CISCO LIVE MAGAZINE NUMBER 08

> 4th Quarter 2012 – Issue 8

4G, IPv6, quality plan and new services celerity dictate the investments rhythm

The telecommunication metamorphosis NOW FOCUS One opens the way for programming application oriented networks

INTERVIEW Oi executive, Ronaldo Motta, talks about the alliance with Cisco and the new corporate services

THE CUSTOMER’S VOICE The new Instituto Nacional de Traumatologia e Ortopedia (INTO) building is 100% IP 1

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editorial SUMMARY

CHALLENGING LIMITS he telecommunication networks will be tested during the next four of five years. This trend is already clear today and international examples, such as the London Olympic Games put even more in evidence the need of an expansion plan to guarantee the success of the important sporting events programmed for Brazil.

It is also evident the growing sympathy of Brazilian user for technological news. Not only in mobile telephony, a great and important example of local adhesion, but in the image transmission and consumption – an item that is proven in the progress of paid TV services, the video transmission and, of course, the exponential growth of social networks.

The telecommunication industry is in evidence and counts with technologies that are able to help the large scale services rendering, high quality and costs that are compatible to the generated income for each and every item in the basked. In this point, the large manufacturers’ experience in the construction of attractive and competitive products in our market is of fundamental importance.

And to follow the frantic rhythm of the internet services consumption increase, it becomes urgent the communication infrastructure migration to protocol IPv6. The new environment stimulates the expansion of Internet of Things (IoT), render more safety to the users and gives the long life that internet will need hereinafter.

To illustrate this high demand for telecommunication infrastructure and services, we publish in this issue a series of our partners’ and customer’ successful cases, based on projects which were developed by Cisco experts.

There are initiatives in the infrastructure areas of network, videoconferences, IP telephony, data center, among others. The reports reveal a full Cisco technologies alignment to the market demands, and show how the solutions are quickly created by our ecosystem.

As a way to accelerate even more the innovation capacity, Cisco has introduced the Open Network Environment (ONE) – an architecture the function of which is to help our customers and partners to deal with corporate innovations and trends, such as mobility, cloud, social networks and video.

This is another evidence of our commitment to the network infrastructure importance and quality all over the world.

Good reading!

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Events Fairs and meetings with Cisco participation

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ONE Open architecture guides network program for applications

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Migration Cloud Connect simplifies cloud computing for companies

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Toward the cloud Cisco Quad evolves and becomes WebEx Social

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New frontiers The future network technologies transform the present operators

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Alliance Oi talks about Cisco role in enlarging the services offer

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Health Rio hospital grows and expands the IT infrastructure

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Telepresence Rexam improves communication among the headquarters and subsidiaries

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Wireless TIM multiplies Wi-Fi hotspots and wins capillarity

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Retail Sales of the Future Pão de Açúcar Group equips its headquarters and stores with IP network

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Interactivity Morumbi soccer stadium installs Wi-Fi network thinking about great events

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Opportunities Brazil offers great business opportunities, says Bob Gault

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Safety Much beyond the appliances, Cisco technology protects the whole network

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Article The IT leaders’ strategic anxieties

Short news Innovation Space of Futurecom 2012 supports Brazilian startups: Cisco in the London Olympic Games

Marco Barcellos

CISCO LIVE MAGAZINE IS A PUBLICATION OF CISCO DO BRASIL CISCO DO BRASIL ACCOUNTABLE TEAM

Channels Director Eduardo Almeida

President Rodrigo Abreu

Marketing & PR Director Marco Barcellos

Systems Engineering director Marcelo Ehalt

Editorial Council Adriana Bueno, Carolina Morawetz, Isabela Polito, Isabella Micali, Jackeline Carvalho, Kiki Gama, Mariana Fonseca, Monica Lau e Marco Barcellos

PRODUCTION Comunicação Interativa Editora Responsible Journalist Jackeline Carvalho MTB 12456 Editorship Director Jackeline Carvalho

Reporters Jackeline Carvalho Marcelo Vieira Review Comunicação Interativa

Art Marcelo Max

Printing Intergraf

Cover Glenn Douglas

Circulation 5000 copies

Press Service In Press Porter Novelli

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EVENTS

WE WILL MEET THERE Events and meetings where Cisco professionals’ team will be present

DistribuTECH Brasil Date: September 25 – 27 Where: Centro de Convenções Rio Centro – Rio de Janeiro Description: DistribuTECH Brasil is an event focused to electric power transmission and distribution companies, involving intelligent measurement, distribution automation, the energetic efficiency, the energy commercial losses and the energy transmission problems in long distance high tension network.

Link: http://www.distributechbrasil.com/pt_BR/index.html

Cisco Data Center Design & Deployment 2012 Brasília Date: September 26 Where: Centro de Convenções Brasil 21 - Brasília, DF Description: In its 6th issue in Brasília, the Data Center Design & Deployment will be held in Brasília, Rio de Janeiro and São Paulo. The purpose of the 2012 issue is to congregate experts in the IT area, to discuss the new generation and the data center transformations, aiming at reducing operational costs, productivity increase and technical problems elimination.

Cisco Data Center Design & Deployment 2012 - Rio de Janeiro Date: October 2 Where: Centro de Convenções RB1 - Rio de Janeiro, RJ

Futurecom 2012 Date: October 8 – 11 Where: Rio Centro, Rio de Janeiro, RJ Description: The biggest Telecommunication & IT event in Brazil and Latin America, congregates telecommunication operators and concessionaries, service providers, integrators and access providers to telephone, wide band and paid TV services.

Link: http://www.futurecom.com.br/2012/pt/index.php

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Cisco Live Mexico Date: November 6 – 8 Where: Moon Palace Golf & SPA Resort Cancun Hotel, CancunMexico Description: Cisco Live is your passport to a new world of possibilities. It offers a unique and deep combination of technique and formation training, besides a privileged experts’ and organizations’ view who are defining the agenda for the future of technology and business.

The event agenda includes: • Networkers Technical Program • IT Management Program

Data Center Design & Deployment 2012 - São Paulo Date: October 16 Where: Sheraton WTC - São Paulo, SP

VMware Forum Date: October 24 Where: Hotel Transamérica São Paulo Description: Annual event of VMware Brasil, the VMWare Forum is fully interactive and differentiated in the market. In this forum, market analysts and TI professionals will talk about virtualization and Cloud Computing and how they help the organizations to reduce their operational and assets expenditures, to improve the agility, to guarantee the business continuity, to strengthen the safety and to take care of the environment.

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SHORT NEWS

THE MOST CONNECTED OLYMPIC GAMES OF ALL TIMES In London, the number of pages served per second jumped unbelievable 104 792 views infrastructure was designed tested and implemented by Cisco together with the local committee (LOCOG), and supported by Global BT (British Telecom) partner, official supporter which is responsible for the voice and video services during the games.

Legacy

Javier Camacho, Maria Dincel and Marco Barcellos @ Cisco House

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n August last year, I have visited the 2012 Olympic Games, in London, and had the opportunity to identify some news and trends in the technology and communication area, besides proving in loco the nice work that Cisco performed during the competition. The Olympic Games of that year had as the main news a widely connected new world scenario and a highly collaborative spectator, avid to share photos, images and messages.

The London 2012 Olympic Games were already considered as the first “Social” Olympics with a great deal of influence of Social Networks, mainly Facebook, Twitter and YouTube. But

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it also was the first great global sports event transmitted in multiple screens live and in full HD. Since my arrival at the airport, I could feel that the London population “breathed” the Olympic Games. That would be a great chance to show a new modern image of England in this new global scenario.

