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Monthly Products Webcast

Future of CDN – Next 10 Years
DigiWorld Summit 2013

Ahmet Ozalp, VP Products and Strategy, Inte...
Brief History of CDN
Traditional
webhosting,
Storage

Traditional
Server
Hosting

1990s

Static &
Dynamic
Content

Analyti...
THE INTERNET HAS
COME A LONG WAY…

Grow revenue opportunities with fast, personalized
web experiences and manage complexit...
EVERYONE
AND EVERYTHING IS
GETTING CONNECTED
Grow revenue opportunities with fast, personalized
web experiences and manage...
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices ...
Video as the killer App and
driver for traffic
Grow revenue opportunities with fast, personalized
web experiences and mana...
Prediction #1
Traffic will grow exponentially!
CDNs will carry more and
more of it!
Grow revenue opportunities with fast, ...
Consumer Internet Traffic
% of Video
Traffic CDN
enabled = 65%
300

% of Video
Traffic CDN
enabled = 53%

tbps (ave)

250
...
2022…
1600

80%+

1400

tbps (ave)

1200
1000

800
600
400

51%

34%

200
0
2012

2017
All Consumer Internet

2022
CDN Ena...
Let’s do the math…

100MB Primetime Viewers

Avoid data theft and downtime by extending the
security perimeter outside the...
Prediction #2
Connected devices will drive
complexity
Mobile apps, OS and gaming
downloads will cause“spikes”
Grow revenue...
Connected Device Landscape
Frequently “on”
or available

Smart Router & DVR

400M
30-60M

1.5 - 2B

Smart TVs

Frequently ...
Major events stress the
Network
9/18/13
6/10/13
8/19/12
10/12/11
6/23/10

Akamai Confidential

Faster ForwardTM

©2012 Aka...
Complexity
Short to Mid-term
 Diverse standards and practices for video
encoding and packaging, DRM

Long-term
 Standard...
Prediction #3
CDN Architectures will
evolve!
Content will move closer to
the Edge!

Grow revenue opportunities with fast, ...
Internet is Complex
12,000 networks
connected by
peering points
(Cloud)
Datacenters

End-Users

X

X

Akamai Confidential
...
Closer to the Edge…
(Cloud)
Datacenters

End-Users

X

CDN
Server

Akamai Confidential

X

Faster ForwardTM

©2012 Akamai
Prediction #4
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, m...
Technology Innovation

Optimized
TCP

HTTP/UDP
Acceleration

Multicast
Delivery

Intelligent
PrePositioning

Peer
Assisted...
Prediction #5
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, m...
Value Added Services
 Video Workflow
Acquire

Prepare/
Protect

Publish

Deliver

Consume

Analyze

 Advanced Web Accele...
Prediction #6
CDNs and Telcos will
cooperate closely!

Grow revenue opportunities with fast, personalized
web experiences ...
Prediction #7
Content deliver echo system
will grow to include new
categories!
Grow revenue opportunities with fast, perso...
CDN echo system will grow
Fast Time
to Market

Application Developer
Carrier/MSO

Device Manufacturer
OS Developer

Chip
M...
Prediction #8
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, m...
CDN Video Quality
 High capacity, multi-protocol CDNs
 Sophisticated encoding and
transcoding technologies

 3D, 4K, 8K...
Prediction #9
Pricing will get more
sophisticated!

Grow revenue opportunities with fast, personalized
web experiences and...
CDN Pricing
 Content and use case specific pricing

 Geo-based pricing
 Tiered Pricing (QoS)

Akamai Confidential

Fast...
Prediction #10
CDN services will become
more and more cost effective!
CDN will be an enabler of
business innovation!
Grow ...
CDN Cost as % of Revenue
25%
20%

Grow revenue opportunities with fast, personalized
web experiences and manage complexity...
Prediction #11
CDN Market will have a
healthy growth!

Grow revenue opportunities with fast, personalized
web experiences ...
Market Summary
Drivers
Short
Term

Mid
Term

Long
Term
Short
Term

Increased Consumption

Mid Long
Term Term

Ever-growing...
All segmetns of CDN echo
system will win!
The biggest winners will be
the customers and
consumers!

