Three Keys for Managed Service Providers to Unlock the Economic Value of an Integrated Wired, Wireless, and WAN Offering

0:00 thank you for joining i'm karen falcone and i'm a senior director of marketing at juniper networks and i'd like to

0:06 welcome you to our webinar i'm very lucky today to be joined by ray moda the founder of acg research and

0:13 lillian alfredo a principal analyst at acg ray is responsible for the carius

0:19 strategy and infrastructure as well as sd-wan at the acg group and is a

0:25 well-respected expert in his field prior to founding acg ray held positions

0:31 as both an analyst as well as a network operator on a personal side ray holds 13 amateur

0:38 baseball world series titles and has coached at the professional level in october

0:44 of 2000 hispanicbusiness.com selected ray along with sami sosa and alex rodriguez

0:51 as one of the top 100 most influential hispanics in the united states

0:56 lillian is a principal analyst at acg and she covers the evolution of the broadband infrastructure

1:03 she works on research um discussing how broadband as well as other technologies

1:08 are driving a profound change in our world before joining acg lillian was

1:15 well known in the telecom industry holding various positions at time warner cable which was

1:21 instrumental in the launch of voice services as well as for defining a road map and infrastructure for converged

1:27 services lillian has an mba from harvard business school a masters in electrical

1:32 engineering from cornell and a bse from syracuse university ray over to you let's kick this webinar

1:39 off thank you karen and welcome everyone it's an honor to be here uh presenting

1:44 on this particular topic let me uh start off by sharing uh some screens here first

1:50 and it's good to be presenting with lillian who's also an expert in the cable msl space so

1:57 if we look at the the first half of the year and this becomes an important part for all the msps in the audience that if

2:04 we look at when we looked at the numbers in january first we know that you know uh over the last two years

2:10 before that the pandemic in 2020 had a global impact on gdp but then we see

2:16 that the imf and world bank over the last projection has had positive gdp growth specifically

2:23 if you look at 2022 in january is projected to be a global gdp about 4.2

2:29 percent and that led to a lot of positive outlook and a lot of

2:34 spending from not just uh service providers and telcos but also different

2:40 factors regarding enterprise we saw that wireline and wireless was projected to

2:45 be up uh one was about 4.8 the other one was about 9.6 but even enterprise i t

2:52 you know they were in a situation where they saw opportunities to justify the spending and the web scalers to google

2:59 the amazon the microsoft also sort double digit expansion so so that's where the year

3:06 started but one of the things we want to do is make it current right and if we look at the the current market is that there is a

3:13 little bit uncertainties when we look at the unprecedented macro climate and and some of these numbers are recent we're

3:19 seeing uh in europe the geopolitical instability that's going on we see in

3:25 the u.s civil unrest and we're seeing inflation rates that literally are what

3:30 we call third world level countries inflation rates and even interest rates we see that we're getting uh interest

3:37 rates for the point that they need to react to slow down uh the economy and then we have the global supply chain

3:44 issues and and just recently we saw that the global gdp has been

3:49 downgraded to about 2.9 and inflation rate in the us

3:54 uh it's projected uh to be about 9.1 and the cpi is going to be announced today

4:01 and that's the highest has been in 41 years now the the reason i bring that up is because it becomes an important

4:07 factor when it's related to managed service when we look at managed service from the perspective of when is a good

4:14 opportunity for managed service to accelerate is that any time there's the perceived

4:20 uh implosion of economic concern enterprises tend to focus more on their

4:26 core competency so if they make shoes they make tables they end up focusing more on that which creates a tremendous

4:34 opportunity for msps to go in there and say let us handle the rest for you and

4:40 you focus on your core competencies so what we're seeing is that from an enterprise perspective they're

4:46 accelerating the digital transformation at a rate that we've never seen before

4:51 so they're developing these digital assets and mapping it to existing process or newer process in order to

4:58 provide a much higher level of customer experience because from the executive

5:03 level they spent so much money to acquire the customer they need to be able to maintain that customer but while

5:11 this is all going on we're seeing security attacks and ransomware and cyber threats still be top of mind for

5:18 executive so security is as strong as your weakest link and that moving up in the supply chain but we're getting a lot

5:25 of enterprises uh literally looking at how do i automate much of my tasks how do i bring

