Evolving Internet Services

What Is The Market Opportunity?

Presenter: Matteo Gumier Company: Alcatel-Lucent Submarine Networks

Presenter Profile
Matteo Gumier is presently Technical Area Manager for the Americas region of ASN since 2010. With over 10 years of experience in both terrestrial and submarine transmission systems, he was solution architects for major Name: Matteo Gumier EMEA Tier 1 customers of AlcatelLucent. Title: Technical Area Manager He received his Telecommunication Email: matteo.gumier@alcatelChartered Engineer in Politecnico di lucent.com Milano, Italy, and holds two patents.

What Well Discuss Today

1. CURRENT STATUS 2. THE EVOLUTION OF INTERNET SERVICES AND TRAFFIC
A. MOBILE INTERNET B. CONTENT DELIVERY NETWORK

C. CLOUD AND DATA CENTERS

3. THE ROLE OF SUBSEA CONNECTIONS IN CHANGING THE PARADIGM

Current Status
The past :
5 years ago few consumers owned smart phones and considered downloading applications Three years ago most accepted evolution trend about cloud and mobile applications was selective offloading of computing from the mobile terminal to the cloud

Today :
Gold rush on the enterprise mobile app side - consumerization and Bring Your Own Device (BYOD) trend
Internet Video displaced Peer-to-Peer (in North America)

NEW PATTERNS FOR ON THE GO EXPERIENCE

Evolution of Internet Services and Traffic

The composition of traffic is constantly evolving Home Roaming

Forecasted to increase by 20% of all fixed access in 2015

Wireless Devices Exceeding traffic from wired devices by 2016, 61% of the IP traffic Traffic from non-PC devices Increase from 6% to 19% of the consumer traffic over the period 2011-2016

Global Data Centre

Six fold growth for the period 2011-2016, 44% CAGR

Mobile Internet or wireless?

User applications video streaming and social networking are driving mobile data consumption Device diversification:

Smart phone, tablets, phablets, machine-to-machine connections unleash new content and applications
Cloud applications and services allow users to overcome memory capacity and processing power limitations of mobile devices

33% of total mobile data traffic was offloaded though Wi-Fi connectivity of mobile devices
Machine-to-machine modules expected to grow 4.6 fold (2012-2017) but will remain low in absolute volume

FIXED/MOBILE NETWORK DISTINCION HAS BLURRED

CDN Traffic Delivery Impact

CDN fuelled by growth of bandwidth intensive services due positive contribution on backbone traffic and on Quality of Experience.

Before

After

Device diversification and cloud services are now working in the direction of specializing CDN on premium services focussing more on Quality of Experience

FROM CACHING TO PERSONALIZED USER EXPERIENCE

Cloud and data center

Large on-line service providers are rapidly building geographically diverse cloud data centres, often containing more than 10,000 servers Clouds and Data Center represents a powerful tool to develop applications for enterprise mobility or to serve the growing requirements of enterprises going social. Growth of cloud data center traffic is linked to the growth rate of processing and storage capacity of the servers (Moores Law). Some Trends:
from isolated data centers into global scale computing via interconnection of data centers maximization of redundancy between Warehouse Scale dataCenters Workload distribution managed by on-purpose build software

PRIVATE CONNECTIVITY OVER INTERNATIONAL LINK

Internet and Peering

Some movements are visible with companies providing large amount of Content trying to exploit their power (customer wants me) by directly peering with large Access providers Some large Access providers are started exploiting the fact that there are limited way to get to the end user installing peering ratios prerequisite so that any entity that would like to send more traffic to their users than they received would not qualify for free peering, forcing toward a scheme of paid peering.

ACCESS PEERING POWER

THE CHANGING PARADIGM

NETWORK TO DISTRIBUTE / NETWORK TO FEDERATE

THE ROLE OF SUBSEA CONNECTIONS

Provide Large Connectivity

NETWORK TO DISTRIBUTE / NETWORK TO FEDERATE

THE ROLE OF SUBSEA CONNECTIONS

Provide Large Connectivity Improved Resiliency

NETWORK TO DISTRIBUTE / NETWORK TO FEDERATE

THE ROLE OF SUBSEA CONNECTIONS

Provide Large Connectivity Improved Resiliency Geographical diversity to interconnect the city of machine

NETWORK TO DISTRIBUTE / NETWORK TO FEDERATE

THE ROLE OF SUBSEA CONNECTIONS

Provide Large Connectivity Improved Resiliency Geographical diversity to interconnect the city of machine Improved workload distribution

NETWORK TO DISTRIBUTE / NETWORK TO FEDERATE

Conclusion
THE FACTS
Data traffic continues to dominate the growth fuelled by the expansion of the services requested and the increasing number of smart devices

Internet content providers are increasing their role in the industry of international connectivity
A growing amount of internet traffic is originating from non-pc devices, Elaboration and creation of content is performed in large datacenters, evolving from WSC to interconnected WSC Submarine networks are today addressing traffic between main, but large datacenters are (typically) outside the main city

FUTURE DIRECTIONS
Growth of machine-generated communications is placing new challenges to existing international infrastructure, especially in the area of connectivity

Connectivity and capacity remain the main drivers, but tighter dialogue with both service and content providers is necessary to further study how the submarine industry can answer to the reshaping of the internet backbone structure