Post on 14-Jul-2020
2016: The Year
of the Edge
Q1 Analyst Briefing
Clint HeidenChief Commercial Officer,
EdgeConnex
2016: The Year of the Edge
January 12, 2016
“Adopt the Edge or Prepare to be Disrupted”
#YearOfTheEdge
2016: The Year of the Edge
The Not-So-Hyper-Connected World circa 1970
The Hyper-Connected World or IoT circa 2015è 2B connected individuals with 6B connected
The Ridiculously-Connected World or IoT circa 2020è 8B connected individuals with 75B connected devices
The Internet of Things mandates the Internet of Everywhere circa Todayè The advancement of technology depends on Infrastructure keeping paceè Every company will be valued based on an online relationship within 5 years
è In 10 years 40% of F500 companies will no longer exist - John Chambersè The Message: Evolve or be Disrupted
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Said Differently: The Years of Core are Over
#YearOfTheEdge
In One Second in 2015….The Volume of Content Created
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Inonesecondthereis22,574GbofdatacreatedovertheInternet
#YearOfTheEdge
Our Agenda:è Overview (prior page)
è Introductionsè Predictions for 2016 and beyond
è Questions & Answers (submit via chat button)è Follow-up material - electronic and snail-mail
Our Panel:è Moderator: Clint Heiden, CCO, EdgeConneX
è Noam Freedman, SVP Networks & Chief Architect, Akamai
è Guy McCormick, SVP Engineering, Cox Communications
è Peter Neill, SVP Global Product Strategy & Customer Experience, EdgeConneX
è Don MacNeil, CTO, EdgeConneX
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2016: The Year of the EdgePanelist and Agenda
2016: The Year
of the Edge
Q1 Analyst Briefing
Deploying at the Edge
January 12, 2016
Akamai’s Network Deployment Philosophy
Noam FreedmanSenior Vice President, Networks
Akamai Technologies
#YearOfTheEdge
Making the Internet Fast, Reliable and Secure
Akamai is the leading provider of cloud services for delivering, optimizing and securing online
content and business applications.
US BANKS
ALL TOP 10U.S RETAILERS
97 OF THE TOP 100
MEDIA COMPANIES
ALL TOP 30OF THE U.S. MILITARY
ALL BRANCHES
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#YearOfTheEdge
200,000servers3,100locations1,450networks650cities120countries
Akamai’s Planetary Scale Platform
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#YearOfTheEdge
Akamai’s Network Deployment Philosophy
To meet the performance, reliability,
security and scalability needs of our
global customers, we must deploy deep within end-user networks.
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#YearOfTheEdge
Why Deployments in End-User Networks?
0%10%20%30%40%50%60%70%80%90%100%
1 10 100 1000 10000
Cumulative%GlobalTraffic
NumberofNetworks
9
#YearOfTheEdge
Why Deployments in End-User Networks?
0%10%20%30%40%50%60%70%80%90%100%
1 10 100 1000 10000
Cumulative%GlobalTraffic
NumberofNetworks
600
90%
10
#YearOfTheEdge
Offload traffic from peering limitations
Reduce costs for Network Operators
Improve performance and scalability
Minimize the “unprotected” paths
Why Deep Deployments?
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2016: The Year
of the Edge
Q1 Analyst Briefing
The Growth of Network Traffic..
January 12th 2016
..And the Impact of Localization
Guy McCormickSVP of Engineering,
Cox Communications
#YearOfTheEdge
Cox Communications
About Cox CommunicationsCox Communications is a broadband communications and entertainment company, providing advanced digital video, Internet, telephone and home security and automation services over its own nationwide IP network. The
third-largest U.S. cable TV company, Cox serves approximately 6 million residences and businesses. Cox Business is a facilities-based provider of voice, video and data solutions for commercial customers, and Cox
Media is a full-service provider of national and local cable spot and digital media advertising. Cox is known for its pioneering efforts in cable telephone and commercial services, industry-leading customer care and its outstanding workplaces. For eight years, Cox has been recognized as the top operator for women by Women in Cable
Telecommunications; Cox has ranked among DiversityInc's Top 50 Companies for Diversity 10 times, including the last nine years. More information about Cox Communications, a wholly owned subsidiary of Cox Enterprises, is
available at www.cox.com and www.coxmedia.com.
