Not quite a year ago, Cisco and Google announced a Cloud partnership. Today, at the very first keynote at Cisco Live 2018, Diane Greene, CEO of Google Cloud joined Chuck Robbins on stage to talk about the partnership, highlighting Kubernetes and a unified security policy. Both Chuck and Diane want a large ecosystem of partners and developers. Later on, Chuck mentioned Cisco passing the 500K developer milestone for DEVNET.
Chuck touched a litter on routing, mentioning next-generation branch and highlighting intent based networking activity in the SP space. For example, one of their SP customers updates 60,000 routers each night using automation. He then quickly got back to the Catalyst 9K switch, highlighted as the fastest ramping product ever in Cisco history.
Children’s Hospital of Los Angeles was highlighted as a customer of the Cat 9K. As a customer, they have over 35,000 connected devices. They purchased over 2,000 WLAN APs and over 200 Cat 9300 switches. They are also deploying ISE and have done over 23,000 different device profiles/identifications and are track to start policy enforcement. They are now in the process of deploying at their branch locations. They noted 550k blocked threats over the first few months of deployment.
My key takeaways are that there is an explosion of devices and data on the network, much of which is encrypted and a human can only do so much; thus the network must scale and automate. Cisco is looking to use AI, automation, and its architecture to allow the customer to scale with those IoT devices and to have the network automate many tasks, especially around security. Monetization for Cisco will occur both in the hardware, but also in the solution sale. An ideal customer would be end-to-end Cisco, but Cisco will also support open APIs in order to allow partners and customers to operate with their preferred solutions.
Today, Cisco announced the Catalyst 9000 family. The first new Catalyst line in many years focused on campus networking as a unified network involving security, WLAN, and switching. This is a very big announcement for Cisco as it’s a real step towards Unified Access and not thinking of WLAN as simply an overlay network. To keep the blog short, we will focus on just a few highlights here.
New hardware – the 9300 fixed switches are the next generation 3850s which were the revenue work horse for Cisco on the campus side. The 9400 is a modular access switch, currently more focused on user connectivity then campus aggregation and core. Finally, the 9500, a Fixed form factor aggregation and core box. The 9300 supports multigig with no fast Ethernet. We suspect a modular core is likely in the works as well and future generations will shift the uplinks from 10/40G to 25/100G.
New software – This is really about a security in networking and intent based policy. In other words, these switches take less human hours to administer, allowing more things to be connected to the network and the human to scale. Software Defined should allow these new switches to scale with the IOT device onslaught that many enterprises are about to go through.
New ASICs – As we all know, I’m a fan of ASICs, Cisco’s new in-house ASICs take many design ideas from Cisco’s DC ASIC family. They allow for some pretty cool security features that will allow Cisco to differentiate from the competition.
New Subscription Model – This does not come as a surprise, but a big component of the new offering is a subscription model. We see 3,5, and 7 year options listed on the website and believe this aligns well with Cisco’s push more towards recurring revenue. Given the availability of these switches, this is a 2018 event for the market.
New upgrade cycle – the combined hardware software approach will allow Cisco to touch its entire installed base to upgrade them. This is a big benefit to Cisco as over the past few years this installed base lacked a compelling reason to upgrade. This has caused the age of the installed base to creep up recently.