Etail West 2013 Akamai CEO Tom Leighton_Final

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  • 2 main themes - online/mobile (AIM), omnichannel and mobile in store, new channels emergingMovement to Mobile - access to app and site as it’s own channel, performance problem, RUM data, aqua ion mobileShopping behavior is changing (omnichannel – store and mobile), channels are mixingPlaces demand on good experience in store, store needs to be connectedExpensive to get bandwidth and is congested which makes for poor experienceBig sky and how akamai addresses the storeFutures new emerging channels – wall scan and opportunity for couch commerce, demo.
  • IBM-       Mobile shoppers: 24 percent of consumers using a mobile device to visit a retailer's site, up from 14.3 percent in 2011Today's news is based on findings from the IBM Digital Analytics Benchmark, the industry’s only cloud-based Web analytics platform that tracks more than a million e-commerce transactions a day, analyzing terabytes of raw data from 500 retailers nationwide. 
  • Smartphones will account for over 50% of visits to a commerce site within 2 years. Mcommerce will nearly triple over the next 3 years.Source for Mobile Commerce graph: http://www.emarketer.com/newsroom/index.php/mcommerce-sales-grow-91-67-billion-2011/
  • Google, Amazon, Staples all prioritize performance above functionalityUSERS prioritize performance above functionality too!
  • According to the Keynote Commerce Index the Top 30 desktop commerce sites 2 seconds to load (http://www.keynote.com/keynote_competitive_research/performance_indices/top_retailers/index.html)Top 30 mobile commerce sites take 9.18 seconds to load with lower availability (February 2013) http://www.keynote.com/keynote_competitive_research/performance_indices/mobile/retail/index.htmlNothing coming besides LTE in 3 years that starts to address the slow mobile network problem. We are starting now to address
  • lots of forces are working to slow down your web site…High latency/low bandwidthSame CPU/RAM for iphone/ipad – slow JS – too many requests, too much content, slow rendering (e.g. click on touch delay of 300ms) mostly same issues as for web performanceNow you need to deliver exceptional experiences in a variety of situationsDelivering fast, high quality experiences is difficultIf we look at these rich experiences/apps you can start to see that they are complex (JS, images, requests)And its not only web sites anymore – its web experiences such as native applications that communicate over http/httpsEnd-users expect quality experiences across all these touchpoints
  • Built for voice71% of users expect sites to load as fast or faster than on a desktop (Gomez)
  • So mobile traffic is coming, growth predictions are massive for traffic and revenue, and performance is top of mind. With clear correlation in mobile load times and abandonment (just like desktop), there is huge opportunity to maximize mobile traffic & revenue by optimizing user experiences on mobile devices and situations.
  • Now, we’ve all seen the business metrics that tie conversions to performance. Walmart did a fantastic job of documenting this through RUM methodologies.Baseline − 1 in 2 site visits had response time > 4 secondsSharp decline in conversion rate as average site load time increases from 1 to 4 secondsOverall average site load time is lower for the converted population (3.22 Seconds) than the non-converted population (6.03 Seconds)
  • IP/Routing Optimizations-Dynamic Mapping-SureRoute Path Optimization-Enhanced Akamai Protocol-IPv6 Adaptation TCP/Transport Optimizations-Automated Failover-Connection Offload-Transport Optimization HTTP/Protocol Optimizations-Edge Caching-Data Compression-Origin Offload-Dynamic Page Caching-Akamai Instant-HTTP Pipelining-Mobile Detection and Redirect-Device Characterization HTML/Presentation Optimizations-Embedded Object Prefetching-Adaptive Image Compression-Front-End Optimization (FEO)A Cloud service built on the Akamai Intelligent Platform, 119,000+ servers in over 2000 locations in 80+ countries designed to speed up mobile delivery by reducing round trips and latency through introducing performance optimization and intelligenceMobile TCP OptimizationsNetwork settings tolerant of latency and data retransmission in MNOMobile Network MapReduce distance to MNO IP GatewaysDynamic Site AccelerationMiddle mile optimizationMobile CachingCaching close to the MNO IP GatewayAdaptive Image CompressionConsistent experience across varied network performanceDevice CharacterizationRespond to specific device capabilitiesMobile Detection & RedirectRedirections issued from the Edge, with device DB managed by AkamaiHTTP PipeliningMaximize TCP connections to devices with limited resourcesMobile Network MapReduce distance to MNO IP GatewaysDynamic Site AccelerationMiddle mile optimizationMobile CachingCaching close to the MNO IP GatewayThe Akamai Intelligent Platform forms the basis of delivery for Aqua Ion Mobile. This globally-distributed cloud platform continuously pulls and caches fresh content from web servers onto servers that are closer to the “gateway nodes” that serve as the on-ramp between the public Internet and private mobile carrier networks. Akamai’s dynamic mapping system directs user requests for mobile application data and mobile Web sites to an optimal Akamai Edge server. Then, through route optimization, we identify the fastest, most reliable path back to the data center serving dynamic and interactive content to mobile users. The maps increase the low level DNS TTL from 20s to 360s. By increasing the LLDNS TTL, availability will be impacted when a whole region that the user is connected to becomes unavailable. By increasing the LLDNS TTL, performance mobile networks when slow is significantly increased by reducing the number of DNS refreshes for the domain. Any request, DNS or HTTP, will invoke a long network latency during slow network times.Lower the initial retransmit timeout (RTO) value, timeout_init to 500ms for both edge-to-user and edge-to-originLower the maximum retransmit timeout value: rto_max to 1s for both edge-to-user and edge-to-originEnable TCP double SYN - In a lossy network, we don't need to wait if the SYN is lost, instead we send the SYN twice reducing the chance of loss.
