Transcript from TELoIP presentation at the Networking Field Day 15 event in Silicon Valley on April 6, 2016.
Introduction by Tech Field Day Organizer, Tom Hollingsworth
Tom: Welcome back to Networking Field Day 15. We are very happy to have you here on VMware’s campus. They were gracious enough to loan us the use of this fine conference room for our next presenters. All the way from the icy wastelands of Toronto, Canada – Justin knows all about that – we are actually very happy to have a first time presenter, TELoIP. I heard they do something with SD-WAN, I think this should be very interesting. I don’t know, is anybody in here really familiar with SD-WAN? I hear it’s a thing.
In fact, we’re about to get two great hours of presentation about that, and these 11 folks around the table are going to be following along and making sure to ask all the really good important questions. You can follow along too at home. Hopefully, if you’re seeing this video, you’re either watching us on Facebook or you’ve found our magic live stream page. We’re still having some technical issues with techfieldday.com, but I promise you that the Internet master, Stephen Foskett and the rest of the Tech Field Day crew in Hudson, Ohio, are currently working as fast as possible to get it done, because if they don’t, Rich, you are in a world of trouble.
You can watch us on Facebook, you can also watch us at livestream.com/techfieldday/nfd15. You can also go to TELoIP’s website at teloip.com, and click on the link for Networking Field Day and it will take you right into a nice big stream of what we’re doing. If you want to follow along at home and play the home game on Twitter, you can use the #NFD15. And this time, I believe that Mr. Kevin Blackburn, who is our new delegate, will be relaying all of your questions, so make sure you mention him at the routing table. And you can fully populate his brain with questions and he’ll make sure to reflect them into the room and some other things about BGP that I’ve forgotten. All right, you’re almost there, Scott?
Scott: We are not getting…mapped out.
Tom: All right, are we good to go, Kevin? We’re good to go, Scott?
Kevin: Let’s do this.
Tom: All right. Thank you very much for bearing with us. We really do appreciate it. We are ready to go now. I’m gonna step off the stage, I’m gonna turn it over to our fine friends from TELoIP. I’ll be back in about two hours to close out the session, but until then, buckle up and get ready to learn all about SD-WAN.
Kevin: So, thanks, everybody. I’m Kevin and I’d like to welcome everyone on the Livestream, and welcome to everybody here in the room. What we’d like to do today is talk about our VINO system, Virtual Intelligent Network Overlay. TELoIP has been around for a while. You’re gonna get a chance to meet Pat and talk with Pat. What we’re gonna do is quickly go through introductions, we’ll introduce those of us who are gonna speak. I’m gonna talk a little bit about our solution space and what we sell. And then I’m gonna pass it over and we’re gonna spend the vast majority of the time with Pat and Jeremy, talking techie. And so, we’ll talk about our technology set, and just delve all the way down through. Feel free to ask as many questions as you can. I’ve left plenty of time. I sort of mapped out what I think the timing will be, and I’ve left 30 minutes or so for questions out of the raw content. That probably is an under amount.
So, my name’s Kevin Suitor. I’m the Chief Marketing Officer of TELoIP. In the room with me as well is Pat Saavedra. Pat, do you want to introduce yourself briefly?
Pat: Yeah. Hi, everybody. Thank you for having us. My name is Pat Saavedra. I’m the founder and CTO of TELoIP. I’m looking forward to lifting the hood and talking about our technology, and fielding some questions today. Thank you for having us.
Kevin: And on the other end of the line in Toronto, we have Jeremy Milligan, who we’ll introduce a little bit further on in the presentation when it gets closer to his time. But he is listening to us online and watching the live stream as we go along.
So, everybody has heard about SD-WAN. What I’d like to do is just draw your attention to one thing. Everybody talks about the $6 billion market, there’s one area within all of that market study data that for us is truly interesting, and that is the dark blue and the burgundy wine-colored blocks. That’s the managed services segment of SD-WAN. CAGR of this segment is 200% plus five-year CAGR. So, in a fast-growing market, this is even faster. And this is the area that we at TELoIP focus on, this is the managed services segment which is part of the network services as a service market.
And so, when you think about TELoIP, we build a lot of tech, but we deliver it in a different manner than most of the other players in the market in that we deliver in an as-a-service model. So, we deliver it from nine points of entry, or PoPs, that are located across North America. It’s fully multi-tenant. It’s role-based access control. Pat and Jeremy will get into that and show you a little bit underneath.
The system is a “five nines” capable system, depending on how you deliver your solution set. So we’re looking at six seconds a year of downtime if you deploy with three different carriers as the WAN overlays. Underlay circuits we get with that type of diversity, we’re anticipating a six-second downtime a year. We support…
Pat: Sorry, monthly.
Kevin: Sorry, monthly. (six seconds a month of downtime). Pre-emptive lossless failover, Pat’s gonna talk about the tech underneath that, IPD and things of that nature. We’re gonna do a demonstration to demonstrate this no dropped VoIP call claim. So part of Jeremy’s first demo will actually be a voice call with a hard failure of multiple links, and you’ll see the failover and the failback. Diverse bandwidth carrier aggregation, we’ll show the power of that, do some testing and show you live how that all works.
