Network Management Megatrends 2016: Hybrid Cloud, Network Analytics and the Internet of Things

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Network Management
Megatrends 2016
Managing Networks in the Era of the Internet of Things,
Hybrid Clouds and Advanced Network Analytics
Shamus McGillicuddy
shamus@emausa.com
@shamusEMA

INDUSTRY ANALYSIS & CONSULTING© 2016 Enterprise Management Associates
Today’s Presenter
2
Shamus McGillicuddy, Senior Analyst, EMA
Shamus has more than ten years of experience in the IT industry,
primarily as a journalist covering the network infrastructure
market. At Enterprise Management Associates (EMA), he is the
senior analyst for the network management practice.
Prior to joining EMA, Shamus was the news director for
TechTarget's networking publications. He led the news team's
coverage of all networking topics, from the infrastructure layer to
the management layer. He has published hundreds of articles
about the technology and competitive positioning of networking
products and vendors. He was a founding editor of TechTarget's
website SearchSDN.com, a leading resource for technical
information and news on the software-defined networking industry.

Logistics for Today’s Webinar
3
An archived version of the event recording will be
available at www.enterprisemanagement.com
• Log questions in the Q&A panel located on the
lower right corner of your screen
• Questions will be addressed during the Q&A
session of the event
> QUESTIONS
> EVENT RECORDING

Sponsors
5

INDUSTRY ANALYSIS & CONSULTING© 2016 Enterprise Management Associates, Inc.
Network Management Megatrends 2016: Agenda
• Setting the Stage: The Managed Environment
• The Megatrends
– The Internet of Things
– Hybrid Cloud
– Advanced Network Analytics
– Overcrowded Network Management Toolsets
– Increased Network Management Outsourcing
• Emerging Network Management Requirements
and Challenges
• Wrap-Up and Q&A
6

– North American networking pros and chain
of command management/execs
– 150 total participants
– 100% involved in choosing, implementing
and/or using network management tools
– Three significant verticals
• Financial (17%)
• Software (11%)
• Retail (11%)
– Mixed organizational sizes (# of employees)
• 28% small (250-999)
• 38% medium (1,000-4,999)
• 34% large (5,000 and up)
Recognize and investigate major
shifts in the managed
environment, network
management technologies, and
network management
organizations within enterprise
and government settings
© 2016 Enterprise Management Associates
Network Management Megatrends 2016:
Research Focus and Demographics
> DEMOGRAPHICS
7
> RESEARCH FOCUS

Setting the Stage:
The Managed Environment

Number of physical network devices
aligns with size of company
9 © 2016 Enterprise Management Associates, Inc.
17%
19%
33%
19%
7%
5%
0%
0%
0%
0%
14%
26%
23%
21%
9%
4%
2%
2%
0%
10%
6%
22%
20%
16%
6%
12%
10%
LESS THAN 100
100 TO 250
251 TO 500
501 TO 1,000
1,001 TO 2,500
2,501 TO 5,000
5,001 TO 7,000
7,001 TO 10,000
MORE THAN 10,000
Small (250 to 999) Medium (1,000 to 4,999) Large (5,000+)
# of employees
# of physical
network
devices

Small firms have fewer virtual network devices relative to
physical ones; Large firms have more virtual devices
26%
31%
24%
12%
0%
2%
0%
0%
5%
5%
14%
33%
9%
19%
14%
5%
0%
0%
6%
10%
8%
14%
22%
22%
12%
0%
8%
LESS THAN 100
100 TO 250
251 TO 500
501 TO 1,000
1,001 TO 2,500
2,501 TO 5,000
5,001 TO 7,000
7,001 TO 10,000
MORE THAN 10,000
# of employees
# of virtual
network
devices

Big Data and IoT data emerge
as significant sources of traffic
66%
63%
59%
58%
57%
57%
55%
46%
42%
41%
1%
SECURE WEB/HTTPS
EMAIL/COLLABORATION
STORAGE BACKUP/RESTORE
BIG DATA COLLECTION/BACKUPS/ANALYSIS
WEB/HTTP
VIRTUAL/HOSTED DESKTOP (VDI)
INTERNET OF THINGS APPLICATIONS AND
DATA
VOIP
CUSTOM/PROPRIETARY APPS
STREAMING MEDIA
OTHER
In the course of an average day, which of the following traffic
types are present in significant amounts on your network?
40.98%
of all network traffic
originates from
external cloud
applications (SaaS,
IaaS, etc.)

