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Data / Voice / Video Integration

Data / Voice / Video Integration. Kevin Spellman - Cisco Multi-Service kspellma@cisco.com. 1018_03F8_c2. Agenda. Things Are Changing Market Drivers Case Study Questions. “Things Are Changing”.

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Data / Voice / Video Integration

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  1. Data/Voice/Video Integration Kevin Spellman - Cisco Multi-Service kspellma@cisco.com 1018_03F8_c2

  2. Agenda • Things Are Changing • Market Drivers • Case Study • Questions

  3. “Things Are Changing” • More people have used the Internet in its first 5 years, than people used telephones in the first 30 years of Telephony • A Nation the size of the United Kingdom Joins the Internet every six months • The Internet already carries more information than all the telephones in America

  4. Voice Client to Server Video Teleconference Server to Server Office Applications Internet/Intranet Worldwide Traffic Is Exploding More than300% Growthin WAN Trafficby 2002! 2002 1997 • Changing traffic patterns Source: Gartner Group, 1997

  5. Reduce WAN Bandwidth Cost Hardware Costs 8.0% Software Costs 2.7% Maintenance 1.5% Transmission Costs 87.8% Savings in Wide-area Bandwidth Can Easily Justify the Implementation of a Multiservice WAN Source: Data Communications

  6. Growth of IP Traffic Data (IP) 250 200 Relative Bit Volume 150 Voice 100 50 0 1997 1998 1999 2000 2001 Source: Multiple IXC’s

  7. Seamless IP Fabric “I predict that in five years there will be no separate telephony and internet networks, but a single network -- to homes and businesses --which will support wireless, telephony, Internet access, and possibly cable…. There will be a single seamless IP network with more advanced security, that will support different quality of service level guarantees” Tom Evslin Outgoing President of AT&T’s Worldnet Services Source: Infoworld Electric July 24, 1997

  8. The Results? • IP Based Networks becoming universal • ATM backbones providing flexible scalability • Enterprise clients moving away from circuit switched/TDM networks • Voice is a shrinking % of the network

  9. No14% Maybe19% Yes 67% Will Data and Voice Ride the Same Network? Enabling technologies will emerge 50% Unified networks are easier to administer 21% Economics will improve 20% New site construction will justify it 9% Why? Forrester Research, Inc ‘97

  10. Why Now? Late ’90s/Early 2000—Multiservice Cycle Data, Voice and Video Innovation Internet/Layer 3 Networks/Services, VPNs Industry Convergence Early ’80s—Voice Cycle PTT Deregulation Private Networking First Digital PBXs and Voice-mail Innovation Late ’80s/Early ’90s—Data Cycle Desktop Computing and LAN Innovation Emphasis on LAN–to-LAN Data Infrastructure Public Network Data Services Voice Technologies Commoditized Circuit-Based Infrastructure Packet/Cell-Based Infrastructure

  11. Why Is Data/Voice/Video Integration Hot? • Demand for reduced costs, more leveraged spending • Demand for new applications to enable business growth • Demand for complexityreduction—strategic convergence

  12. Data/Voice/Video Innovation • Processing—high-power DSPs • The Internet • Software tools and APIs • Standards—voice/video compression, multiservice networks

  13. Emerging Applications • Messaging • LAN telephony • Fax • Desktop video • Web—call centers

  14. Convergence & New Service Demand • Single/common billing • Service bundle leverage • New service interest • Embedded directory • Abbreviated dialing • Mobility • Customized services

  15. Voice Technologies Compression Unacceptable Business Quality Toll Quality 64 * PCM (Cellular) Bandwidth (Kbps) * ADPCM 32 (G.723) 32 * ADPCM 24 (G.725) 24 * ADPCM 16 (G.726) * LDCELP 16 (G.728) 16 * CS-ACELP 8 (G.729) 8 * LPC 4.8 0 Quality LDCELP - Low Delay Code Excited Linear Predictive CS-ACELP - Conjugate Structured Algebraic Code Excited Linear Predictive 0576_11F8_c2 7

  16. User Priorities and Timeline Data/Voice/Video Spending Short-Term Medium-Term Long-Term Infrastructure/ Information Convergence Cost Savings Business/ Application Enablement 1998 2000 2002

  17. Uncompressed Voice T-1 24 Channels at 64KBPS Each 1.544Mbps

  18. Compressed Voice T-1 24 Voice Channels at 8-22KBPS Each = Maximum of 528K for Voice Voice 12 Voice Other Applications 1.016MBPS Available for Other Applications… Dynamically Utilized!

  19. Silence Suppression / VAD Essential Components 22% Repetitive 22% Pauses 56% Over half of the typical voice call is silence! VAD removes silence from data stream.