Cisco proposal, as an official sponsor in the Network Infrastructure Supporter category, was exactly to habilitate and transform the games into a high performance connection success and with the highest safety level for the information and the attending public. The whole

It should be pointed out that the whole London 2012 Olympic Games implantation project began 6 years before – exactly in 2006, with the reforming, adaptation and construction of stadiums and other Olympic facilities for the games, besides a far-reaching deal about the city infrastructure and the recruiting and selection of the main sponsors.

The project, which had a 10 year total planning (6 years before plus 4 years after the games), forecast the whole legacy to the local society.

The technological development speed in this last Olympic cycle was an impressive one, a real record.

Since the Beijing Olympic Games, in 2008, the number of smartphones increased 456% (more than the present 196 million as compared to only 18.9 million). In 2008, the number of Facebook users was about 90 million, whereas now it is coming close to the magic number of 1 billion users – an increase in excess of 900%.

And the Twitter counted with less than 1 million users, whereas today

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SHORT NEWS

is exceeds 300 million, generating an impressive growth of almost 30 000% the number of tweets per day grew more than 12 000%, reaching 140 million tweets daily. Not to mention the tablets which were non-existent in the last Beijing Olympic Games.

To cope with this new demand and to guarantee the games success, some steps had to be taken. In the case of the operation control, the data processing center was formed of 900 servers, besides more than 1000 network devices and information safety, 10 000 computers of all types and more than 3500 people on the air, working in a 24x7 regime. But the great Olympics detail was the previous planning.

It was a total of more than 200 000 hours of tests for a technology which had been defined one and half year before the games. The number of information was 30% higher than the total in the Beijing Games, an

Outside view of Cisco House @ London

evidence of supercomputing and big data “trends”. Not to mention the Olympic data center, which processed about 1.2 petabytes, or 1.2 million gibabytes, as a result of the direct request of 118 billion “objects” – the famous “Things Internet”. The maximum of served pages per second was of unbelievable 104 792 views.

Finally, I could confirm that

Main entrance of the Olympic Games Park @ London

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Cisco accomplished its role with mastership and perfection. The Government, the population and the attendants were absolutely satisfied with the result of a great investment and an even greater legacy. For Cisco, the London games did not mean the arrival point, but the starting point for an even greater challenge. The London 2012 base represents the reconstruction and prosperity for the city and for that country as a whole. Undoubtedly, an excellent example of how the business and the technology can turn the future vision of a government into reality.

The next chapter will be seen four years from now, precisely in Brazilian soil. It may seem very far away, but in fact we have to begin to prepare ourselves for the Rio Games in 2016 now, because the clock is ticking and the data and communication volume projections will be much higher than any present forecast. It is important that we can deliver Olympic Games that will be worth of the global fame of our Wonderful City… then, let’s work!

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SHORT NEWS

Futurecom 2012: INNOVATION SPACE, A SHORTCUT TO THE LEADERSHIP Among the most visited ones during the fair, the booth has Cisco’s support and promises visibility to the Brazilian PMEs

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o bring visibility to Brazilian startups which develop innovating solutions for the telecommunication and the information technology market, by opening doors so that they can do new businesses and grow. This is the object of Espaço Inovação, a Futurecom 2012 collective booth, promoted in partnership by Instituto de Tecnologia de Software (ITS) and by Provisuale, with Cisco sponsorship.

Futurecom is considered as the most important event in the telecom industry in the Country. This year it was held between October 8 and 11, in Rio de Janeiro. Twelve micro and small Brazilian companies were chosen to display their solutions in the 120 square meter booth, one of the most visited ones of the traditional fair: authorities, investors, suppliers and international visitors use to visit it.

“There are innovations scattered all around, circumscribed to an almost close environment. The creative minds

de Souza Teixeira, President of the Board of ITS and organizer of Espaço Inovação in partnership with Provisuale. “Our role is to provide visibility, by putting that innovation in the environment where it needs and should be.”

Companies with interest in taking part in Espaço Inovação underwent a judicious selection process, by an experts’ committee. Brazilian organization with a sales volume of up to R$ 7 million/year, with effectively developed solutions in the Country and adherent to the telecom industry could register themselves.

The product is the selection object, not the company”, explains Teixeira.

“Besides innovative, it needs to have at least a beta test, with a customer using it or testing it”. Twelve companies attended this Futurecom issue and will be awarded prizes;

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— DESCARTES DE SOUZA TEIXEIRA, PRESIDENT OF THE BOARD OF ITS

CIAB Espaço Inovação in Futurecom 2012 follows the successful model in another event, the CIAB. Devoted

6 12 companies were selected to display their products during the most important telecommunication event of the Country, Futurecom develop a solution, find a friend willing to test it and the process stops there.

The company becomes inactive, as well as the supplier”, explains Descartes

“Our role is to provide visibility, by putting the innovation where it needs to be”

to the information technology area of financial institutions, Espaço also counts with Cisco support. Mobility and safety were the great points of

Espaço issue in CIAB 2012, and the success expectation was confirmed.

“A great bank is talking to us because it wants a larger interactivity between ITS, which organizes Espaço Inovação, and them, who demand technologies. This is the first concrete result”, explains Teixeira. “This means that a great financial institution, actuating in the Country, is observing our work” , he celebrates.

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network infrastructures, in order to reach business objectives, such as services velocity increase, resources optimization and monetization.

A wide variety of applicative platform interface (API), agents, technologies controllers and overlapping networks will be part of the offer. The ONE includes solutions which range from the transport to the management and orchestration.

Thus, the customers can take advantage of the intelligent network with a high program capacity in a number of layers, with options of protocols, the industry standards and utilization-based implantation models.

Business-oriented

THE AGNOSTIC NETWORK Approach still being developed enables to program applicationsoriented networks Padmasree Warrior, vice-presidente de engenharia da Cisco

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isco Live, the most important event of the company, always generates a big expectation. It serves not only as a consecration of a period of time, because it joint together partners, customers and experts in technology from all over the world, but also as a stage for announcements of innovating technologies, which will integrate the extended Cisco global portfolio. In the

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2012 issue, held in San Diego, California, the attentions were attracted to the Open Network Environment, or just Cisco ONE. With a far-reaching and versatile approach for networks program, the ONE will help companies to deal with corporate innovations and trends, such as cloud, mobility, social networks and video. The idea is to enable flexibility and personalization of application-oriented

“Cisco Open Networking Environment is of fundamental importance to our vision of an intelligent, more open, programmable vision, prepared for applicative. The network is transformed into a more efficient business facilitator”, explained Padmasree Warrior, Cisco CTO and engineering vice-president.

This new approach enables the cooperation with institutions of other areas, including standardization entities.

Therefore, Cisco ONE offers support to a number of implantation models, including universities and research institutes, which partition the network or “divide the campus” by using controlling software and OpenFlow agents for SDN research.

Together with ONE, Cisco announced the One Platform Kit (onePK), an assembly of API in all the company operational systems: IOS, IOS-XR and NX-OS. It was also presented the concept proof of controlling software and an Open Flow agent to research the Software Defined Network (SDN).

Cisco will supply the support in phases for onePK in operational systems and OPS. OPS-XR and NX-OS hardware platforms, including ASR, ISRG2, CRS Catalyst and Nexus switches, beginning

by ASR1000 and ISRG2.

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A JET FOR CLOUD Connect Cloud prepared corporate networks for processing in cloud computing

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nnounced during Cisco Live! 2012, in San Diego, the main objective of Cisco Connect Cloud solution is to supply a network that is ready for cloud computing and permit the simplified migration of the companies businesses applicative.

With habilitated router for cloud and optimization platforms for remote networks (WAN), the solution was built on an open architecture.