Megatrends #1:
The Internet of Things

Most enterprises network teams are supporting
Internet of Things initiatives
• 87% of network teams are providing connectivity to
Internet of Things Initiatives
– 47% support IoT on the corporate network
– 22% operate a separate IoT network
– 17% support IoT with a combination of the corporate network
and a dedicated IoT network
• Organizations that are implementing IoT have more than
one IoT initiative
– 47% have two
– 23%have three
– 15% have four or more
• 46% of networking teams take a leading role in planning
and implementing ALL IoT initiatives
13

Top IoT applications pursued by enterprises
45%
35%
32%
32%
31%
29%
24%
18%
15%
15%
11%
0%
NETWORKS AND COMMUNICATIONS
SECURITY AND PUBLIC SAFETY
LOGISTICS AND TRANSPORTATION
RETAIL
BUILDINGS AND FACILITIES
CONSUMER GOODS
INDUSTRIAL CONTROLS (MANUFACTURING, OIL AND GAS, ETC.)
HEALTH AND BODY
MUNICIPAL AND UTILITIES (SMART CITIES, SMART GRID, ETC.)
ENVIRONMENTAL MONITORING (FOREST FIRE DETECTION, AIR
POLLUTION, ETC.)
AGRICULTURE
OTHER

Networking pros deploying new security controls, IoT
device management & network upgrades to support IoT
55%
48%
47%
43%
40%
33%
32%
11%
0%
NEW SECURITY CONTROLS
NEW IOT DEVICE MANAGEMENT SYSTEMS
BANDWIDTH UPGRADES
NEW CONNECTIVITY
NEW IOT PERFORMANCE MONITORING AND MANAGEMENT SYSTEMS
NEW IOT NETWORK PROTOCOLS
APPLICATION OF ANALYTICS TO IOT PERFORMANCE AND AVAILABILITY
APPLICATION OF INVENTORY AND DISCOVERY FOR LIFECYCLE ASSET IOT
SUPPORT
OTHER
Have you implemented any of the following in support of
your organization's Internet of Things initiative?

Top IoT networking challenges: Lack of monitoring
and security controls for “things”
44%
38%
36%
35%
33%
28%
28%
17%
12%
2%
LIMITED MONITORING OF CONNECTED DEVICES
LACK OF SECURITY CONTROLS ON CONNECTED DEVICES
LIMITED REMOTE NETWORK CONNECTIVITY
LACK OF INDUSTRY STANDARD IOT PROTOCOLS
NETWORK TRAFFIC CONGESTION
INSUFFICIENT MANAGEMENT INTERFACES ON CONNECTED DEVICES
PROCESS AND POLITICAL ISSUES IN WORKING WITH OTHER
DOMAINS
PROCESS AND POLITICAL ISSUES IN WORKING WITH
BUSINESS/ENTERPRISE CONSTITUENTS
LACK OF EFFECTIVE MEASUREMENT FOR IOT SUCCESS
OTHER

Megatrends #2:
Hybrid Cloud

Hybrid cloud:
A cloud computing
environment that combines
private, internal cloud
infrastructure with public,
external cloud infrastructure,
with connectivity and
orchestration across internal
and external cloud domains
Enterprises are busy with hybrid cloud
• 35% have completed a production
hybrid cloud deployment
• 35% are in the process of deploying
a production hybrid cloud
• 20% plan to deploy a hybrid cloud
into production within 24 months
90% of enterprises have
specific hybrid cloud
deployment plans

Network teams deploying SDN overlays & performance
management software to support hybrid cloud
55%
51%
32%
31%
30%
28%
28%
15%
0%
NETWORK VIRTUALIZATION OVERLAYS
NEW NETWORK PERFORMANCE MONITORING AND
MANAGEMENT SOFTWARE
COMMERCIAL OPENSTACK NETWORKING PLUG-INS/APIS
NEW NETWORK ORCHESTRATION SOFTWARE
BARE-METAL/WHITE-BOX SWITCHING HARDWARE AND
SOFTWARE
OPENSTACK NEUTRON
NEW PRIVATE WAN LINKS
NEW INTERNET CONNECTIVITY
OTHER

