Technology Evangelist, Connected Devices Why the Internet Future Scares Me and How Scalability is the Only Survivor Vinod Chandramouli Technology Evangelist, Connected Devices

We are the leading provider of cloud services for delivering, optimizing and securing online content and business applications. CORPORATE STATS: A fast, reliable, secure Internet is the infrastructure for business and entertainment in today’s faster forward world. That’s what Akamai delivers. Akamai helps enable the best online experiences – those that change the way people work, engage as consumers and seek entertainment. $1.6B Revenue 5,000 Employees 5,000 Customers 2,000 Locations OUR HISTORY: Founded 1998 and rooted in MIT technology—solving Internet congestion with math not hardware. ©2014 AKAMAI | FASTER FORWARDTM

The Akamai Intelligent Platform ™ The Akamai Intelligent Platform is a leading cloud platform for delivering secure, high-performing user experiences to any device. It manages the underlying complexities of the Internet and conducting business in the cloud. The platform is made up of a distributed network of servers and intelligent software, delivering over two trillion interactions daily. No one delivers more web traffic than Akamai, and 90% of Internet users are only a single network hop away. The Akamai Intelligent Platform is constantly monitoring web conditions to: Identify, absorb, and block security threats. Provide instant device-level detection and optimization. Make decisions based on comprehensive knowledge of network conditions. Present unprecedented business and technical insights. Delivering 15-30% of all daily web traffic > 2 trillion interactions daily Defending against attacks over 200Gbps Enabling >$250 billion in annual e-commerce A single network hop from 90% of internet users A distributed cloud platform that manages the underlying complexities of the Internet– • Device and format proliferation • Application and network security • Performance and reliability issues Delivers over 2 trillion Internet transactions daily A single hop away from 90% of Internet users ©2014 AKAMAI | FASTER FORWARDTM ©2014 AKAMAI | FASTER FORWARDTM

Today, the biggest brands in the world and most innovative companies trust Akamai to transform the cloud from a chaotic place with unpredictable performance and scale into a secure, reliable and cost-effective environment to do business. 1. List compiled by Fortune Magazine

QUALITY EXPECTATIONS ARE ON THE RISE 18,000+ distinct Android devices — 58% more than last year 80% of all IP traffic will be video by 2018 Abandonment begins 2 seconds after start-up time QUALITY EXPECTATIONS ARE ON THE RISE

What a Difference a Few Years Makes… 63% CAGR Winter Olympics FIFA World Cup 12 81 29 222 PETABYTES IN 2010 PETABYTES IN 2014 PETABYTES IN 2010 PETABYTES IN 2014

81% CAGR! 7,000x Growing Viewership 1Gbps World Cup 7 Tbps 1999 2002 1999 Victoria’s Secret Fashion Show - Most famous event that no one saw - 1.5M visitors driven from the Superbowl. - Flash crowd, Small fraction of viewers saw it. - Expedition left without a tent 4G LTE 1Gbps 21.0 Gbps <1 Gbps 15.9 Gbps 1999 2002 2004 2007 2008 2009 2010 2011 2012 2013 2014+

The ultimate in video quality over IP at scale GRAND CHALLENGE FOR MEDIA The ultimate in video quality over IP at scale

Quality Is Increasing

Traffic Growth on Akamai’s Platform >26 Tbps 12,000 8,000 6,000 4,000 2,000 10,000 30 >60% CAGR 20 Peak Tbps 10 2000 2002 2004 2006 2008 2010 2012 2014

Delivering Quality at Scale 2013 peak will be 2014 norm >26 Tbps 2012 peak becomes 2013 norm 20 Tbps 2011 peak becomes 2012 norm 10 Tbps 1 Year

Traffic Growth on Akamai’s Platform ~2020 Traffic Growth on Akamai’s Platform >26 Tbps FUTURE DEMAND 12,000 8,000 6,000 4,000 2,000 10,000 30 2.5B Primetime Viewers >60% CAGR 20 x 10 Mbps Peak Tbps ~25,000 Tbps 10 2000 2002 2004 2006 2008 2010 2012 2014

WILL VIDEO BREAK THE INTERNET?

The Scalability Challenge

The Last Mile Has Enormous Capacity 400M Lines X 25 Mbps 10,000 Tbps

The Problem is at the Core Cloud Data Centers 100 Major Networks X 5 Tbps 500 Tbps

The Problem is at the Core Cloud Data Centers 2% of what we need! 500 Tbps = 25,000 Tbps

Akamai’s Edge Strategy Today: Inside Over 1,200 Networks Akamai Servers

THE FUTURE: Further Extending the Akamai Edge: Moving Into Homes

Delivery Innovation: Next Generation Networks Akamai’s Innovation Initiative to Address Online Video’s Grand Challenge Akamai Media Client Core Services API Cache Hybrid HTTP/UDP Acceleration Predictive Video Over Cellular IP Relay

The Technical Challenge: Poor Network Conditions Network conditions begin to deteriorate when Packet loss is > 1% Latency is > 150ms Factors that contribute to poor network conditions include: Home network routers Geographically remote users Cellular connections From a technical standpoint delivering high quality video over IP is challenging because it is heavily dependent upon network conditions which are often sporadic depending upon where you are. For our customers—major broadcasters and media companies—they have end users all over the world so its very complicated to ensure a consistent high quality video experience globally for them. All customers can benefit from the technology. But it will impact end-users differently depending on the end-user network conditions. Here are various countries that represent what percentage of users is going to benefit from the us us technology.