Three essential elements integrate the cloud connector. The first one joins the Cloud Connectors software modules, hosted in the Second Generation of Integrated Services Routers (ISR G2) which interact with cloud services to improve the applicative performance, safety and availability. Its open platform enables service providers and partners to develop Cloud Connectors to render differentiated services to the customers.

The solution also has a version for Cisco Hosted Collaboration Services (HCS) , for the web ScanSafe-based safety service and for the CTERA storage connector, of Cisco UCS-E Seires.

The second Connect pillar is in platforms that are habilitated for cloud. Cisco expanded the series of Aggregated Services Routers (ASR) with the ASR 1002-X, which also counts with the AppNav technology – which congregates Wide Area

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Application Services (WAAS) physical and virtual equipment in one resources pool that are managed by a central computer.

Control point Last, but not least, there are new cloud services such as the Cloud Services Routere (CSR), a virtual router which enables to expand Virtual Private Networks (VPNs) for cloud and the Application Visibility and Control (AVC) technology which is integrated to G2 and ASR platforms of Integrated Services Router (ISR), the purpose of which is to optimize the cloud applicative supply in the network. Furthermore, the UCS E-Series modules were integrated in the ISR G2.

“As the companies are motivating the quick adoption of cloud-based services, the routing platforms and the WAM became a strategic control point to offer the best user’s experience in cloud”, explains the vice-president senior and general manager of Cisco Technology in Router Services Group, Praveen Akkiraju.

“Cisco Connect Cloud redefines the WAN architecture with essential innovations that make use of the network intelligence as a fundamental link in cloud implantations, by adding more resources to the traditional

With the ASR 1002-X Cisco expanded the series of aggregated serviced routers

The CSR 1000v router renders advanced network services and services ready to implanted in cloud

6 ALLIANCE corporate routing. This permits the customers to connect to cloud and have an optimum experience”, he adds.

Products Absolute global leader in the routers market for companies, Cisco presently has 500 thousand customers all over the world, and is accountable for 78,6% of the market.

Thus the company has a privileged position in the transformation by which the long distance networks and the routing platforms undergo.

Therefore, the introduction of Connect Cloud, which was born as an essential element of Cisco Cloud Intelligent Network and, together with the Unified Data Center and the services and applicative for Cisco cloud, integrate the company massive portfolio in the “clouds era”.

The solution also includes improvements for traditional routing, WAN safety and optimization, besides new resources and models for ASR, ISR G2 and WAAS pieces of equipment.

Among the main introductions is the CSR 1000v router. It renders network advanced services and safety in a format to be implanted in cloud environments.

This way it is possible to enlarge and control a number of corporate network facets to the cloud, offering more income opportunities for the service rendering companies in cloud, which want to use a model under flexible demand of “network as a service”.

The WAAS 5.0 with AppNav, on the other hand, enables to visualize

Cisco and EMC announced together new reference architectures, incentives for partners and integrated support to accelerate the customers’ evolution for cloud. Three ways were developed for companies and service rendering agents: implantation of customized design infrastructure with the best products of the category; installation of reference architectures that are validated and easy to implant with Cisco solutions for the proven EMC VSPEX infrastructure; and acquisition of convergent infrastructure previously integrated with the VCE Vblock system.

The two new Cisco Validated Designs (CVD) for EMC VSPEX are unified computing reference architectures that are adapted for small and medium companies. Designed to accelerate the itinerary to private cloud, the CVDs are Cisco solutions for EMC VSPEX in Microsoft Hyper-V Architectures and Cisco solutions for EMC VSPEX for VMare vSphere 5.0.

More than 200 Cisco and ECM Velocity partners were trained to sell and implant EMC VSPEX with the Cisco Unified Data Center.

Cisco and EMC also aligned their incentives structures to simplify the incentives process to the channel and increase the partnership’s profitability, besides creating a collaborative support structure to VSPX customers.

WAN optimization resources, by grouping them elastically and on demand for better development and latency. The solution offers applicative and connectivity with the cloud in an extremely safe way, together with an implantation model that follows the growth and enables the applicative acceleration, as well as the performance visibility by the whole company. The AppNav can be installed as a hardware model in WAVE equipment or as a software on the new CSR. The most recent introduction is the ASR 1002-X router. It enables to increase the WAN performance in up to seven times, besides

improving the implantation agility with an updating model based on the company’s growth (“Pay as you Grow”), which offers performance of up to 36 Gbps with activated services for WAN environments, internet and managed services.

It was also announced the ESP100G, a transference processor for the ASR 1000 Series in cloud implantations, besides the Flex VPN for IPsec site to site of high safety and remote access via VPN. All products already are available, except the CSR 1000v, the App-Nav in CSR and the Cisco UCS E-Series in ISR G2, which should be marketed by the fourth quarter of 2012.

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COLLABORATION

WebEx Social: COLABORATION TOWARD THE CLOUD Cisco Quad migrates to the SaaS model, receives new name and resources to increase the 2.0 work force productivity

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uring the Enterprise 2.0, or E2, an event held in Boston, USA, Cisco caused good impressions with the announcement of WebEx Social, the new name of Quad collaboration platform. The changes go far beyond the title: the product now integrates the WebEx portfolio at the same time when it migrated to the cloud, and is commercialized in the Software as a Service (SaaS).

With the change, Cisco intends to

give a new impetus to the WebEx Social by connecting it to the popular cloud service. “The WebEx has been historically associated to web conferences, but our aspiration is to make it an integrated collaboration tool”, explains Raj Gossain, Cisco managing products vice-president for the collaboration group.

AE2 is an annual conference devoted to those companies which have adopted – or intend to adopt – collaboration tools and technologies to

Resources Resources such as the Unified Post, for example, permit creating

6 The WebEx Social puts emphasis on the relationship between collaboration and unified communications, integrating instantaneous messages, telephone and video with social networks improve the way to conceive new ideas, take decisions, carry out projects and create new products and services. This is why Cisco WebEx Social attracted the attention during the e vent: it puts emphasis on the re-

Webex new brand aims to expand social business opportunity cloud

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lationship between collaboration and unified communications, integrating instantaneous messages, telephone and video with social networks. The product updating includes the same video technology used in Jabber, besides synchronized collaboration tools, bringing high definition videos to the social experience.

and sharing content in an easier way then in e-mails, blogs or wikis, and with a much more effective feedback.

The posts can also be configured to permit comments, edition and new sharing systems.

There is also the Corporate Social Network – which includes the user’s profile, communities, search, suggestions, tags and Q&A sections, which can be used to find experts, attend discussions and share contents.

The integration with Microsoft Office is a total one, and it is possible to update and publish documents in WebEx Social directly from Word, Excel and Power Point. There is also a native support to mobile devices, such as tablets and smartphones, enabling to keep the connection with colleagues, contents and applications, regardless where the user is.

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©2012 Fluke Corporation. Todos os direitos reservados.

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COVER

THE NEW TELECOMMUNINCATION FRONTIER Technological innovations and changes on the users’ profile challenge the telecom services in Brazil

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he as cen s ion of the smartphones installed base in Brazil and in the world is an evidence not only of the users’ affinity to this type of device, but also the data networks consumption increase. With this equipment it is possible to send and receive data, including video and audio, and increase the common or

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corporate user’s autonomy, exposing the service rendering companies to the polemic need of investments in updating and maintaining the networks quality.

In the mobile area , the LTE technology, base for the implementation of the Fourth Generation of cell phone, already has cases in the Country, despite all

the questions and expectances about the chances of cell phone networks in the Country.

Another necessary updating, not only for the mobile network, but for each and every telecommunication infrastructure, is the migration of protocol IPv4 to the more modern IPv6, with a larger capacity to integrate the things internet concept.