  20. Voice Activity Detection Sending True Voice Over the WAN • Send voice samples only when there is “useful” information Speech Speech Silence Silence Cells Cells No Cells No Cells

  21. The Old World Vs New World Old Telephony World New World Multimedia IP = Data World

  22. Open Telephony Architecture Old World Telephony New World Telephony Open ServiceApplication Layer Outboard Application Open/Standard Interface PBX or CO Switch Open CallControl Layer EmbeddedApplication EmbeddedCall Control Open/Standard Interface EmbeddedCircuit Switching Standards-Based Packet InfrastructureLayer Closed, Proprietary, Inflexible, Centralized Open/Standard Interface ProprietaryTelephones Open/Standard Telephones 0393_10F9_c3 © 1998, Cisco Systems, Inc. 22

  23. 3rd Party 3rd Party Enterprise Voice Switching Service Innovation Software Open Service Application Layer Open/Standard Interface WAN Virtual Switch Controller Open Call Control Layer Campus Selsius Call Management Open/Standard Interface Standards-Based Packet Infrastructure Layer IP and ATM Precipitates Service Innovation

  24. Benefits: Lower cost of network operation Lower recurring cost for WAN bandwidth because of statistical multiplexing One infrastructure to support all existing and future applications Multiservice Integration Data OneNetwork Voice Video

  25. VoFR, VoATM, VoIP Quality Unacceptable Utility Quality Business Quality Toll Quality Cellular PSTN VOICE Cost ($) VoATM (PCM/AAL1) VoATM (8 Kbps) VoFR Internet Intranet VoIP CS-ACELP 8 Kbps (G.729) Quality

  26. Bandwidth Efficiency • Squeeze more data, voice, and video onto the expensive, often narrowband WAN • Benefit: • Lower recurring cost for WAN bandwidth (bandwidth cost generally outweighs all other costs associated with running a wide area network)

  27. QoS Technologies ATM QoS ATM Signaling Weighted Fair Queuing Weighted Early Packet Discard ATM QoS ATM Signaling ATM Access ATM Backbone IP/ATM QoSInterworking IP Access IP Backbone IP Precedence/Class of Service Weighted Random Early Detection RSVP Weighted Fair Queuing IP Precedence/Class of Service Policy Routing RSVP Multilink Fragmentation

  28. Performance and QoS Guarantees • Support for each application according to its specific needs • Benefits: • Increased user satisfaction; fast response times • Full control over the network resources • Implementation of service level agreements (SLAs)

  29. Enterprise Network Architecture Backbone Branch SOHO Telecommuters Home Offices Branch Offices Regional Offices Headquarters

  30. Vendor Common Path to Open Telephony I WANBackbone II WANAccess III MultiserviceGateway IV Campus/MAN/WAN Integration V Policy-BasedEnd-End CallManagement Enterprise PhasePrimary Focus From the Desktop to the WAN and WAN Services Open Multiservice Architecture Service Provider Packet VoiceInfrastructure Quality Service Accessand CPE Scale Networked Telephony Services Open End-EndTelephony Packet Gateway PhasePrimary Focus: From Desktops to Service Backbones and Gateways Open Telephony Architecture 1363_06F8_c1 © 1998, Cisco Systems, Inc. 30

  31. Network Migration: Before Data WAN/ Services On-Net Voice VPN, SDN PSTN ISDN • Separate parallel infrastructure • No leverage of corporate data network

  32. Network Migration: Phases I and II Multiservice WAN/Services PSTN ISDN • Integration of on net/intranet to common, multiservice WAN • Toll bypass and access line reduction

  33. G Network Migration: Phase III Multiservice WAN/Services PSTN ISDN • Least-cost routing across enterprise WAN • Toll bypass and tandem switch offload

  34. G Network Migration: Phases IV and V Multiservice WAN/Services PSTN ISDN Internet • Integrated communications backbone for all services • Operational productivity, capital reduction

  35. Customer Example

  36. The Opportunity Voice Network PSTN New York Milan Chicago Paris • Separate parallel infrastructure Tokyo Frankfurt Hong Kong London Data Network London Frankfurt Tokyo Chicago New York Paris • No leverage of corporate data network Milan Hong Kong

  37. The Goal - An Integrated Network Multiservice WAN/Services PSTN ISDN • Integration of on net/intranet to common, multiservice WAN • Toll bypass and access line reduction

  38. The Challenge Quality of Service? Management? Costs? User Training? Larger Data Pipes? New Applications driving the need to upgrade the data network

  39. Current Network Design—Small Branch Key Telephone System PSTN . . . London Frankfurt Chicago New York Paris Tokyo Milan Hong Kong WAN Router Small Branch Office 5-25 People

  40. Network Redesign—Small Branch Key Telephone System • Voice ports added to the Cisco 3600 and VoIP has been configured using RSVP and Weighted Fair Queuing to ensure QoS • Branch to Branch LD voice traffic now carried by the IP network • PSTN carries local calls and backs ups the IP network • Fax traffic is also routed across WAN when it is interoffice • Key telephone has been programmed to do least cost routing when dialing interoffice PSTN . . . Voice Ports Added V WAN Cisco 3640 Branch Office 20 People

