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1 EIT 2.1: Why the New Edge Is Necessary to Reach the Postmillennial Generation Phill Lawson-Shanks Chief Architect & Vice President of Innovation.

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Presentation on theme: "1 EIT 2.1: Why the New Edge Is Necessary to Reach the Postmillennial Generation Phill Lawson-Shanks Chief Architect & Vice President of Innovation."— Presentation transcript:

1 1 EIT 2.1: Why the New Edge Is Necessary to Reach the Postmillennial Generation Phill Lawson-Shanks Chief Architect & Vice President of Innovation

2 2 Data Center World – Certified Vendor Neutral Each presenter is required to certify that their presentation will be vendor-neutral. As an attendee you have a right to enforce this policy of having no sales pitch within a session by alerting the speaker if you feel the session is not being presented in a vendor neutral fashion. If the issue continues to be a problem, please alert Data Center World staff after the session is complete.

3 3 Why the New Edge Is Necessary to Reach the Postmillennial Generation Session Description: In the next five years, we will move from 1.8 billion connected individuals with four to five billion connected devices to upwards of nine billion people online around the globe and anywhere from 40 to 75 billion connected devices. There is little doubt that we have transitioned from a browser world to an app-centric model. 42 percent of people spend most of their time on a single app; if you can guess what that is, please send me a “Like” thumbs-up. The growth of Big Data – and perhaps more importantly – machine learning, is going to give rise to a new persistently connected demographic. (Did I mention 9 billion connected people?) Over the course of the next few years, the new Edge of the network will increasingly provide the high- speed / high capacity on- and off-ramps to the Big Data mega-clouds, as well as a low-latency location for the in-stream analytics engines that will become a vital component in the machine learning and Internet of Things (IoT) technology stack. In this presentation, we will explore the challenges and solutions to this exponential growth in access and consumption.

4 4 Why the New Edge Is Necessary to Reach the Postmillennial Generation

5 5 © EdgeConneX Confidential and Proprietary

6 6

7 7 The Internet is Stable and Ubiquitous A child in Africa with a smart phone… 7 Has access to more processing power than the US government did in the 70’s And more information available than President Clinton did during his time in office

8 8 Hyper Connected World We are in an age of exponential growth 201020152020 1.8B 4B800M Sources: Cisco,Gartner, CMA Research, EdgeConneX 1B 5B 3B 6B 7B 2B 4B >7B

9 9 201020152020 40B1.8B4B>7B 5B 40B 20B 50B 60B 10B 30B 55B Sources: Cisco,Gartner, CMA Research, EdgeConneX 800M1.8B Hyper Connected World We are in an age of exponential growth

10 10

11 11 The Internet: The Ultimate Democratizing Technology & Business Disruption Enabler “In 10 years, it’s predicted that 40% of Fortune 500 companies will no longer exist. You must disrupt to survive.” John Chambers, Board Chairman, Cisco “By 2020, more than three-quarters of the S&P 500 will be companies that we have not heard of yet. The average lifespan of a company listed in the S&P 500 has decreased 50 years in the last century. While successful companies lasted an average of 67 years in the 1920s, they typically exist for only 15 years today” Richard Foster, Yale University

12 12 Internet Traffic is Changing… OTT Video accounts for more than 70% of peak traffic – But Cloud & Streaming are growing daily. This Years Data! Sources: The Sandvine Global Internet Phenomena MEA & NA Report December 2015 Top 10 Peak Period Applications - North America, Fixed Access

13 13 Internet Traffic is Changing… Sources: The Sandvine Global Internet Phenomena MEA & NA Report December 2015; VidStatsX; expandedramblings.com Streaming eSports Grew 50% in 2015  Twitch is the leading Streaming provider for eSports and Live Streamed Events (concerts, etc.)  In 2014, Twitch generated more traffic than HBOGO  On August 23rd, Twitch announced that they had set a new viewership milestone, boasting more than two million concurrent viewers.  Twitch reaches its peak during the late morning/early afternoon and accounts for over 4% of total network traffic. Twitch: The New Broadcasters: The Exponential Growth of Social Media Facebook:  Facebook usage hit 1B people on a single day (1/7 of the world’s population).  The average Facebook user creates 90 pieces of rich media content every month. Twitter and Periscope:  500M Tweets posted every day  2M daily active Periscope Users  350K hours daily video streams Dude Perfect Channel:  Dude Perfect Channel: View Rank – 341 with 955,866,356 Total Views  ESPN Channel: View Rank – 654 with 568,806,851 Total Views YouTube:  300 hours of content uploaded every minute  80% of daily views outside of the US August 24 th, 2015

