5. A Shift in Canada’s Economy
Mill it. Drill it. Kill it.
From:
To:
Internet Economy &
Data-driven
Innovation
“Data is Canada’s new
natural resource.”
-- Hon. Tony Clement,
President of the Treasury Board
6.
7. The impact of the internet economy
> 3 billion internet users
> 3-4% of Canada’s GDP
> 2.6 new jobs attributable to
the internet for every 1 lost
> SMEs who rely heavily on
Internet tech grow 2x rate of
low adopters
8. > Global mobile data
traffic grew 81% in
2013
> 500 million devices
added in 2014 alone
> 2014 global mobile
data traffic was 18x
the entire Internet in
2000
9.
10. +11,500 Tinder swipes
every second
100 hours of video
added to YouTube
every minute
Instagram has more
users than Twitter
Snapchat is fastest-
growing messaging app
2 new users join
Facebook every second
11. 2.5 Exabytes: Volume of data created every
day (doubling every month)
Global volume of data will increase 44x from
2009-2020
18. The DAIR cloud for
Canada’s ICT startups
> SMEs leverage the power of the CANARIE network…for free
> Develop, test & prototype products with cloud-based network,
compute & storage
> Get to market faster
26. Get On the DAIR cloud in 5 simple steps
1. Apply at: http://canarie.ca/cloud
2. Sign CANARIE’s Acceptable Use Policy
3. Receive e-mail confirmation with a
username/password
4. Access the DAIR portal
5. Begin using your development environment
We’re here to talk about the digital trends that are shaping today’s businesses. We also want to speak about a free cloud computing resource tool for Canadian entrepreneurs, called DAIR, that will help you get started with cloud computing.
DAIR is run by a nationally-funded organization called CANARIE. They run the high-speed research network connecting Canadian universities to research institutes around the world.
CANARIE also leads the development of software tools that help researchers access data. And, most importantly for today’s presentation, they have funded and led the development of DAIR, which offers small and medium sized enterprises in Canada extremely subsidized access to cloud computing technology.
Cybera is the Alberta networking partner for CANARIE. We’re a not-for-profit agency that uses digital technology to drive economic diversification.
We’re going to talk about the digital trends that are shaping the world’s economies, and why all Canadian businesses – if they don’t already – need to develop a digital strategy.
Canada has traditionally been a resource-rich economy. From petrochemicals to cows, we’ve always just focused on milling it, drilling it or killing it.
But today, we’re moving to an economy of services.
Canadian entrepreneurs are no longer building factories – they are working from home or from coffee shops, and are building apps, software and other online products.
This is playing out in four interesting areas: the internet economy, mobile technologies, social media, and big data.
Internet economy
This is a fascinating outlook on business today: Uber, the world’s largest taxi company, owns no vehicles. Facebook creates no content. Alibaba, the most valuable retailer in the world, has no inventory, and Airbnb, the world’s largest accommodation provider, owns no real estate.
Some interesting facts about the internet:
Half the planet now has internet access
In the last five years, for every 1 job that is lost around the world, 2.6 new jobs are created that are attributable to the internet
The internet economy accounted for 21% of G-20 GDP growth over last five years
The internet economy is now 3-4% of Canada’s GDP
Studies have also shown that new companies which rely heavily on Internet technology grow twice as fast as the low adopters.
Mobile Technology
And how are people consuming their internet? More and more, on their mobile devices. Global mobile data traffic grew 81% in 2013.
Mobile devices now outnumber people – with more than ½ billion devices added in 2013 alone.
And last year’s mobile data traffic was nearly 18 times the size of the entire global Internet in 2000
Mobile Technology (cont’d)
Africa provides an excellent glimpse of the future and potential of mobile technology.
In sub-Saharan Africa, there are 635 million mobile phone subscriptions, and 70% of people there say they use their phones (and not computers) to access the internet.
Africa is leading the way when it comes to mobile banking and retailing, and are completing skipping the brick and mortar buildings, or wired infrastructure, that are the norm in the western world.
They’re also using mobile apps in ways that others have never thought of. For example, medAfrica is a mobile app that provides basic information about health and medicine. People can go on the app to check their symptoms, look for first aid advice, and find out where the nearest doctor or hospital is. This app is reducing the need for travel and the pressure on doctors.
Social Media
We all know how predominant and important social media is, and why it’s important for businesses to have a strong social media presence. Already, 93% of marketers incorporate social media in their business outreach, and it’s expected that marketers will spend $8.3 billion on social media advertising in 2015.
