The digital transformation is happening now for … digital transformation is happening now for...
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Transcript of The digital transformation is happening now for … digital transformation is happening now for...
The digital transformation is happening now for billions of consumers and business users across the globe.
Innovation is imperative for Cisco and our customers to deliver scalable, secure, high-quality services and
experiences over all types of broadband network infrastructures.
“- Doug Webster,
Vice President of Marketing, Cisco
In 2016, annual global IP traffic is expected to cross the zettabyte threshold.
By 2020, global IP traffic will reach an annual run rate of 2.3 zettabytes per year. More than one billion new Internet users are expected to join the global Internet community, growing from three billion in 2015 to 4.1 billion by 2020.
In Australia, there will be 21 million Internet users in 2020, representing 81% of the country’s population.
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Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2Minnovations
Key insights for Asia Pacific and Australia APAC will maintain its position as the top IP traffic-generating region in the world, averaging 67.8 exabytes per month through 2020. In fact, Asia Pacific will account for 45% of global mobile traffic by 2020, the largest share of traffic by a substantial margin.
With the world’s largest population and the most devices and connections, the increasing network usage in Asia Pacific poses significant challenges as well as opportunities for the region’s telecom carriers and service providers.
The same growth momentum is gaining traction in Australia, where there will be 237 million networked devices by 2020 – up to 34% of the networked devices will be mobile-connected. Service providers need to ensure their networks are intelligent, scalable and agile enough to accommodate the robust IP traffic growth.
#1 New innovations from IoT/M2M growth as digitisation transformation momentum picks up. The adoption of personal devices and deployment of machine-to-machine (M2M) connections will have an even greater impact on traffic growth across the region.
#2 Video services and content continue to dominate Internet traffic growthas compared to other applications. In Australia, total Internet video traffic (business and end user combined) will make up 82% of all Internet traffic in 2020.
#3 Better network performances and enhanced user experiences are expected so broadband speed improvements will be key to accommodating increased consumption of high-bandwidth content and applications. High-bandwidth speeds are also integral in supporting both consumer cloud storage and the next wave of software-defined data centres for enterprises.
#4 Cybersecurity is increasingly becoming a top-of-mind concern for governments, businesses and end users with the growing dependence on mobile and fixed broadband networks.
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2Minnovations
5 key areas of M2M applications
INSIGHT
CONNECTED CITIES
• Environment and public safety — closed-circuit TV, street lighting, waste removal, public information
• Public space advertising• Public transport• Road traffic management
CONNECTED HOMES
• Home automation• Building security• Network equipment• Network infrastructure —
routers and white goods• Tracking applications• Household information
devices
CONNECTED HEALTH
• Health monitors• Assisted living — medicine
dispensers• Clinical trials• First responder
connectivity• Telemedicine
CONNECTED CARS
• Fleet management• In-vehicle entertainment
systems, emergency calling, Internet
• Vehicle diagnostics, navigation
• Stolen vehicle recovery• Lease, rental, insurance
management
MANUFACTURING & SUPPLY CHAIN
• Mining and extraction• Manufacturing and
processing• Supply chain• Warehousing and storage
IoT/M2M applications, such as smart meters, video surveillance, healthcare monitoring, transportation, and asset tracking, are key drivers of the growth of devices and connections. By 2020, it is estimated that 139.7 million M2M modules in Australia will average 815 megabytes of data traffic per month. With digitisation fast taking shape across business verticals in Australia, M2M applications are crucial in creating better insights as well as improving processes and outcomes for business and individuals.
UNLOCKING NEW INNOVATIONS
#1 New innovations from IoT/M2M growth will emerge
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2M innovations
CREATING AUSTRALIA’S LARGEST WI-FI NETWORKAs the range of connected devices continues to grow in Australia, telecom carriers are turning to Wi-Fi solutions to offload IoT connectivity demands. At the same time, the rolloutof Australia’s National Broadband Network (NBN) is driving up end user expectations about broadband speed and quality.
To address these requirements, Telstra recently launched Australia’s largest fully integrated public Wi-Fi network, built using the Cisco Meraki Wi-Fi management platform. Launched in June 2015, the Telstra Air Network™ comprises of 3,600 Wi-Fi hotspots at various locations in over 250 cities and towns. Further “homespots” were created by Telstra Air members, developed using Wi-Fi sharing technology in collaboration with Telstra’s Spanish partner Fon.