On the customer side, really key, right, like everybody else, support for MPLS, right? I was at the WAN Summit in New York earlier this week, and at that summit there was a survey done. There was about 225 people in the room, 85% said they anticipated keeping their MPLS networks for the next five years, in some way, shape, or form. So in order for SD-WAN to be successful, you need to have a coexistent strategy to work and allow people to move over. It’s great to do a rip and replace and say, “I’m gonna replace everything if I’ve got 5 sites, 10 sites.” But if you have 100, 200, 1,000 sites, you’re gonna do that transition over a matter of years. And so you need to have a good, solid strategy to deal with that, and we do. We’ll talk about what that strategy is.
You need to be able… We believe one of the most powerful things is creating unbreakable cloud tethers. And what we mean by that is the ability from your SD-WAN to break out and access public internet services, SaaS services, things of that nature. And we can do that and create unbreakable tethers. Why is that important? Depending on the market analyst you look at, depending on the data, the customer, anywhere between 55% and 70% of the traffic is going to the public Internet. So your private WAN needs a manner, a safe, secure manner of getting to the public Internet and it needs to do it in an integrated fashion.
We also have to have the ability to look at getting the full benefit of the technology in a hands-off approach. It’s one thing to say I’ve got redundancy and I’ve got link stability and things of that nature. But can I do failover, failback, deal with brownout conditions, things of that nature, in a fully hands-off scenario? We’re going to demonstrate how you can do that. We think it’s about the network. So if you look at the delivery mechanism, we’ve got these nine Points of Presence. We can deliver scalability at the Edge up to a gig. We can start at 10 meg. So if you’ve got a small retail environment, say a kiosk environment, a gas station, things of that nature, where everybody else starts you at 100 meg, 50 to 100 meg speeds, we’ll take it down into 10 meg and you get a price reduction commensurate with that on the MRR. So that’s an important criteria.
Cloud managed branch devices. Everything is orchestrated from the VINO Portal. So, we have a full orchestration solution. We’ll talk a little bit more about that later. We have the ability to support mobile devices. So, my phone, I can flip the VPN button, I get a tether, VPN tether, into our SD-WAN protected route domain. But my mobile device is part of the SD-WAN device, and that would work for an IoT device as well. So if you had an IoT gateway device connecting on ethernet, if you had any type of device from IoT that has an L2TP, so a lot of the machine-to-machine capability, we’ve got an answer.
Data center integration. What about security? A full firewall, branch virtual network firewall, built into the platform, it’s been there for years. Cloud managed, coming. Pat’ll talk to you a little bit about that. So we can start to build a secure perimeter system, software defined perimeter. Lossless failover with no lost VoIP calls. Full quality of experience monitoring, hybrid WAN or full MPLS replacement capability, carrier class management portal. So these are all the pieces that you get with one MRR. So it’s a monthly recurring rate service. Ninety-nine “five nines” uptime SLA. Promise that everybody says, right, 10 times faster, 50% to 70% cheaper, unbreakable cloud tethers. This is the TELoIP product offering.
So, what we sell is CPE devices. They’re standard commercial off the shelf technology with our SDN operating system, AgniOS, on top of it. That operating system encompasses the whole conga line of boxes that you used to put at the branch: firewall, shapers, routing. That whole conga line is there. And the really small box that…we have a little box called the Ai-100, has a built-in Wi-Fi access point. So you get into that small gas station kiosk, you can have Wi-Fi built into it as well.
You have a choice of licenses, SD-WAN license, which is from 10 meg to a gig, or an SD-Internet license. Now, why the SD internet? SD Internet provides these unbreakable tethers for managed IPVPNs. Five billion dollar market opportunity. People want to have the performance and reliability characteristics of SD-WAN, but they may not want to switch off of their security that they already have existing. So we offer a product called SD-Internet. SD-Internet is included in your SD-WAN license. So you can software upgrade between…from SD-Internet to SD-WAN with exactly the same appliances.
We have CPE installation. And then we have the portal, the VINO Portal. Orchestrator, order entry, installation, and configuration, move, add, change, delete, full network management system. You get a full on demo of this in a little bit from Jeremy.
So, other key thing. Support active-active or active-passive at the branch. So you can put these devices out in either configuration or you can do a single device config. But we support what you need to achieve the reliability figures you desire. That’s our story. So with that, what I’m gonna do is pass it over to Pat and let him start to talk about TELoIP’s story.
Pat: Okay, you drive, I’ll talk.
Pat: Thank you. All right, so we got the product stuff out of the way, guys. All right? And, you know, I’m gonna keep referencing back to some of that stuff. I mean, you heard Kevin talk about the SLAs. You know, that is something we present to our channels and allow them to package up service level agreements to their customer. Because it is all about the network, therefore, it’s about the service. And that’s what governs the performance of your applications throughout an infrastructure.
