Cisco MPLS

1© 2002, Cisco Systems, Inc. All rights reserved.

MPLS for Managed Shared ServicesCustomer Presentation, June 2002

Cisco MPLS

Enabling Managed Shared Services for Greater Profitability

Azhar Sayeed

June 2002

222 2© 2002, Cisco Systems, Inc. All rights reserved.


MPLS Is Key technology for delivery of L2 & L3 services

IPServices

IPServices

ATMServices

ATMServices

IP+ATM SwitchIP+ATM Switch

PNNIPNNI MPLSMPLS

IPIP

IPServices

IPServices

OpticalServicesOptical

Services

IP+Optical SwitchIP+Optical Switch

O-UNIO-UNI MPLSMPLS

IPIP

FrameRelay

ATM

FrameRelay

IP+ATM Integration

MPLS VPNs: Build once sell ManyNetwork based VPNs

Traffic Engineering: Optimization forAdditional traffic =>$$

Protection solutionReduction in CAPEX & OPEX

IP+Optical Integration

Layer 2 Integration forA single convergedNetwork Infrastructure



• Criticality of Selling More Than Connectivity

• Introducing Cisco MPLS For Managed Shared Services

• Roadmap

• Summary

Agenda



Time

Enabling Managed Shared ServicesCisco MPLS Strategy

Fu

nct

ion

alit

y &

Rev

enu

e

Next wave: Advanced Services

Scalability & Availability Enhancements

Enabling Managed Shared Services

Provide Vanilla IP connectivityFull - Mesh Announcing

Today



Managed Shared Services Are The Future of Profitability

Re

ven

ue

Re

ven

ue

ManagedServices

The Key is moving up the value chain by providing new services

Co-LocationCo-LocationManaged Hosting Services

Managed Hosting Services

ManagedApplication

Services

ManagedApplication

Services

L2/L3 Connectivity

L2/L3 Connectivity

Data Center Space

Data Center Space

L2/L3 Connectivity

For VPNs

L2/L3 Connectivity

For VPNs

Basic HostingBasic

HostingManaged Security

Managed Security

Managed Network Services


Platform ServicesPlatform Services

E-Comm App MgmtE-Comm

App MgmtBusiness

LogicBusiness

LogicCustomer Relation

Customer Relation

“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

“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



Service Provider

MPLS - VPN Network

VPN “B”

VPN “B”

VPN “A”

VPN “A”

MPLS/VPN: Before Managed Shared Services

• Services need to be replicated per VPN Poor efficiency High Traffic Load Management nightmare

• Services need to be replicated per VPN Poor efficiency High Traffic Load Management nightmare

Services for VPN A Services for VPN B

ERP

InternetGateway

VideoServer

HostedContent

H.323Gatekeeper

ERP

InternetGateway

VideoServer

HostedContent

H.323Gatekeeper



VPN “B”

VPN “B”

VPN “A”

VPN “A”

MPLS/VPN: Supporting Shared Services

Service Provider

Cisco MPLS - VPN NetworkInternetPSTN

Shared Services for all VPNs

InternetGateway

VoIPGateway

ERP VideoServer

HostedContent

• IP Services move into Service Provider network and become sharable

Increases Enterprise outsourcing flexibility Creates New Service Provider revenue opportunities

• IP Services move into Service Provider network and become sharable

Increases Enterprise outsourcing flexibility Creates New Service Provider revenue opportunities



Cisco MPLS For Managed Shared Services Makes Money, Saves Money

• 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

Allows MPLS/VPN customers to access a central service such as Managed Internet Access or Managed Security



Time

Advanced Capabilities for New Revenues

Enable Managed Shared Services

Provide Vanilla IP connectivityFull - Mesh

•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

•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

•Cisco Delivers•HSRP for MPLS VPNs•DHCP Relay for MPLS VPNs•Remote Access to MPLS VPNs

•Cisco Delivers•HSRP for MPLS VPNs•DHCP Relay for MPLS VPNs•Remote Access to MPLS VPNs

Cisco provides basic debug and monitoring

capabilities

Cisco provides basic debug and monitoring

capabilities

Enabling Managed IP Services – Cisco MPLS Strategy

•Cisco Trials Multicast VPN•Cisco Trials Multicast VPNCisco Delivers MPLS (RFC2547) based IP VPNs

Cisco Delivers MPLS (RFC2547) based IP VPNs

Functionality&

Revenue

•Adds NAT for MPLS VPNs for central services•Add Multicast VPN Solution

•Adds NAT for MPLS VPNs for central services•Add Multicast VPN Solution



Announcing TodayAnnouncing Today

Cisco MPLS Service

Integration Enhancements

Features Shipping Today

Q3-Q4CY02

IP Services for IP Services for MPLS VPNsMPLS 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 Service Selection for MPLS VPNsfor MPLS VPNs

• VPN Select

Cisco MPLS For Managed Shared Services: Announcement Highlights



NAT Today

MPLS VPN Network

VPN A

VPN A

VPN A

VPN B

VPN B

VPN B

InternetNAT CENAT CE

• 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

• 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



NAT for Shared Services

MPLS VPN Network

VPN A

VPN A

VPN A

VPN B

VPN B

VPN B

Internet

NAT PENAT PE

ERP VideoServer

HostedContent

• 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

• 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

Managed Internet or

Managed Security Servicevia managed Firewall



DHCP Today

MPLS VPN Network

VPN A

VPN A

VPN A

VPN A

VPN B

VPN B

VPN B

VPN B

DHCP Server VPN B

DHCP ServerVPN A

•Replicated DHCP servers per VPN even if co-located•No Value add from Service Provider •Replicated DHCP servers per VPN even if co-located•No Value add from Service Provider