Packet Loss Breakdown By Country. Edge To End User Packet Loss Breakdown By Country* Edge To End User * Loss Modeled On Measured Retransmission Rate Reduced By 1/3 Percentage of users experiencing > 0.67% packet loss 47.7% 46.4% 55.5% 47.8% 50.2% 78.3% 40.5% 59.2% 80.6% 63.1% 75.7% 52.5% Largest Improvements

Hybrid UDP Protocol Application HTTP Astraeus Hybrid HTTP + UDP TCP Internet Protocol (IP) TCP Astraeus Hybrid HTTP + UDP HTTP Application Hybrid HTTP/UDP protocol. Helps overcome TCP inefficiencies Reduces Video Latency and Buffer Time. Improves download and start up times Works for content delivered over the Akamai platform Built-in Multicast support HTTP proxy style interface

Astraeus Workflow Request flow showing HTTP (on the left) and Astraeus (on the right).

Integration Options Connected Device Stack App App App layer integration. Astraeus SDK Application Framework Astraeus can be implemented in two ways: At the application level where the specific application can use Astraeus. At the service layer where _any_ application can take advantage of Astraeus protocol. Services / Libraries Astraeus SDK Service layer integration. Standard HTTP OS

— DEMO —

Predictive Video Over Cellular

Video over Cellular. No one is happy. Want better and more consistent experience Are constrained by data caps Mobile Subscribers Mobile Operators Look to improve monetization Expecting better QoE Hurt by data caps Cannot negotiate with each carrier Content Providers Cannot control content flow or demand Cannot work with each content provider Look to better utilize their network Need to reduce cost of delivery

Mobile Network Utilization Cellular 5 minutes window Cellular networks are about 50% utilized during peak times Surplus capacity can be utilized through controlled demand and represents a significant monetization opportunity

Zero cost capacity opportunity Solution Concept Zero cost capacity opportunity … .. 50% unutilized cellular capacity +25 GB available device storage Carriers want to be creative when selling the next GB The opportunity we would like to discuss today is based on three facts: Mobile networks are under utilized. We are talking about 50% utilization level even during peak hours Large unused device storage (90% on average) Carries that have to sell the next GB Combine the three and you are looking at a significant revenue opportunity and not a bad way to start our mobile business. We believe that tapping into a solution that enables to unlock surplus capacity and predictively download content to the user handset can be a very profitable business with mobile network operators and serve as a good platform to improve our existing business (media and web customers as well as Bigsky) Better mobile experience significantly changes usage patterns and affect ad revenue

High level architecture Content Download Prediction Cellular Wi-Fi Content Download Prediction Network Load Prediction Network Load Prediction Storage & Battery Management ANDSF Server Media Player ANDSF Client Core Functionality: Cellular network load prediction Content download prediction ANDSF Media Player Billing integration (Zero rating)

— DEMO —

Akamai’s IP Relay TURN Service

Peer-to-Peer is Predicted to Explode HTML5 & WebRTC has standardized peer-to-peer communications WebRTC enabled devices is growing A TURN solution will be required to transverse firewalls between these WebRTC connections APPLICATIONS Real-time Communications CHATTING New WebRTC standards are creating the ability to move many client/server communications to peer-to-peer. It is expected the WebRTC will be enabled in nearly every device and browser which will allow for a ubiquitous peer-to-peer connectivity option. A TURN service will be required to transverse the firewalls between these connections. GAMING SALES & SUPPORT CONFERENCING Source: Google, Disruptive Analysis, & ABI Research

TURN Inefficiencies Problem: Peer-to-peer connections are complicated by NAT devices (address- and address-port mapping). If both peers behind a NAT, they may not be able to talk directly. Problem: TURN service can significantly impact performance when either of the end-points are far away from the centralized TURN server. Problem: Geographically dispersed clients can have performance issues even when connecting directly due to long latency and packet loss. Solution: Akamai's IP Relay service provides an improved, fully distributed TURN-like service Global deployment, fault-tolerant technology Akamai's famed network knowledge SureRoute™ technology to find better routes than the Internet Improve Performance: UDP encoding over the long "middle mile” TURN Server Client B Firewall B Client A Firewall A

Akamai IP Relay Service Problem: Peer-to-peer connections are complicated by NAT devices (address- and address-port mapping). If both peers behind a NAT, they may not be able to talk directly. Problem: TURN service can significantly impact performance when either of the end-points are far away from the centralized TURN server. Problem: Geographically dispersed clients can have performance issues even when connecting directly due to long latency and packet loss. Solution: Akamai's IP Relay service provides an improved, fully distributed TURN-like service Global deployment, fault-tolerant technology Akamai's famed network knowledge SureRoute™ technology to find better routes than the Internet Improve Performance: UDP encoding over the long "middle mile” TURN Server A TURN Server B Client B Firewall B Client A Firewall A

