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Top 4 Macro Trends Driving
Evolution of the Internet
March 10, 2014 – Austin, TX #SXSW
Cory von Wallenstein
Chief Technolo...
Pg. 2 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Trend 1
User experience is the new
competitive differ...
Pg. 3 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
$3.2B	
  
$2B+	
  
$3.5B+	
  
Pg. 4 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
2010: 58% of US consumers
h"p://cvw.gs/amex2010	
  
w...
Pg. 5 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
From 2010 to 2012:
The	
  number	
  of	
  folks	
  wh...
Pg. 6 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Why would you
switch banks?
A	
  slightly	
  more	
  ...
Pg. 7 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Pg. 8 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Speed == $$$
100ms = 1% lost sales (Amazon)
0.5s = 20...
Pg. 9 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Superior Experience
More Value
Stakes are Raised
How	...
Pg. 10 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
How	
  will	
  this	
  affect	
  
the	
  Internet?	
 ...
Pg. 11 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
h"p://www.cogentco.com/files/images/network/network_m...
Pg. 12 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
USA	
  
20ms	
  
20Mbps	
  
Pg. 13 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
3.1s	
  
Pg. 14 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Japan	
  
250ms	
  
40Mbps	
  
Pg. 15 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Japan	
  
250ms	
  
40Mbps	
  
Pg. 16 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
4.2s	
  
36%	
  slower	
  
Pg. 17 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
South	
  Africa	
  
400ms	
  
4Mbps	
  
Pg. 18 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
7.6s	
  
146%	
  slower	
  
Pg. 19 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
We	
  can’t	
  break	
  the	
  speed	
  of	
  light....
Pg. 20 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Trend 2
A Cambrian moment of
innovation ecosystems.
Pg. 21 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
h"p://cvw.gs/econ-­‐camb	
  
Pg. 22 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Trend 3
Net neutrality and the
evolving business mod...
Pg. 23 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
h"p://cvw.gs/giga-­‐nn	
  
Pg. 24 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Trend 4
“Things” outnumber
“people”.
Pg. 25 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
“People”: ~7B
h"p://cvw.gs/cisco-­‐iot	
  
“Things” ...
Pg. 26 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Four Macro Trends Driving
Evolution of the Internet
...
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Top 4 Macro Trends Driving Internet Evolution

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During SXSW 2014, Dyn Chief Technologist Cory von Wallenstein gave a talk on the top four macro trends that are driving evolution of the Internet. Take a look!

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Top 4 Macro Trends Driving Internet Evolution

  1. 1. Top 4 Macro Trends Driving Evolution of the Internet March 10, 2014 – Austin, TX #SXSW Cory von Wallenstein Chief Technologist @cvwdyn
  2. 2. Pg. 2 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Trend 1 User experience is the new competitive differentiator.
  3. 3. Pg. 3 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt $3.2B   $2B+   $3.5B+  
  4. 4. Pg. 4 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt 2010: 58% of US consumers h"p://cvw.gs/amex2010   would  pay  a  higher  price  if  they  had  a  strong   expecta>on  of  receiving  superior  service.   Consensus  around  9%  op6mal  premium.     2012: 66% of US consumers h"p://cvw.gs/amex2012   would  pay  a  higher  price  if  they  had  a  strong   expecta>on  of  receiving  superior  service.   Consensus  around  13%  op6mal  premium.    
  5. 5. Pg. 5 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt From 2010 to 2012: The  number  of  folks  who  voted  for  superior  service   with  their  wallets  went  from  57%  to  75%.   Businesses  are  responding.  
  6. 6. Pg. 6 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Why would you switch banks? A  slightly  more  beneficial  interest  rate  isn’t   compelling  to  go  through  the  hurdles  of  switching.   Give  me  a  mobile  experience  so  I  don’t  have  to  call  or   go  to  a  branch.  
  7. 7. Pg. 7 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
  8. 8. Pg. 8 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Speed == $$$ 100ms = 1% lost sales (Amazon) 0.5s = 20% traffic drop (Google) h"p://cvw.gs/amz-­‐latency   h"p://cvw.gs/ggl-­‐latency   h"p://cvw.gs/km-­‐latency  
  9. 9. Pg. 9 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Superior Experience More Value Stakes are Raised How  will  this  affect   the  Internet?  
  10. 10. Pg. 10 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt How  will  this  affect   the  Internet?   Growth  of  net  new  Internet  users  is  far  away  from  the   original  backbone  of  the  Internet  (growth  is  in  APAC,  Africa,   South  America).   Urban  centers  are  more  network  congested  than  ever   before.   Content  and  apps  will  push  further  to  the  edges  of  the   Internet  to  deliver  excellent  experiences.  
  11. 11. Pg. 11 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt h"p://www.cogentco.com/files/images/network/network_map/networkmap_global_large.png   Speed  of  light   299,792.458  km/second   (in  a  vacuum)   Theore>cal  RTT   ~40ms   Real  RTT   ~90ms  
  12. 12. Pg. 12 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt USA   20ms   20Mbps  
  13. 13. Pg. 13 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt 3.1s  
  14. 14. Pg. 14 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Japan   250ms   40Mbps  
  15. 15. Pg. 15 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Japan   250ms   40Mbps  
  16. 16. Pg. 16 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt 4.2s   36%  slower  
  17. 17. Pg. 17 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt South  Africa   400ms   4Mbps  
  18. 18. Pg. 18 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt 7.6s   146%  slower  
  19. 19. Pg. 19 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt We  can’t  break  the  speed  of  light.     Customers  can  be  gained  through   superior  service,  but   slow  is  the  new  down6me.     We’ll  push  closer  to  the  edge  to  deliver.  
  20. 20. Pg. 20 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Trend 2 A Cambrian moment of innovation ecosystems.
  21. 21. Pg. 21 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt h"p://cvw.gs/econ-­‐camb  
  22. 22. Pg. 22 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Trend 3 Net neutrality and the evolving business model of the Internet.
  23. 23. Pg. 23 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt h"p://cvw.gs/giga-­‐nn  
  24. 24. Pg. 24 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Trend 4 “Things” outnumber “people”.
  25. 25. Pg. 25 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt “People”: ~7B h"p://cvw.gs/cisco-­‐iot   “Things” today: ~14B IPv4 Addresses: ~4B “Things” 2020: ~50B
  26. 26. Pg. 26 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt Four Macro Trends Driving Evolution of the Internet 1.  User  experience  is  the  new  compe>>ve  differen>ator.   2.  A  Cambrian  moment  in  innova>on  ecosystems.   3.  Net  neutrality  and  the  evolving  business  model  of  the  Internet.   4.  “Things”  outnumber  “people”.   Dyn  /delivers/  Internet  Performance   •  Traffic  management  (user  types  “twi"er.com”)   •  Message  management  (user  receives  “file  shared”  email  from  Box)   •  Performance  assurance  (understand  your  Internet  performance)  

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