14 14 In One Second in 2016… The Volume of Content Created and Commerce Delivered 14 In one second: 22,574GB of data is created & shared over the Internet Source: pennystocks.la In ten seconds: 225,740GB of data is created & shared over the Internet In Twenty seconds: 451,480GB of data is created & shared over the Internet In 30 seconds: 677,220GB of data is created & shared over the Internet

15 15 Kansas City’s Mobile Demand Will Equal LA’s in 2018 15 In 2018, Kansas City will consume as much data as Los Angeles did in 2013! Sources: EdgeConneX, Cisco, CMA Research

16 16 The Internet was designed for email…..Not Video or the Internet of Things 16 © EdgeConneX Confidential and Proprietary

17 17.. And it’s Not in Enough Places 17

18 18 Localizing Content and the Cloud Drives Substantial Improvement Impact and Results of Localization  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 minutes. Video Quality Website Performance  Estimated that 100 ms increase in load time can decrease sales 1%  10 search results to 30, increased the average page load time from 0.4 seconds to 0.9 seconds. This, in turn, reduced traffic and ad revenue by 20%.  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, 1000ms is 6% drop-off  1 second delay in Bing results in 2.8% drop in revenue, 2 seconds bring revenue down 4.3%  If Yahoo increased page load times by +400ms they see a 5% - 9% drop in full-page traffic  Studied 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 was put in place. Content delivered using a separate provider in the same metro area without localization had 2% higher rebuffering.  Studies of web page load times showing significant performance improvement as well across separate metro areas and content providers. Results being finalized currently. EdgeConneX

19 19 Third Party Validated Performance Improvement This is What Happens When You Implement The Edge Top 120K video views: CDN Customer A San Diego ISP 2 11% Rebuffer rate improvement San Diego ISP 2 2% Rebuffer rate increase Without With Top 120K video views: CDN Customer B San Diego ISP 2 17% Rebuffer rate improvement San Diego ISP 2 2% Rebuffer rate increase Without With  Improvement is driven by ISP’s connecting to local content in EdgeConneX facility  ISPs & CDNs who implement the EdgeConneX solution will benefit significantly (10-25% improvement)  This will result in higher viewing/engagement, less abandonment, and higher customer satisfaction Engagement Reduction (minutes) With 1% Increase in Buffering 36.6% Very Unlikely 24.8% Unlikely 24.6% Unchanged 86% CHURN RISK How Likely Are You To Watch From That Same Provider Again? 8% Likely 6% Very Likely

20 20 © EdgeConneX Confidential and Proprietary Serves more than 50% of the broadband eyeballs locally Serves more than 75% of the Internet’s content locally Shifts the peering traffic from the core to the new metro locally Creates material and measurable (tangible) cost and performance benefits Delivers a richer media experience Improves security Mission critical capable infrastructure built to Tier III resiliency standards 2 3 4 5 6 7 1 What Defines an Edge Data Center Industry experts are defining the Edge Characteristics 20 The Edge as Defined byThe Edge Manifesto as Defined by “The edge manifesto calls for the placement of content, compute and data center resources on the edge of the network, closer to concentrations of users. This augmentation of the traditional centralized data center model ensures a better user experience demanded by digital business.” “Moving data centers’ processing and content delivery/collection closer to the sources and sinks of this information, including cloud onramps and offramps, offers significant benefits and spawns new business models. This is the essence of the ‘edge manifesto.’” “The use of smaller, distributed, connected data centers (perhaps space in colocation centers), closer to the concentrations of users and generators of content (“pushing things to the edge”), will be required for these workloads. In many cases, these will augment, not replace, the more traditional large data center.” 1 2 3

21 21 The Future of Video is the Internet:  Content - all content will need to be cached at the edge  The edge is the new internet onramp to the mega-clouds, the home for OTT content and the launch platform for the next generation of products and services to a hyper connected world The Internet:  Must be everywhere – especially at the “new edge”  Must be constructed and maintained within an open and predictable commercial business framework  Must support innovation and expansion of platforms and services “at the new edge of the Internet” The Internet of Everything … …Requires the Internet of Everywhere™ The Internet of Things Needs the Edge:  Localized computation platforms for high performance clickstream analysis  High-Speed On-Ramps to Mega-Clouds hosting Big data and Services engines  Lowest latency connections to the 55B sensors and devices that will enable IoT *Trademark of EdgeConneX, Inc.

22 22 Thank you Phill Lawson-Shanks Chief Architect & Vice President of Innovation Find me at: : plawson-shanks@edgeconnex.plawson-shanks@edgeconnex. : www.linkedin.com/in/plawsonshankswww.linkedin.com/in/plawsonshanks : @plawsonshanks


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