  41. Network Redesign—Headquarters Headquarters • Voice ports added with Cisco 5300 and connected to PBX • On-net LD voice traffic now carried by the IP network • PSTN carries local calls and backs up the IP network • Any phone on the connected to the PBX can now call any branch phone or vice versa and the traffic can be routed over the data network PBX PSTN V WAN Cisco AS5300 Cisco 3640

  42. Toll Worksheet - Current Expenditures (Monthly) Number of People Minutes per Person per Day Workdays per Month Minutes per Person per Month Cost per Office On-Net % to HQ Cost per Minute(1) Location Purpose Paris Frankfurt Milan London New York Chicago Tokyo Hong Kong Total Headquarters Branch Branch Branch Branch Branch Branch Branch 16 16 40 40 16 16 16 180 180 180 180 180 180 180 20% 20% 20% 20% 20% 20% 20% 21.67 21.67 21.67 21.67 21.67 21.67 21.67 780.12 780.12 780.12 780.12 780.12 780.12 780.12 $ 0.25 $ 0.27 $ 0.23 $ 0.25 $ 0.25 $ 0.69 $ 0.77 $ 3,120 $ 3,370 $ 7,177 $ 7,645 $ 3,058 $ 8,613 $ 9,611 $ 42,595

  43. Ports at Each Location - Call Detail & Usage Analysis • Mid-size branches • Each user around 2.8 hours per day; 16 users makes 45 hours = 2688 minutes/day • (* 17% for busy hour load) = 457 minutes/busy hour = 7.616 Erlangs • (* 20% traffic to HQ) = 1.52 Erlangs to HQ. This equals four voice channels. • NYC and London • Each user three hours per day; 40 users makes 120 hours = 7200 minutes/day • (* 17% for busy hour load) = 1224 minutes/busy hour = 20.4 Erlangs • (* 20% traffic to HQ) = 4.08 Erlangs to HQ. This equals eight voice channels. • Corporate requirements • Total Erlangs = five branches at 1.52 + and two at 4.08 =15.76 • Total number of lines needed at HQ is about 20 for .05 blocking probability • The voice compression module uses 8 kbps (CS-ACELP) • (Actually silence suppression reduces this to less than 8 Kbps so each 64 Kbps channel could support eight voice-channel trunks

  44. Capital Costs Branches Headquarters Routers (Small Branch) Cisco 3640 $ 4,800 Voice Ports (4) $ 2,500 1E1T $ 1,900 Cisco IOS W/Memory $ 2,500 Total List Price $ 11,700 Number of Branches 5 Routers (Larger Branches) Cisco 3640 $ 4,800 Voice Ports (8) $ 5,000 1E2W $ 1,500 Cisco IOS $ 3,100 1T Wic $ 400 Total List Price $ 14,800 Number of Branches 2 Total of Branch Routers $88,100 Total of All Routers $119,300 Key Systems Additional Trunk Cards $700 Number Required 9 Total $6,300 Routers Cisco 3640s $ 9,600 Voice Ports $ 12,500 Network Modules $ 2,900 Cisco IOS W/Memory $ 6,200 Total List Price $ 31,200 Number Required 1 Pbx Additional Trunk Cards $ 5,418 Number Required 1 Total $ 5,418 Total Capital Cost $131,018 53

  45. Return on Investment Monthly PSTN Voice Savings $ 42,595 Required Added Bandwidth $ (32,300) E1 Removed from HQ to PSTN $ 5,840 Net Total Monthly Savings $ 16,135 Total Capital Costs $ 131,018 Installation (Estimate) $ 15,000 Total $ 146,018Payback in Months 9

  46. Financial Analysis Highlights Payback CapitalOutlay • Seven international offices savings $42k IDDD • Capital outlay of $131k • Payback is within nine months • Equipment purchased (3600) is modular to support future network changes $100K $80K $50K $20K 9 1 2 3 4 5 6 7 8 Month

  47. Business Case Summary 50% 15% 15% 35% 35% WAN Costs • Data/Voice/Video IntegrationCan Save 30 to 50% Capital Equipment Support Facilities (Data + Voice) WAN Savings Source: The Registry

  48. Business Case - Summary • New applications require more bandwidth • Voice rides for little or no charge • Better Compression algorythms • 8Kb compressed voice is toll quality or near toll quality • Faster, cheaper DSP modem technology • Lower Cost of Operations • Labor, training, facility charges

  49. Why Cisco? • Most projected growth is IP traffic • Cisco is the leader in IP andIP/ATM infrastructures • Cisco has the market position, product portfolio, technology, service partners, and vision to deliver data/voice/video integration solutions

  50. Selsius RED = NEW Multiservice Portfolio WAN High Compression Cisco IGX 8400 Cisco AS5300 Cisco 2600 Cisco MC3810 Cisco 3600 Voice Processing Cisco BPX 8600 MAN Cisco 12000 Cisco7200 Cisco 7500 Cisco 7xx Cisco 800 Phones Network Cisco LS1010 Cisco Catalyst 5500 Cisco Catalyst 8500 Low Circuit Emulation Campus Low Data/Voice/Video Capacity High

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