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0
1000
2000
3000
4000
5000
6000
7000
8000
9000 FORECASTED
Today
Loca
lize
d vs
. Bac
khau
led
Net
wor
k Tr
affi
c
Localized Traffic
Backhauled Traffic
46%
54%
58%
42%
Cox Network Growth – Traffic & Localization Impact42% of Cox Internet traffic is now delivered locally, providing financial efficiencies, network reliability, and improved customer experience. This number is expected to rise to 46% by EoY 2016.
§ Today, 42% of Cox internet traffic is currently localized in six major markets.
§ Through 2016, the prediction is that localized traffic will grow at 55%, and backhauled traffic will grow at 50%.
§ Barring any major, unforeseen changes, Cox predicts the traffic growth in 2016 to be consistent to historical trends.
§ Anticipating Netflix encoding advances will reduce the bandwidth of existing content by 10-15% but quickly consumed by ABR and 4K
§ The combination of Netflix, Akamai, and Google will continue to be 65-70% of all Internet traffic.
§ Cox expects to see Apple and Amazon gain popularity, and bandwidth share, in 2016.
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2016: The Year
of the Edge
Q1 Analyst Briefing
Measuring the Impacts
of Localization
January 12 2016Peter NeillSVP, Global Product Strategy,
EdgeConneX
#YearOfTheEdge
§ Estimates that 100 ms increase in load time can decrease sales 1%
§ Increasing from 10 to 30 search results, increased the average page load time from 0.4 seconds to 0.9 seconds. This in turn, reduced traffic and ad revenue by 20%
§ A second median latency increase = 15% engagement drop and 5% bounce rate increase
§ Facebook pages that are 500ms slower result in a 3% drop-off in traffic
§ 1 second delay in Bing result, results in 2.8% drop in revenue, 2 seconds equals drop of 4.3%
§ If Yahoo increased page load times by +400ms they see a 5% - 9% drop in full-page trafficWeb
site
Per
form
ance
B
usin
ess
Impa
cts
Amazon
§ Researchers have determined that each 1 second video delay results in ~6% increase in abandonment rate
§ Minutes of video watched by consumer is negatively correlated with buffering. In 2014 a 1% increase in buffering time reduced video watched by 14 minutes
§ If an audience perceives video quality as “poor,” 92% of audience will stop watching before program is over. 75% of the audience will stop watching within the first 5 minutesV
ideo
Qua
lity
Use
r Im
pact
s
§ Studies of web page load times showing significant performance improvements (9-15%) or ~150 ms in two ECX markets across two unique content providers
§ Studied video delivery in single metro area to test the delivery of content before and after localization. Results clearly showed 11-17% lower buffering ratio for publishers prior to and after EdgeConneX solution was implemented. In fact, content delivered using a different ISP in the same metro area without localization had 2% higher re-buffering of the same content
Edg
eCon
neX
R
esul
ts to
Dat
e
Localizing “Services” Drives Substantial Improvement
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#YearOfTheEdge
Validates Edge Performance Improvement
Impacts of Localization on Web Performance
0
500
1000
0400800
120016002000
§ Search engine site measured in Norfolk, VA
§ Sam Knows measured an average page load time reduction of ~150 ms or 15.4% improvement
15.4% Decline
9.2% Decline
Page l
oad tim
e (
ms)
Page l
oad tim
e (
ms)
§ E-Commerce site measured in San Diego, CA
§ Sam Knows measured an average page load time reduction of ~150 ms or 9.2% improvement
E-Commerce Site
