The Lippis Report

January 3rd, 2013

Nick Lippis, Zeus Kerravala

Zeus Kerravala of ZK Research and I host our annual predictions podcast. We provide our top ten 2013 predictions that span consolidation in the SDN market, Cisco breaking away from HP/Dell, VMware jumping the shark, Micosoft’s rebound, the formation of the white box Top of Rack switch market, UC providers moving into context aware services, the rise of truly mobile applications and how Cisco will win with Cisco ONE. Enjoy and the very best for a happy and healthy New Year.

Register to Attend the Lippis Report’s Open Networking User Group meeting hosted by Fidelity on Feb 13th in Boston.

October 12th, 2012

It’s been a few months since VMware acquired Nicira and Cisco launched Cisco ONE. But at the sleepy Interop NY show, IBM and HP expanded their SDN portfolios with the addition of SDN controllers. To date, there are just a few firms with controllers, including VMware, Big Switch Networks, Cisco, HP, IBM, NEC and Nebula. VMware put a value on SDN overlay controllers at $1.26B, which peaked the interest of every venture capitalist as well as network executive; so there’s no surprise to see more controllers entering the market. But what’s occurring is that the controller market is segmenting into OpenFlow and Overlay controllers with little to no awareness and/or interoperability between the two control plains. In this Lippis Report Research Note, we examine the new SDN controllers from Cisco, IBM, Big Switch Networks and HP with an analysis of their evolution.

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September 12th, 2011

Back in November of 2009, I wrote Lippis Report Research Note 136 titled “HP Plans to Acquire 3Com Accelerating a New IT Convergence Era.” In that Research Note, I wrote

“When 3Com is fully integrated into HP what kind of networking revenue and market share can HP gain? ProCurve + 3Com is approximately $2B of revenue now. With the existing product lines can HP generate $5B, $10B or more of network revenue over five years? Time will tell.”

Well after nearly two years, HP Networking or HPN’s North America (NA) layer 2/3 Ethernet switch market share by revenue is nearly the same, bouncing between 5% and 6.1%, according Dell’Oro, with HPN’s Q2CY11 NA switch revenue share being down to 6%. Considering HPN’s limited results after significant investments in sales, channels and marketing, including its “proof-of-concept” plus “A Catalyst for Change” Cisco Trade-in program, not to mention engineering investment, the question is can HP make it in networking? We attempt to answer that question in this Lippis Report Research Note.

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August 23rd, 2011

On Tuesday Auguest 16th a week before HP’s news of potentially exiting the PC business, Zeus Kerravala, Senior VP of Research at the Yankee Group and Andre Kindness Senior Analyst at Forrester Research joined me in a round table discussion to reflect on HP Networking. We assess HP Networking’s progress since it announced the acquisition of 3Com back in Nov of 2009 and its prospects for the future. In a word our mutual assessment is disappointment with major short and long-term threats from Huawei. But there is hope for the future if HP can create a bold new vision for the industry and execute it. If you are going to listen to one podcast this year about HP, this should be it.

November 8th, 2010

IT business leaders are faced with a great economic shift, while at the same time are afforded the opportunity of a shift in IT delivery models. Business leaders must balance maintaining their current infrastructure, while exploring these IT delivery innovations. Most importantly, IT business leaders need to use their IT budget, approximately 4% of corporate spend, to significantly enhance and reduce the other 96% of corporate spend. But it’s not just an economic calculus that is diving post great recession IT spending. IT leaders need to engineer their delivery to be flexible to support current business growth, ongoing change, and long-term business goals. Robert Taylor, VP of HP Enterprise Services joins me to discuss what he has learned from HP’s global 2000 customers as they emerge from the economic downturn and prepare for a new business cycle with IT.

August 10th, 2010

Networking has become “rigid”. Yes I know it’s almost absurd to attribute inflexibility or rigidity to networking. Look what TCP/IP has done for us. There are nearly 2 billion people connected to the internet and according to the Internet World Stats internet user growth rate increased by 380% between 2000-2009. With 2 billion people and growing online, accessing a plethora of applications via a wide range of end-points there is no doubt that the internet and TCP/IP has been a much bigger success than anyone would have imagined back in the early ’90s. But there’s always a give and take between computing and networking where one drives and changes the other. Right now we are in a compute innovation cycle that’s driving a fundamental change in networking which screams out the need for more flexibility.

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July 27th, 2010

In Lippis Report 151: A Two or Three Tier High-End Data Center Ethernet Fabric Architecture? we detailed the new two tier data center Ethernet fabric that is becoming conventional wisdom amongst business leaders of high end data centers and cloud computing service providers. The networking industry is headed for a major innovation and competitive cycle fueled by a multi-billion dollar addressable market for data center network fabrics. Over the last eighteen months, every major Ethernet infrastructure provider has announced or taken a position on two tier network fabrics for high-end data centers. Companies such as Cisco, Arista Networks, Force10, Voltaire, HP/3Com, Juniper, Extreme, Brocade, BLADE Network Technology, et al have announced network fabrics for data centers with two thousand and more servers that either support storage enablement or not. In this Lippis Report Research Note, we review why it is Ethernet that will be the network fabric of high performance computing or HPC and cloud computing deployments.