See the highlights
ADELAIDE’S SMART CITY PROJECTSUnder Cisco’s Smart+ConnectedTM Communities Program, Adelaide has begun taking steps towards becoming one of the world’s advanced Smart Cities. Besides smart lighting and smart on-street parking deployments, it has also launched its Smart City Studio that connects the city and its businesses, entrepreneurs and citizens to a range of IoT opportunities.
Bandwidth-intensive M2M connections will continue to gain momentum across industrial and consumer IoT segments. Learn how to tap into this growing trend:
• Evaluate potential IoT use cases for your business against existing and potential capabilities. Read more in our Cisco Connected Factory whitepaper
NEXT STEPS FOR IOT/M2M
Insight #1: New innovations from IoT/M2M growth will emerge
• Develop an IoT-specific business case by considering the key revenue streams.
• Identify the core horizontal capabilities (e.g. fog platforms, cloud) and vertical ecosystem partnerships required for IoT monetisation. Learn more about fog computing and IoT in our whitepaper
“Adelaide’s smart city pilots demonstrate the value of a sensor-connected infrastructure to deliver new and improved citizen experiences.”
- Jane Booth, General Manager, City and Organizational Development, Adelaide City Council
Learn how we are helping to build cities of the futureMore on Cisco Smart+ConnectedTM Communities
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2M innovations
Video services and content continue to dominate Internet traffic growth, as compared to other applications. IP-based video consumption, ranging from online video streaming, live video feeds, video-on-demand (VoD) and web-based conferencing, generate the largest share of IP traffic.
#2 Video growth will continue, so will its opportunities
MOBILE VIDEO GROWTH• The popularity of mobile video is evident
in the growing number of people watching YouTube, Netflix and other content services via their smartphones and tablets.
• In Australia, mobile video traffic will grow 7-fold from 2015 to 2020, a compound annual growth rate of 47%.
INCREASING VIDEO DEFINITIONThe burgeoning HD and ultra HD Internet video trend will be most pronounced on IP VoD traffic.
In Australia, total internet video traffic (business and end user combined) will make up 82% of all Internet traffic in 2020.
• Ultra HD will be 28.2% of IP VOD traffic in 2020, up from 2.1% in 2015 (104.3% CAGR).
• HD will be 49.3% of IP VOD traffic in 2020, up from 44.7% in 2015 (23.7% CAGR).
INSIGHT
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2M innovations
With greater video quality, come greater media and network expectations. Firstly, establish a media-optimised infrastructure to ensure broadcast quality of service across IP networks.
• Make sure that network resources are able to cope with the growth in advanced Internet video (HD and Ultra HD) applications, as well as mobile video growth.
• Adopt content delivery network (CDN) platforms to bring video content to end users in an optimised and cost-effective manner, while ensuring a better content experience.
A STEP CHANGE IN TV AND MEDIA CONTENT EXPERIENCES
Insight #2 : Video growth will continue, so will its opportunities
A NEW APPROACH TO MOBILE VIDEO SERVICES
Continued business video adoption (i.e., HD and web-based video conferencing and business VoD) may prompt greater growth in network virtualisation and leveraging the Internet for video transmission.
IN 2020
82% OF ALL INTERNET TRAFFIC IN AUSTRALIA WILL COME FROM VIDEO
Service providers will be faced with increased bandwidth and scalability requirements, as end users require advanced video services across a variety of networks and devices.
Find out more inside our whitepaper
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2M innovations
The growth isn’t just about video but the overall experience whether it’s on the end user or business front — from more engaging high-bandwidth content to storage and data needs.
• Broadband speed improvements are key to accommodating increased consumption of high-bandwidth content and applications.
• High-bandwidth speeds are also vital in supporting both consumer cloud storage and the next wave of software-defined enterprise data centres.
• On the enterprise front, cloud has become a pivotal part of the IT landscape. IT executives need to cope with the growing number of applications and data traffic shared across multiple data centres and hybrid cloud environments — for business users to get the on-demand experiences they need.
will be the fastest growing residential devices/connections with a CAGR of 21.4%.
will be the fastest growing consumer mobile service with a CAGR of 27.8%.
will be the fastest growing business Internet service with a CAGR of 30.8%.