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4G: MORE INVESTMENTS, MOrE OPPORTUNITIES LTE technology increases the operators’ concern, but also creates new opportunities; Cisco solutions already support two initiatives in the Country

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ne trillion gigabytes represent an unimaginable quantity of zeros and ones. This value corresponds to 1,3 zetabyte, a measure that just a few persons in the world know, but that will pass through the global telecommunication networks in 2016. The calculation, part of Visual Networking Index (VNI) communicated by Cisco in May this year, corresponds to the whole traffic resulting from the increasingly common devices with access to the wide band – not to mention the increase of access to wireless networks and the very change of habit from the users, who are voracious consumers of video, among other functionalities.

To support such a bit demand for data is no easy task for operators, content providers and, of course, equipment manufacturers. It requires a great deal of investment, work and technology. But there is no alternative: the telecommunication move toward the IP networks omnipresence seems to be an inevitable one. More and more functionalities depend on them, and it is already possible to notice some details of this future when everything will be connected.

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6 “The operators will need to increase the backhaul capacity” — FLORIAN HARTMANN, OF CISCO

Part of the way toward this reality passes through the wireless networks, and Brazil gave an important step in June by auctioning the frequencies that will be used for the fourth generation of cell phone, or just 4G. The LTE (Long Term Evolution) technology, standard for those networks being implanted in Brazil, together with the 3G and the fixed networks, will connect not only smartphones and tablets, but also cars, devices to measure electric power consumption (smart grid), solar panels, production lines of large industries, besides TV sets and even refrigerators… the potential applications are limitless.

“The data users are demanding increasingly more from the operators, including service quality and products variety”, explains Marcio Gerbovic, Cisco do Brasil sales manager for Latin America. For him, the LTE technology serves as a market opportunity for telecompanies, which will formulate new services packages to meet the demand.

Obviously, these demands are not

restricted to the end user. The corporate user is being far from the office chair and demands from the companies the same experience at home or in the work environment. This is thy, according to Gerbovic, the 4G facilitates the remote collaboration and the BOYD “bring your own device” initiative”.

Challenges Of course so many possibilities do not come without some difficulties.

The licenses purchase for the 4G brought to the operators geographic coverage obligations, in a first moment of the seat-cities of the Confederations Cup in 2013 and, later on, of the seatcities of the FIFA 2014 World Soccer Championship. Therefore, they will have to prepare their networks urgently and, somehow, to make use of the already existing towers and interconnections. “But they will need more antennas because the waves propagation in the 4G is not as high as in the 3G”, explains Florian Hartmann, also a Cisco do Brasil sales manager for Latin America.

Another challenge is the “brutal data consumption growth” as defined by the executive. “The operators will also need to increase the antennas connection capacity with the main network (backhaul). Furthermore, there is a change in the data use composition, which is increasingly more unforeseeable. If before the smartphone

has uses and was connected to specific networks in certain tomes, the 4G enables us to know where, when and what devices are in the network. This is a very big impact.”

For Marcio Gerbovic, the commercial challenge is also very important, as the implantation of a 4G network demands

The last – but not least – among the operators’ worries are the devices, i.e., smartphones, tablets and modems that are compatible with the 4G standard used in the Country. The frequency of 2.5 GHz auctioned by Anatel (Telecommunication National Agency) is unique, therefore the Brazilian devices

6 Theoretically, LTE forecasts downloads 30 to 40 times faster than the 3G new monetization ways. “It is necessary to provide the market with what it needs.

Several operators all over the world are creating more creative packages, and Brazil should follow the same way”, he says. The purpose is to make the user to understand the plans benefits and choose properly, permitting the operator to obtain the expected return on investment, which is not a small one.

Only with the frequencies acquisition, the expenditure exceeded R$ 3 billion.

Theoretically, the LTE forecasts downloads 30 to 40 times faster than the 3G. Such a speed drives the user to consume more data, and this imposes toe operator the work to make the user aware about the difference between the consumption and the agreed upon plan. “The international trend is just like the present one, with pre-agreed upon download packages in 4G as well. There are operators with packages of300 MB until 5 GB”, says Gerbovic.

will also be. “Brazil is using a different frequency as compared to that in USA and Europa (700 MHz). An iPad bought in USA, for example, can’t be connected to the 4G in Brazil”, explains Hartmann.

“The consequence is the price increase of devices sold in the Country.”

Solutions As far as the 4G is concerned, Cisco acts together with the service rendering companies mainly in three moments: radio with small cells; connection structure of these radios with the operator backhaul and shorthaul; and

importance so that the operator can deal with the great traffic as foreseen in the LTD networks.

“We have a solution of small wireless cells that helps in implementing not only the 4G, but in the offload of 3G, and enlarges the coverage for places that are difficult to reach”, explains Florian Hartmann. The same connection structure of antennas with the operators’ main network core can connect 2G. 3G, 4G and WiFi networks.

The IP RAN (Radio Access Network) technology allies routers to the network for an architecture that meets different antennas demand. “We can connect everything in the same infrastructure, and the operator does not need to worry if the LTE growth will jeopardize the 3G traffic. The same backhaul IP is used according to the traffic, not determining a percentage for each and every technology”, says Hartmann.

The EPC, on the other hand, analyzes the traffic and applies policies that enable, for example, to differentiate packages of video, a

6 “As manufacturers we have to explore everything that Cisco can add to the 4G” — Marcio Gerbovic, OF cisco

the Evolved PacketCore (EPC), which analyses and applies traffic policies.

These elements are of fundamental

6 THREE TIMES As far as the 4G is concerned, Cisco acts together with the service rendering companies mainly in three moments: • Radios with small cells solutions • Connection infrastructure of these radios with the operator’s backhaul and shorthaul • Evolved Packet Core (EPC), which analyses and applies traffic policies.

resource that is very sensible to low latency and that can be given priority over files or e-mails downloads.

Important for fixed networks, this resource in mobile networks is of fundamental importance.

Cisco has a laboratory in the Country so that the companies can test companies, part of them manufactured here – or soon to be produced – thanks to the investments that were announced during Cisco Plus this year. Presently, two big operators already work with the manufacturer in implanting 4G in Brazil.

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cOVER

IPv6 GUIDES THE FUTURE OF INTERNET AND THE operaTORS’ INVESTMENTS 6 “The applications are infinite”

New standard paves the road for the ‘things internet’

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f the future will be market by the connectivity of all objects, in one technological movement presently known as ‘things internet”, before it will be necessary to popularize the new version of the internet protocol, the IPv6. Global initiatives for the adoption of this technology – which came to replace the old and outdated IPv4 addressing system – will be of fundamental importance in a world where each and every device will have an IP address.

“The IPv6 is a technology of the present, but can also be considered as a technology of the future”, explains Igor Giangrossi, Cisco do Brasil engineer and consultant of architectures for operators. “Although in Brazil the implementations are a little bit late, we are on the good way. In some countries of Asia, for example, the IPv6 is more present because the IPv4 is at the end of all its resources.”

For Giangrossi, as long as there are IPv4 available for distribution, the IPv6 implantation ends up by being

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slower. All the operators, content providers and the internet society however are engages in the transition.

Longevity But then why is IPv6 also a technology of the future? “Because the way it is structures means that there should be no new protocol change in a near future”, explains the engineer. “This provides space for the internet growth for many, many years.”

Still talking about the future, there is a direct relationship between the things internet and the IPv6. Without the standard it would be impossible to connect so many objects, devices and pieces of equipment. There is also an obvious relationship with the LTE technology. On the fourth generation of cell phones (4G), “all the phones have mandatorily an IP address, differently of those of 2G and 4G when this only happened when the customer had a data plan”, explains Giangrossi.