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July 13th, 2010

In the Lippis Report Research Note 150, we discussed the new industry group called Unified Communications Interoperability Forum or UNIF and compared it to other industry consortium charted to deliver interoperable solutions. While interoperability is sorely needed in the UC industry, it looks like Microsoft killed its changes of broad industry success before it started. What I hear from both UCIF members and non-members is that UCIF is controlled by Microsoft, and thus, lacks a large cross section of industry players as well as major UC providers. With its current structure, UCIF will make limited headway on its charter. In this Lippis Report Research Note, we review UCIF and its’ opportunities.
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June 14th, 2010

In mid May of this year HP, Juniper Networks, Microsoft, Logitech / LifeSize and Polycom established a forum to develop a set of interoperability test methodologies and certification programs along with specifications and guidelines that enable mixed vendor Unified Communications UC solutions to work with each other. In short, the UC Interoperability Forum or UCIF is trying to define what it means for multi-vendor UC implementations to interoperate. Since its establishment, membership has grown by thirteen vendors, but blaringly obvious is the omission of Cisco, Avaya, Mitel, ShoreTel and other major UC providers. This begs the question of motivation. Is the UCIF interested in interoperability or changing the market landscape to gain advantage on the established leaders? In this Lippis Report Research Note we explore this question.

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May 31st, 2010

In Lippis Report 148 we reviewed the major drivers and trends that are propelling the high-end data center Ethernet switch market to well over a $1B annual run rate. In this Lippis Report Research Note, we review the major suppliers of these switches. We review Cisco, Arista Networks Force10 Networks, BLADE Network Technologies, HP/3Com/H3C, Voltaire, Avaya, Brocade, and Juniper and identify their unique positions and offerings to participants in the burgeoning market. Our focus is the high-end, high density 10GbE switches that are enabling virtualized cloud computing data centers thanks to Terabits per second of back plane switching capacity, billions of packets per second of layer 2/3 forwarding, hundreds of 10GbE port connectivity per chassis, a new two-tier architecture, microsecond level latency, low power consumption, non-stop operation and software hooks that eliminate network barriers to large scale server virtualization. The engineering in these switches should be celebrated, as they represent the state-of-the-art in computer and network design. In short, they represent the fundamental building block of a new generation of IT delivery based upon cloud computing and virtualization. This Research Note is a must read for any IT executive designing a data center.

After finishing this Research Note, it became evident that this market needs a set of industry neural 10GbE switch test to independently verify vendor claims. We hope to make such a contribution this Fall.
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May 17th, 2010

During last week’s Cisco Q3 FY10 quarterly financial conference call, John Chambers, Cisco’s CEO, said something that impressed and shocked me. The company has been quiet about the growth rates for its Nexus line of data center switches until this call. What shocked me was that the Nexus 7000 is now on an annualized run rate of $1B, yes that’s Billion with a B! I remember being interviewed by John Markoff of the NY Times in Jan ’08 about the Cisco’s Nexus and Juniper’s yet to be announced Ethernet switches. In just 27 short months, the Nexus product line including the 7000, 5000 and 2000 represents a $1.4 B run rate of revenue to Cisco. Another insight gained from this ramp up is that the data center networking trends that we’ve discussed here in various Lippis Report Research Notes are powerful demand drivers for Cisco and other companies participating in this lucrative emerging market and its just starting! Companies such as Arista Networks, Force10 Networks, Blade Network Technologies, HP/3Com/H3C, Voltaire, Avaya, Brocade, Juniper, et al, have unique positions and offerings to participants in the burgeoning market. In this Lippis Report Research Note, we review the mega trends driving high market growth. We save a product review of each of the suppliers for our next Lippis Report Research Note.

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May 3rd, 2010

By Cisco Systems
This white paper addresses the RF interference challenges that result from high usage of a shared spectrum. It explores the limitations of standard Wi-Fi chip design and how this affects the ability of an IT organization to gather critical, actionable data about the wireless spectrum for effective troubleshooting. Finally, it introduces Cisco® CleanAir technology and explains how by integrating RF intelligence into the network, users gain tremendous insight into actual usage of the wireless spectrum. This insight is critical to proactively managing Wi-Fi networks to support mission-critical and latency-sensitive applications needed in today’s hospitals, distributed enterprises, manufacturing sites, retail stores, and offices.

To learn more, download the Cisco whitepaper.

April 19th, 2010

By 3Com

The industry is a buzz around Ethernet’s emergence as the unifying data center network fabric of choice.  Although 10GigE is very attractive as a unifying fabric — prices are dropping and adoption is rising — we’re still a long way from a unifying fabric in the data center. According to Nemertes, nearly 63% of organizations have no plans for network storage over 10GigE, while 71% have no plan yet to converge data center switching fabrics into one unified fabric. Standards organizations are still working to address the key challenges of latency, loss, and performance at scale, which are required to ensure that a converged infrastructure performs effectively for all data center applications.   For most organizations, the best approach may be evolutionary – one in which converging parts of the network such as access layer (in-the-rack) help address server/storage I/O complexity with higher performance 10GigE Converged Network Adaptors (CNAs) – makes good sense in the near term. As the enterprise needs for agility and lowered TCO converge with standards-based resilience and reliability, we will eventually arrive at the “data center over Ethernet” (DCoE).
To learn more, download the 3Com whitepaper.

February 1st, 2010

3com offers a global support network for its customers that are staffed around the world. Their hallmark is flexibility in engagement arrangement and customization of support needs. Vendor transition and product support are two key aspects offered by 3Com so that risk of vendor transition is transferred to 3Com and not the customer. Service and support is needed more now then ever as data center and enterprise network design and deployments have become complex thanks to a plethora of new technologies and options. I discuss the Importance of service and support in enterprise networking with Imran Khan Vice President of Global Services at 3Com. Enjoy, Nick