  • The Web has fundamentally changed how people research and buy. Customers don’t interact with companies from a “channel” perspective anymore; they now use a rapidly evolving set of devices and paths to engage with retailers across touchpoints, which they don’t distinguish from the brand or business.
  • The Omnichannel Consumer is More Valuable
  • more than 20%of all e-commerce shopping sessions are already happening on mobile devices – and that number is growing by 2-3x each year. Over the next 18–36 months, mobile will comprise more than 50%of all e-commerce shopping sessions, becoming the primary way people shop online (http://www.forbes.com/sites/ericsavitz/2012/10/03/how-mobile-devices-will-shake-up-the-e-commerce-business/)65% of mobile users prefer a download speed below 4 seconds (http://blogs.keynote.com/mobility/)
  • According to the Keynote Mobility Survey, 48% of smartphone users experienced a problem with loading errors and the inability to open the page
  • Page Load Times:8 seconds without Big SkyLess than 1 second with Big Sky The user experience has increased dramatically because things are running more efficiently Value Proposition: Giving customers 3X as much, for 1/3 of the price
  • Explainwi-fi troubles in building…How does it work?Did I buy it?Implications of new business models…Is it available today?
  • Find out why 96 of the top 100 retailers work with Akamai to accelerate their sites

Transcript

  • 1. Transforming ExperiencesAcross the OmnichannelDr. Tom Leighton, CEO andCo-Founder, Akamai Technologies
  • 2. 1 in 4 Grow revenue opportunities with fast, personalized web experiences and manage visits to a complexity from peak demand, mobile devices U.S. retail site and data collection. today is from a smartphoneSource: IBM Digital Analytics Benchmark,November 2012 ©2013 AKAMAI | FASTER FORWARDTM
  • 3. Massive Growth Predicted 60.6% 53.2% 39% 24.6% 13.4% 3.8% 2010 2011 2012 2013 2014 2015 Smartphones will account for over 50% of North American visits to a Commerce site within 2 yearsSource: Mobile Traffic to the Top 500 North American E-Retailers, Branding Brand, 2012 ©2013 AKAMAI | FASTER FORWARDTM
  • 4. What Mobile Users Want Ability to Purchase or Place an order 50% Product Information 61% Store Contact Information 54% Store Directions or Operating Hours 74% Sites Loading in 5 81% Seconds or LessSource: Google and Sterling Commerce, 2012 ©2013 AKAMAI | FASTER FORWARDTM
  • 5. Keynote Commerce Index: Desktop vs. MobileTop 30 Desktop Commerce Sites Top 30 Mobile Commerce Sites Seconds Seconds Avoid data theft and downtime by extending the to load to load security perimeter outside the data-center and We havent seen protect from increasing frequency, scale and sophistication of web attacks. 9 seconds since 2001! ©2013 AKAMAI | FASTER FORWARDTM
  • 6. The Performance Challenge Time to Download Heavier Chatty Inefficient 3rd Party Mobile Content Protocols Web Code Content Congestion ©2013 AKAMAI | FASTER FORWARDTM
  • 7. Challenge: Mobile Internet Access is SLOW because……the mobile network architecture was not designed for the Web ©2013 AKAMAI | FASTER FORWARDTM
  • 8. Speed Matters: Abandonment Rates 30 Abandonment Rate (%) Abandonment Rate (%) 25 20 15 10 5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Page Load Time (sec.) Slower pages = higher abandonment • Reduces revenue • Increases costs • Damages brandSource: Gomez Real User Monitoring ©2013 AKAMAI | FASTER FORWARDTM
  • 9. Speed Matters: Conversion Rates POPULATION PERCENTAGE CONVERSION PERCENTAGECONVERSIONRATE VERSUSLOAD TIME 0−1 1−2 2−3 3−4 4−5 5−6 6−7 7−8 8−9 9−10 10−11 11−12 12−13 13−14 14−15 >15 LOAD TIME (SECONDS) Page Performance & Site Conversion – Feb 2012 ©2013 AKAMAI | FASTER FORWARDTM
