future of cdn - next 10 years - ahmet ozalp, akamai technologies - digiworld summit 2013 - future...
DESCRIPTION
Ahmet Ozalp is the VP of International Products and Strategy for the Media (Sola) Division of Akamai. In this role Ozalp leads the product management and strategy initiatives for Akamai’s video, software and application delivery, storage and analytics products in EMEA and Asia Pacific regions. He also leads and supports key partnership initiatives with major Telecommunications companies in the region. Prior to Akamai, Ozalp was the CEO of Telenity, a global provider of mobile advertising and social network solutions. Prior to Telenity, Ozalp was a Partner at Atlas Venture, where he led investments in digital media, mobile and online advertising. While at Atlas, Ozalp was the lead investor and board member of Extend Media (acquired by CSCO) and also had board level involvement with Ellacoya Networks (acquired by Arbor Networks), Isilon (IPO, Nasdaq:ISLN) and Gotuit Media. Before joining Atlas, Ozalp held executive positions in marketing and product management at Narad Networks (acquired by Nasdaq:CIEN) and was also part of the founding team of Newnet, a telecom software startup acquired by ADC (Tyco Electronics). In the early part of his career, Ozalp was also a management consultant with Bain & Company’s technology and media practice. Ozalp holds an MBA from the Wharton School of University of Pennsylvania, an MS in EE from Columbia University and two US patents.TRANSCRIPT
Akamai Confidential
Monthly Products Webcast
Future of CDN – Next 10 Years DigiWorld Summit 2013
Ahmet Ozalp, VP Products and Strategy, International Markets
Montpellier, Nov 20th, 2013
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Brief History of CDN
Mass Adoption, Multiple Devices
Quality, Scale, VAS
4th Gen
2014
Analytics, ABR, Mobile
Transcoding, multi format, explosion in
devices
3rd Gen
2008
VoD, Live Streaming,
Global
Cloud, P2P, Origin
Storage
2nd Gen
2005
Edge DeliveryIntelligent Routing,
Replication
Static & Dynamic Content
1st Gen
1999
Traditional webhosting,
Storage
1990s
Traditional Server Hosting
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
THE INTERNET HAS COME A LONG WAY…
…BUT WE’RE REALLY JUST AT THE BEGINNING
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
EVERYONE AND EVERYTHING IS
GETTING CONNECTED
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Buy
Now!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Source: Cisco
Video as the killer App and driver for traffic
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #1
Traffic will grow exponentially!
CDNs will carry more and more of it!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
2012 20170
50
100
150
200
250
300
All Consumer Internet CDN Enabled
Consumer Internet Traffic
34%
51%
tbp
s (a
ve)
Source: Cisco
% of Video Traffic CDN
enabled = 65%
% of Video Traffic CDN
enabled = 53%
Akamai Confidential ©2012 AkamaiFaster ForwardTM
2012 2017 20220
200
400
600
800
1000
1200
1400
1600
All Consumer Internet CDN Enabled
2022…
34%51%
tbp
s (a
ve)
Source: Cisco, Akamai Analysis
80%+
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks.
100MB Primetime Viewers
x 10 Mbps
~1,000 Tbps
Let’s do the math…
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #2
Connected devices will drive complexity
Mobile apps, OS and gaming downloads will cause“spikes”
Akamai Confidential ©2012 AkamaiFaster ForwardTM
3.1BTablet & PC
1.5 - 2B
Device FunctionalityMost functionality(Processing, Memory, Storage)
Least functionality(Processing, Memory, Storage)
Frequentl
y “
off
” or
not
availa
ble
Frequentl
y “
on”
or
availa
ble
Smart Phones
400-600M
Home Consoles
Media Boxes
Smart TVs
Smart Router & DVR
2.2B
400M
30-60M
Re
sou
rce
Ava
ilab
ility
Connected Device Landscape
Akamai Confidential ©2012 AkamaiFaster ForwardTM
10/12/11
8/19/12
6/10/13
6/23/10
9/18/13
Major events stress the Network
Akamai Confidential ©2012 AkamaiFaster ForwardTM
ComplexityShort to Mid-term Diverse standards and practices for video
encoding and packaging, DRM
Long-term Standardization around MPEG-DASH, one
or two DRM and encoding models
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #3CDN Architectures will
evolve!Content will move closer to
the Edge!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
X
(Cloud) Datacenters
End-Users
12,000 networks connected by peering points
X
Internet is Complex
Akamai Confidential ©2012 AkamaiFaster ForwardTM
(Cloud) Datacenters
X
X
End-Users
CDNServer
Closer to the Edge…
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #4
Innovation and scale will drive success!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Client Side
HTTP/UDPAcceleration
Multicast Delivery
Peer Assisted Delivery
Intelligent Pre-
Positioning
Cache
Server Side
Optimized TCP
Technology Innovation
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #5
CDNs will be trusted partners for value added services
Akamai Confidential ©2012 AkamaiFaster ForwardTM
AcquirePrepare/Protect
Publish Deliver Consume Analyze
Value Added Services
Video Workflow
Advanced Web Acceleration
Security
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #6
CDNs and Telcos will cooperate closely!
Solo players will lose!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #7Content deliver echo system
will grow to include new categories!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Chip Manufacturer
OS Developer
Device Manufacturer
Carrier/MSO
Application Developer
Fast Time to Market
Broad Impacts
CDN echo system will grow
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #8
OTT video quality will meet and exceed broadcast level!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
CDN Video Quality High capacity, multi-protocol CDNs Sophisticated encoding and
transcoding technologies 3D, 4K, 8K, multi-camera angles,
second screen, social media, companion content
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #9Pricing will get more
sophisticated!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
CDN Pricing Content and use case specific pricing
Geo-based pricing
Tiered Pricing (QoS)
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #10CDN services will become
more and more cost effective!CDN will be an enabler of
business innovation!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
% of revenue0%
5%
10%
15%
20%
25%
2008 2013 2017
< 1%
CDN Cost as % of Revenue
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
Prediction #11CDN Market will have a
healthy growth!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Increased Consumption
ShortTerm
MidTerm
LongTerm
More Content Online
Higher BitratesBroadband Penetration
Larger File Sizes
ShortTerm
MidTerm
LongTerm
Pricing Pressure
DIY and Internal CDNs
New Entrants
Drivers
Restraints
HIGH MEDIUM LOW
Market Summary
Op
po
rtun
ity
ShortTerm
MidTerm
LongTerm
Ever-growing Traffic
Online Video Growth
Connected Device Growth
Broadcast IPTV
Workflow/VAS
Evolution of Video Formats Online
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
All segmetns of CDN echo system will win!
The biggest winners will be the customers and
consumers!
Akamai Confidential ©2012 AkamaiFaster ForwardTM
Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.Thank you!