5:32 more intelligence and whether i partner with an msp how do i find an msp that i trust that could give me a level of

5:38 control and visibility so so even though there's economic uncertainties msps can

5:44 identify an opportunity in that area and if we look at sd-wan sd-wan it's not new

5:51 right that the concept is not new but the concept of bringing automation and ai to it is a new factor

5:59 in focusing on operation you know and creating more profitability because if we look at from a projection point of

6:06 view sd-wan is projected to be about 3.6 billion dollars in 2023 and

6:13 we're seeing that in north america it's the primary gist of the market in overall america it represents about 50

6:20 percent but we're seeing asia pac and emea have a double-digit keger growth

6:25 and the use cases that we see from a lot of the enterprise is is hybrid cloud because of the efficiencies to be able

6:32 to say i've got a primary mpls link i got a secondary let's move the secondary

6:37 mpls link into a layer 2 or broadband connections and do the savings for that

6:43 area but also having application visibility in what we call cloud-friendly applications and then

6:49 another one that's important it's not on just on a cloud-friendly application but also

6:56 what we call fast connectivity whether they want an lte or 5g connection in

7:01 case it takes too long to provision the fiber or the connection for that they

7:06 can bring up a branch office for retail or for oil refineries so we're seeing

7:12 tremendous opportunities but the new thing with sd-wan is this concept of

7:17 bringing ai and more automation to it right so so as an msp

7:23 what you should do is focus on what we call creating a virtualized business architecture right and and for this

7:30 virtualized business architecture is you don't just focus on connectivity and the

7:35 underlay right the underlay is where where you're very strong at right in

7:41 that area but look to see who you can partner with from a cpe kind

7:46 of discussion usually when i get involved i get involved from the end points and work my way up from there

7:52 because i literally talk to a customer says what problem are you trying to solve right and then from that area

8:00 you need to look at sd1 what we call as a platform for innovation i mentioned

8:05 that uh sd1 is projected to be about 3.9 in 2023 well if you look at additional

8:12 applications whether they're security applications load balancing application

8:18 any of those additional some people call them vnf some people call application the size of that number is three times

8:25 to four times the number that you see in sd-wan so look at it as a race to own that

8:31 platform with sd-wan and be able to add and provision these

8:36 new value-added services that in many cases brings a higher margin for you and

8:41 then what you should do is project what your tam is what vertical focus what your pricing profitability and be able

8:48 to maximize that and then be able in the left side map to say which vendors are

8:54 able to get me to market quicker which vendors are able to optimize my cost and

9:00 which vendors are able to give me or increase my tan for that so this becomes an important architecture now i usually

9:08 when i get a discussion i usually get the call saying well ray i've i've got automation and that and and the problem

9:15 we see today is that we see what we call way too many silos of automation right

9:20 and they need to re-examine the capabilities because you're not gaining the full benefits and

9:26 i think this is where ai comes into play in creating this

9:32 cross-domain type intelligence that you could have automation across across the main

9:39 concept there so there's opportunities for enterprise and msps need to be able to move at this faster rate to react

9:47 because the enterprises are accelerating it used to be when i talked to these enterprises about digital transformation

9:54 it used to be just slidewear now they're actually calling and saying how do i move this much quicker

10:00 and different verticals are moving at a much faster rate so so this concept of

10:06 ai ops i think it becomes an important concept because when we talk to

10:11 msps or we talk to enterprise you know when we look at traditional automation on top of

10:17 the silos of automation there seems to be a lack of security lack of visibility and insight and understanding the data

10:24 and not enough real-time uh visibility to be able to make decisions so this new

10:30 ai concept is able to allow them to scale while not compromising any

10:36 capabilities moving forward right if we look at what the tm form kind of broke

10:41 it down into four categories they said with ai into automation tools you focus

10:47 on customer experience and and it's interesting because customer experience is becoming a higher and higher priority

10:55 at the executive board level so there's the up parts about reducing the op-ex by

11:00 using closed-loop automation increasing the performance and reducing the number of outage we just saw some recent ones

11:07 in in canada uh for that but then also creating level of efficiencies from day

11:13 one all the way to ongoing because it's not just the onboarding process it's the

11:18 ongoing maintenance of supporting in the life cycle of your system so so taking a step back moving it up a

11:26 level as you do this right for the msps of the audience they need to be able to