Hybrid cloud networking challenges: Large and small
enterprises face different problems
21%
18%
24%
12%
35%
26%
32%
29%
6%
3%
21%
26%
23%
25%
21%
28%
34%
17%
4%
0%
34%
30%
30%
28%
26%
24%
24%
24%
2%
0%
LACK OF LOGICAL LAYER 2 CONNECTIVITY AND SHARED IP RANGES BETWEEN
INTERNAL AND EXTERNAL CLOUD ENVIRONMENTS
LACK OF END-TO-END, MULTI-SITE NETWORK VISIBILITY AND
TROUBLESHOOTING CAPABILITIES
NETWORK LATENCY BETWEEN INTERNAL AND EXTERNAL CLOUD RESOURCES
INCOMPATIBLE SECURITY DOMAINS BETWEEN CLOUD ENVIRONMENTS
LACK OF MONITORING AND TROUBLESHOOTING OF INTERCONNECTIONS
BETWEEN PUBLIC AND PRIVATE CLOUD ENVIRONMENTS
COMPLEXITY OF MULTI-SITE NETWORK ORCHESTRATION
COMPLEXITY OF PROVISIONING INTERCONNECTIONS BETWEEN PUBLIC AND
PRIVATE CLOUD ENVIRONMENTS
CLOUD APPLICATIONS NOT PROPERLY ARCHITECTED FOR HYBRID CLOUD
NETWORKS
DON'T KNOW
OTHER
# of employees

Megatrends #3:
Advanced Network Analytics

Advanced network analytics
involve the use of various
analytical techniques on
multiple types of data
extracted from network
infrastructure for the purposes of
improved network engineering &
operations and better alignment
with the business
• 49% of enterprises
are doing this today
– 40% plan to
implement this within
12 months
• 73% of these
initiatives are led by
the network
infrastructure team
– 17% are led by a
separate analytics
team
Half of network teams have an active,
advanced network analytics initiative

Network flows and network security data are most
important sources for advanced analytics
• Top infrastructure data
included in network analytics initiatives:
– Network flow data (NetFlow, IPFIX, etc.): 49%
– Network security data: 48%
– Interpreted packet flow (packet metadata) 39%
• Large companies (47%) especially use interpreted packet flows
– Log data (38%)
• Small companies (47%) especially use logs
– Time series monitoring data (SNMP, WMI, etc.): 37%
23

Network security monitoring is the top use case for
advanced network analytics
38%
30%
27%
25%
24%
22%
17%
17%
15%
14%
13%
11%
NETWORK SECURITY MONITORING
NETWORK OPTIMIZATION
BUSINESS PROCESS OPTIMIZATION
PREDICTIVE NETWORK ANALYSIS
PREDICTIVE SECURITY ANALYTICS
BUSINESS PROCESS MONITORING
TRANSACTION-AWARE APPLICATION PERFORMANCE/OPTIMIZATION
GRC (GOVERNANCE, RISK MANAGEMENT, AND COMPLIANCE) ANALYTICS
CROSS-DOMAIN/MULTI-LAYER NETWORK IMPACT ANALYSIS
CHANGE IMPACT ANALYTICS
NETWORK SIMULATION
IF/THEN CAPACITY PLANNING AND OPTIMIZATION

Challenges to success with
advanced network analytics
• The biggest hurdle: 30% struggle with process
and political issues in sharing data effectively among
relevant stakeholders
– This is a bigger issue for large enterprises (37%)
• 25% say network capacity is strained by collection
and backup of network data
• 24% struggle with normalizing heterogeneous
network data types
• 23% say their network monitoring vendors do not
allow them to export data for third-party analysis
– A major problem for large enterprises (35%)
25

Megatrends #4:
The Impact of Overcrowded
Network Management Toolsets

The typical enterprise has between 4 and 15 network
monitoring and troubleshooting tools in active use
5%
1%
15%
19%
24%
17%
11%
1%
5%
1
2
3
4 TO 5
6 TO 10
11 TO 15
16 TO 20
21 TO 25
MORE THAN 25
Network monitoring tools in active use

Large network monitoring toolsets correlate with
ineffective network problem detection
• 40.07% of all network problems are experienced and
reported by end users before network operations is
aware of them
• Size of network monitoring toolkit influences this statistic
28
Number of Network Monitoring and
Troubleshooting Tools in Use
Percentage of Network Problems
First Reported by End Users
1 to 3 tools 28.97%
4 to 10 tools 35.72%
11 or more tools 52.23%

INDUSTRY ANALYSIS & CONSULTING29 © 2016 Enterprise Management Associates, Inc.
Organizations with smaller tool sets spend less time on
reactive troubleshooting, more time on other projects
33.21% 34.18%
32.61%
36.27% 37.03%
26.70%
38.06%
32.42%
29.53%
REACTIVE TROUBLESHOOTING PROACTIVE PROBLEM PREVENTION ALL OTHER TASKS/PROJECTS
What percentage of total work time does your organization's network
team spend per week on the following activities?
1 to 3 tools 4 to 10 tools 11 or more tools

