Here to talk about our experience in the market and pending models that may be needed for the way clients want to purchase servicesWe are in a period of change and evolution driven by the amount of data being consumed & pushed as well us the impact of cloud is having.And the opportunity it presents in how we leverage our network and data centre assets.And some of the challenges in presents us in the industry because we are so use to engaging in a certain way we will need to drive change if we are going to meet the needs on how customers expect and want to use technology.
But First Who are we.We own and manage one of the world largest cable systems.We land this fully meshed cable system into over 23 countries. We have over 34TB in capacity. We cater for wholesale and a enterprise client base.
We have overlayed this cable network with 24 Data Centres all offering a similar product spec.Including four centres in China, all our centres are uniquely interconnected at a layer 1 and 2 level.This allows us to develop innovative solutions levering our psychical network and data centre assests.As a result we hope as a result of this we are able to transform this into a single platform which may be the next evolution of a wholesale ecosystem.
What are the key challenges in our view:Growth in IP traffic, particularly to Asia – becoming less US-centric.Increasing demand via Cloud technologies People want to buy IT services differently – as a service an d on demand. Yet as a industry we are so use to buying fixed services or capacity at a fixed term.Traffic patterns are changing – we are starting traffic going into asia more and more. Everything is not a US route.More inventory is online in the DC space and prices are under a downward pressure while companies try and fill this inventory.And – do we sell floor space in the form of racks or as providers do we use our space more wisely and sell managed services out of that floor space. Return on investment is the issue as selling out managed services capacity for a player like us anyhow takes longer than selling racks
What does this mean:Building product and capability into the cloud makes sense.As a operator how do we get a return on the investment? Well by turning data and networks inot one.As our products for cloud matures clients want to buy base line capacity, have the ability to burst, increase capability as needed and not pay a premium to do so. Think about how we do it now and our current business models don’t support how business want to use it.For example customers today buy fixed collocation services, buy cross connects at fixed prices if they want to connect to someone, the buy a pipe of some size and functionality, all normally at fixed prices and fixed term with little flexibility to change or if they do it comes at a premium.We need models top match more elastic demand the same way a CDN service services web site changing capacity.
Today – everyone speaks about ecosystems and gravity within DC’s but we still talk about charging and psychically running cross connects between racks, patch panels, meet me rooms etc.But this is not enabling or providing the flexibility clients are looking for. Our view is we need to customers take charge of this area through the mechanisms of a portal, but give them control to virtual within the one DC choose and establish connectivity to anyone within that centre, quickly, efficiently and without cost. This starts adding value but allows the user to really start participating in the ecosystem concept.
Now that is easier within a single DC facility, but what if you could start to offer this nationally and let clients run up virtual ports across your DC’s in different states. Allowing them solve DR requirements, engage with customers and other clients, participate in the ecosystem the DC’s offer but it is in their control of how, when and how long they want to engage.
Then take this even further and be able to offer this concept across countries, without having to think from DC to DC how bandwidth to I need to do this and that – instead you activate a virtual port and your connectivity is their. Business of all sizes are operating across multiple markets in multiple countries, not only does this facilitate participation in a ecosystems but it also allows companies to solve security and regulation issues across different countries.
And then the key to making this all happen is the bandwidth which is scalable and dynamic. Once we have this we are really moving towards pricing and providing network as a service. Go where you want, with any capacity when and how you need it.But as a industry we need find models amongst ourselves that moves away form looking for certainty through fixed price and fixed length contracts to one that encourages certainty through functionality, flexibility and value.
Pacnet's Nigel Stitt
The evolution of new Products and
Vice President & CEO, Australia & NZ
CommsDay Wholesale & Data Centre Summit
17 July 2013, The Westin, Sydney
Extensive Intra-Asia, Trans-Pacific Networks
Support our Growing Data Center Network
Combined Statistics of EAC-C2C and EAC Pacific
Construction Cost: Over $4.1B
Length: 46,420 km
Reach: 23 cable landing stations across Asia and US
EAC-C2C: 17.92 to 30.72 Tbps
EAC Pacific: 1.92 Tbps
Extensive Connected Asia-Wide Data Centre
24 Pacnet Data Centre
Services provide consistent
service experience across 16
cities in Asia Pacific
including 4 in China
Investment in Australia
• Built and launched our Tier III+ Sydney Data Centre in February
2011 and have extensive leased facilities in Melbourne, Brisbane
• We have a substantial business in providing the IP network
requirements for Enterprises and Government clients for both
domestic and global connectivity.
• Transforming our business into providing a managed services
Key challenges facing the wholesale sector
1 Explosion in traffic
2 Massively increasing demands for compute & storage resources
3 Enterprise & Government demand for network as a serivce
4 Increasing demand for traffic to and from Asia
Sell Footprint or build out with managed services.
Declining price points for Collocation
What if… You had flexible contracts and features
By the year
By the hour
• Buy bandwidth in shorter terms
• Conceptually down to the minute
What If… virtual cross connect in data center
A B N
What If… Virtual cross connect in Australia
What If… virtual cross connect in Asia-Pac
What if… Bandwidth was dynamic?
More than cables and racks
Virtual Private Line
Managed Network Services
MPLS & IP Sec
Content Delivery Services
(Caching and Streaming)
Premium IP Transit
Prime IP Transit
Country-Specific Routes Application
Content Delivery Networks
Data Center Services
Virtual Private Cloud
Hardware as a
Ecosystem (Network as a Service)
Managed FirewallManaged Router
Demand for full suite of
Push to support utility-
based, on-demand pricing &
resources across the entire
Vice President & CEO, Australia & NZ