Amplify Hybrid WAN ROI with SD-WAN
Sree Kannan, Director of Product Marketing
Michael Wood, VP of Marketing

Agenda
 Complexity and cost with legacy WAN solutions
 SD-WAN simplicity to reduce cost
 Total cost of ownership savings with SD-WAN
 250 branch analysis
 Customer quotes and proofpoints

Cost and Complexity with Legacy
WAN

Multiple Levels of Complexity in Legacy WAN
MPLS
Branch
Cloud
Datacenter
Datacenter
Branch
Internet
Backup
WAN Link Complexity
• Static MPLS-based architecture
for all branch traffic including
consumer internet backhaul
• Active-backup configuration
leads to wasted bandwidth
• Longer lead time to provision
additional MPLS bandwidth
Install & Mgmt. Complexity
• Hub-spoke design needs
complex datacenter & branch
deployment
• Complex to manage with silo
network management
• Numerous IT visits to deploy,
monitor, troubleshoot and
manage
Infrastructure Complexity
• Datacenter network to support
branches is complex
• Datacenter scaling and
availability challenge
• Multiple single-function boxes per
branch
• leads to device sprawl
• multiple points of failure
• multiple s/w upgrades and
patching

Cost Components in Legacy WAN
MPLS
Branch
Cloud
Datacenter
Datacenter
Branch
Internet
Backup
WAN Link Costs
• Primary MPLS cost
• MPLS connector cost*
• Backup link cost
• Upgrade costs
Install & Mgmt. Costs
• Silo management cost per
device from each vendor
• Multiple IT visit cost to deploy,
monitor, troubleshoot and
manage
Infrastructure Costs
• Device equipment cost in
datacenter and branches
• Software license cost with all
individual devices
• High availability costs for
additional devices
• Software upgrade and support
cost for each device

SD-WAN Simplicity to Reduce Cost

Key Capabilities of SD-WAN to Reduce Complexity
1. Lightweight WAN Edge replacement that is
transport agnostic
Source: http://blogs.gartner.com/andrew-lerner/2015/07/07/sdwan/
2. Allow for dynamic load sharing across multiple
WAN links
3. Provide secure VPN and ability to integrate
additional network services and offload Internet
traffic closer to the edge of the network
4. Dramatically simplify the complexity associated
with management, configuration & orchestration
of the WAN

Cloud-Delivered Software Defined WAN
Internet
Private
MPLS
VeloCloud
Edge
Velocloud
Gateways
VeloCloud
Orchestrator
Branch
Datacenter
• Use MPLS and Internet broadband as active-active with Dynamic Multi-path Optimization
• Direct and Optimized access to Cloud Services with VeloCloud Gateways
• Deliver physical appliances as Virtual Services from the Cloud
• Simplify deployment and management with automation and orchestration
Datacenter
Edge

Reduce Complexity with Software Defined Automation
• Thin branch edge device
• Remote cloud provisioning
• Business-policy based
orchestration
• One-click VPN to DC and cloud
• Eliminate NxN manual tunnels
• Dynamic branch-to-branch
• Cloud services insertion
• No complex per node routing
• Backhaul to on-premise services
Simplified ConfigurationsZero Touch Branches Easy Services Insertion

Simplify Branch WAN with Cloud delivered SD-WAN
Branch
Datacenter
MPLS
DSL Cable LTE
Cloud
VNF
VNF
VNF
Internet
Edge as VNF
VNFs in Edge
Velocloud
Gateway
Security Service Chain
Provider Edge
Hybrid WAN Benefit Ease of Installation & MgmtInfrastructure Simplicity
• Assure application performance
over MPLS, Internet broadband
& LTE
• Active-active configuration with
app-aware per-packet steering
• 99%+ predictable app
performance with dual links
• True zero IT touch deployment
• Rapid branch activation where
MPLS is not available
• Cloud management with no
patches, upgrades..overhead
• Deep application visibility for
proactive app performance
issues
• Remote diagnostics and tools to
reduce IT visits to branches
• Gateways as SD-WAN headend.
No datacenter deployment
• Unlimited scale and availability
• Deliver Network services on-
demand from cloud (FW, VPN)
• Ease of integration with service
and solution provider network
• Service chain partner solution
like secure web gateway
(Zscaler)

Total Cost of Ownership with SD-WAN

Retail Customer Case study – 3 year TCO Analysis
• 250 branches install base,
1000’s more
• Small, mid and large
branches in North America
• MPLS as primary link with
cable as backup
• Minimum 15 users in each
branch
• 3 hardware vendors in each branch
• MPLS router, Firewall, VPN in each
branch
• VOIP is a critical traffic in all branches
• Minimum 3Mbps MPLS link is all
branches
• Additional 30Mbps bandwidth desired
in all branches for Cloud apps
Customer Profile Network Challenges & Requirements

Hybrid WAN Savings Analysis
Stage MPLS Link
Cost
Broadband Cost VeloCloud
Subscription
Total Cost Cost per Mbps
MPLS Only
Existing Network
$600 for 3Mbps N/A N/A $600 $200
Hybrid WAN
MPLS + Broadband
$600 $60* for 20Mbps
Business broadband
$90* $750 for 23Mbps
99%+ reliability
$32.60
* Cost varies by region and SLA requirements
0
50
100
150
200
250
Cost per Mbps
MPLS
Hybrid WAN

Infrastructure and Ease of Installation, Mgmt Savings
Infrastructure
(average cost per branch)
Legacy VeloCloud Notes
Headend cost per
branch*
$160 0 Datacenter Headend with
high availability
Branch devices cost $900 0 Router, router module,
Firewall, VPN, WPC, Mgmt
Operational
Per branch
Legacy VeloCloud Notes
Network Management
license and support
$1080 0
Support cost $300 0
MPLS connector cost* $120 0
*does not include branch IT visits and associated savings

Total Cost of Ownership Savings
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Current With VeloCloud
Costs for a 250 branch deployment
Bandwidth Operating Expenses (ICOM) Network Infrastructure
3x Total Cost of Ownership Savings with SD-WAN
3x

Demonstrating SD-WAN Business Value Whitepaper
http://www.velocloud.com/sd-wan-resources/white-papers/sd-wan-business-value-dan-conde
www.velocloud.com
Resources
White papers

Customer Testimonials

Service Provider Case Study
Challenges
• Simplify orchestration to deploy advanced
architectures supporting next generation
industrial networking for robotic applications
• Connect locations in Berlin, Germany and
Mountain View, California
• Minimize cost, management requirements, and
impact to the existing MPLS network
Results
• Deployed and activated SD-WAN infrastructure
in less than one week
• Established SLAs over secure VPN connections
between Berlin and Mountain View with the
ability to insert network services anywhere
“Within the first week we had the
VeloCloud SD-WAN set up in all
global locations. We were very
satisfied with how the product worked,
the ease at which it could be
integrated into an existing network
and the visibility and manageability it
provided”

Enterprise Case Study
• Customer Profile
– Enterprise with many branches, remote
locations or mobile sites
– Revenue in excess of $1B
• Problem/Requirement
– Eliminate cost of expensive truck rolls
– Rapid set up of branch or remote site
• Solution
– Simple, zero touch branch installation
process
– No IT person needed on site for
deployment
– Support of multiple wired & wireless
WAN links
“Devcon reduced its WAN
bandwidth costs by 75%
per month. Reduced
OPEX by 50% by
dramatically reducing
onsite IT visits”

Gartner

Thank You.