Here’s just a few more stats for you:
There are over 11,500 Tinder swipes every second
100 hours of video are uploaded to YouTube every minute
Instragram grew 50% in 2014, and now has more users than Twitter.
Snapchat is the fastest-growing messaging app, and it grew 56% in 2014.
2 new users join Facebook every second.
Facebook accounts for 15.8% of the total time people spend on the Internet.
Facebook stores, accesses, and analyzes 30+ petabytes of user generated data. This last fact relates well into the next big ICT trend we’re seeing…
Big Data
Big data is one of those buzzwords that has popped up in the last five years, and it’s just getting more prevalent. Think about all the information that is being collected all around us: from personal monitors like the FitBit and our electronic thermostat, like the Nest. Think of all the data that retailers like Amazon are collecting about customer purchases. Think about the government census data, health records, airline travel reports. Companies have been collecting and storing this information for decades, and now we’ve got the super computing power to properly troll through it and look for patterns or important takeaways.
It took 8 years to sequence the first human genome. Today we can do it in a matter of hours.
Today, big data is being used to increase efficiencies in manufacturing, health care and public administration, as well as to personalize products for customers.
A couple interesting facts:
The volume of data created daily is 2.5 Exabytes, or 2.5 billion Gigabytes. And this number is doubling every month
Between 2009-2020, it’s expected that the global volume of data will increase 44 times over.
So what is cloud, and where does it fit into this landscape?
Cloud is elastic scalable compute infrastructure that you can utilize as you need it without high capital costs. Think of electricity ... You don’t really care where it comes from you just know it’s made available and you utilize it as you need it. Cloud works much the same way. Organizations can spin up a compute device such as server space without having to carry in generators but by flipping a virtual switch.
It allows small businesses with big ideas to grab global market share very rapidly.
Cloud underpins/enables all of the megatrends mentioned above.
It provides the basis for accessing applications and data via mobile devices, supporting business-to-business or business-to-customers social media apps, and storing massive amounts of data created by billions of connected devices
All of the companies that you see listed here didn’t exist a few years ago, but have been able to develop high growth global businesses thanks to cloud computing
And these are examples of emerging high growth Canadian companies who are leveraging cloud as the platform for their growth stories
So how can Canadian entrepreneurs get started on the cloud without having to pay a lot of money?
Right now, CANARIE is offering free cloud computing resources to Canadian small and medium-sized enterprises to start using cloud computing to develop their products faster and cheaper.
DAIR is a nationally-funded program that was set up to help Canadian business:
Gain experience with cloud technology
Avoid costs and save time setting up development and test platform
Test solutions at scale and de-risk implementation issues
Validate business models and customer acceptance
Accelerate time to market
What kind of companies use DAIR? It’s a basic infrastructure-as-a-service, and is available for a wide range of applications, including app and software development.
There’s no one best fit.
The list here just demonstrates the pervasiveness and ubiquity of cloud computing
The only rule for DAIR is that you have to be in the pre-commercialization stage of your project.
This is one example of a company that has successfully made use of DAIR.
Kiribatu labs is developing risk management technology and software for the insurance sector.
This requires building formulas that calculate what claims clients will make, based on the data they supply. Which means a lot of number crunching.
Kiribatu needed a solid computing infrastructure to run their simulations on. They used DAIR to run more simulations and more test scenarios than what they could do on their own servers.
They also said the DAIR cloud ran much faster than their services, which allowed them to get to the market with their products quicker.
InBay Technologies is an Ottawa-based company that designed software to stop remote hacking. To prove this technology, they needed to simulate thousands of users, as well as dozens of hackers. They could not do this on one or two servers, and could not afford the resources to scale this testing up. Using the DAIR cloud, they were able to carry out mass testing of their software, which they could demonstrate to customers and investors.
Accepted users are provided access to a FREE tier of resources
What these users receive are:
Use of 4 virtual cores, 8 GB of ram, 80 GB of disk for 1 year
200 GB of object storage
All resources completely under your control
Additional cores available: $100 per year, per core (guideline up to 28)
Cost comparison of DAIR versus buying your own server (column 2) or hosting your server in a datacentre (row three)
Cost of DAIR versus receiving the same resources from other commercial cloud providers.
Over 350 SMEs have used DAIR
4 out of 5 DAIR users are early stage companies.
On average, they say the DAIR cloud has helped them reduce their time-to-market by 20 weeks
And they saved an estimated 24% of total development costs.
This resulted in an average of $7,047 in savings per company using DAIR vs a commercial vendor