Cisco Live: New Developer Tools, Details On SDN Strategy Emerge

Cisco ONE provides application programming interfaces for developers in a few different Cisco operating systems, specifically IOS, IOS-XR an NX-OS. Cisco is offering what it calls "phased support" for those operating systems and also for hardware platforms such as its ASR, ISR G2, CRS, Catalyst and Nexus routers and switches.

The API set, known as Cisco OnePK, will also be used in Cisco's Cloud Connector offering, which debuted earlier this week at Cisco Live in San Diego. OnePK support will be available initially for Cisco's ASR1000 and ISR G2 routers, Cisco said.

[Related: 25 Software-Defined Networking Players To Know ]

In a Wednesday set of announcements, Cisco also said it will offer proof-of-concept controller software and a proof-of-concept OpenFlow agent as ways to further SDN research with academic and research partners. Specifically, Cisco will provide OpenFlow v1.0 agents for use with the Cisco Catalyst 3750-X and 3560-X switches.

In addition, Cisco's Nexus 1000V virtual switch now includes support for OpenStack and Virtual Extensible Local Area Network (VXLAN) gateway functionality. It can also support open-source hypervisors, Cisco said, in addition to the VMware and Microsoft hypervisors it already integrates.

General availability and beta trials for the new products and software are expected by the last quarter of 2012, according to Cisco.

Cisco's guarded embrace of SDN -- and its slowly-emerging "spin-in" SDN company, Insiemi -- has been closely watched thanks to the commonly-held belief that SDN technology will further commoditize Cisco switches and routers.

But according to Cisco CTO Padmasree Warrior, the opposite is true, and Cisco will in fact be the vendor to lead the SDN charge.

"When we talk more about connectivity, programmability and network intelligence, that's a great thing for Cisco," Warrior told CRN in April. "It won't get commoditized; there will be a lot more value generated from it. The network will go through a reinvention and we will be the company that reinvents it."

Warrior also told CRN during an interview at Cisco Partner Summit that Cisco intends to do a lot more work with ISVs and the app developer community.

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Five Essential Tips For Crafting Your First Financial Operating Plan

Alex Wu, is the Founder of CFO Advisors, a leading Fractional CFO practice serving startups from pre-seed to Series C.

In the high-stakes world of startups, the creation of a robust yet flexible financial operating plan is paramount. As a fractional CFO for various startups, I've witnessed firsthand how a well-constructed plan can guide a young company toward its growth targets and sustain its financial health. In contrast, an overly complex or vague plan can confuse the management team and even misdirect resources.

Here are five essential tips for constructing a usable, dynamic and realistic financial operating plan.

The urge to cover every conceivable financial detail in your plan is common among founders, leading to highly complex models with dozens of tabs. However, in the startup world, less is often more. An overly intricate model can be a liability rather than an asset. These models are difficult to maintain, often outdated and struggle to evolve with the company.

As a startup leader, you are navigating a fast-changing business landscape. You need a financial model that is detailed enough to be accurate but lightweight enough to adapt to changing circumstances. The rule of thumb here is that if your operating model isn't updated every month because of the overhead to do so, it likely needs a revamp.

In most startups, I've found headcount and sales and marketing expenses drive over 80% of the operating expense burn. It's important to double-click into these areas and understand their dynamics deeply. While the temptation to analyze every other minor cost will be strong, make sure to keep the focus on these critical areas that significantly impact your burn rate.

Smaller, less impactful expenses should be abstracted to maintain model simplicity and focus. The headcount plan should be constantly updated to reflect the latest known reality, but items like bank fees and postage can be abstracted to broader general and administrative (G&A) expenses with directional assumptions.

A strategic tool often overlooked by founders in their financial modeling is the "tornado" analysis, a visual representation of sensitivity analysis. It showcases the impact of changes in variables—like pricing, customer growth and retention—on key metrics such as cash balance, annual recurring revenue (ARR), margin and runway.

By running sensitivities, founders can develop heuristics, providing insights into how a +/-1% change in various metrics impacts their business. This exercise is invaluable in identifying your business' significant drivers and prioritizing initiatives accordingly.

Running scenario analyses can help founders understand the range of potential outcomes, allowing for agile decision making. Simulate the "best case," "base case" and "bear case" scenarios to help you prepare for worst-case scenarios while also being ready to invest aggressively when growth opportunities present themselves.

This proactive approach not only helps manage risks effectively but also ensures the business can seize growth opportunities as they emerge.

One common pitfall in financial planning is the dispersal of "buffer" or "cushion" across all line items. This approach makes it challenging to analyze the business' actual performance versus the conservatism baked into each forecast.

However, it's also vital not to under-budget, as businesses evolve rapidly and must be prepared to capitalize on high ROI investment opportunities or cover unexpected expenses.

The optimal solution? Forecast as accurately as possible across all line items, and consolidate the "buffer" into a single "corporate contingency" line. This line, typically representing 5-15% of operating expenses, serves as a tactical pool of capital that can address unexpected variances or investment opportunities. In my experience, this method ensures transparency, accuracy and the availability of a contingency reserve for strategic agility.

Creating a financial operating plan may seem daunting, but remember, the goal isn't to create a document set in stone. It's to build a dynamic, evolving tool that provides guidance as you steer your startup toward growth and success. With these tips in mind, you can create a plan that is not just a theoretical exercise but a practical, powerful instrument for financial decision-making.

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