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The Business Case for IPv6 - Cisco Knowledge Network

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<strong>The</strong> <strong>Business</strong> <strong>Case</strong> <strong>for</strong> <strong>IPv6</strong><br />

Gina Nienaber, Market Manager – gnienabe@cisco.com<br />

Greg Smith, Sr. Market Manager – gregsmit@cisco.com<br />

Service Provider Routing and Switching<br />

April 2, 2013<br />

© 2010 <strong>Cisco</strong> and/or its affiliates. All rights reserved. <strong>Cisco</strong> Confidential 1


click here<br />

© 2010 <strong>Cisco</strong> and/or its affiliates. All rights reserved.<br />

<strong>Cisco</strong> Confidential 2


IANA had just run out of addresses, and World <strong>IPv6</strong> Day had just been announced


"As a contribution from Free to this<br />

conference ... we activated <strong>IPv6</strong> by<br />

default <strong>for</strong> all new customers ...”<br />

-- Alexandre Cassen,<br />

http://www.youtube.com/watch?v=Tn3IBkfvCvU<br />

• 10x traffic increase on 6rd Border Relays since this statement!


Large<br />

Un-named<br />

ISP<br />

Feb-11 Feb-12 Dec-12


Large<br />

Un-named<br />

Wireline<br />

ISP<br />

10%<br />

4%<br />

Source: Google<br />

October 2011 January 2012 April 2012 July 2012 October 2012 January 2013


CGN Only<br />

6rd +<br />

CGN<br />

2011 2013 2015<br />

May, 2012 IDC Study –<br />

2011 2013 2015<br />

“<strong>The</strong> <strong>Business</strong> <strong>Case</strong> <strong>for</strong> Delivering <strong>IPv6</strong> Service Now“<br />

www.cisco.com/go/ipv6 under service provider – under Delivering <strong>IPv6</strong>: A <strong>Business</strong> <strong>Case</strong><br />

or<br />

http://goo.gl/DTSW3


73% of smartphone's and<br />

tablets (2.2 billion) could be<br />

<strong>IPv6</strong> capable by 2017 (up<br />

from 41 percent or 479 million<br />

smartphones and tablets in<br />

2012)*<br />

www.cisco.com/go/vni<br />

or<br />

http://goo.gl/JQaWB


Current Mode of Operation<br />

(CMO)<br />

IPv4 with NAT44<br />

Next Mode of Operation #1<br />

(NMO#1)<br />

Dual Stack IPv4/v6 with NAT44<br />

Next Mode of Operation #2<br />

(NMO#2)<br />

<strong>IPv6</strong> with NAT64<br />

with 464XLAT


Only CGN elements are considered<br />

Number of NAT translations required =<br />

subscribers x devices per subscriber x sessions<br />

per device<br />

<br />

<br />

<br />

NMO = Next mode of operation ramp-up: either<br />

NMO #1 (dual-stack with NAT44) or NMO #2<br />

(<strong>IPv6</strong> with NAT64)<br />

Simulation run with ASR acting as CGN<br />

Maximized <strong>IPv6</strong> traffic to the extent of <strong>IPv6</strong><br />

content available<br />

3% compound annual growth rate (CAGR) <strong>for</strong><br />

subscribers<br />

78% CAGR <strong>for</strong> peak bandwidth (<strong>Cisco</strong> Visual<br />

<strong>Network</strong> Index<br />

5% CAGR <strong>for</strong> average session / UE<br />

Percentage of v6 Internet reaching a plateau<br />

20 CGN Locations<br />

1 UE per Subscriber


Validated by IDC with a Tier 1 <strong>Network</strong> Operator<br />

IPv4 with NAT44 is the most costly way to deal with<br />

IPv4 address exhaust<br />

IPv4 with NAT44<br />

Vs.<br />

Dual-Stack with<br />

NAT44<br />

Vs.<br />

<strong>IPv6</strong> with NAT64<br />

?<br />

Building a path to <strong>IPv6</strong> is the most effective way to reduce<br />

per-subscriber costs associated with NAT44 functionality<br />

CapEx Cost is neutral between Dual Stack <strong>IPv6</strong> with<br />

NAT44 vs. Single Stack <strong>IPv6</strong> with NAT64<br />

OpEx Costs are less clear and are the determining<br />

factor <strong>for</strong> operators<br />

%<br />

85% of smartphone applications worked in an Single Stack <strong>IPv6</strong> NAT64<br />

deployment test. Remaining apps require 464XLAT (RFC 6877)


