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

2. MPLS Is Key technology for delivery of L2 & L3 servicesIP
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

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

4. 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

5. 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

6. 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”

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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 x
Request an address
pool for VPN B
VPN B

17. 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

18. 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

19. 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

20. 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

21. Broadband access network
VPN Selection
Broadband access network
VPN1 PE
ISP1 owns 20.x.x.x network CE
VPN1 PE
MPLS VPN
VPN2
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
VPN3 CE
ISP4 owns 40.x.x.x network

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

23. 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:

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

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

26. 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

27. 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!

28. Resources http://www.cisco.com/go/mpls
MPLS for Managed Shared Services
MPLS deployment
Other aliases

29. © 2002, Cisco Systems, Inc. All rights reserved.29 29 29