9.2% Improvement
Search Engine Site
15.4% Improvement
100msdelayinpageloadtimescanimpactsalesby1%(AmazonQuote)
WithWithout
Without With
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#YearOfTheEdge
Top 120K video views: Akamai Customer A
Cox – San Diego
11%Re-buffer rate improvement
ISP 2 - San Diego
2%Re-buffer rate
increased
Validates Edge Performance ImprovementImpacts of Localization on Video Performance
WithoutWith
Top 120K video views: Akamai Customer B
Cox - San Diego
17%Re-buffer rate improvement
ISP 2 - San Diego
2%Re-buffer rate
increased
WithoutWith
November ‘15 Whitepaper Results
§ Improvements driven by ISP’s connecting to local content in EdgeConneX facilities
§ ISPs & CDNs peering at the Edge will benefit significantly (Cost to Provide Service and User Experience)
§ Results include higher viewing/engagement (CE & Advertising $), less abandonment (CE & Churn), and higher customer satisfaction (CE & Retention)
-3
-8
-11
-14
2011 2012 2013 2014
Engagement Reduction (minutes) With 1% Increase in Buffering
33.6%
VERYUNLIKELY
24.8%
UNLIKELY
24.6%
UNCHANGED
86%CHURN
RISK
6.6%VERY LIKELY
8%LIKELY
How Likely Are You To Watch From That Same Provider
Again?
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#YearOfTheEdge
Available and Potential NA Locations
Madison
Denver
Salt Lake City
Las Vegas
PhoenixSan Diego
Sacramento
Portland
Seattle
Minneapolis
Houston
Miami
Jacksonville
Tallahassee
Richmond
Norfolk
Pittsburgh
Boston
Detroit
Nashville
Memphis
Santa
Clara
Data Center Locations
Coming Soon
Under Consideration
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#YearOfTheEdge
Netherlands(Amsterdam)
France(Marseille)
Italy(Milan)
Germany
Austria(Vienna)
Romania
Turkey
Finland(Helsinki)
PolandUnited Kingdom
(London, Birmingham, Manchester, Leeds, Glasgow, Liverpool)
Available and Potential EMEA Locations
Data Center Locations
Coming Soon
Under Consideration
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#YearOfTheEdge
The Edge Goes GlobalExtend Footprint Beyond the Traditional Peering Hubs
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2016: The Year
of the Edge
Q1 Analyst Briefing
Edge Drivers & Implications
January 12 2016Don MacNeilChief Technology Officer,
EdgeConneX
#YearOfTheEdge
2016: The Year of the Edge
Enabling Digital Transformation and the Internet of Everywhere
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Cloud
IoT
Traffic
Content
Devices
Security
DigitalTransformation
• Through 2015, at least 50% of cloud deployments
will suffer from business-impacting performance issues, requiring extensive network redesign to
address them (Gartner)
• 67% say security concerns are a top challenge to
implementing their cloud strategy (IDG)
• By 2019, global data center traffic will reach 10.4 zettabytes per year
• By 2019, 4 out of 5 data center workloads will be
processed in the cloud
• 83% of Data Center Traffic Growth from Cloud;
Representing over 8 Zbs (Cisco);
• By 2018, at least Half of IT spending will be Cloud
Based, Reaching 60% of all IT Infrastructure…by
2020 (IDC);
• Some 30 billion devices will be connected by 2020
• Driving the development of 200,000 New IoT Apps and Services (McKinsey & IDC);
• It is estimated that only 0.5% of data is being
analyzed (GE-IDC);
Gaming
• Globally, IP video will represent 80% of all traffic
by 2019
• Internet video to TV grew 47 % in 2014;
• 13x Growth in mobile video traffic b/n 2013 &
2019 (Cisco)
• Whereas Internet traffic was once broadly
distributed across thousands of companies, by 2009 half of all Internet traffic originated in less