IPv4 + NAT44<br />

<strong>IPv6</strong> + IPv4 + NAT44<br />

<strong>IPv6</strong> + NAT64<br />

2013 2014 2015 2016<br />

March 2013, IDC Study - “<strong>The</strong> <strong>Business</strong> <strong>Case</strong> <strong>for</strong> <strong>IPv6</strong> in Mobile <strong>Network</strong>s”<br />

www.cisco.com/go/ipv6 under service provider<br />

or<br />

http://goo.gl/J9lZF


Jul Aug Sep Oct Nov Dec Jan Feb


29%<br />

11%<br />

Source: Google<br />

October 2011 January 2012 April 2012 July 2012 October 2012 January 2013


8%<br />

Source: Google<br />

October 2011 • May 2012 • June 2012 • Jul 2012 • Aug 2012 • Sep 2012 • Oct 2012 • Nov 2012 • Dec 2012 • Jan 2013 • Feb 2013 • Mar 2013


6lab.cisco.com


Automation in the Cloud<br />

IPV6-only Data Centers<br />

Segment Routing<br />

MAP, LW46<br />

Terastream<br />

Metering, SCADA, WSN, …<br />

CoAP<br />

IPv4<br />

UDP<br />

IPv4+<strong>IPv6</strong><br />

<strong>IPv6</strong>-Only<br />

<strong>IPv6</strong><br />

6lowpan<br />

802.15.4 G, 802.15.14 E, Zigbee<br />

IP, Powerline G3, USSD, DECT<br />

LP, Zwave, Bluetooth Low-Energy


IPv4 IPv4 + NAT44 <strong>IPv6</strong> Launch<br />

<strong>IPv6</strong> Everywhere<br />

Fixed Computing<br />

(you go to the device)<br />

Mobility / BYOD<br />

(the device goes<br />

with you)<br />

Internet of Things<br />

(age of the device)<br />

Internet of Everything<br />

(people, process, data, things)<br />

50B<br />

10B<br />

500M<br />

1993 2003 2013<br />

2022<br />

Source: <strong>Cisco</strong> IBSG, 2013


Connecting people in<br />

more relevant and<br />

valuable ways.<br />

Delivering the right<br />

in<strong>for</strong>mation to the right<br />

person (or machine) at<br />

the right time.<br />

Leveraging data into<br />

more useful<br />

in<strong>for</strong>mation <strong>for</strong><br />

decision making.<br />

Physical devices and<br />

objects connected to<br />

the Internet and each<br />

other <strong>for</strong> intelligent<br />

decision making.<br />

Source: <strong>Cisco</strong> Internet <strong>Business</strong> Solutions Group, 2012


• 21 use cases to determine the amount<br />

of Value at Stake (bottom-up approach)<br />

• Both industry-specific and<br />

cross-industry use cases<br />

Smart Buildings<br />

• Smart Factories – $1.95 T<br />

• Smart Grid – $787 B<br />

• Smart Buildings - $349 B<br />

• Etc…<br />

Smart Factories<br />

Connected Private<br />

College Education<br />

Source: <strong>Cisco</strong> IBSG, 2013<br />

http://www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf


© 2013 <strong>Cisco</strong> and/or its affiliates. All rights reserved. <strong>Cisco</strong> Confidential 24


Top 3 Reasons to Deploy <strong>IPv6</strong> Today<br />

1. CGN Bypass <strong>for</strong> wireline and wireless ISPs<br />

2. More scalable, automated, architectures<br />

3. Prepare <strong>for</strong> the Internet of Everything


<strong>IPv6</strong> Internet of<br />

Everything<br />

<strong>IPv6</strong> Transition is<br />

clearly underway<br />

<strong>The</strong> <strong>IPv6</strong> Things are<br />

Coming


© 2010 <strong>Cisco</strong> and/or its affiliates. All rights reserved. <strong>Cisco</strong> Confidential 27

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