2015
21.1 million web-enabled TVs
2020
557 million web-enabled TVs
2015
379 million users
2020
1.3 billion users
2015
4.7 million users
2020
18 million users
#3 Better network performance and enhanced user experiences are expected
Desktop/personal video conferencing
Mobile location-basedservice (LBS) Web-enabled TVs
INSIGHT
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2M innovations
IN ASIA PACIFIC
• Maintain fast and reliable network connections to deliver a high level of user experience and reduce customer churn.
• Consider building up automation and orchestration capabilities within the network, and explore SDN/NFV-based solutions to enable differentiated services and enhanced user experiences.
ORGANISATIONS NEED TO…
In essence, by putting the end users in the centre, you don’t just equip yourself for the future but also offer greater satisfaction and enjoy brisker business as a result!
Insight #3 – Better network performance and enhanced user experiences are expected
In APAC, the average household will have 3.3 fixed devices and connections by 2020 (up from 2.0 in 2015). If we take into account consumer mobile devices that could potentially connect to fixed networks over Wi-Fi, this number would be even higher. DID YOU KNOW?
Network users don’t want to be tethered; there’s a preference for mobile networking when it’s available.
WI-FI? WHY, YES!By 2020, fixed Wi-Fi networks will generate 58% of Australia’s total IP traffic.
AUSTRALIA IN 2020
AVERAGE FIXED BROADBAND SPEEDto grow 2.4x
AVERAGE MOBILE CONNECTIONreaching 44.3 Mbps Expected to accelerate 2x reaching 16 Mbps
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2M innovations
With the growing dependence on mobile and fixed broadband networks, security concerns are increasingly becoming a top-of-mind concern. Threats such as Distributed Denial of Service (DDoS) can paralyse networks by flooding servers and network devices with traffic from multiple IP sources. New DDoS analysis suggests that these types of breaches can represent up to 10% of a country’s total Internet traffic while they are occurring.
In advanced economies, a recognition of the importance of cyber security is now very much part of the public agenda. In 2016, Australia’s National Cyber Security Strategy outlined the nation’s agenda for security action up to 2020. It is supported by an investment of AU$230 million in a wide range of initiatives, including cyber health checks for small businesses, improved industry training, practice and response, and an industry growth centre.
Over the next five years, global DDoS attacks are projected to increase from
6.617
million
million
#4 Network security will be critical to business
INSIGHT
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2M innovations
• Growing network security threats underscore the need for more comprehensive security measures to protect data and reduce network exposure to such risks.
• Be sure to take advantage of today’s digital technologies such as IP, cloud and over-the-top (OTT) service delivery to grow the business, without being deterred by security concerns.
• In a dynamic technology landscape, security must move away from its traditional emphasis on protection and perimeter defence to become more pervasive and effective.
CISCO 2016 MIDYEARCYBERSECURITY REPORTDownload our latest security findings and insights
Insight #4: Network security will be critical to business
ON A SECURITY NOTE
Source: McAfee 2016
The average number of security breaches was highest in Asia Pacific organisations and lowest in UK and US enterprises. More than 10% of Asia Pacific companies reported over 20 breaches, compared to just above 1% for North American and 4% for UK enterprises.
In same vein, organisations in Australia are facing rampant cybercrime. At the same time they are preparing their business for a digital transformation, Australian companies also need to focus on addressing the security challenges that digitisation will bring:
• In 2016, the complexity of extended business networks, the explosion of endpoints and connections, and the sophistication of modern threats have become the prevailing trends. Companies need to take a pervasive, threat-centric security approach to block and detect the most advanced and evasive threats.
• As more companies place their critical workloads into the cloud, security requirements will become more far more complex and fragmented. Visibility, trust and management all become growing challenges.
• With more phishing scams, advanced malware, and other cyberattacks specifically targeting mobile users, the challenge now will be to keep businesses open to innovation, while ensuring data privacy and network security – whatever the architecture.
See why enterprises need effective security to keep ransomware at bay
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2M innovations
Take the next leap in the Zettabyte EraThere’s never been a better time to reimagine your business and transform your networks to
keep pace with the developments that are taking shape across your industry.
Cisco collaborates closely with organisations in developing strategic approaches to fostering innovation and expanding into new markets. So get in touch with your account manager if you wish
to further discuss the VNI insights and how Cisco can support your business initiatives.
Rise of video services
User experience demands
The importance of cyber security
What’s next
Overview
IoT/M2M innovations
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