than 150 large content and content distribution
companies. By May of 2014, this number had
dropped by a factor of five. Today, just 30
companies, including Netflix and Google, contribute on average more than one half of all
Internet traffic in the United States during prime
time hours. (Deepfield)
• Twitch, an online video game site, ranks 4th in
terms of Peak US Internet traffic, ahead of Hulu, Amazon and Facebook (Deepfield)
Content TrendsLatency
Cloud Trends
KeyRequirements
1.Location/Proximity2.HighPowerDensity3.Connectivity
#YearOfTheEdge
More Users, More Devices, More Applications & More Content
Accelerates Zettabyte Era• By 2020, there will be nearly
3.9 billion global Internet users
(more than 51% of the world’s
population)
• By 2019, there will be 24
billion networked devices and connections globally
• Globally, the average fixed
broadband connection speed
will increase 2.2x to 42.5
Mbps by 2019• Globally, IP video will
represent 80% of all traffic by
2019
#YearOfTheEdge
Rapid Cloud Adoption Drives Architectural Evolution
EdgeConneX Helps Brings the Cloud and IoT to the Enterprise with Distributed Architecture
50+Local CloudHubsCloudarchitecturebecomesmoredistributed
EdgeGoes Global: Local CloudHubsFewKeyCloud Hubs(MajorDataCenterMarkets)
Alltrafficisbroughttooneofthesepoints
Exchange facilities are legacyNSFNETexchangepoints IXPsarerunbycarrier-neutraldatacenteroperators Localdatacentersarerunbyspecialized edgeoperators
PeeringPoint
Phase12010– 2015
PhasesintheEvolutionoftheInternet
Phase22016- 2020
Phase3Global
RapidlyGrowingDataCenterTraffic DrivenLargelybyCloud Problem• Latency:CloudApplicationPerformance• Compliance:DataSovereignty• Redundancy:BC/DR• Flexible:HybridCloudSolutions
Solution• Deployattheedge…asclose toenterprisesaspossible
• Distributedarchitectureallowsforredundancyandlocaldatarequirements
• ScalablesolutionswithinfacilitytosupportbothCSPandEnterprisedeployments
EdgeConneX• BuildsCloudEcosystemsattheEdgeincloseproximitytoEnterprises
• CloudcomestotheEnterprise;OptimalalternativetoformeronpremisedatacenterforEnterprises;
#YearOfTheEdge
Why Cloud Needs to Move to the EdgeApplication Performance: Quantifying the Impact of Latency and Localization
• Streamingbasicvideoandmusic• Textcommunications• Voiceover IP• WebBrowsing• Webconferencing• Cloudbasedlearningmanagement
systems
• SaaSsolutions:ERP&CRM• HDvideostreaming• SDvideoconferencing• Webelectronichealthrecords• VoiceoverLTE• Personalcontentlocker
• Telemedicine• HDvideoconferencing• UltraHDvideostreaming• Virtualoffices• Hi-frequencystocktrading• Connectedvehiclessafety
applications
Source:CiscoGCI,2015
#YearOfTheEdge
IoT Further Accelerates the Need for the EdgeEnabling the Industrial Internet
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WHAT HAPPENED WHEN1B PEOPLE
BECAME CONNECTED
Entertainment was DigitizedSocial Marketing Emerged
CommunicationsMobilized
IT Architecture was VirtualizedRetail & Ad Transformed
WHAT HAPPENES WHEN75B DEVICES
BECOME CONNECTED
IT is VirtualizedAnalytics become predictive
Machines are self healing & automatedMonitoring and maintenance is
MobilizedEmployees increase productivity
2016: The Year
of the Edge
Q1 Analyst Briefing
Wrap-Up and Q&A
Clint HeidenChief Commercial Office,
EdgeConneX
#YearOfTheEdge
PredictionsIn 2020 We Will Experience the Following Phenomena's
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Welcome to 2016
Welcome to the Year of the Edge!
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#YearOfTheEdge
Q1 Analyst Briefing