11:31 create some type of demographics for that area and be honest and have

11:37 integrity to say these are the particular markets whether i focus on large enterprise whether i focus on smb

11:45 and then identify the employ rate per century but then understand or get a company that's able to understand your

11:52 demographics and say in the markets that we attack what is the propensity to buy

11:58 and what is the willingness to pay right and once you identify propensity to buy willingness to pay you're able to

12:05 develop these services much quicker but then from an enterprise perspective be

12:10 able to offer a level of discount that these enterprises expect and a level of visibility and control that they expect

12:17 so so this is something that becomes important if we look at i just talked about the second half of some of the uh

12:25 macro climate is that if we look at present mode of operation today if if you don't bring level of ai ops

12:32 into your delivery of the service capital intensity is projected to be up

12:38 17 so that means regardless if you don't do anything the cost of doing business is

12:44 going up without implementing the level of intelligence and the level of efficiencies that will not only impact

12:50 customer service it would impact profitability on your overall service

12:57 so one of the things that i want to shift gears to is that we we i want to talk about some economic

13:04 modeling because it's always good to talk about technology but if you can't map technology to economic benefits or

13:12 or outcomes for that piece you're just talking technology for technology so you can and and realize this is a

13:18 hypothetical you can contact your juniper rat where they subscribe to

13:23 uh the bae software you could do some economic model and go further into that but for this hypothetical what we wanted

13:30 to do is compare present mode of operation when the service you're delivering

13:35 versus some of the juniper solutions and realize these could be a combination of any of the products we looked at their

13:41 their ssr uh product we looked at the uh the

13:47 the misc and then the cloud vantage solution and then what would it be compared to when you don't have ai ops

13:53 capability built into it right so so as we look at some of the models there the

13:58 products that we use we use um the junior for ssr which brings a level

14:04 of of when insurance brings ai uh nl it has all the data insights and has a

14:10 cloud so that focuses on the wan connectivity and then we have the missed products from an ai wireless and the

14:17 mist from the ex switches so by combining these two solutions together you're

14:24 you're able to offer a complete area of addressing a managed service not just in

14:30 manage when there's a new area that's picking up steam which is managed land

14:35 as well and the market for that is about a 45 billion dollar market in the next

14:41 five years which is which is huge so by doing this being able to deliver

14:46 these services and simplify the operations and be able to have intelligence that can help you point and

14:52 remediate the problem was the purpose of doing this model right so with the

14:58 with the bae system we decided to put in you know all these parameters compare it

15:04 to present motive operations and and the bae system is for anyone that's using excel to do

15:11 any economic models on i.t networks or or any complex should be considered vae

15:17 and and again you can contact uh juniper so they can actually customize a model

15:23 for you and not only customize a model for you also tell you what the opportunities in tam and based on your

15:29 pricing what your target profitability is right so so if we look at this when you do a model you have to decide who

15:37 are the tenants what are the tenants they stock for uh these tenants need to connect to some endpoints and these

15:43 endpoints need to be able to connect to some services and then these services connect to resources and then these

15:50 resources reside in uh in a data center the cloud from that capability and when

15:56 you do these particular inputs right from that area you're able to to able to

16:01 look at and create a model that you're able to create outcome and if we look at some of the opex uh assumptions from

16:09 when it gets to onboarding from day one uh all the way for that through we've

16:14 seen a tremendous amount of benefits when it looked at identifying labor cause and other things associated with

16:21 replacement and ongoing management and and and that piece of troubleshooting

16:27 and we've seen initially that it resulted in about a 90 reduction in the labor cost so if you're

16:34 not doing ai ops you might question well 90 seems high i've seen some cases that it's even

16:40 higher and your case might be lower again work with juniper to customize what those numbers are and if we look at

16:47 it from a tco perspective we've seen that comparative present mode of operation

16:53 overall when you start looking at wireline wireless and sd-wan with the ssr we're seeing

16:59 uh 85 percent opex saving and an overall tcl savings and on on the sd-wan when i

17:06 talk about it juniper offers the tunnel free type capability was all to address

17:11 some of the bandwidth efficiencies so you see from an economic perspective

17:16 there's benefits across the board from the payback period from the roi

17:21 and in the margin because again you spend so much money to acquire that

17:27 customer a priority is how do i maximize that customer how do i go deeper and wider and how do i maintain

