Cisco Customer Strategy Research

Cisco – Introduction

Cisco Customer Strategy Research were discussed on the topic in large numbers the benefits and disadvantages of giving priority to lowest price model for a product or providing service which is in their reach in each other’s comparison. After the discussion and analysis we reviewed a large number of possible advanced network designs and their execution strategy in the organization.

It has been observed that all though there is always a demand of low cost strategy which is preferred by customers initially but in longer run if organization is not able to provide good customer support services and not able to face the challenges and does not upgrade itself with changing environment they tend to lose their sustainable advantage over their competitors. It is prudent for the organizations to consider not only the initial cost of putting capital in the business but it should always consider the total cost model which incorporates in itself owner ship cost’ return on investments and operational cost as well. It should also undertake the business capabilities of the organization while developing its strategic plan and always keep employees and customers as key stake holders in the plan making the plan centred towards their needs as well.

Cisco Customer Strategy Research

As device are being spread and proliferated and demand for mobility is expanding increasingly it is important that network also ensures the compliance and security of users. When this phenomenon is used in context of today’s trend of virtualization and usage of cloud computing the network act as a common platform for all users and systems and keep them on an equal basis. The demands from future are more critical and complicated as business is growing towards a trend of desktop virtualization and video virtualization which can be strategic part of business world of future. This development will make the network’s importance much higher and critical for the organization. So in essence trade off between quality and cost is a short term proposition only and it can lead to disasters in the organization.

Key Findings

Over next three years, build a network taking low cost point products and services as base increasing the total cost of ownership by about 20 to 35 percent for most organizations.

The strength of any network is defined by its weakest link. Any outage may result in elimination of savings.

Keeping up with the information technology is a very critical aspect of business. Obsolete technology would hamper overall growth and restrict the scalability and compliance issues may arise or showcase challenges.

Any innovation is lost if it is not readily available in the market and does not become an industry practice.

The increasing market competition leads to increasing focus of IT on operations management. They inherently increase OpEx and decrease ROI and business value.

Any average network do not ensure the required tools and security aspects in different domains such as Payment Card Industry (PCI) in retail, the Health care Insurance Portability and Accountability Act (HIPAA) requirements in health care, European data protection rules, IPv6 deployment requirements, Federal Information Processing Standards (FIPS), and more.

Network should be concentrating on service rather than the product. This would ensure the support to business dynamics through TOC lens that focuses on all aspects including maintenance, new services and capital.

In the increasing globalizations, virtual communications is the key. The concentration should be on

1) Video: To ensure business intelligence is pre planned, auto-configure and troubleshooting video endpoints.

2) Mobility and device consumerization: all the networks must be designed to support multiple mobile devices.

3) Energy Management: The Carbon footprint of the network must be controlled and monitored in order to avoid any legal fines.

4) Security and Network Policies: The network must enforce security policies

Customers should consider TCO and ROI

assessments as equally important factors in making a network investment.

Design for tomorrow and not Today: This will be the key to successful and efficient networks.

It is forecasted that Device proliferation will have its boom until 2015. Cloud computing will play a major role in the future. It must be considered while doing the 5 year planning of TCO. The demand on networks is increasing considerably. In 2009 alone, humans created more data than in all prior years combined. By 2015, there will be nearly one mobile-connected device for every person on Earth: 7.2 billion people, 7.1 billion devices. Over the last 15 years, network speeds have increased 18 million times. By 2014, video is forecast to constitute 91 percent of global network traffic.

Projection is by 2015, 50 percent of the business would rely on social media.

Analysis

The Good Enough Network v/s the Enterprise Next Generation Network

Before starting the discussion, we need to understand the meaning of both. Good Enough Network is a tactical network which is able to deal with existing business requirement and current challenges targeted. Other one is a strategically developed network, designed to deal with today’s requirement as well as future technology disruptions and provide investment protection.

However, over the last 25 years, innovation in IT field have changed the scenario of working of various business – whether e-commerce, online banking, virtual physicians or distance learning centres and Good Enough Network is too risky to consider.

Good Enough Network is also very complex, harder to manage and not very cost-effective in comparison with Enterprise Next-Generation Network. It is designed to deal with one thing only initial acquisition cost. If we study every case of Good Enough Network, we come to know Good Enough Network required additional operating expenditure to handle more complex connectivity (such as security or mobility or desktop virtualization) which reduces quality for end users.

Good Enough Network needs to evaluate on a regular basis for business. In doing so, they will quickly realize that the short-term capital gain comes with a suboptimal business outcome that is likely to include more outages, less security, less service consistency, and much finger pointing across multiple vendors. Risk appeasement is more important otherwise good enough Network is enough. Suffice. However, as the enterprise network equipment market continues to evolve with increasing mobility, cloud services, and virtualization trends, customers are increasingly asking: What are the main considerations for a next-generation network?