— Igor Giangrossi, OF cisco

The LTE is a totally IP technology, which assumes that all devices are connected to the network. This would be enough to justify the migration to the IPv6. After all, it would not be possible to address the billions of mobile terminals in the world with just the IPv4.

Applications Other areas will also find a great usefulness in IPv6. The utilities industry, for example, will be able to adopt smart grids solutions, with intelligent energy measuring devices, with fully automated data collection.

In the field of renewable energies, consumers with solar panels and intelligent energy systems could become suppliers, by selling the excess to the concessionary.

The IPv6 application in connected remote controls could be used in residential automation. IP cars would enable not only the access to the web, but the car would share the traffic information in actual time with the municipalities’ control

systems. Safety monitoring centrals could be benefitted with IP cameras networks. Even the agriculture would be benefitted by implanting low power sensors in cattle herds to monitor the animals’ displacement or even their health.

“The applications are infinite.

What all of them have in common is that they need connectivity, hence the importance of IPv6: only with the growing number of addresses it is possible to carry out and experiment the things internet”, explains Giangrossi. “All this will happen, but some developed countries will implement these solutions first.”

Investments Despite what he considers as a slow implantation of the IPv6 standard in Brazil, Giangrossi says that it is already part of the operators’ business plan. If until two years ago the work was to try and convince those companies to adopt the protocol, now they are worried about the best way to do it.

According to the expert, in the fixed or mobile wide band for the end user, the implantations are still late. But the scenario changes when we talk about the corporate market.

“By the customers’ request many operators have already implement the IPv6”, he says.

In the beginning of 2013, the delivery of IPv6 to the mass market should grow with the arrival of LTE, which although it does not function with the IPv4, it should be present in the network of all the operators which will act on the 4G. “It would be senseless to build new networks without the IPv6. From the technical standpoint it is very

probable that all platforms will be compatible already.”

Embarked technology If it depends on Cisco, operators and end users should not have any difficulty in migrating to the new internet standard. Since 2010 the manufacturer’s equipment for operators and companies support IPv6 as a standard. The same applies to the Linksys line domestic routers E family.

“This year, during the World Introduction of IPv6, Cisco took the commitment that all its residential pieces of equipment would count on the native support to the protocol”,

explains Giangrossi. “On the corporate side, Cisco has the largest number of IPv6 Forum certificates, with several certification levels. We clearly have a leadership position in terms of support to the new standard.”

Another important initiative of the company with the operators is the encouragement not only for the IPv6 adhesion, but in the capacitation of those collaborators who work with internet protocols. “All those how have some contact with IP will have to be submitted to a capacitation, and this effort is not a small one, as the IPv6 is very different from the IPv4”, says the engineer. “This is also an internal effort, with Cisco’s own work force, besides partners and customers.”

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6 CISCO TAKES VIDEO TO ANY DEVICE IN ABTA 2012

Allied to the vision that the video will be in all devices, Cisco introduced, in the Congress and Fair ABTA 2012, promoted by Cable TV Brazilian Association (Associação Brasileira de TV por Assinatura) the main company’s technological solutions for the industry. Domestic WiFi network and content delivery in multiple screes (TV Everywhere) were among the main introductions.

A new Videoscape functionality called Conductor enables the user to receive, in actual time, on a tablet or smartphone, information or advertisings referring to the TV transmitted content. The Videoscape is a platform that was introduced in 2011 which assembles digital and online TV contents with social media and communication in multiple screens. But the attentions were mainly attracted to the Prime Home announcement, a solution which permits the management and provisioning of residential and mobile devices connected by the operators. The technology is based on the TR-069 protocol of Clear Access, a company which belongs to Cisco since the beginning of 2012.

With dedicated or in cloud servers, the operator can manage the subscriber’s network with no need to send experts, reducing expenditures and solving problems faster. The Prime Home also permits the development of new products and services based on the end users’ profile reports. A portal in the internet enables the user to manager his/ her own network, filtering the content and giving priority to the domestic network traffic for voice or video, for example..

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1

THE PARTNER’S VOICE

OI and CISCO JOIN EFFORTS Companies seal alliance and enlarge TIC offer for the corporate market

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ith an agreement that seals the first step toward the MSCP (Managed Services Cisco Partner) certification, Oi counts on Cisco to enlarge the TIC solutions offer for the corporate market. Today, the operator has in its portfolio the 15 thousand companies that invest more in IT and Telecom in the Country, and plans to introduce to them compounded solutions that simplify the migration to cloud computing (Smart Cloud) and the networks management (WAN and Back up 3G management). The partnership with Cisco should accelerate the operator’s steps toward the leadership in TIC offers for that niche. In an interview for Cisco Live Magazine, Ronaldo Motta, Oi marketing director of corporative business unit, details the solutions and talks about short and medium terms businesses expectances.

Cisco Live Magazine: How is the partnership project between Oi and Cisco?

Ronaldo Motta: Cisco supplies us the know-how and the pieces of equipment – two essential things in service rendering – and gives us commercial attention. We try to unite Oi and Cisco salespersons efforts, to find businesses opportunities. Cisco is also our partner in supplying blade technologies, which support services in the Smart Cloud

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platform. A project that shows the beginning of Oi’s actuation as a Telecom with IT integrated provider.

CLM: How will the agreement signed for MSCP certification contribute to Oi’s businesses expansion?

Ronaldo Motta: The agreement is the first step toward the MSCP (Managed Services Cisco Partner) certification, which requires the structuration of some processes, such as to have employees who are certificated by Cisco, to give support to the equipment involved in the service rendering, besides documented processes to prove that our operation follows the best market practices. In this direction, we go in search of another certification, the ISO 2000, which will complement the MSCP. CLM: What is the actuation strategy with the corporations?

Ronaldo Motta: RWe have redesigned our positioning for the corporate market. We have today in our portfolio the 15 thousand companies that invest more in IT and Telecom in the Country, and our objective is to enable Oi to become a partner of those organizations in search of incomes and costs rationalization, by means of the use of technology as a service. We have a lot of work ahead of us, but we still need to establish a structured

partnership policy of businesses until we accomplish this objective.

CLM: How are you structures to serve those big companies?

Ronaldo Motta: We redesigned our organizational structure to help the customer to make a purchase decision in favor of Oi and created competence centers to provide services to the networking, fixed voice and convergence, mobility, data center, safety and new businesses areas (with focus in offers of smart world for governments, with solutions of education, health, security, UC, etc.).

In the sales areas, we created teams who are accountable for customers (render services and close deals) and for products (to make a survey of

certain developed services) and we also count on an after-sales team.

CLM: What are the solutions already designed for the corporate universe?

Ronaldo Motta: We have today an offer of private and public cloud, contemplating the infrastructure as well. Our first introduction is the IaaS (Infrastructure as a Service) offer, in which the customer can acquire virtual servers in the Cloud structure and manage the resources remotely, in the self-care model. I.e., the customer has access to an Oi portal (technical backOffice) which permits the machines monitoring and to add resources automatically, for example, the increase of the processing capacity.

In the networks management, the customers can opt for services

which vary from failures and incident management to availability problems; and we re-introduced the WAN networks service and the mobile telephony management (mobility management),where we offer remote and proactive management.

CLM: You also act with a 3G backup network. What is this offer differential?

Ronaldo Motta: This network increases the connection availability, including in critical points of the customers’ operation, and supports operations in cases of failures in another operator’s main network, for a cost that can reach 30 percent of the value that he/she pays in the main network.

CLM: What are the new introductions for the future?