Our infrastructure is a virtual infrastructure. We follow the trend. I mean, this is about cloud. You heard Kevin talk about public cloud and private cloud. It just so happens that public cloud has a bigger push, 70% of customer traffic is trending towards that. And we need to address that, as well as the private cloud. So this is about SD-Internet and SD-WAN. It’s about SD-WAN as a service to the marketplace, being consumed or rented. Not owned, not buying equipment and deploying it. So we decided to go to market a little bit differently than some of our competitors, only because we’ve had the TELoIP network up and running for such a long time. Let’s go to the next slide, please.
Okay. Before I get into how did we get here, who are we, what are we all about, I mean, what’s a TELoIP? You guys haven’t heard of us. We’ve been around for 13 years, and what’s going on? Okay. You saw “five nines” SD-WAN service, and at the top, if I recall from memory here, there was triple carrier, multiple devices, etc. The fact is, customers that have been with us four years to six years, running our SD-Internet services, and the new customers since we released our SD-WAN product last year, they get the benefit of “five nines” on two connections, diverse carrier, one box. Our hardware failure rate is less than 1%. Now, of course, as a partner, you want to package that up into a carrier type of service. You want to make sure that the two devices are there. We give you the options to go active-active, active-passive.
All right, so I’ll get that… Now that that’s out of the way, let me talk about the technology. It is all about the network for us. You know, technology is changing and so are the buying habits. It’s as-a-service. Cloud is, to me, an as-a-service. And just like we virtualized storage and compute, so too are we virtualizing network. We saw this many years ago. We’ve been virtualized in the cloud 100… It’s funny, we’re here at VMware. Since 2011, we’ve been virtualized on VMware. Our OS, running as a controller in the points of entries, multiple controllers, running as the route servers, handling all of the ISP operations in order to deliver a carrier grade, SD-WAN as-a-service. At the time, it was SD-Internet as a service. Since 2011. And customers have benefited from that vision early on.
You know, I could tell you we’re an SDN company, but let me tell you how it started. We had a vision of defining networks in software back in 2002 and 2003. So we went and we executed on that vision. It just so happened that we ended up here, SD-WAN as a service. It just so happens that in order to help our partners get to market quickly, effectively, with this reliability, without having to build infrastructure – they could test the waters riding on our network – we needed to make it an as a service offering. They demanded it. And I’m glad we did that, because now the end customer can benefit from that. As quickly as we sign up a partner, they can start selling these services.
All right, well, it started with the operating system. Because I gotta tell you, out of my basement, I’m sitting there thinking, “You know what? There’s this promise of the Internet, and I want to deliver it. How are we going to do that?” Okay? We have a journey. Number one, technology that existed at the time just did not facilitate all the components that we needed for to actually put all of your communication eggs in an Internet basket. So we started with our operating system. We called it the Convergence Gateway OS. It was a convergence gateway that… It didn’t take us long to realize that if you really, truly wanted to gain the power of the Internet and deliver the promise of the Internet, you needed more than one connection and you needed diverse carriers.
Enter the whole… our legacy of aggregation. We received the patent in 2008 for ANA, the Autonomous Network Aggregation system. I’m gonna dig deep into that with you guys. I want you to know how it works, why we did it. So, please, ask me questions. Let me fill in the blanks. I’m not that good at prep, but I can answer your questions, I guarantee you.
So at the end of the day, we’re sitting here with our own embedded OS that we ported over to MIPS implementations to give you a sub $100 CP device that Kevin talked about, and virtualized up in the cloud way back in 2011. I mean, these are hardened perfected technologies that have been out in the market for a long time. But who’s TELoIP? Well, I’m very glad to meet you guys and I’m hoping that you’ll help spread whatever you like about TELoIP, or don’t like for that matter. Because TELoIP has been in the market for quite a long time but through partners. See, we allow our partners to rebrand this, put it out to the market, mix their services with it.
Kevin touched on something very important that isn’t talked a lot about in the SD-WAN space. In my opinion, there’s a ton of SD-WAN products out there that I could call a VPN. This is not that. This is not a DMVPN repackaged in any way, shape, or form. This is true innovation on the Edge, which is the battleground, and I’ll get into that, and in the core, where we have some innovation. However, that doesn’t take away from the value of managed VPNs and those other DMVPN, SD-WAN solutions. I think they’re great.
I mean, they’re also executing on the promises of the internet, aren’t they? But we see it a little bit differently. Many of our partners have spent time, money, training, you know, just mind power and operational resources to get managed services up and running because they saw this trend. And if you think back, what was the first displacement technology for WAN? VPNs were displacing frame relays before they started displacing MPLS. It’s a great technology. It’s the basis… I can’t ignore it. It’s where we came from. And neither can any of our competitors for that matter.
All right, well, what if I told you that you can take an existing managed VPN provider, who’s already made the jump to as a service, and you can turn them into one hell of an SD-WAN competitor, just by plugging in our SD-Internet in front of it? Because when the red connection or the green connection goes down, or browns out, their voice call isn’t losing a word, nor is it losing quality. Because we have a bi-directional IPQoS subsystem that I’m going to try to articulate here, that keeps that quality in check. So I hope to take you on a journey today. Please help me do that, okay? Next.