The Application and Endpoint Ignorant Myth

Good Enough Networks operate on the notion that data is data all just ones and zeroes while Enterprise Next Generation Networks are built on innovative products that adjust to the application being delivered and the endpoint device on which it appears.

Let’s look at one of the most demanding applications in business use today: video. For an optimal user experience, video requires a network that is media-aware and can track and optimize video flows end-to-end. This way, video applications are treated like a presidential motorcade that requires other traffic to stop as it whizzes by.

Fortunately, vendors like Cisco have developed medianet technology that understands the video endpoint and whether it’s a smart phone or a tele presence unit. Additionally, Cisco products can auto-configure and tag the video flow with metadata so it can be understood and prioritized across the network routing and switching infrastructure, saving many hours of configuration and providing an optimal-quality experience. With built-in capabilities to inject synthetic video traffic into the network, network planners have an easy tool for preplanning video deployments. For troubleshooting, capabilities like Cisco Mediatrace can look at the video flow on a hop-by-hop basis as it traverses the network to identify congestion or other potential problems.

Let’s look at a specific example of an airport that uses 6000 IP video surveillance cameras. This would be a nightmare to set up on a Good Enough Network because each device needs to be configured individually. But medianet includes a feature called Media Services Interface (MSI), which automatically identifies the device and sets up the configuration and the policies associated with each camera.

Recommendation

It is advised by us that companies take benefit of their existing capabilities and facilities by assistance of service provider like Cisco. This approach will make the savings in terms of cost effectiveness significant and provide excellent quality of services. These services and benefits are not very tangible in initial phase when connectivity is only issue focused by consumer but in longer term when customer will try to run the application or use its services for business purpose then the cost saving will come in picture and provide sustainable advantage to the organizations.

Quality of service (QoS) is an industry measure for how a network should perform. QoS dictates how the network should deliver data, voice, and video under a particular service-level agreement. But today’s Good Enough Network is built on the basic QoS standards of DiffServ and is centred on a set of classes or queues on which to qualify a traffic stream. Unfortunately, as real-time video communications becomes more of the norm, the good enough QoS would prioritize real-time video to the video queue, an approach that will not suffice as video traffic increases. What happens when most of the traffic on the network is video? How do you differentiate between different video flows?

Another increasingly common situation in which basic QoS doesn’t suffice is customers who implement virtual desktops but want to run interactive multimedia applications on the virtual desktop. Good Enough Networks treat the virtual data stream as data, producing a suboptimal user experience.

Fortunately, vendors who develop products for the Enterprise Next Generation Network observe trends in the industry and have developed networking infrastructure that enables resource reservation (RSVP-TE) and supports media-aware QoS. Media-aware QoS, also a feature of medianet, tags the application to prioritize one application over another depending on what network resources it needs and what policy the business sets.

Single Purpose Myth

Additionally, with Cisco technology built for these Enterprise Next Generation Networks, the capability of the network extends to energy management. As regulations on carbon emissions are being developed and applied, especially in some European markets, businesses need to be ready both to monitor and manage carbon or face significant fines. Currently, office buildings account for 70 percent of business energy consumption 8. This includes lighting, heating, and cooling systems in addition to the IT infrastructure.

IT managers can set policies based on business needs and power down endpoints like IP phones or desktops based on usage needs. Cisco is also aggressively adopting Power over Ethernet (PoE) technology to use the network to deliver electricity, as well as data, to endpoints. PoE enables the network to control the device—and the energy it consumes—in a way that devices plugged into an outlet can’t be controlled. As the number of PoE-enabled devices increases to include access points, downstream switches, and virtual machines, taking advantage of the embedded energy management capabilities in Cisco switches can result is significant savings. And while current PoE technology is limited to devices that consume no more than 30 watts of electricity, universal PoE will support devices running at up to 60 watts.

Recommendation

Organizations who are investing single minded in improving networks for only one aim is not able to gain benefits of multiple opportunities provided by the network improvement. It can assist organization in making their operations greener’ enhance their energy saving capability’ making them able to manage all kind of network under single management policies etc. the organization Cisco’s prime management portfolios and energy wise program are more preferred choices presently.

Basic Warranty Myth

It has also been observed that customers are mislead by life time warranties and service support promises by network providers. Usually this type of warranty is given in those products which have lesser moving parts with them. As a general practice any good network will come with limited time warranty only. The customer is needed to more aware and informed about the warranties  as many warranties might claim all life support but all they would do is reboot the system and if does not work they will recommend a replacement. These warranties also work on first come first serve basis and will not attend calls on the basis of emergency or priority of customer.

Enterprise Next-Generation Networks is giving more priority to customer needs that worrying about hardware warranty and also understand the real need of the customer is make the system work as it is critical for their businesses.  Companies who are offering the next generation networks are coming up with very customized and focused warranty packages and their aim is to find the root cause of a probable problem and eradicate it even before it rises as a problem. They are taking proactive approach towards problem rather than solving it.