Light Reading

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 LLC .

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), Hewlett-Packard Co. (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.

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

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
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
The results from tests undertaken by EANTC of Cisco service provider virtualization software show that the New IP world is very much here.
Thursday February 26, 2015 will stand out in the US communications calendar as an historic day following the reclassification of broadband and imposition of net neutrality rules.
JDSU channels the spirit of the Roman Empire as it announces its post-split optical and assurance units will be called Lumentum and Viavi.
It's Deutsche Telekom's Capital Markets day on February 26 & 27, and I'm expecting some big news around its SDN and NFV strategy.
Are you all strapped in? Then let's talk 5G, NFV, IoT, security and anything else that rhymes with LTE… oh, and tapas…
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
Que Sera Sarah
Growth of the 5G Ecosystem

3|6|15   |   1:15   |   (0) comments


Use cases and industry collaborations dominated 5G discussions during Mobile World Congress 2015.
LRTV Custom TV
Sonus NaaS IQ Real-Time Demo

3|6|15   |   4:03   |   (0) comments


Compass Networks Chairman and CEO Matt Bross and Ray Dolin, CEO of Sonus Networks, demonstrate their Sonus IQ SDN solution using a live video conference connection.
LRTV Custom TV
LRTV Talks Carrier WiFi & WiFi Calling With Aptilo Networks

3|6|15   |   4:53   |   (0) comments


We stopped by Aptilo Networks, a market leader in WiFi service management and offloading, to discuss the new possibilities with next-generation WiFi calling and why WiFi should be a natural part of any operator strategy.
LRTV Interviews
NGMN Chairman Outlines His 5G Vision

3|6|15   |   5:10   |   (0) comments


Bruno Jacobfeuerborn, chairman of the NGMN Alliance and Deutsche Telekom CTO, shares his thoughts on the challenges, opportunities and costs of 5G.
LRTV Interviews
In the Cloud With Telecom Italia

3|5|15   |   7:10   |   (0) comments


Light Reading CEO Steve Saunders sits down with Telecom Italia's Simone Battiferri at Mobile World Congress to discuss virtualization, agility and the economic advantages of the cloud.
LRTV Huawei Video Resource Center
New Ways of Working

3|5|15   |   4:24   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Hong Kong Telecom's Michael Yue explains how the transformation in its business has changed its customer relationships.
LRTV Huawei Video Resource Center
Bridging the Digital Gap

3|5|15   |   4:03   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Boingo's Dr. Derek Peterson explains how ICT can help telcos bring the physical and virtual worlds closer together.
LRTV Huawei Video Resource Center
Making the Internet of Things Affordable

3|5|15   |   2:42   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Telefonica's Dr. Mike Short explains how the Internet of Things demands a new low-cost approach to connectivity from telcos.
LRTV Huawei Video Resource Center
Evolution, Not Revolution

3|5|15   |   2:00   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Heavy Reading's Patrick Donegan explains why telcos can't be too hasty in their efforts to transform themselves.
LRTV Custom TV
Management & Orchestration Enablement Strategies Required for NFV Commercial Success

3|5|15   |   6:22   |   (0) comments


NFV commercial success rests on successful service orchestration strategies which can span heterogeneous physical, virtual, legacy and next-gen networks. Network data and security integrity are additional key aspects. Nakina provides a suite of orchestratable network integrity applications built on an open, scalable MANO enablement platform.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.