17:34 that customer to increase the lifetime value of that customer so so for now what i

17:40 like to do is shift it over to my colleague lillian lillian

17:47 yes thank you ray and hello everyone thank you for making time uh rey you want to drive

17:54 the slides okay thank you um yeah so ray talked about

18:00 aiops he talked about managed services and importance of uh managed services in the enterprise i

18:07 want to talk about how we're going to a new paradigm where some of these enterprise grid solutions are going to

18:14 be delivered in a home in the residential environment and what does that mean for

18:22 operators who serve these um this market and what are the opportunities um so as ray shared we

18:29 talked about digital transformation i think now we're talking about digital acceleration um during the pandemic

18:35 we've seen a momentous growth in in transformation things like

18:41 activities that usually would take 300 and some days happen in about

18:47 10 days because of course based on need

18:52 we see now hybrid is the new normal work from home is the new

18:58 normal hybrid work models healthcare is going hybrid and other

19:05 services and different verticals as well what is also happening specifically in

19:11 the last mile is massive investment in broadband deployments

19:17 uh across the world and certainly notably in the u.s because

19:22 everybody realize that broadband is an essential utility um and people who don't have it

19:29 are at a significant disadvantage we all have uh been made aware of the disparities in

19:35 education in healthcare and other services certainly work from home as

19:40 well and i'll share some information about that um and so what you're gonna

19:46 what you're starting to see is that mission critical services are delivered in the home um you know

19:53 healthcare is a huge area of innovation in this space and we'll talk about some of the uh this in uh in a few minutes uh

20:00 certainly work from home requires a different level of reliability that you know somebody who's uh you know just

20:06 streaming and so on so um so what we uh are going to just to

20:12 need are new solutions for the home environment new business models and so on because if you think of the

20:20 traditional model where a service provider is delivering broadband and some other services and being paid by a

20:26 subscriber now we're going to see that maybe the paying entity is not the

20:31 person who lives in the home but maybe a company an enterprise or a

20:37 health care provider or a health insurance company and and so on

20:43 so there we might be seeing very complex building models and so on and of course

20:49 the complexity of these services that are going to be delivered in the home are going to require a different

20:56 set of capabilities that don't exist today and certainly will need very sophisticated

21:02 capabilities in terms of service management and so on which are going to be emerging

21:08 and the the operators who serve the last mile are if they get this right they

21:13 have a tremendous opportunity to capture here next slide please

21:19 just a quick glance of some glance into some of the investment and broadband uh um deployments

21:26 uh the us certainly is leading the pack with 73 billion over that actually

21:32 the beat program um is broadband equity and access that was born in november 21

21:38 by as part of the infrastructure a bill that was passed by congress

21:45 uh that's about 42.5 billion dollars and in addition to what you see here in the

21:51 in the u.s there is about 14.2 billion dollars as part of the affordable connectivity program which is more of a

21:58 subsidizing demand subsidizing providing subsidies to subscribers who have a demonstrated need

22:05 who cannot afford a broadband based on some income criteria and and so on and you see the investments happening in the

22:11 rest of the world so what this is doing is driving massive um

22:16 activity in terms of deployments by existing operators but also a lot of

22:23 entrance next slide please ray um so you know for example certainly we'll

22:28 talk about cable because that's sort of the focus of of this talk but certainly you see a tnt uh committing to deploy 30

22:36 30 plus million fiber passings over the next few years um you see municipalities uh like

22:44 baltimore city city of baltimore deploying their own or planning to deploy their own fiber um

22:51 and and so on and certainly fixed wireless and satellite uh low uh

22:57 uh low orbit uh leo uh satellite orbit satellite technologies as well so cable

23:03 actors are doing massive deployments here um you know greenfield certainly they're adding passive optical

23:09 networking to supplement their existing infrastructure which is fc the hybrid fiber uh coax plant that they traditionally um

23:18 have have uh uh operated um you know they're looking to expand and in some cases overbuilt in

23:25 some areas um they do have some advantages because they have

23:30 fiber and power in the access network and of course they're introduced a lot of technologies and capabilities to

23:37 enable those expansions next slide please right

23:43 so just to talk about some of the services delivered in the home

23:49 i don't really need to talk much about work from home we've all done it we're doing it as we speak um