Grow revenue opportuni...
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices ...
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Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

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Ahmet Ozalp is the VP of International Products and Strategy for the Media (Sola) Division of Akamai. In this role Ozalp leads the product management and strategy initiatives for Akamai’s video, software and application delivery, storage and analytics products in EMEA and Asia Pacific regions. He also leads and supports key partnership initiatives with major Telecommunications companies in the region.

Prior to Akamai, Ozalp was the CEO of Telenity, a global provider of mobile advertising and social network solutions. Prior to Telenity, Ozalp was a Partner at Atlas Venture, where he led investments in digital media, mobile and online advertising. While at Atlas, Ozalp was the lead investor and board member of Extend Media (acquired by CSCO) and also had board level involvement with Ellacoya Networks (acquired by Arbor Networks), Isilon (IPO, Nasdaq:ISLN) and Gotuit Media.

Before joining Atlas, Ozalp held executive positions in marketing and product management at Narad Networks (acquired by Nasdaq:CIEN) and was also part of the founding team of Newnet, a telecom software startup acquired by ADC (Tyco Electronics). In the early part of his career, Ozalp was also a management consultant with Bain & Company’s technology and media practice.

Ozalp holds an MBA from the Wharton School of University of Pennsylvania, an MS in EE from Columbia University and two US patents.

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  • But even 100Tbps is tiny compared to where we are headed.
  • Role of device migration will impact delivery and change how content moves around the internetPre positioningSmart Router
  • The impact of drivers, restraints and opportunities are also depending on time. Some factors may have high impact on CDN market in short-term but with the pass of time impact may get reduced. Impact analysis of DRO’s are done for three time-period; Short-term (6-12m), Mid-term (12-24m) and Long-term (24-36m). New Entrants=AMZN, AZURE
  • Transcript of "Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar"

