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Top 4 Macro Trends Driving Internet Evolution

Date post:21-Oct-2014
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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!
Transcript:

Top 4 Macro Trends Driving Evolution of the Internet March 10, 2014 Austin, TX #SXSW

Cory von Wallenstein Chief Technologist @cvwdyn

Pg. 2 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt

Trend 1

User experience is the new

competitive differentiator.

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

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.

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.

Pg. 6 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt

Why would you switch banks? A slightly more benecial interest rate isnt

compelling to go through the hurdles of switching. Give me a mobile experience so I dont have to call or

go to a branch.

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% traffic drop (Google) h"p://cvw.gs/amz-latency

h"p://cvw.gs/ggl-latency

h"p://cvw.gs/km-latency

Pg. 9 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt

Superior Experience More Value

Stakes are Raised How will this aect

the Internet?

Pg. 10 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt

How will this aect 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.

Pg. 11 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt

h"p://www.cogentco.com/les/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

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 cant break the speed of light.

Customers can be gained through superior service, but

slow is the new down6me.

Well push closer to the edge to deliver.

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 model of

the Internet.

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 today: ~14B

IPv4 Addresses: ~4B

Things 2020: ~50B

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 dieren>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 Trac management (user types twi"er.com) Message management (user receives le shared email from Box) Performance assurance (understand your Internet performance)

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