23:55 but um you know healthcare has seen a momentous shift over the past couple of years some of these things that you see

24:02 here are actually not new um you know we started with of course telehealth but agent plates has been um

24:11 something that people have been working on for a number of years uh which is senior people have it wanting to stay in

24:17 their home and receive solutions that enable them to access the

24:22 the healthcare but general care that they need and to have some monitoring to prevent for fall prevention medication

24:28 adherence and things like that and of course we've seen the unfortunate situation with uh nursing homes during the

24:35 pandemics so that even gave a bigger boost to to this trend uh chronic care management

24:41 uh sadly about 50 percent of us adults have hypertension

24:47 um and significant portion of the population um diabetes

24:52 um and it's uh clinically proven that some of these services um yeah people need to monitor these

24:59 conditions on a regular basis not once a year or twice a year when they see their doctor that's whole research that the

25:06 healthcare industry is doing and so these are some technologies now that are used in the home that it's a called

25:13 remote patient monitoring which is an exploding space home hospital is actually something that

25:19 um was something started about 2016 and this is about delivering acute care

25:24 level of care even instead of going to the emergency room having people stay in their home particularly in rural areas

25:31 where there are not a lot of hospitals and so this is for example you can see

25:36 um a less qualified or less a less trained

25:41 healthcare professionals like like um um you know ambulances and so on delivering

25:48 ems liability services delivering care in the home but but they're they're actually

25:54 have a remote remote higher expertise

26:00 doctors and so on uh giving them guidance and so on in real time so you can see how some of these services will

26:06 require much more different services of course gaming streaming and

26:12 you know metaverse that's uh beginning to be become the new thing right now so you can see how

26:18 uh the infrastructure and the home the type of services the type of management of these services the type of

26:24 intelligence are going to have to change and um [Music]

26:29 i think there's an opportunity here for a significant amount of innovation and next slide please

26:35 um so just a few points about healthcare significant growth this whole trend of the healthcare

26:41 moving to the patient is something the industry is is very very committed to and i think you've

26:48 seen also um you know the regulation is beginning to align and of course

26:54 healthcare everything is about regulation and there were some temporary reliefs

26:59 in terms of regulation that were put in place during the pandemic some of them are actually going to become permanent

27:05 uh and there are a lot of debates right now between you know and congress

27:11 cms which is the center for medicaid and medicare and other uh entered government entities are trying to figure out the

27:17 regulatory environment going forward for enabling these services at home

27:22 but it is an exploding area you can see the kaggar and the size of the market and this is the u.s alone

27:29 it's generally estimated that the us is about four years ahead of the rest of the market or of course you know maybe

27:35 some some other parts of the market uh we talked briefly about the two the three areas major areas although there

27:41 are others hospitals more home hospital agent plays and chronic care

27:47 thank management um next please yes thank you um in terms of work from home uh you know i don't

27:54 really need to um talk too much about this um 25 percent of professional jobs

28:00 in north america will be removed by 2022. most companies think that hybrid is part

28:06 of their um method of oper operation and i think

28:13 employees increasingly expect it so we can just move on because it's something we already know

28:19 right uh so we started to talk about this and and and back to some of the things that

28:25 that trey was was talking about um we're talking about very complex services that need to be delivered in

28:32 the home uh you know certainly reliable broadband um in upstream and downstream cable

28:38 traditionally has been the cable plan has been more focused downstream because that's um

28:46 what the initially the plan was more designed for for that although there's a lot of work going on to provide more

28:52 upstream bandwidth in the industry right now um you need wi-fi coverage across the home not just

29:00 not just uh any wi-fi it has to be intelligent wi-fi managed wi-fi because now you have a

29:06 a patient who needs to have this um accessibility to to broadband anywhere

29:11 in the home um and that's it that's going to be a huge deal going forward and some of the services that

29:16 traditionally were you know born for the enterprise may need to be tailored for a home

29:22 environment some applications will require some guaranteed bandwidth you know and you know everybody talked about sd-wan

29:29 um you know wireless backup again some of the uh capabilities that an sd1 kind

29:34 of capability could enable in a home environment um you know we talked about installation

29:40 can become very complex and now we're talking about um um you know installation of very complex

29:46 services monitoring uh upgrades uh change management and so

29:51 on and now we have not just the telecom services but there could be integration