Large toolsets lead to unstable networks;
Organizations are adopting policies to consolidate
• 34% of organizations with 11+ network monitoring tools
experience several network-related outages per day
– Just 6% of organizations with 1 to 3 tools experience multiple
network outages a day
• 18% of organizations with 1 to 3 network monitoring tools say
they “almost never” experience network-related outages
– Another 21% experience a network outage just “once or twice a
year”
• 60% of organizations with 11+ tools are actively trying to
consolidate network management tools wherever possible
• 52% of organizations with 1 to 3 tools and 45% with 4 to 10
tools try to maintain their current number of tools in use
30

Megatrend #5:
Network Management
Outsourcing on the Rise

The majority of enterprises are outsourcing aspects of
network monitoring and management to an MSP
• 51% of enterprises outsource some aspect of
network monitoring and management
– Large enterprises (65%) are the biggest outsourcers
– Small (40%) and medium (47%) are also outsourcing in
significant numbers
– In 2014, only 36% of enterprises outsourced network
management to an MSP
• 30% of outsourcers maintain network monitoring
tools in order to oversee MSP activity
32

Top network management functions
outsourced to MSPs
• The top five network management functions
outsourced:
– 24x7 network health monitoring: 40%
– Remote site monitoring: 38%
– Layer 1 support (help desk calls): 34%
– Off-hours network health monitoring: 32%
– WLAN networking and support: 32%
33

Effectiveness of network operations when
network management functions are outsourced
• Organizations that outsource
network management spend
more time troubleshooting
34
38.06%
34.58%
27.35%
33.14%
36.11%
30.75%
REACTIVE TROUBLESHOOTING PROACTIVE PROBLEM PREVENTION ALL OTHER TASKS AND PROJECTS
Outsourcers No outsourcing
• Network problems detected first by
end users
– Outsourced network management:
48.01%
– No outsourcing: 30.29%

Emerging Network Management
Requirements and Challenges

Network operations is integrated into unified,
cross-domain operations
• Just 26% of enterprises have converged, cross-domain
operations centers
– The rest maintain independent NOCs (35%) or distributed
operations teams (33%)
• Those who don’t have a cross-domain operations center
are integrating network monitoring into cross-domain
operations consoles
– 49% already have this
– 36% will integrate within 12 months
• Network management tools are most commonly
integrated with:
– Virtual systems management (49%)
– Security monitoring (47%)
– Application performance management (37%)
36

The top challenges to network operations success
25%
24%
23%
20%
19%
19%
17%
17%
16%
15%
10%
5%
LACK OF END-TO-END NETWORK VISIBILITY
LACK OF RESOURCES (PEOPLE AND BUDGET)
LACK OF VISIBILITY/CONTROL INTO EXTERNAL CLOUD SERVICES
LACK OF DEFINED PROCESSES
FRAGMENTED MANAGEMENT TOOLS
LACK OF CROSS-DOMAIN VISIBILITY
LACK OF CHANGE MANAGEMENT CONTROLS
INEFFECTIVE IMPLEMENTATION OF INFRASTRUCTURE PROJECTS
(NETWORK UPGRADES/EXPANSION, ETC.)
LACK OF EFFECTIVE CROSS-DOMAIN COOPERATION AND DECISION-
MAKING
INEFFECTIVE NETWORK MANAGEMENT OUTSOURCING
LACK OF USAGE POLICY/ENFORCEMENT (UNAPPROVED DEVICES,
APPLICATIONS, ETC.)
OTHER

Network management product
features that need the most work
• Customizable reporting: 28%
• Compliance: 27%
• Support for multiple
users/operators: 25%
• Specific support for cloud
environments: 25%
• Log file analysis: 24%
Network management product
features that add the most value
• Customizable reporting: 37%
• Log file analysis: 35%
• Specific support for virtual server
environments: 35%
• Specific support for cloud
environments: 33%
• APIs for integration with other
tools: 31%
© 2016 Enterprise Management Associates, Inc.
What network management tool vendors
get right and wrong
38

Key Takeaways –
Network Management Megatrends 2016
1. Most enterprises have at least one Internet of Things
initiative, and the networking team usually take a leading role
2. Most enterprises are implementing hybrid clouds, and
networking teams are adopting SDN overlays and new NPM
tools to support them
3. Most enterprises are using advanced network analytics,
which they use to enhance network security monitoring and
optimize networks and business processes
4. Crowded network management toolkits degrade operational
effectiveness
5. More than half of enterprises outsource some network
management functions, but this outsourcing appears to
degrade network operations
6. Network managers continue to need improved customizable
reporting and log file analysis in their tools. Compliance has
also emerged as an network management feature that needs
improvement
39

Network Management Megatrends 2016: Hybrid Cloud, Network Analytics and the Internet of Things

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Network Management Megatrends 2016: Hybrid Cloud, Network Analytics and the Internet of Things