& 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.

— 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
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Shades of Ray
The UK's decision to quit the European Union has had global reverberations but it's hard to tell exactly how bad the aftershocks will be.
CenturyLink Chairman Bill Owens believes the communications industry needs greater collaboration and, to achieve that, the US needs to lower some barriers.
The need for service provider collaboration on next-generation network security innovation is my key takeaway from a brief visit to the InfoSecurity show in London.
I've got my travel coffee-making set already packed for the long trip from London to Austin, Texas: Here's a whole host of reasons why I should see you there.
ADVA has further developed the virtual switch technology it brought on board with the acquisition of Overture and is ready to pitch it into commercial NFV environments following an independent evaluation of the technology.
From The Founder
The more things change, the more they stay the same for Juniper's next-gen comms solutions, and that's a good thing.
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.
LRTV Custom TV
ZTE Pre5G & 5G Solutions

6|30|16   |   02:23   |   (0) comments


At 5G World London, ZTE demonstrated two types of equipment, including 128 antenna Pre5G Massive MIMO and 15GHz high-frequency base stations.
LRTV Custom TV
Energy 2020: Technology Innovation to Fuel Power Efficiency

6|30|16   |   07:21   |   (0) comments


Managing energy costs and consumption as cable operators deploy new services requires new levels of innovation from technology partners. In this video, Dave Fellows, co-founder and CTO of Layer3 TV and chief scientist of the SCTE/ISBE Energy 2020 program, discusses such ambitious objectives as achieving a second 500% increase in efficiency in outside plant ...
LRTV Custom TV
Transitioning to Service Agile Networks

6|30|16   |     |   (0) comments


Packet optical networks are transitioning from proprietary converged systems to open disaggregated platforms. This video will describe the Fujitsu 1FINITY disaggregated platform, explore how 1FINITY interoperates with the Fujitsu FLASHWAVE platform and explain how 1FINITY is designed for software control, like with Fujitsu Virtuora NC.
Women in Comms Introduction Videos
Nokia's Advancement Plan: Bring Old Skills to New Roles

6|29|16   |   7:57   |   (1) comment


Nokia's Sandy Motley advises women to change their mindsets; get aggressive about advancing their careers; develop strong, diverse support networks; and always bring forth learned skills to take on new challenges and different roles.
Between the CEOs
CEO Chat: Cisco's Yvette Kanouff

6|28|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
LRTV Interviews
Comcast: Prepping Next-Gen Video Services

6|28|16   |     |   (0) comments


In this LRTV interview, Comcast's Elad Nafshi outlines where MSO stands with cloud DVR, OTT video, college and gigabit services.
LRTV Custom TV
Energy 2020: Creating Unique Standards for Cable's Unique Networks

6|28|16   |   09:30   |   (0) comments


Cable's unique network requirements require a specific set of standards for operators to increase power efficiency, according to Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee, and Ian Oliver, managing director of the Trenchant Group and a member of the ...
LRTV Custom TV
Masergy: 'Now Is the Time for NFV'

6|28|16   |     |   (0) comments


Hear Ray Watson, VP of Global Technology at Masergy, talk about the advantages that enterprises can leverage using Network Function Virtualization (NFV), and how Masergy takes a unique approach to solving customers' problems. For more information on Masergy, please visit www.masergy.com.
LRTV Custom TV
Masergy Leads the Charge With NFV Capabilities

6|28|16   |     |   (0) comments


Hear Tim Naramore, CTO at Masergy, talk about how focusing on solving specific customer challenges, providing self-service automation tools and being laser focused on the customer experience has enabled Masergy to be a leader in the NFV space. For more information on Masergy, please visit www.masergy.com.
LRTV Custom TV
Private Company of the Year - Affirmed Networks

6|27|16   |     |   (0) comments


At BCE 2016, Steve Saunders speaks to Hassan Ahmed about Affirmed's success.
LRTV Custom TV
Energy 2020: Growing Services, Not Consumption

6|24|16   |   07:18   |   (0) comments


Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
LRTV Huawei Video Resource Center
Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

6|24|16   |     |   (0) comments


To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
'Brexit' Vote Hits BT, Vodafone
Iain Morris, News Editor, 6/24/2016
Brexit: It's Hard to See an Upside
Ray Le Maistre, Editor-in-chief, 6/29/2016
Qualcomm Readies Lower-Band 5G Testbed
Dan Jones, Mobile Editor, 6/27/2016
Sigfox Said to Face Customer Backlash
Iain Morris, News Editor, 6/27/2016
DT Eyes FTTH Solution to German Opex Issue
Iain Morris, News Editor, 6/29/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.