Introduction to VeloCloud

Ron Longo

February 2018

Confidential │ ©2018 VMware, Inc.

 45% of Enterprises plan to spend more
on SD-WAN over the next two years

60% CAGR through 2020

SD-WAN Enterprise SD-WAN market will reach

$8B in 2020
In 2019, 30% of enterprises will use SD-
is Hot! WAN in all their branches, from less than
1% today
In less than 2 years, 50% of Enterprises
will use SD-WAN at some or all of their
branches

Confidential │ ©2018 VMware, Inc. 2

 Application Trends
Why SD-WAN is Top of Mind for Enterprises, Commercial, Govt, and Healthcare
Changing Traffic Flows to the Cloud
30-50% Enterprise Cloud IT
of large Enterprise traffic is shifting to the -SDX Central
cloud, changing traffic flows and making
100%
traditional WAN suboptimal
—Gartner

75%

248M
50%
desktop video conferencing users and
79% of global Internet traffic is video in 2020
—VNI Index
25%

VoIP Reaches 158 Petabytes Monthly

0%
—Statista
2011 2016 2021 2030

Sources: Gartner, Statista, SDxCentral, Cisco

Confidential │ ©2018 VMware, Inc. 3

VeloCloud is the SD-WAN Market leader

VeloCloud leads the

global SD-WAN
market with a
market share close
to 30%.

Confidential │ ©2018 VMware, Inc. Source: Frost and Sullivan, 2017 4

Enterprise and Service Provider Focus: 1000+ Customers, 52 Service Prov

Tier 1 / Tier 2 Service Providers

Confidential │ ©2018 VMware, Inc. 5

 VeloCloud Market Overview
Wide Spread Market Adoption

• Major SPs powering enterprise branches

VeloCloud Market Adoption • Fortune 500 – Freeport, State Farm
• Retail – eg Brooks Brothers, Public Storage

• Retail, Hospitality
Who is buying? • Banks
• Construction
• Branches (Micro, Small, Medium, Large)

• Legacy cannot scale: High-cost traditional networking

Why SD-WAN? • Need for Simplified Mgmt & Expanded Visibility
• Move applications to cloud

Confidential │ ©2018 VMware, Inc. 6

Common Branch Office Challenges “With VeloCloud SD-WAN, we
What is Triggering the Demand for SD-WAN?
can enable all sites to have
Keep pace with growing bandwidth the same seamless network
demands and connectivity costs access regardless of
location, quickly.”
Roll out new branches quickly, efficiently, in a – Manny Stergakis, Technical Architect, Brooks
Brothers
cost-effective manner

Legacy drag - Expensive Complex Mgmt, Lack of

Lack of Cloud Readiness,
MPLS Links; Branch Control, Slow
SaaS, IaaS access
Sprawl Deployment

Confidential │ ©2018 VMware, Inc. 7

The VeloCloud Solution
How Does VeloCloud Address the Challenges of the Branch?

Simplify Branch-Office Networking and Assure Optimal Application Performance

Branch Transformation Simplify WAN Management Optimized Cloud Access

Leverage lower cost WAN – Cloud-based, intuitive Enables Seamless Cloud

Internet, Hybrid, LTE, etc… management Migration

Eliminate legacy branch router Comprehensive visibility,
command, and control
Consolidate and expand
services with VNF Self-learning systems to reduce
errors and manual operations
Optimized cloud on-ramp to the
doorstep of SaaS/IaaS
Security of Cloud Applications
without DC backhaul

Confidential │ ©2018 VMware, Inc. 8

The 3 Networking Components of SD-WAN
Complete Flexibility, Command, and Control of Branch Networking

1 2 3
Branch Cloud Gateways Orchestrato
Edges r
SaaS/IaaS

Simplified Management

Retail Stores

Confidential │ ©2018 VMware, Inc. 9

 Any Branch, Anywhere

VeloCloud
VeloCloud Edge
Edge Services VeloCloud Edge
Platform

• No local apps • Local apps

• No local apps
• Cloud or integrated • Cloud apps
• One networking
security • VMs
VNF eg Firewall
• Networking services

Large Branch or
Micro to Small Branch Small to Midsized Branch
Datacenter

CONFIDENTIAL
NSX SD-WAN By VeloCloud
LET’S SUMMARIZE THE BENEFITS

Use Multiple Transports Guarantee Real-Time

as the WAN App Performance

Optimize Use of Cloud Apps Simplify Mgmt

Reduce Costs by 5X
Deploy in Days

Confidential │ ©2018 VMware, Inc. 11

11
Sample Retail Customer Profile
What is the ROI?

-100 Branches
-MPLS Links, backup broadband
-15-20 users per branch

Current Challenges:
-Voice, video is critical (video to retail stores)
-Cloud-based loyalty apps
-Backhauling cloud apps and internet access

Confidential │ ©2018 VMware, Inc. 12

 SD-WAN Cost Benefit
ROI – Retail Example

Before SD-WAN After SD-WAN

Monthly MPLS / Store (3 Mbps) $975 Dual broadband /month (75 Mbps $200
($325/Mbps) Aggregate) ($2.67/Mbps)
Monthly Support Costs / Store $300 VeloCloud Annual Premium $3000
Backup Broadband / Store $100 Subscription + Palo Alto Networks
integrated firewall, support, licensing
Annual for 100 stores $1.32 M
Annual for 100 stores $540,000
Over 3 years $3.78 M
Over 3 years $1.62 M
Monthly per site $1375
Monthly per site $450

 $ 2.16M 3-Year Savings

* Cocktail napkin math
 57% Savings
Confidential │ ©2018 VMware, Inc.
 ROI < 5 Months 13
Call to Action: Fish well and fish smart for SD-WAN

Prospect for SD-WAN amongst your customers with branch offices,

1 remote offices and retail

In the next 30 days, identify # qualified SD-WAN Opportunities 3 opps Ent,

SLED, FED,
• Single product (SD-WAN Only), send to sdwan@vmware.com to HC
2 own
6 opps
• Multi-product, setup meetings and share with sdwan@vmware.com Comm

3 Get to POCs quickly to beat out the competition

*net new VeloCloud Opportunities will be tracked in the VeloCloud SFDC until April 1. After April 1, net new opportunities should be created in VMstar.
CONFIDENTIAL 16
 SD-WAN Prospect and Qualify

• Number of sites:
• 15+
• <15 only if it’s a land and expand

• Criticality of applications:
• Business app required to be up ~99.99% of the time

• Impending event / budget:

• WAN refresh, Cloud Transition, MPLS contract
expiration, Office 365 Migration, New branch rollout,
New app rollout

• Time Horizon:
• Within 12 months for immediate quota retirement
(work it now)
• > 12 months, move to nurture only if it meets all
criteria above

Confidential │ ©2018 VMware, Inc. 17

sdwan@vmware.com
1-833-GO-SDWAN (467-
3926)

Confidential │ ©2018 VMware, Inc. 18

VeloCloud by VMware Resources

1 NSX SD-WAN by VeloCloud Sales Playbook - How to Sell – Coming Soon!

2 vault.vmware.com/group/nsx/sd-wan {Sales & Technical assets including this Bootcamp content!}

3 VeloCloud By VMware Blogs | VeloCloud By VMware Industry Reports | @VeloCloud

VeloCloud by VMware Contacts

 Sales Opportunities sdwan@vmware.com

 VeloCloud SEs on Slack #ask-velocloud-se

 Roadmap questions for Product Management ask-velocloud@vmware.com

CONFIDENTIAL 19
Thank You
Please email any questions to PowerPoint@vmware.com

Confidential │ ©2018 VMware, Inc.