  • 10. Akamai has a Solution: Aqua Ion Local ISP / Mobile Customer Infrastructure Akamai Intelligent Platform™ Network Operator Akamai Optimizations First Mile Middle Mile Last Mile• Traffic Offload • Akamai Routing Protocol • Adaptive Image Compression• Connection Offload • Akamai Communication Protocol • Above-the-fold Prioritization• Persistent Connections • Akamai Compression • JavaScript Rescheduling• Attack Traffic Filtering • Akamai Pre-Fetching • Content Pre-Fetching ©2013 AKAMAI | FASTER FORWARDTM
  • 11. Deliver Better Experiences To Mobile Users DSA Aqua Ion18%16%14%12%10%8%6%4%2%0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+ Seconds ©2013 AKAMAI | FASTER FORWARDTM
  • 12. Deliver Better Experiences To Mobile Users DSA Aqua Ion18%16%14%12%10%8%6%4%2%0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+ Seconds ©2013 AKAMAI | FASTER FORWARDTM
  • 13. It’s not just about your mobile site Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. 89% use smartphones + while shopping in stores Source: Ipsos OTX/Google, Nielsen ©2013 AKAMAI | FASTER FORWARDTM
  • 14. In-Store Uses of Mobile Devices Navigation Promos Information Checkout Mobile Alert X Find products easily Help your customers X QR codes Head on over to Simple, fast, find your products for immediate aisle 18 to take one-click checkout and take advantage Navigation Promos information Checkout of special promotions Information advantage of a $100 instant savings coupon! Omnichannel shoppers spend 71% more than single channel consumers*Source: Guardian.co.uk; Deloitte ©2013 AKAMAI | FASTER FORWARDTM
  • 15. Engaging Omnichannel Consumers is Key 8X “Shoppers who shop on our website as well as in our stores spend four times as much; throw smartphones into the mix and they spend eight times as much” 4X — Laura Wade-Gery, Executive Director, Multi-channel E-commerce, Marks & Spencer 1X 1 Channel 2 Channels 3 ChannelsSource: Guardian.co.uk; Deloitte ©2013 AKAMAI | FASTER FORWARDTM
  • 16. Stores Are Moving Online“The next five yearswill bring more changeto retail than the last100 years.”— Cyriac Roeding, CEO, Shopkick ©2013 AKAMAI | FASTER FORWARDTM
  • 17. Stores Are Moving OnlineTHE CHALLENGE:Cost andPerformance ©2013 AKAMAI | FASTER FORWARDTM
  • 18. Akamai is Developing a Solution Akamai software in the store optimizes performance and offloads last mile pipes ©2013 AKAMAI | FASTER FORWARDTM
  • 19. Optimizing the Retail Store Experience With Akamai Hybrid Without Akamai Cloud Optimization Seconds Second to load to load < BETA AVAILABILITY SCHEDULED JULY 1, 2013 ©2013 AKAMAI | FASTER FORWARDTM
  • 20. Possible Future Channels: Shopping Walls ©2013 AKAMAI | FASTER FORWARDTM
  • 21. Possible Future Channels: Couch Commerce “Couchtablet owners 88% of Commerce” Imagine if product use their device placementthan you is closer becomes “click to buy” while watching TV may think ©2013 AKAMAI | FASTER FORWARDTM
  • 22. Participate in the “Couch Commerce” Demo www.akamai.com/couchcommerce ©2013 AKAMAI | FASTER FORWARDTM
  • 23. Best Practices to Maximize the Omnichannel Opportunity• Make it fast regardless of touchpoint• Take advantage of opportunities afforded by simultaneous use of multiple channels• Engage in-store shoppers with quality digital experiences ©2013 AKAMAI | FASTER FORWARDTM
  • 24. Please visit the Akamai Booth #506 & 508 Grow revenue opportunities with fast, personalized web experiences andLive Mobitest See the “Couch manage complexity“Retail’s Omnichannel Pick up from peak demand, mobile Demos Commerce” Demo devices and data collection.Whitepaper Imperative” Find out why 96 of the top 100 retailers trust Akamai to accelerate their sites ©2013 AKAMAI | FASTER FORWARDTM
  • 25. Q&A Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.©2013 AKAMAI | FASTER FORWARDTM
  • 26. Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.©2013 AKAMAI | FASTER FORWARDTM