29:56 with some other services which could be healthcare or some other industry-specific services

30:02 that have to be integrated and managed and and and so on um and of course uh predictive

30:09 uh predictive maintenance analytics all the things that ray talked about in terms of ai ops although

30:16 you know of course we're a long way from being at that level i think this is i see the direction of it's more of a

30:22 direction of of the industry um you know clearly zero trust you know high levels of of

30:30 security um you know edge compute and and so on and so

30:36 you know i think um what's important here is that

30:41 there's going to be a significant amount of change and innovation and um

30:47 if service is evolving very rapidly so this is

30:53 certainly one of the key um you know drivers for managed services

31:01 and certainly of course for software uh kind of enabling infrastructure

31:06 that needs to be enabled these services as well um

31:13 the the the move from by the healthcare industry to deliver services in the home is

31:18 certainly driven by medical needs what's right for the patient but it's also about cost

31:24 and you know there are studies that say that about 30 of a hospital

31:31 operating um uh cost is the plant itself you know

31:36 maintaining the building and all the equipment and so on so you can start to see how there's a tremendous amount of

31:42 savings plus the studies say that patients being treated in the home can heal faster and so on so that's again a

31:48 great outcome from a healthcare perspective but it's a lower cost as well so delivering

31:55 lower cost services in terms of capex and opex is

32:00 very important in the home and of course a good customer experience and you know in some cases this this is there there's

32:08 going to be um not just uh you know looking at nps courses on we're going to be talking

32:13 about slas uh because again some of them are um uh

32:19 mission critical kind of services so we're gonna see the need for more agile

32:25 solutions delivered in the home um ai and automation

32:30 and um you know reporting and and and so on uh

32:37 they're in the home uh next like this ring um thank you yeah so i think we've talked a

32:44 bit about this the ability or or the need to adapt

32:50 existing in some cases existing services and capabilities to a new environment

32:56 um i think uh that's a big big undertaking there's a lot of work going on

33:02 um the industry cable industry is doing a lot of work in this space already at the at the

33:08 more the cable labs and scte to understand the need and the requirements and try to start to think of some of

33:14 these capabilities and how to deliver them and what they mean and so on uh so there's already some some perimeter work

33:19 going on um and you know back to the pyramid that ray shared where he says at the bottom

33:26 there's a 66 million home uh small businesses you know maybe that pyramid at some point is going to be

33:32 extended with a layer larger layer at the bottom which is a home clearly we're talking about

33:38 initially a small penetration here this is not going to be um

33:44 overnight a big market but i think this is the time to to to innovate and start to think of

33:50 these solutions and of these services and what uh what's needed going forward

33:55 and so this is the the broadband operators who serve the homes are in a great

34:00 position to deliver this but they have to work with their vendors and the vendors are this is a great time

34:05 for vendors to innovate and some create these services and working with the operators to satisfy this need

34:13 next slide thank you um and just to note that all

34:18 of the things we're talking about here some of these services are not new to the cable industry so certainly this is

34:23 a quick snapshot of some of the managed services they already deliver um you know

34:29 managed wi-fi managed sd1 managed security minus routers and so on so the point is the enterprise is already has

34:36 all the complexities uh and the need for uh for service uh managed services that

34:41 trade has talked about so there's already a lot of capabilities in industry in uh at least

34:48 in their business segments to create to deliver some of these services and now this is gonna be start to think of how

34:54 we can take what these services and move them to a new paradigm uh

35:05 um just finally a couple of thoughts um back to afra talking about ai it is

35:12 going to be at the fundamental run time of everything we do so

35:18 um you know this is the future and i'll submit to you that i think

35:25 typically the broadband interest things of business and residential as two separate uh businesses or business lines

35:32 i think those lines are going to blur and i think there's going to be a lot of cross-pollination between the two

35:37 the two um segments these two segments thank you

35:45 great thanks ray thanks lillian that was that was really great information we totally

35:50 appreciate it i do have a few questions from the audience if if we have a bit of time so let's we'll take a few if we can

35:57 do that um there's a there's a handful kind of across the same thing so i'll sort of

36:03 sum it up for you but folks are wondering you know in terms of

36:08 msp delivered or do it yourself what does that look like like what's the percentage of enterprises that are

36:14 looking for managed service um who's doing it themselves is there a geographical component to this do you do