Ronaldo Motta: We already have some new projects under discussion.

It is nothing official as yet, but we are studying with Cisco the possibility to have a partnership on the Oi’s offer of UC (Unified Communication), considering that they are an important player in this area and we want to count on them in the offer of videoconference and telepresence solutions for the corporate industry. This is an important theme within our offer of LAN (customers’ local networks) management and we believe in Cisco’s potential to leverage this project.

CLM: What is Cisco’s importance in OI’s project to act in the bit Brazilian corporate market?

Ronaldo Motta: Cisco is a player with a global reference technology and our movement toward becoming an operator with focus on IT and integrated Telecom demands, essentially, the existence of partnerships. We cannot think this movement with no partnerships with Cisco, because their importance is vital for our business. This is why we hope to count on the limitless support to our initiatives.

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“The movement to become an operator, with focus on IT and integrated Telecom, demands, essentially, the existence of partnerships, and we cannot think this movement without Cisco, because their importance is vital for our business” — Ronaldo Motta, of Oi

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1

THE CUSTOMER’S VOICE

HI-TECH HOSPITAL GAINS PRODUCTIVITY New building of Instituto Nacional de Traumatologia e Ortopedia has 100% IP network and more than one thousand extensions

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ith the move to a new building, Instituto Nacional de Traumatologia e Ortopedia (INTO), a federal public hospital located in Rio de Janeiro expanded meaningfully its operation: it increased the number of beds (from 144 to 303) of consultation rooms (from 14 to 60) and surgery rooms (from 8 to 21); permitting the volume increase is surgeries and ambulatory consultations. But the change needed to be supported by a new IT infrastructure, which should be increased in the same proportions.

With the defined project and the edit published, PromonLogicalis was chosen as the provider of the whole IT infrastructure and telecommunication, using Cisco technology. According to Carlos Junior, INTO technology manager, the network core is supported on the Nexus family. There are dozens of access switches, besides traffic balancing solutions, virtualization and environment safety. The whole telecommunication system is based on IP telephony.

“There are more than one thousand extensions, among fixed equipment, devices prepared for videocalls, mobile telephones and softphones installed in some computers”, details the executive, pointing out that the environment

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management is accomplished by the Call Manager.

The executive reveals that the whole building automation, the perimeter safety (by means of IP cameras), as well as the hospital management systems and the PACS (Picture Archiving and Communication System) operates on the new network.

The environment is also prepared to receive the innovations that are forecast for the second phase of the project, between them the adoption of mobile collaboration resources – with the use of tablets and

6 “The environment is fully managed by the Cisco Call Manager” — Carlos Junior, OF INTO

smartphones – and the Radio-Frequency Identification (RFID). “The whole wireless network is already prepared for the RFID. Soon we intend to use the technology to control assets and high cost materials, as well as for a fast professionals location”, anticipates Carlos Junior.

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6 JUMP Instituto Nacional de Traumatologia e Ortopedia (INTO) increased the servisse rendering capacity after moving to a new building. See the figures: BEDS jumped from 144 to 303 CONSULTATION ROOMS

jumped from 14 to 60

SURGERY ROOMS

jumped from 8 to

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1

THE CUSTOMER’S VOICE

Telepresence tips borders Rexam invests in telepresence global project with Dimension Data services

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orld leader in packages for con s umpt ion, Rexam invested in a farreaching telepresence project with Cisco technology and services of Dimension Data to refine the communication among executives of its subsidiaries in Brazil and in the United States, and in the company headquarters, located in England.

According to André Caneca, IT businesses relationship manager of Rexan in South America, the search for productivity gains of the main executives was the main motivating factor for the project accomplishment.

“We are trying to reduce the number of trips of our professionals and have more speed in the decision making process”, he explains.

Each and every one of the installed rooms has a Cisco 3010 Telepresence unit – commercialized and implemented

by Dimension Data – and underwent

6 “We are trying to reduce the number of trips of our professionals and have more speed in the decision making process” — André Caneca, REXAM IN SOUTH AMERICA

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6 Every installed room has a Cisco 3010 Telepresence unit a necessary adaptation process for the technology use with image and audio quality. In the Brazilian subsidiary, about 30 executives, among managers and directors who have the need of a constant communication to the London and Chicago facilities, use the room.

Empathy Caneca points out the telepresence technology efficiency for a better communication among Rexam executives. “When you have the opportunity to see the person on the other side with quality, there is more empathy and the subjects are dealt with more easily. Today, our telepresence room is used almost every day and the gains go well beyond the financing figures”, he says.

Due to the telepresence project success, Rexsam is evaluating the initiative transference to other subsidiaries. “Our objective is that, from 2013 on, other facilities in South America will also have rooms and share the same communication benefits”, he concludes.

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THE CUSTOMER’S VOICE

TIM ACCELERATES WI-FI INSTALLATIOIN IN PUBLIC SPACES Activation project of 10 thousand hotspots will also increase the operator’s expansion capacity

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onnectivity. The word that has mobilized operators’ projects to expand the telecommunic at ion networks on tome to meet the demand for data transmission mainly during the 2014 and 2016 sport events was translated by TIM as Wi-Fi. The company signed an agreement with Cisco to install new wireless networks in places with a great public circulation, such as airports, shopping malls and stadiums.

The project foresees the installation of 10 thousand hotspots until December. The operator announced that the equipment installation and tests in some public places such as in the Paraisópolis community (SP), besides 13 airports in the Country.

The partnership will enable the delivery of a robust infrastructure, which promises connection to the high speed internet in large cities, including those which will receive the sport events. “Certainly, before the World Soccer Championship, we will provide the best services, and we are already talking to clubs to take connectivity

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to stadiums”, reports Rafael Marquez, TIM Intelig marketing director.

the project, mainly for its magnitude, because we are an operator entering in Wi-Fi, and one year from new we will provide 10 thousand hotspots to a country that counts with only 4 thousand”, says the marketing director.

As part of the strategy to improve the access to the internet in public places in Brazil, TIM also believes that to invest in partnerships, even with competitors, is vital in this moment. “During the sport events there will be more people than normal, so the partnership with other operators will be the way to meet the demand for connection to 3G and Wi-Fi networks”, concludes Marquez.

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Transfer According to him, this project arises as an alternative to relieve the traffic in the 3G network and to meet the internet dement in mobile devices.

“The project is what we call the 3G offload for Wi-Fi. Our strategy is to enlarge the mobile network, which already represents a base growth resulting from the demand for connected equipment”, he explains.

The infrastructure will count on three Cisco pieces of equipment. One outdoor line (1552) for open places; and two Indoor (1042 and 3502) – the first one for environments with little interference; and the last, the most robust one and with a more complicate spectrum, for buildings such as shopping malls.

The partnership between Cisco and Intelig adds quality to the project infrastructure, which is considered as an innovating one for the quantity of installed hotspots. “Cisco technology world-wide known for its quality, avails

“We are an operator entering the Wi-Fi and one year from now we will provide 10 000 hotspots to a country that counts with only 4 000” — Rafael Marquez, OF TIM Intelig

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THE CUSTOMER’S VOICE

ESSENTIAL COMMODITIES Pão de Açúcar Group will have IP network connecting almost 700 localities and more than 30 thousand extensions

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o constantly increase the consumer’s purchasing experience in the stores, by means of the digital interaction, to promote more agility in the communication and the cooperation among employees regardless the distance. Guidelines of the so called “future retail sales”, these items already are a reality in Pão de Açúcar Group, which is implanting an IP network, considered the largest in the industry.

Telefonica/Vivo was hired to migrate 100% of the IP network. The new infrastructure began to be implanted in the company headquarters and should be concluded by the end of 2013 en all 626 stores of Pão de Açúcar, Extra

(hyper, super and minimarket) and Assaí in Brazil.

