pacific telecommunications council · ixps are run by carrier-neutral data center operators local...

© EdgeConneX Conf ident ial and Propr ietary

Pacific Telecommunications Council

September 2014


Network and Wireless Trends – Edge Data Centers

Data Moving to the Edge


What’s Driving Our Business

3

Data Consumption Exploding Across Fixed and Wireless Networks

Streaming Video Increasing 10x

* Source: Cisco VNI 2014 and Alcatel Lucent 2012

Fiber | Ethernet Video | Apps Cloud Mobility

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Video Comm Cloud Video OTT Video Storage

0

50

100

150

2013 2014 2015 2016 2017 2018

Thou

sand

s

Fixed Internet Managed IP Mobile data

Fixed and Wireless Data Traffic Growth (PB per Month)

Market Overview and Demand Discussion | Data Moving to the Edge


Traffic Growth Drives the Internet Exchange Infrastructure

4

Phases in the Evolution of the Internet

Phase 2 Mid-1990s – Today

Phase 3 Future

70+ Regional Peering Facilities Traffic is brought to nearest point for exchange 1,000s of Local Edge Data Centers

Phase 1 1980s – Mid-1990s

Few Key Exchange Facilities All traffic is brought to one of these points

MASSACHUSETTS

Exchange facilities are legacy NSFNET exchange points

IXPs are run by carrier-neutral data center operators

Local data centers are run by specialized edge operators

Peering Point

0.02 6 148 1,4716,998

19,796

43,855

0

10,000

20,000

30,000

40,000

50,000

1994 1998 2002 2006 2010 2014 2018

US IP

Traffic (PB)

IP Traffic in the US (Petabytes per Month)

Shifting from Centralized to Regional to Local Edge Data Centers



Targeting Smaller Tier 1 and Tier 2 Markets

5

46 45 53

88

0102030405060708090

100

Washington, DC Nashville Orlando Pittsburgh

2008-‐09 2012-‐13

Traf

fic in

Pet

a B

ytes

Washington DC had an average speed of 5.4 Mpbs in 2008-09 compared to an average speed of 12.5 Mpbs in 2012-13

Average US speed has grown to over 6.4 Mpbs in 2012-13 from 3.4 Mbps in 2008-09, indicating that several smaller markets that had low single digit speeds 4-5 years ago are now rapidly catching up to larger markets

This growth will need the establishment of increased peering infrastructure in several tier II markets

* BW Utilization is a per traffic utilization measure and is equal to [Actual Data Usage / Speed (Mpbs) X Total Time (s)] Sources: Akamai State of Internet Report Q1 2009, US Census Bureau, National Broadband Plan, Cisco VNI Study 2008 and 2012 and CMA Research

HH Passed

Average Speed (Mpbs)

BW Utilization* 0.30% 0.18%

9.9 9.0 11.9 5.4

615,374 798,445 1,001,627 1,991,552

Monthly Traffic Generated by Market (in Peta Bytes) Observations

Several such as Nashville, Orlando and Pittsburgh Lack the Public Peering Infrastructure

Market Overview and Demand Discussion | Edge Data Center


Purpose Built Edge Data Centers

CONSUMER | exponential bandwidth consumption

NETWORK PROVIDER | increasing backbone costs

CONTENT PROVIDER | inconsistent user experience

EDGECONNEX PROVIDES

§  Purpose-built for network, content and cloud requirements §  Building at optimal, customer driven locations §  Average of 10+ kW per rack §  Typical implementation of 1,600 kW §  Rapid deployment for targeted locations §  Power, space, connectivity and operations §  Consortium of content customers §  EdgeOS: Proprietary distributed data center operating system

CHALLENGES ADDRESSED EDGECONNEX | Edge Data Center

§  Right LOCATION

§  Right SIZE

§  Right BUSINESS MODEL

§  Economic benefit, Ecosystem wide

Provide Content Providers & Caching Networks with Local Connectivity & Local Distribution Where the Eyeballs are Aggregated