DHCP Request &

Reply



DHCP support for Shared Services

MPLS VPN Network

VPN A

VPN A

VPN A

VPN A

VPN B

VPN B

VPN B

VPN B

DHCP Request

Managed DHCP Service

DHCP RequestDHCP Reply

DHCP Server

• Value Add Service• Build Once sell many• Efficient management of Addressing• Outsourcing Flexibility for enterprise customers & New revenue source for SPs

• Value Add Service• Build Once sell many• Efficient management of Addressing• Outsourcing Flexibility for enterprise customers & New revenue source for SPs

VPN Context added to DHCP



IP Address Management

MPLS VPN Network

VPN A

VPN A

VPN A

VPN A

VPN B

VPN B

VPN B

VPN B

DHCP ServerVPN B

DHCP ServerVPN A

DHCP Request & Reply

• 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

• 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

Configure Address Pools per server



IP Address Management as a Shared Service

MPLS VPN Network

VPN A

VPN A

VPN A

VPN B

VPN B

VPN BDHCP Server

Cisco IOS

DHCP Request & Reply

Request an address pool for VPN A

Request an address pool for VPN B

Use this new pool 10.10.1.x

• 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

• 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


Server



HSRP & VRRP Today

MPLS VPN Network

VPN A

VPN A

VPN A

VPN B

VPN BVPN B

CE Redundancy Only

HSRP/VRRP Running between CEs

• CE Redundancy Only• Dual homing to PEs can also be done but does not provide fast failover• CE Redundancy Only• Dual homing to PEs can also be done but does not provide fast failover



HSRP & VRRP support for MPLS VPNs

MPLS VPN Network

VPN A

VPN A

VPN A

VPN B

VPN B VPN B

CE Redundancy

HSRP/VRRP Running between PEs

• CE & PE Redundancy• Reinforces GRIP Story with MPLS• Dual homing to PEs can now provide fast failover

• CE & PE Redundancy• Reinforces GRIP Story with MPLS• Dual homing to PEs can now provide fast failover

• Dependency on Shared Services requires better network availability• Cisco IOS “GRIP” features can be used to improve availability



Multicast Today with MPLS VPNs

MPLS VPN Network

VPN A

VPN A

VPN A

VPN A

VPN B

VPN B

VPN B

VPN B

Multicast SourceVPN B

Multicast SourceVPN A

GRE TunnelsCE-CE

•Scalability – An issue•Highly inefficient•Scalability – An issue•Highly inefficient



Multicast VPN

MPLS VPN Network

VPN A

VPN A

VPN A

VPN A

VPN B

VPN B

VPN B

VPN B

Multicast SourceVPN B

Multicast SourceVPN A

Multicast in the core

Multicast VRF

• 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

• 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



VPN Selection

20.1.1.1

30.1.1.1

40.1.1.1

ISP1 owns 20.x.x.x network



PE

PE

CE

CE

CE

Broadband access network

MPLSMPLSVPNVPN

VPN1

VPN2VPN2

VPN3VPN3

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

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

VPN1

VPN2

VPN3

PE





• Roadmap

• Summary

Agenda



Cisco MPLS For Managed Shared Services: Feature Availability by Platform

FeatureFeature Platform SupportPlatform Support AvailabilityAvailabilityNAT for MPLS VPNs All Cisco MPLS-VPN Enabled Platforms;

C12000, C10000 in CY03Q4 CY02

DHCP for MPLS VPNs

All Cisco MPLS-VPN Enabled Platforms; C12000, C10000 in CY03

Shipping

ODAP for MPLS VPNs

All Cisco MPLS-VPN Enabled Platforms; C12000, C10000 in CY03

Q4 CY02

HSRP/VRRP for MPLS VPNs

All Cisco MPLS-VPN Enabled Platforms Shipping

Multicast VPN All Cisco MPLS-VPN Enabled Platforms Q3 CY02

VPN Select C12000 Q3 CY02





• Roadmap

• Summary

Agenda



Cisco MPLS Is Proven100 125 140 Deployments Today

Americas EMEA APT/Japan



Managed Shared Services Are The Future of Profitability

Re

ven

ue

Re

ven

ue

ManagedServices

Co-LocationCo-LocationManaged Hosting Services

Managed Hosting Services

ManagedApplication

Services

ManagedApplication

Services

L2/L3 Connectivity

L2/L3 Connectivity

Data Center Space

Data Center Space

L2/L3 Connectivity

For VPNs

L2/L3 Connectivity

For VPNs

Basic HostingBasic

HostingManaged Security

Managed Security



Platform ServicesPlatform Services

E-Comm App MgmtE-Comm

App MgmtBusiness

LogicBusiness

LogicCustomer Relation

Customer Relation

Value Added Services

VPN Aware NAT


VPN Aware HSRP/VRRP

Cisco IOS - Key enabler to Value Add Services

Multicast VPN

VPN Select



• 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

Cisco MPLS For Managed Shared Services

Only with Cisco IOS Software!Only with Cisco IOS Software!



Resources

• http://www.cisco.com/go/mpls

• MPLS for Managed Shared Services [email protected]

• MPLS deployment [email protected]

• Other aliases [email protected]

http://www.cisco.com/go/mpls

mailto:[email protected]






292929© 2002, Cisco Systems, Inc. All rights reserved.

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