& cplSiteName &

IBM's SDN Poser

Ray Le Maistre
1/31/2014
50%
50%

Is there going to be an SDN shake-out in 2014?

That question springs to mind as speculation about IBM's strategy does the rounds: The suggestion is that IBM Corp. (NYSE: IBM) is looking to sell its SDN unit.

It seems counterintuitive that an IT giant would step back from what is one of the hottest technology trends in decades. But that doesn't mean it makes no sense.

IBM recently announced a $1.2 billion investment in its global network of datacenters used to deliver cloud services to enterprise customers. That's a major commitment. IBM is in the cloud services game for the long run and wants to be the main rival to Amazon Web Services Inc. .

Then IBM announced the sale of its x86 server product line to Lenovo, which suggests it has discounted any role it might have in being the supplier of generic hardware for network functions virtualization (NFV) deployments.

That agreement with Lenovo doesn't include the company's SDN for Virtual Environments product set, including OpenFlow-enabled switches, which is what is believed to be up for grabs now.

IBM is also hot on big data, and it's utilizing its Watson computing platform to develop analytics services and technologies for enterprises. The company also acquired analytics expert The Now Factory a few months ago to feed into this effort. (See IBM Acquires Analytics Expert.)

It seems, then, that IBM is picking its battles and focusing on what it regards as its strengths. That makes sense, right?

Now, even if IBM should sell its SDN unit, that doesn't mean it would be abandoning SDN totally. It is a Platinum Member of the OpenDaylight SDN initiative and will obviously need to be at the heart of virtualization developments as it evolves its cloud services and infrastructure. But that doesn't mean it needs to be going head-to-head with the likes of Brocade Communications Systems Inc. (Nasdaq: BRCD), Cisco Systems Inc. (Nasdaq: CSCO), HP Inc. (NYSE: HPQ), Huawei Technologies Co. Ltd. , Juniper Networks Inc. (NYSE: JNPR), Nuage Networks , et al. in trying to sell SDN technology to the masses.

Keep an eye on IBM. Its decisions in the coming weeks and months might provide an interesting template for others. By the time 2015 comes, we might be looking back at an SDN shake-out. There could even be some indication here that the datacenter and enterprise SDN market, which was expected to be worth only about $360 million in 2013, according to IDC, requires a patient, slow-burn strategy to achieve worthwhile returns. Perhaps IBM isn't willing to wait. Even the anticipated growth of coming years leaves only so much business to go around among the IT giants.

Traditional telecom equipment vendors might also pause to think about their strategies too -- not so much whether they integrate/develop SDN capabilities into their platforms, but in terms of how much of their resources they need to apply to the R&D and marketing of an SDN-led strategy.

Play to your strengths -- that could be what IBM is reminding us all to do.

ó Ray Le Maistre, Editor-in-Chief, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
TomNolle
50%
50%
TomNolle,
User Rank: Light Sabre
1/31/2014 | 12:43:27 PM
Re: IBM just happened to be there....
I think that IBM, like a lot of companies, understands that "the cloud" is a fusion of IT and network value and that fusion could let players from one space slop over into the other.  If you're IBM you have to be looking west to Cisco as one of those with the ambitions to climb into the IT world through the cloud.  SDN is one of several technical elements of a "boundary layer" between IT and networking.  Make SDN very software-centric, driving white-box hardware, and you put a serious crimp in any network vendor's ambitions.  I think IBM probably thought in those terms when they got into SDN and OpenDaylight.  What I think they're now realizing is that this whole IT/network fusion thing is going to be hard, and Wall Street is driving IBM to produce something in a quarter and not in a couple years.  So they move on.  Is that smart?  Only if you believe in quarterly-results-groundhog-day.  You always end up getting to what you thought was "the future", and often sooner than you think.
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/31/2014 | 11:57:36 AM
Re: IBM just happened to be there....
Yes, if there is a shake-out, it could very well have even less to do with product worth or market wins than companies realizing they rushed into something for fear of missing the boat. For the public companies, there may be some pain to deal with in the short term if the broad perception is that they are pulling back from a hot market.
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
1/31/2014 | 11:42:41 AM
IBM just happened to be there....
IBM is the example 'de jour' but there has to be some perspective on the whole shift to SDN....

It's not for everyone, right? Not all companies can build a future business around SDN tech/consulting etc

So why it might seem crazy for a company such as IBM not to be 'in SDN,' it might make snese -- in the same way that it makes sense for Cisco customers will stick with Cisco no matter what the IP giant's SDN strategy, because they will be comfortable with the familiarity etc and caution at dealoing with new suppliers/partners...

 

Cisco Asks the Killer SDN Question


http://www.lightreading.com/carrier-sdn/sdn-architectures/cisco-asks-the-killer-sdn-question/a/d-id/706490
More Blogs from Shades of Ray
Former executive and now head of innovation at Sweden's national carrier writes a blunt open letter to the new Ericsson CEO.
The broadband world is no longer just about faster connectivity Ė underpinning the distributed cloud is its key role now.
Ericsson's CTO Ulf Ewaldsson adds strategy to his existing responsibility for technology at the Swedish vendor, which has yet to appoint a new permanent CEO.
Senator Ted Cruz doesn't want Obama to 'give away the Internet' Ė well, OK, butÖ
Google and Box have struck a relationship that might baffle those with a legacy view of the world.
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
TalkTalk Exec: Find Your North Star at Work

12|7|16   |   3:38   |   (0) comments


Women need to find their purpose, a professional North Star, and create a personal board for themselves, according to Alex Tempest, director of partners at TalkTalk Business.
LRTV Interviews
Verizon: Beware Unknown Unknowns

12|7|16   |   04:58   |   (0) comments


Chris Novak, director of the Verizon Enterprise Solutions Risk Team, explains that enterprises who don't conduct a thorough audit of their assets often leave some things unprotected because they don't know they exist. Many times these unprotected assets are part of corporate M&A activity but left unshielded they can become a hacker's playground, he tells Light ...
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (2) comments


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
ITU: The Broadband Is Our Future

11|29|16   |     |   (0) comments


At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
LRTV Custom TV
Tackling 5G in Dallas

11|28|16   |     |   (0) comments


Here are our highlights of the 5G North America show in Dallas, Texas with Light Reading's Dan Jones.
LRTV Interviews
Cox Prepping for Virtualization Trials

11|14|16   |     |   (0) comments


In this video interview, Cox's Jeff Finkelstein discusses MSO's plans to test managed business services in early 2017 and tackle Distributed Access Architectures.
LRTV Custom TV
Drivers & Potential of NGP

11|11|16   |     |   (0) comments


ETSI has created an Industry Specification Group to work on Next Generation Protocols (NGP ISG), looking at evolving communications and networking protocols to provide the scale, security, mobility and ease of deployment required for the connected society of the 21st century. The NGP ISG will identify the requirements for next generation protocols and network ...
Upcoming Live Events
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
WiCipedia: After-School Coding, Salary Probing & Pro-Parenthood Companies
Eryn Leavens, Special Features & Copy Editor, 12/2/2016
Consolidated Snaps Up Fairpoint for $1.5B
Iain Morris, News Editor, 12/5/2016
Altice FTTH Bill Could Hit Almost $9.6B in US
Iain Morris, News Editor, 12/1/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.