36:21 you have any feeling around that you know that's a question that i get quite a bit you know often especially

36:28 for the larger enterprise i have a certain level of skill set so i'll start off initially by saying that

36:34 if you look at the origin of sd-wan it initially started as a diy concept

36:40 right where a lot of enterprises weren't happy with the level of operations and

36:47 management they were getting from their msps and they thought that um you know that sd-wan could solve that

36:53 but what they realized is a lot of them didn't have the skill sets and it was more complicated than it was so yes it

37:00 started out initially as a diy but what started happening is it was too complex for them to do which created a

37:07 tremendous opportunity for the msps to say we know how to build scalable reliable secure networks in

37:15 that area so uh right now we're seeing the numbers that it went from almost 100 percent

37:20 were started diy to only about 17 or doing diy uh so yeah yeah so it's

37:28 moving very very rapidly and i think with some of these uncertainties that i just talked about with these macro

37:34 climates that number's accelerating even more and more and and i i think that

37:40 discussion is it's changing to a little bit like hey here's the challenges that i have not whether i want to do diy or

37:47 not how could you help me offset some of these challenges there that makes sense but that's a that's a

37:53 higher percentage than i thought but that's that's great to know um there's a couple of questions around ai so i'll

37:59 i'll start with ray and then maybe um lillian since you ended with your discussion around ai maybe we could get

38:05 an answer from both of you but it um it's largely around the idea that ai is

38:11 becoming more mainstream and you do you both see that happening and lilly and

38:16 you refer to it so obviously you do um does it only relate to sd-wan and does

38:22 it relate at all to your tco that you um we're talking through so ray i'll start

38:28 with you and then lily and you can you can give us your thoughts after sure i can start off and it's a it's an

38:33 important question because if we look at the concept of ai artificial intelligence right those algorithms

38:40 we've been using those back for the last 30 to 40 years right so many of them are still being used today

38:46 the difference is is that a lot of the complexity before you need it like a phd in-house to

38:54 actually implement those within your organization now a lot of a lot of that complexity is moved to the cloud so

39:02 these enterprises can focus on what the input parameters are what problem they're trying to solve and bring it up

39:09 to the cloud and it'll do the simplification for them so we're seeing

39:14 ai not just in sd-wan we're seeing in all sorts of innovation sd lan we're

39:20 seeing it for security for like things with miss on how to troubleshoot to identify and remediate the problems

39:28 quicker and i think because of this cloud concept has been able to implement at a much faster rate that you don't

39:35 care what the algorithms are you say this is the problem that i'm trying to solve which solution could i implement

39:41 best for that and i think because of this digital acceleration we msps need to make it transparent for the customers

39:49 and when we look at the models you look at those those opex savings right was about 90

39:55 plus and you i'm usually the conservative person when it gets to tco right uh and

40:01 it was 90 that's the level of efficiency that you could gain when you start looking at what your labor components

40:07 are doing it yourself and even managing yourself from uh from a msp perspective

40:15 thanks lillian yeah in terms of cable um i think i see this more directionally happening um

40:22 so if you think of the existing the traditional infrastructure of the cable industry is much more of a hardware

40:28 based you know um specialized components with manual snmp

40:35 and cli and so on to manage but but what's happening driven by the need and

40:40 of course the development of the market and what's happening in the issue overall you're seeing a lot of move to software and this whole move towards

40:47 what what the industry calls the distributed architecture so they're moving you know a lot of them keeping

40:53 the software in the in the center of what's the equivalent of the center office which is called the head-end and

40:59 removing some of this physical layer to the access network and now what they can do now that it's software you know back

41:05 to what ray was talking about it can you know it can be run in the cloud and now you have some of these capabilities to

41:11 you know i wouldn't call it yet ai i would call it more ml uh you know it's it's directionally going there but of

41:17 course ai needs a lot of data right you know you can't just get there right away you

41:23 need a lot of um uh data uh it just starts with but a lot of

41:28 i see the vendors creating some of these solutions and i see some operators themselves

41:34 creating like an example as comcast talking about predictive predicting faults and repairing fall

41:40 before they happen and so on and so forth so it's definitely the trend it just it just gonna take some time

41:46 because you know in in terms of you know the enterprise tends to move faster but in

41:52 terms of the the operators you know you have all this um it's not just having the technology is

