several companies including BridgeWave Communications, ONI Systems, NorthPoint Communications and 3Com. Paul holds a Bachelor of Science with Honors in Electrical Engineering from the United States Naval Academy and a Master of Business Administration from the Harvard Graduate School of Business. Obsitnik is based in Sunnyvale, California.
  • Rami Rahim is Executive Vice President and General Manager, Juniper Development and Innovation (JDI), responsible for driving strategy, development, and business growth for Juniper's entire portfolio including routing, switching, and security, as well as for the ongoing evolution of silicon technology and the Junos operating system. As a technologist, Rahim has deep roots in Juniper’s development organization where he has applied his engineering acumen to the design and development of Juniper’s service provider and enterprise products. Rahim began his Juniper career in early 1997, as employee #32, and worked as an engineer on Juniper’s first product, the M40 core router. Rahim’s roles of increasing responsibility have grown over the years, from Vice President of the Edge and Aggregation Business Unit (EABU), to Senior Vice President/General Manager of EABU, followed by Executive Vice President/General Manager of Platform Systems Division for routing and switching, to his current role today overseeing Juniper’s entire product and technology portfolio in JDI. Rahim holds 17 US Patents in networking technologies and is a member of IEEE. As a networking industry spokesperson, Rahim’s insights have been featured in publications such as Enterprise Networking Planet and Network World. Rahim shares his industry observations via Twitter @ramirahim and his Juniper blogs. Rahim holds a bachelor of science degree in electrical engineering from the University of Toronto, a master of science degree in electrical engineering from Stanford University. He completed an intensive 6-week executive program at Stanford University’s Graduate School of Business.
  • Shaygan Kheradpir joined Juniper Networks as Chief Executive Officer in January 2014, after three years at Barclays PLC where he served most recently as Chief Operations and Technology Officer. Kheradpir and his team are focused on delivering groundbreaking silicon, systems and software that enable customers to build the best networks on the planet. Prior to his role as Chief Operations and Technology Officer, Kheradpir was Chief Operating Officer of Barclays’ global retail business bank. Before joining Barclays, Kheradpir was Executive Vice President and Chief Information and Technical Officer at Verizon Communications. In this role he was responsible for the information technology initiatives of all of Verizon’s business units. Prior to this, Kheradpir was Senior Vice President and Chief Information Officer for Verizon Telecom, with oversight of all information technology initiatives for the company’s wireline communications unit. Kheradpir began his communications career with GTE in 1987. He was a member of the National Institute of Standards & Technology VCAT (Visiting Committee on Advanced Technology), an adjunct professor of electrical engineering at Northeastern University, and holds several patents. He was named to CIO Magazine’s Hall of Fame in 2007. Kheradpir holds a bachelor’s, master’s and doctorate degree in electrical engineering from Cornell University.
  • Stephen Liu is Senior Director of Product Marketing for Juniper Networks. In this role, he leads product marketing for Juniper’s industry-leading service provider portfolio of high-performance routing and switching products. These products include Juniper PTX Series, T Series, MX Series, and ACX Series platforms along with software and security. Prior to joining Juniper in 2013, Stephen served as Director of Service Provider Marketing at Cisco Systems. In that role, he led product and solution marketing worldwide for the service provider routing, switching, optical, and software portfolio. Products included NCS, CRS, ASR, and ONS platforms. Stephen attended the University of California, San Diego, where he received a bachelor’s of science degree electrical engineering – communication systems. Hobbies include restoring old Volkswagens and coaching competitive youth soccer. He is based in Sunnyvale, California.
  • As Chief Customer Officer, Vince Molinaro is responsible for driving the strategic and operational elements of the Sales, Marketing, Partners, Services and Support functions at Juniper Networks. He leads a global organization of more than 3,500 professionals that includes direct and indirect sales, systems engineering, advanced technologies and field operations. Molinaro brings more than 25 years of professional experience in engineering, product management, marketing, sales and operations to his worldwide role. He joined Juniper in 2009 and led the strategy and go-to-market execution for the company’s global service provider business. He was named EVP, Worldwide Sales in 2013 before assuming his current role in February 2014. Prior to joining Juniper, Molinaro held senior leadership positions at a number of technology companies including Bell Laboratories, Lucent Technologies, Alcatel-Lucent and Internap Network Services. He has extensive domestic and international experience having lived and managed large organizations throughout Europe and the U.S. Molinaro holds a bachelor of science degree in biomedical engineering from Boston University and a master of science degree in electrical engineering from University of Bridgeport. He is based out of the Juniper Networks facility in New Jersey, home of OpenLab, The Junos and SDN Center for Innovation.
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