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New IP Networking
Tom Williams

SVEN is hosting a series of Summit Meetings to discuss New IP Networking market drivers, topologies,
technologies and ecosystem. The first meeting will be held at the Computer History Museum in Mountain View
on July 14 from 12:00pm - 6:00pm.
New IP Networking is a new term to encompass the transition from traditional IP networks designed for
Client-Server environments, to new IP network architectures designed for the cloud, mobile, social and big
data business drivers and using a combination of software (like NFV and SDN) and commodity hardware.
Todays IP networking market is saturated with switches, routers, network servers, specialized equipment and
software. These solutions satisfied an IP networking ecosystem that managed access to systems of records.
Complex application-centric solutions were developed in response to the insatiable appetite for information
engagement. Driven by the rapid growth of connected devices and the popularity of the Internet, Enterprise
CIO staffs selected vendors that offered comprehensive solutions to address most or all their needs.
Implementation of CRMs, ERPs, and web pages fostered deeper and differentiated seamless customer
relationships. The networking tenant was everything is Always On. Later, new equipment and software vendors
demonstrated that IT Operations could successfully mix different vendor solutions based on price and performance.
All of these solutions were designed in the mid-90s where there were 16 million Internet users accessing 2,700
websites and fewer that 100 million mobile devices. This is the era that IDC calls the Second Platform.
However, major market forces are changing the Enterprise business model and we are entering the era of the
Third Platform. Seamless support for mobile, cloud, big data and social networking has become a necessity
requiring Enterprise IT software developers to implement agile disciplines in response user demands. The Always
On connected culture has changed to an anywhere and everywhere on-line culture. Today, there are 2 billion
Internet users accessing 1 million websites and over 7 billion mobile devices. Over the last three years, cloud
spending has increased to $65 billion worldwide and mobile traffic has doubled each year. In the not too distant
future, 25-50 billion intelligent, single purpose Internet of Things devices will be added to the mix. Service providers,
IT staffs and vendors are quickly realizing todays IP networking environment cant do the job. To make things more
challenging, typical IT budgets consume 70% of their budget trying to maintain the current infrastructure. Thus, a
smaller amount of capital is available to evolve to a digital business.
What does a digital business need from its underlying network to support rapid innovation of new services,
self-service portals, cloud applications, IoT and all the challenges as well as competitive risks and opportunities
ahead? It will need a network that is more dynamic than the current static environment: open, virtualized,
software-centric, vendor agnostic, automated, scalable and more. It needs a new IP architecture, built on the
foundation of the past twenty years and able to take us into the future so that we empower enterprises to
construct fully integrated digital businesses. The new digital business becomes a system of insight a revolution
in the way IP networks operates. Thus, the term New IP Networking.
The projected economic and strategic impact of New IP Networking are staggering. Existing incumbents are
realigning their strategies and deploying considerable capital to participate. This happened in the mid 90s with
the introduction of IP networks, and twenty years later, we envision that New IP Networking will transform
enterprises, service providers, users, consumers and governments thereby creating new avenues for growth
and profit.

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However, New IP Networking fosters hype and confusion among vendors, Service Providers and CIOs. It includes
new technologies like NFVs (Network Function Virtualization), SDN (Software Defined Networking), open source
initiatives like ODL (Open Daylight), OpenConfig and Open Stack, Ethernet Fabrics, COTS (Commercial Off the
Shelf) devices, orchestration, and more. With starting points varying and the New IP networking technologies
evolving at different speeds, clarity is needed in order to present a cohesive picture of New IP networking to
Enterprise IT and service providers alike. The impact of New IP networking goes beyond technologies. For
example, the IT organizational responsibilities are rapidly changing as businesses are digitized horizontally
across the Enterprise. As New IP networking presents a flexible and customizable differentiated solution, the
roles of IT Ops and DevOps may need to take a much broader perspective of their responsibilities in driving
their organizations as a digital business. New IP networking solutions can provide Enterprise management with
the necessary tools to compete and differentiate their digital business. However, the cost of this agility may be
complexity, at least in the short term while this all gets figured out.
Are we ready to meet the challenges? Are IT departments ready to implement New IP Networking? Are Service
Providers differentiating their offerings? Not completely. New IP networking needs to be demystified for vendors
and IT organizations alike.
It feels like 1995 all over againwith all the opportunity and ambiguity we faced then as now.
We are assembling a number of executives and thought leaders from vendors, Service Providers, enterprises and
analyst firms to help decipher New IP Networking and create a roadmap to the future.

Silicon Valley Executive Network (SVEN) is a private, invitation-only, human network for senior executives who are core to the high
tech ecosystem, providing a forum for thought leadership focused on emerging technologies in relaxed environments and unique
venues. We enable business development and relationships for CxO/VP level high-tech execs, venture capitalists, key technologists,
and other core entities driving innovation. Formed in 2007, SVEN has 250+ executive members.
One of the key missions of SVEN is to mediate and engage in reaching a better understanding of new technology initiatives that
have a profound impact on the Information Technology ecosystem. For example, last year we moderated a Summit Meeting on
the Internet of Things (IoT). SVEN brought together leading and emerging technology influencers to clarify the impact of IoT.
Thought leaders from Cisco, Intel, Qualcomm, SAP, GE, Flextronics, IBM, Oracle, McAfee, emerging IoT security vendors and
venture capitalists led a half-day meeting toengage in a conversation regarding the motives and barriers they face regarding IoT.
This year, leading Silicon Valley companies are requesting SVEN to dedicate an effort to moderate a similar Summit Meeting on
New IP Networking. Incumbents as well as heavily financed, venture capital-backed emerging companies are deploying
considerable treasure in New IP based on their view and expectation of this industry shift.