41:58 how to use it and methods and procedures and it just takes time to propagate through through the company so it just

42:04 takes more time but it's the trend is definitely there excellent thank you and i think i get this question every

42:11 time i'm on a webinar but ray for you are you seeing any impact of the from the global supply chain issues are there

42:18 is that sd-wan is it is it impacting managed services ai have you seen um any

42:23 follow-up from the global supply chain issues i mean there's there's there's points of it where you know you look at

42:30 certain traditional routing and stuff like that where things are used to take 90 days are taking like 300 days so it's

42:37 a valid concern but i think that even validates the point more

42:42 of moving to this software uh type concept right so that you can

42:48 focus on on somewhat of being agnostic of the hardware or cpe device like if you look

42:55 at the ssr from that perspective becomes this software component that offers a

43:00 variety of cpe type connection so that gives the flexibility for an msp that if they're

43:07 dealing just with one vendor hardware only they don't have a much flexibility from the cpe side so so i

43:15 think if anything with the msps in the group this movement to software uh and

43:21 finding vendors that could support multiple becomes an important concept to address it but it's a valid concern

43:27 though yeah if i may add because i've done a lot of research on this in terms of the cable

43:33 industry it's definitely transformative and it's a big problem because cable is notorious for having a lot of

43:39 industry-specific components um and so what i'm seeing a lot of end of life of some older equipment

43:46 and a faster move to software you know like we talked about now you have multiple sources for

43:52 like off-the-shelf server it's different when you have this rack that needs this very specialized components and so on so

43:58 and then it's it's an unfortunate situation but it's in a way i hope it's driving this move to software and

44:05 virtualized solutions even you know faster yeah that makes perfect sense elaine

44:11 thank you and i think we could probably take one more question and so ray there's there's a few questions on the

44:18 economic modeling that you did so can you just give us a little background on

44:23 you know what was your methodology um and and you know how do we access information like that and and and what

44:30 where are you you know what tools are you using sure yeah i know i mean and i probably should have mentioned uh you know we've

44:37 done some white papers on this which juniper will be able to share provide the links to the the people that have

44:44 registered we've done it on the enterprise and an msp point of view we've even done a technical detail on

44:51 the tunnel list type offering where it gets into the advantage of that piece so in those white papers we get into the

44:58 value and how the models were created everything so total transparency so it's worthwhile for the audience to to

45:05 request those now regarding the model we acg a few years back we developed an

45:11 economic modeling too because what we started seeing in the industry is that you know doing economic models

45:18 especially when you start looking at ai automation virtualization software doing

45:23 it in a traditional way in excel which doesn't have regression tests is a tabular format by the time i walk out

45:30 the door that tco it's outdated and it becomes very difficult to maintain for

45:36 the msp so they're like hey karen i want to expand my tam to add this vertical um

45:43 or expand to this region or these cities building that and to maintain it becomes

45:49 very difficult so with this tool they're able to build these economic models in a

45:54 matter of seconds or minutes compared to months where before when they build these

46:01 models because we have all the juniper libraries of their solution and they could just drag and drop and decide what

46:07 tenants what regions what resources are needed and literally be able to address

46:13 the tam question the profitability question and the solution question and engage with the customers to maximize so

46:20 that's a subscription license i encourage everyone to reach out to juniper to do a customized

46:26 model under the bae system therefore yes i i do as well

46:32 um we've had lots of lots of um customers positive feedback on on the

46:38 tools that we're able to leverage with ray and so that that's a great program that we provide and you know what karen

46:43 one thing that i should have added too is that when it gets to modeling sometimes it's scary to some people

46:48 right they're either engineers or they're technical is the methodology question on how you do

46:54 it normally you're fumbling around it's a now it's a visual way it's a visual way where you see

47:01 everything is connected to it so you're able to explain the economic model to any customer

47:07 visually and the outcomes are visually so it so it does simplify the the concept of of developing these

47:14 complex models it does it definitely does all right well i'd like to thank you both and i'd

47:20 like to thank all of our attendees here we um we're at our time limit and um so

47:25 please re reach out to your juniper um sales rep or account manager if you have

47:30 any interest in in learning more about what we talked about here and we thank you all for coming thank you to ray

47:36 thank you to lillian and look forward to the next time take care everybody thank you everyone