The network will provide support to new applications, such as videoconference, multimedia kiosks, remote training and applicatives for the consumer.

“This is an important step so that we will be able to offer the most innovating products for both our consumer and out internal customer”, says Ney Santos, CIO of Pão de Açúcar Group.

For executives and co-workers, the IP network will enable the installation of multimedia kiosks and remote training, making easier virtual meetings and more cooperation among the 150 thousand employees of the Group. “The idea is that the increase of the collaboration

resources results in more agility for decision making”, adds Santos.

Big network With the new headquarters, totally based on Cisco technology, Pão de Açúcar Group intends to integrate more than 30 thousand voice extension on IP in 700 localities. Three thousand devices will be habilitated for video, and the network will also have WebEx, Jabber and Jabber Video licenses, together with the whole 4 call centers integration platform, including helpdesk, field service and SAC. “This is the installation of one of the largest IP networks in the Country”, says Mauricio Azevedo, executive director of Telefonica / Vivo Corporate Segment.

Advancement Pão de Açúcar Group project was designed together with Cisco consultants, with the purpose to have a high performance new wireless architecture as well, which will support realities such as mobile shopping, tablets, data collectors for actual time stock management, Wi-Fi balance, among others.

According to Eduardo Frade, Cisco sales manager for the retail segment, the initiative illustrates Cisco project to create stores in the “Flex Store” concept, environments that have as base the Lean Retail Architecture, upon which the network is prepared to integrate existing applications and also to receive the new generation stores concept.

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6 “The increase of collaboration resources will enable more ability in decisions making” — Ney Santos, CIO OF PÃO DE AÇÚCAR GROUP

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GOAL

In partnership with Tecnoset, São Paulo Futebol Clube renews and updates its network infrastructure

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São Paulo Fubebol Clube, a soccer team, signed an agreement with Tecnoset, Cisco partner in the BPO solutions integrations of Documental Management, Networking and Digital Security, to begin a technological modernization of the networks infrastructure of Morumbi station, the Barra Funda Training Center, and the Cotia Athletes Formation Center.

For SPFC, which is in the upper trend and receives increasingly more shows, games and national and international events, it was necessary to count on a reliable and powerful network to offer a safe connectivity to the collaborators, rooters and visitors.

One of the club’s objectives is to make its stadium as a reference in technology and services. To this end, it must be prepared for the future demands of applications, publicity and mobile entertainment, which

demand cabled and wireless connections that are capable to support the growing data traffic demand and management.

Therefore, after an accurate study, Tecnoset, in partnership with Cisco, submitted to SPFC a project with the Borderless Networks architecture,

link in the stadium with distribution to the other facilities.

With the architecture, the club will be prepared to implant the next phases of the project, which include a new managed wireless network, capable to integrate the services of mobile communication, collaboration

6 The solution will enable the club to render wireless network services to the public attending the stadium capable to meet the club’s expectation to increase the number of its collaborators, the quantity of events, public and entertainment services.

Practicability The solution will enable the offer of services and information via the wireless network to the public, resulting in a more far-reaching experience. Furthermore, the club will count on the network redundancies and will be able to centralize its data

and entertainment, with support for teleconference and videovigilance.

For Andréa Domingues Cubos, commercial manager of the Networking & Security unit of Tecnoset, “the wining of this customer confirms the expertise that we have to act in a number of sectors and confirms our certainty that we will accomplish our objectives for 2012, as we already had a 18% growth in this business unit, in the first half of this year”.

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INNOVATION

IT IS TIME TO EXPAND THE ACCESS

With 4G and the wide band expansion in Brazil, Bob Gault, global vice-president for Cisco operators, sees in the Country a great business opportunity

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ervice providers are in an inflexion moment: on one hand, they suffer demands to deliver increasingly more connectivity, on the other hand, they need to have profits with the high investments, maintaining the services quality. In Brazil, with the ongoing federal initiatives, such as Programa Nacional de Banda Larga (the Wide Band National Program -PNBL), and the recent action for the fourth generation of mobile telephony frequencies (4G), the market should remain warmed up and attracting investments.

We interviewed the global vicepresident for service providers of Cisco, Bob Gault, to talk about new technologies and the good moment of the Brazilian market.

Cisco Live Magazine: After a period of restructuration, Cisco is now showing positive results. What is the service providers’ market role in this performance?

Bob Gault: The service providers’ segment has strongly contributed

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to Cisco g row th since the restructuration in 2011. In the first half of 2012, the service providers’ vertical had a growth of about 16% in the first quarter and 12% in the second one. For the year, we expect an 8% growth, this represents one of the company’ fastest growing segments.

This is based on the high demand for solutions of mobility, cloud, video, infrastructure, etc. furthermore, we have a high and growing investments volume in NGN (Next-Generation Network).We believe that we are wining market share among the service providers with our focus in architecture, and by helping them to monetize the business opportunities via the network.

CLM: The global financial market is still hesitant about Cisco recovery.

Do you think that this suspect is due to the company or to the bad moment of the global economy?

Gault: I think that you are right when we look at the second quarter results, because there was some questioning about the company

recovery. When the market saw the most recent results there was a celebration. We keep on doing what we said that we would do, and the market acknowledged the company transformation, including our ability to recognize the market trends, with focus in the consumer and on the innovation. I believe that we are returning to the past levels. Our income had a 7% growth, whereas our profitability had a 7% growth, i.e. twice as much. With that, we said what we are capable to do and we obtained positive comments.

CLM: Did the crisis in Europe affect Cisco’s results in the operators segment?

Gault: It remains being a challenge.

Around the world we keep on being challenged by the economic pressure, but I think that outside Europe there is a little bit more stability and visibility in all markets, including service providers, large companies and the financial area. In the European continent there are still worries and the impact on global results, not only

for Cisco, but for every network equipment manufacturers.

Country and I think that we are in a good position to capitalize them.

CLM: What is the operators’ segment participation in Cisco’s global incomes?

Gault: The service providers

CLM: What evaluation could be made about the present service providers’ Brazilian market?

Gault: I see tremendous growth

6 We like to think that by combining our solutions we gain competitiveness represent about one third of the company global annual sales, including products and services.

CLM: Brazil made an auction for the frequencies that will be used for the 4G/LTE networks implantation.

How does Cisco intend to take advantage of this opportunity?

Gault: We see the Brazilian operators investing heavily to implant 4G networks on time to cover specific localities that are imposed by the regulating entities during important events, such as the World Soccer Championship and the Olympic Games. With the mobile traffic and the surprising devices sale, including in Brazil, the service providers are looking for architectures more devoted to the data traffic in which LTE, SP Wi-Fi, 3G can converge, and other networks that are connected on a unique and intelligent network core.

The result is that, in this scenario, we should maintain our leadership position with our Packed Core technologies together with the largest providers in Brazil. There are opportunities in IP RAM and backhaul architecture, such as integrated SP Wi-Fi to mobile networks, besides architectures devoted to mobile video. The opportunities exist all over the

opportunities for Cisco and for the service providers. One of the reasons is the low wide band and cable TV penetration in the whole territory. This allied to the recent economic growth and the ascension of more than 40 million people to medium class, dramatically increased the demand for computers, tablets, smartphones and telecommunication services.

Cisco sees a growing market in the next years for service providers, which keep on

trusting the company as an adviser and architecture provider, mainly in the areas of NGN, video, cloud and mobility.

CLM: In the carrier Wi-Fi segment, some relatively new players are having a fast growth. How is Cisco getting prepared to compete in this market?