How does the IP Relay service work? Customer Directory Service Client A Firewall A EDGE A Client B Firewall B Clients : Each Client is engaging in peer-to-peer communication. The clients will typically have a private IP address that is not publicly routable. Akamai serves as a globally distributed TURN service Directory service: A customer owned and operated directory service that functions as a backend communication path for exchange of information required for connection establishment. Clients Connect To Akamai Edge: Akamai determines the ideal Edge server for each client, providing the best connection into the Akamai Network Akamai Optimizes traffic between Edges: The IPA network optimizes the connection by reducing latency and improving throughput, providing both clients a better experience EDGE B

Relative Call Distances by Country/Geography Long Haul Distance Key (miles) 29% of all video calls are estimated to be “Long Haul” (3000+ miles apart) where latency and packet loss can be significantly higher Long Haul Call Volume (millions) Long Haul Long Haul Long Haul United States Europe Asia United Kingdom China Country/Geography

Measuring IP Relay Quality

Akamai Agent based Quality Testing Framework SEL S F O Test Agent Data Collector Call 2 Test Agent Data Collector Internet Call 1 HKG LON - Internet Connection Test Agent Test Agent - “Akamaized” Relay Connection

Akamai Agent based Test Background Test Agents conduct IP Relay video calls in 15 cities across 10 countries worldwide 1,152 video calls between test agents per day city to city through IP Relay Latency & packet loss captured across actual customer calls & public Internet Test Agent Locations: Netanya, IL Paris, FR Seoul, KR Hong Kong, CN Dallas, US Seattle, US San Mateo, US Los Angeles, US Beijing, CN Tokyo, JP Krakow, PL Cambridge, US Munich, DE New York, US London, UK

Packet Loss

Why Packet Loss Matters Effects of Packet Loss on H.264 video codec 0% Packet Loss 5% Packet Loss Effects of Packet Loss Video: “Blocky” video and a frozen or jerky end user experience. Audio: Stutter or intermittent speech. Experience: Lower resolution video Add skype video stats

Akamai IP Relay Reduces Packet Loss on Long Haul Calls Best <-Case -> < --Acceptable -- > Unacceptable --> Packet loss on “long haul” calls reduced to sub-1% Packet Loss metrics shown are end to end, including last mile call segments beyond the IP relay. Many test calls are nearly devoid of packet loss. Key Internet Loss Akamaized

Latency

Akamai Improves Latency on Long Haul Calls by up to 35% Increased latency resulting in callers frequently talking over one another reduced effectiveness compared to audio calls Gold Standard Acceptable Unacceptable 150 ms 300 ms For intrinsically high latency connections, unless packet loss is tightly constrained, it becomes practically impossible to maintain a high quality video call. Key

Akamai Improves Latency on Long Haul Calls by up to 35% Increased latency resulting in callers frequently talking over one another reduced effectiveness compared to audio calls Latency (ms) <--- Acceptable Unacceptable ---> Many long haul video calls experience unacceptable latency over Public Internet Latency metrics shown are end to end, including last mile call segments beyond the IP relay. Key Akamai brings many of these video calls into the “acceptable” quality range Internet Latency Akamaized

— THANK YOU — Our mission: Is to make the internet business-ready. A fast, reliable, secure Internet is the infrastructure for business and entertainment in the faster forward world. That’s what Akamai delivers and we all need to tell that story. With 3,400 Akamai employees in 25 countries talking to IT and business people in different vertical markets whose priorities vary, it’s is important we all learn and are able to repeat our core brand story of who Akamai is and why what we do matters… Today I’ll walk you through our brand story and I’ll also talk through our portfolio and share with you how it’s evolving.

BACKUP SLIDES Our mission: Is to make the internet business-ready. A fast, reliable, secure Internet is the infrastructure for business and entertainment in the faster forward world. That’s what Akamai delivers and we all need to tell that story. With 3,400 Akamai employees in 25 countries talking to IT and business people in different vertical markets whose priorities vary, it’s is important we all learn and are able to repeat our core brand story of who Akamai is and why what we do matters… Today I’ll walk you through our brand story and I’ll also talk through our portfolio and share with you how it’s evolving.

Application Integration - Local HTTP Proxy-Like Model Without The Akamai Client With The Akamai Client Host System (e.g., Android device) Host System (e.g., Android device) Host Application (e.g., customer’s video app) Host Application (e.g., customer’s video app) Application Core Application Core (e.g., video player, DLM) Akamai Client HTTP HTTP Requests & Responses HTTP Requests & Responses UDP packet flows Multicast/AMT Channels Akamai Servers Akamai Servers

Recap of CAD Hybrid HTTP/UDP HTTP/UDP Hybrid Protocol Advanced Congestion Control Based on FastTCP Forward Error Correction (FEC) Based on Raptor codes

Charts

Latency: Akamaized vs. Internet Route

Packet Loss: Akamaized vs. Internet Route

Akamai Significantly Reduces Video Call Packet Loss Up to 30% of Calls Improved by More Than 50% Country to Country Packet Loss with Akamai Packet Loss (%) Packet Loss Improvement