    1. 1. Monthly Products Webcast Future of CDN – Next 10 Years DigiWorld Summit 2013 Ahmet Ozalp, VP Products and Strategy, International Markets Montpellier, Nov 20th, 2013 Akamai Confidential
    2. 2. Brief History of CDN Traditional webhosting, Storage Traditional Server Hosting 1990s Static & Dynamic Content Analytics, AB R, Mobile Mass Adoption, Multiple Devices 1st Gen 2nd Gen 3rd Gen 4th Gen 1999 2005 2008 2014 Edge Delivery Intelligent Routing, Replication Akamai Confidential VoD, Live Streaming, Global Cloud, P2P, Origin Storage Faster ForwardTM Transcoding, multi format, explo sion in devices Quality, Sc ale, VAS ©2012 Akamai
    3. 3. THE INTERNET HAS COME A LONG WAY… Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. …BUT WE’RE REALLY Akamai Confidential Faster ForwardTM ©2012 Akamai
    4. 4. EVERYONE AND EVERYTHING IS GETTING CONNECTED Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    5. 5. Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    6. 6. Video as the killer App and driver for traffic Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Source: Cisco Akamai Confidential Faster ForwardTM ©2012 Akamai
    7. 7. Prediction #1 Traffic will grow exponentially! CDNs will carry more and more of it! Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    8. 8. Consumer Internet Traffic % of Video Traffic CDN enabled = 65% 300 % of Video Traffic CDN enabled = 53% tbps (ave) 250 51% 200 150 100 34% 50 0 2012 2017 All Consumer Internet CDN Enabled Source: Cisco Akamai Confidential Faster ForwardTM ©2012 Akamai
    9. 9. 2022… 1600 80%+ 1400 tbps (ave) 1200 1000 800 600 400 51% 34% 200 0 2012 2017 All Consumer Internet 2022 CDN Enabled Source: Cisco, Akamai Analysis Akamai Confidential Faster ForwardTM ©2012 Akamai
    10. 10. Let’s do the math… 100MB Primetime Viewers Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. x 10 Mbps ~1,000 Tbps Akamai Confidential Faster ForwardTM ©2012 Akamai
    11. 11. Prediction #2 Connected devices will drive complexity Mobile apps, OS and gaming downloads will cause“spikes” Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    12. 12. Connected Device Landscape Frequently “on” or available Smart Router & DVR 400M 30-60M 1.5 - 2B Smart TVs Frequently “off” or not available Resource Availability 2.2B Media Boxes 3.1B Home Consoles Tablet & PC Smart Phones Least functionality (Processing, Memory , Storage) Akamai Confidential 400-600M Device Functionality Faster ForwardTM Most functionality (Processing, Memory , Storage) ©2012 Akamai
    13. 13. Major events stress the Network 9/18/13 6/10/13 8/19/12 10/12/11 6/23/10 Akamai Confidential Faster ForwardTM ©2012 Akamai
    14. 14. Complexity Short to Mid-term  Diverse standards and practices for video encoding and packaging, DRM Long-term  Standardization around MPEG-DASH, one or two DRM and encoding models Akamai Confidential Faster ForwardTM ©2012 Akamai
    15. 15. Prediction #3 CDN Architectures will evolve! Content will move closer to the Edge! Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    16. 16. Internet is Complex 12,000 networks connected by peering points (Cloud) Datacenters End-Users X X Akamai Confidential Faster ForwardTM ©2012 Akamai
    17. 17. Closer to the Edge… (Cloud) Datacenters End-Users X CDN Server Akamai Confidential X Faster ForwardTM ©2012 Akamai
    18. 18. Prediction #4 Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Innovation and scale will drive success! Akamai Confidential Faster ForwardTM ©2012 Akamai
    19. 19. Technology Innovation Optimized TCP HTTP/UDP Acceleration Multicast Delivery Intelligent PrePositioning Peer Assisted Delivery Cache Server Side Akamai Confidential Client Side Faster ForwardTM ©2012 Akamai
    20. 20. Prediction #5 Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. CDNs will be trusted partners for value added services Akamai Confidential Faster ForwardTM ©2012 Akamai
    21. 21. Value Added Services  Video Workflow Acquire Prepare/ Protect Publish Deliver Consume Analyze  Advanced Web Acceleration  Security Akamai Confidential Faster ForwardTM ©2012 Akamai
    22. 22. Prediction #6 CDNs and Telcos will cooperate closely! Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Solo players will lose! Akamai Confidential Faster ForwardTM ©2012 Akamai
    23. 23. Prediction #7 Content deliver echo system will grow to include new categories! Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    24. 24. CDN echo system will grow Fast Time to Market Application Developer Carrier/MSO Device Manufacturer OS Developer Chip Manufacturer Broad Impacts Akamai Confidential Faster ForwardTM ©2012 Akamai
    25. 25. Prediction #8 Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. OTT video quality will meet and exceed broadcast level! Akamai Confidential Faster ForwardTM ©2012 Akamai
    26. 26. CDN Video Quality  High capacity, multi-protocol CDNs  Sophisticated encoding and transcoding technologies  3D, 4K, 8K, multi-camera angles, second screen, social media, companion content Akamai Confidential Faster ForwardTM ©2012 Akamai
    27. 27. Prediction #9 Pricing will get more sophisticated! Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    28. 28. CDN Pricing  Content and use case specific pricing  Geo-based pricing  Tiered Pricing (QoS) Akamai Confidential Faster ForwardTM ©2012 Akamai
    29. 29. Prediction #10 CDN services will become more and more cost effective! CDN will be an enabler of business innovation! Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    30. 30. CDN Cost as % of Revenue 25% 20% Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. 15% 10% 5% < 1% 0% % of revenue 2008 Akamai Confidential 2013 Faster ForwardTM 2017 ©2012 Akamai
    31. 31. Prediction #11 CDN Market will have a healthy growth! Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    32. 32. Market Summary Drivers Short Term Mid Term Long Term Short Term Increased Consumption Mid Long Term Term Ever-growing Traffic More Content Online Higher Bitrates Broadband Penetration Online Video Growth Larger File Sizes Short Term Mid Term Long Term Broadcast IPTV Pricing Pressure Opportunity Connected Device Growth Workflow/VAS DIY and Internal CDNs Evolution of Video Formats Online New Entrants Restraints HIGH MEDIUM LOW Akamai Confidential Faster ForwardTM ©2012 Akamai
    33. 33. All segmetns of CDN echo system will win! The biggest winners will be the customers and consumers! Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Confidential Faster ForwardTM ©2012 Akamai
    34. 34. Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Thank you! Akamai Confidential Faster ForwardTM ©2012 Akamai
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