Edge Data Center Overview

6


20 Edge Data Center Markets…so far National Roadmap of EdgeConneX Facilities

Q1 2015 Delivered EDC Locations

Detroit Pittsburgh

Norfolk

Jacksonville

Salt Lake City

Seattle

Portland

Las Vegas

Houston

Operational EDC Locations

Phoenix

Denver

Boston

Richmond

Tallahassee

Atlanta

Memphis San Diego

Nashville

Miami

Sacramento


Network and Wireless Trends – Small Cells

Data Moving to the Edge

9

Data Growth Drives the need to maximize spectrum

9

Phases in the Evolution of the Wireless Facilities

Phase 2 Mid-1990s – Today

Phase 3 Future

1000’s of cell sites are built Cell Sites are split to accommodate traffic Hundreds of thousands of small cells

Phase 1 1980s – Mid-1990s

Few High and Wide Cell Sites All traffic broadcasts to one of these points

MASSACHUSETTS

Shifting from High and Wide to Macro to Local Small Cells


Source of “#of Small Cells” data from: Informa Telecoms & Media Source of “# of Towers” data from: CTIA, Wireless Industry Summary Report, Year End Results, 2014

0

500,000

1,000,000

1998 2003 2006 2010 2011 2012 2013 2014 2015 2016

# of Towers vs # of Small Cells by Year Number of Cell Towers # of Small Cells (in Hundreds)


Small Cell Network Deployment Not Always a Small Effort Wireless | Small Cell and Services

10

BUILDING REQUIREMENTS

NETWORK | BACKHAUL RESOURCES

§  Fiber §  Wireless (LOS / NLOS) §  HFC §  Coax | Copper

§  Indoor / Outdoor Access §  Aesthetics §  Vertical and horizontal rights §  Inside plant design and

implementation

STREET VIEW


What is holding up Small Cell Network Deployment? Challenges

11

•  Cultural PredisposiVon

•  Necessary shiW in real estate negoVaVons

•  Lack of experience

•  Cost of small cell equipment

•  Cost of backhaul


Leveraging Differentiation to Drive Business Model Approach to Market Enables Monthly Recurring Revenue Opportunity

12

Locations Infrastructure Connectivity Maintenance

Rapid access to 10,000s of sites

Integrated streamlined process to address

zoning and approvals

Rapid time-to-on-air via standardized designs

Flexible installation options (buildings, poles,

street furniture)

NLOS/LOS capability where fiber not

available

Rapid access to fiber backhaul through MSO and fiber partnerships

24 x 7 NOC

Repair / replace capability

Edge Small Cells enable operators to reach scale on timeline and cost required to meet traffic demands


•  Site Selec;on •  Fiber Sourcing & Design •  Network Design

•  Program Management •  Work Flow •  Custom Repor;ng and Dashboards

All tools are web-based and fully integrated

Proprietary Suite of Design and Management Systems Integrated Edge Infrastructure Software Solutions

13


Wireless Network Data Growth Accelerating Network and Handset Improvements Driving Wireless Video Adoption

14

Global Mobile Data Traffic Exploding

15.9 Exabytes per Month of Mobile Data Traffic by 2018

Shift to Higher Bit Rate Mobile Video

Mobile Video Will Generate Over 69 Percent of Mobile Data Traffic by 2018

4G - 15%Connections | 51% of Traffic

4G connection generates 15 times more traffic than a non-4G connection

The Mobile Network in 2013: Signs of a increasingly wireless world •  Global mobile data traffic grew 81 percent in 2013 reaching 1.5 exabytes per month •  Last year's mobile data traffic was nearly eighteen Vmes the size of the enVre global Internet in 2000. •  Mobile video traffic exceeded 50 percent of all traffic for the first ;me in 2012. 53% by the end of 2013 •  Mobile network connecVon speeds more than doubled in 2013 •  In 2013, a fourth-‐generaVon (4G) connecVon generated 14.5x more than a non-‐4G connecVon •  4G represents only 2.9% of mobile connecVons and accounts for 30% of mobile data traffic •  Average smartphone usage grew 50 percent in 2013. (529 MB per month, up from 353MB in 2012)

The Mobile Network in 2018: Access & Core Network improvements drive video adopVon

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