Gault: Our ASR 5000 platform, which is a key-technology in the mobile operators segment, has 67% of the market. In SP Wi-Fi we have almost 100%. Our solutions cause a great deal of impact on service providers.

The operators really understood and adopted our approach focused on the architecture. While our competitors offer unique solutions, we like to think that by combining our solutions we gain competitiveness and offer the proper strategy to the market.

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“The opportunities exit all over the Country and we are well positioned to capitalize them” — Bob Gault, of cisco

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1

SECURITY

AT THE SECURITY service

Cisco bets in solutions that protect the central element of corporate technologies: the network

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t is attributed to the mathematician and computers scientist Vint Cerf, considered as one of the “fathers of internet”, the idea that the best and the world attribute of the network is that one has the possibility to connect to the whole world. At the same time that it serves as a door to a number of positive applications, the web also exposes the people and companies to a growing number of threats.

In recent years, the virtual hackers became common users and big corporations are their targets. To protect its customers, technology manufacturers such as Cisco invest in fighting and preventing threats. The result is that the market of appliances for corporate network security (which includes firewalls, VPN, UTM and IPS) reached US$ 10.2 billion in 2011, according to IDC. And it is estimated that this value exceeds US$ 13.4 billion until the end of next year.

Most manufacturers address their

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efforts for the network security in UTM (Unified Threat Management) pieces of equipment, appliances that include integrated resources of hardware and software. “We do not use the acronym UTM very much”, explains the manager of business for Borderless Networks architecture of Cisco do Brasil, Alexandre Lessa. “This looks like a simple solution to us, focused to some markets, mainly that of small and medium companies.

Cisco does not believe this type of solution, as it understands that security should meet the needs of any size of companies.”

necessary to have specific solutions for each and every security level in the network”, he says.

Architecture is the key-work for Cisco: with the new and increasingly more sophisticated ways of attack, a unique solution does not have the same efficiency of a well-designed and addressed solution.

According to Lessa, specific appliances act in a more effective way than those that congregate a lot of functionalities in one device.

“We have pieces of equipment that are world leaders, but with specific functionalities. Application firewalls integrated to web filtering solutions

6 “Cisco strategy forecasts end-to-end security” — Alexandre Lessa, of cisco

Another problem of these solutions, explains Cisco executive, is the hardware degradation, as new and powerful attacks suggest. “It is

in cloud, e-mail protection and antivirus”, classifies.

Focusing in the network security is a better strategy, according to Cisco,

mobile devices, are also worried about the vulnerabilities resulting from the new environment.

“Cisco strategy forecasts end-to-end security, explains Alexandre Lessa. “It is not enough to have a good firewall if I am not addressing security from the wireless connection side, or from a new device entering the network.

The mobility expanded the security solutions for companies beyond that internet perimeter.”

Thus, approaches such as Cisco Borderless Networks structure prove to be efficient ones, as the security

company portfolio is beyond that, involving web and e-mail security solutions, also in leadership position.

Part of the success of those solutions can be explained by Cisco SIO (Security Intelligence Operations), the center in charge of monitoring and identifying threats against the global networks. It is responsible for creating a data base and signatures that will actively protect cloud solutions such as ScanSafe and ASA appliances, among others.

“With that, we can react in actual time to new threats that arise. Our

6 The appliances market for corporate network security (which includes firewalls, VPN, UTM and IPS) reached US$ 10.2 billion in 2011 and should exceed US$ 13.4 billion until the end of next year, according to IDC because it takes into consideration the connection among all the environment elements: users, devices, applications and data centers, regardless if they are physical, virtual or in cloud. “The network makes this link. This is the point where the security is included”, explains Lessa.

“The threats, platforms, customers and devices change. Two years ago, the smartphones leader was RIM, today it is Apple. Who will it be two years from now?”

Drivers If the growing number of users maximizes the forthcoming of more virtual hackers, what can we say about the explosion of new devices, connected in multiple access networks (Wireless, Wi-Fi, VPN)? For Cisco, the mobility became another great driver for the security solutions. The companies, aware of the productivity increase resulting from the use of

borders are not based on only one point of the network.

The demand for security, by the way, has never been so big. John Chambers, Cisco CEO himself has declared more than once that this is the first and the biggest worry or our customers, and it caused structural changes in Cisco, which began to look for the development of an increasingly stronger architecture.

“For good or bad, the trend is that more and more threads and anomalies will arise. It is necessary that the companies invest to protect themselves”, explains Lessa.

Portfolio Globally, according to IDC, Cisco is the market leader of security appliances with 18.4% of the income.

The firewalls/VPN segment had the highest growth in the second quarter of 2012 (23.3%), mostly thanks to Cisco growth in this market. But the

ASA CX firewall assumes a leadership position in terms of technology by using a base with more than 1 million appliances all over the world”, explains Lessa, referring to Cisco application firewalls, already available in high-end lines. By the end of 2012 it will have a version for smaller companies (mid-end).

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6 NUMBERS • Cisco is the leader of the security appliances market with 18.4% of the income • The firewalls/VPN segment has the highest growth in the second quarter of 2012 (23.3%) Source: IDC

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Article

THE MAIN CONCERNS IN IT LEADERS DECISIONS Strategic mistakes can be devastating to the organizations

T

he decision making is the most important attitude and the one with more transformation capacity of our lives. But still there are managers who think that a logical and structured approach it is not necessary for strategic decisions making.

In the IT area, the decision processes improvement is a concern. Gartner regularly makes surveys with 1000 CIOs to define the priority themes to conduct their businesses and, since 2005 the IB theme is at the top of the list, because usually they strive to improve the decisions.

To understand what should be improved, however, we need to evaluate the reality in some organizations. Usually, the problems are not very well defined in the businesses world.

The decision processes are fluid, with no structure and with ambiguous objectives. Sometimes, not consciously, ready solutions based on knowledge and skills that meet the interests of a group are adopted. Therefore, situations can be created to justify the decisions. This way, in the organizations, ready solutions coexist with new problems and solutions of all kinds that arise all the time.

I know that many readers will think that I could describe their daily routine. But this functional dynamics was described in 1972 in the article A Garbage Can Model of Organizational Choice*, published by the Cornell University.

To my understanding the term “garbage can� is heavy, but his analysis mirrors what I have lived in IT projects of companies in the aerospace, petrochemical, infrastructure, cellulose, finance projects, among others.

When the goals are defined and the problem is identified, the activities of definition, classification and structuration of information, generally flow.

On the way toward the improvement of decision processes it is important to notice that they can be structured with robust methodologies, which supply fast results not only for IT managers but for their collaborators as well. The methodologies to support the decision lead to a structured conversation and to the search of the correct questionings.

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*Roberto Camanho

Priorities I believe that faced to complex decisions, it is healthful to define the subjects that need to be answered. To make the right questions is a good start to structure a decision.

Remember that to solve the right problem the wrong way is better than to solve the wrong problem the right way.

It is necessary to define the functional process that will support these methodologies that support the decision, so that they will be successful. Besides defining the information flow is it recommended to evaluate the environment, the leadership, the questions, the methodology and the accomplishment. The topics of each one of these themes are shown on the figure below.

The success of implanting a support process to the decision depends on a dedicated sponsor. The cultural change is not an easy one. The question remains if we are not complicating the process. To give comfort to those managers who are committed to structure their decision processes I inform that several studies are published showing return in the implantation of these methodologies.

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*Roberto Camanho is founder-partner of Side C, consultant in strategic decision processes and professor of Escola Superior de Propaganda e Marketing/SP in courses of post-graduation and graduation. He acts in the areas of telecommunication, aerospace, petrochemical, finance and cellulose for IT investments selection.

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