Internet updates from around the world. Bart van der Sloot, Director Carrier Services Jos Martens, Marketing Director Worldwide Carrier Services

Transcription

1 Internet updates from around the world Bart van der Sloot, Director Carrier Services Jos Martens, Marketing Director Worldwide Carrier Services

2 Agenda Update on Global Crossing - Bart Cloud computing: where is your opportunity in the value chain? - Jos Net Neutrality in the US and Europe: the end of the All you can eat model? -Bart Balancing cost and quality: buying IP Transit, extend peering - Jos Closing - Bart

3 GLOBAL CROSSING WHO WE ARE AND WHAT WE DO

4 Global Crossing at a Glance The Carriers Carrier: High capacity Transport Services Tier 1 Internet Backbone Global Enterprise Network, VOIP, Collaboration and Data Centre Services Services in over 700 cities in over 70 countries Core Network Unparalleled global sub-sea & terrestrial network Core Network self built / self operated / fully owned Team of over 5000 professionals in North America, Latin America, Europe and Asia 4

5 Transport Services Private Lines Resilient, high performance network (SDH/SONET technology) Protected Service with Bandwidths from T-1/E-1, OC3/STM1, OC12/STM4, and OC48/STM16 Business Continuity: Diversity, Avoidance, and Customer Specified Routing End-to-end E-1 capability on international connections into North America Ethernet interfaces available Wavelength Linear/unprotected, bi-directional, point-to-point connection 2.5 or 10 Gigabit SDH/SONET framed signal Ethernet Wavelength service 1 & 10 Gigabit Ethernet (LAN/PHY, WAN/PHY) Ability to connect Asia, Europe, North America, and Latin America 40G available in North America and Europe Propagation delay SLA for low latency routes, validated at turn-up Diversity scenario s available: Diverse from competing vendor or from existing Global Crossing circuit(s) Carrier Applications Internet Backbone Private Voice, IP, Ethernet, ATM, or FR Networks Re-sale of Private Line Voice Traffic Backhaul End-User (your customer) Applications Data Center Connectivity Multiplexing Multiple Applications (voice, video, IP) Entertainment Content Distribution Private IP, Ethernet, ATM, or FR Networks 5

6 IP Transit Recognized Tier 1 ISP with extensive global private and public peering reaching 100% of the Internet One seamless global IP network (AS#3549) with end-toend control Over 5 Tbps peering capacity Present not only in North-America and Europe, but in Latin America, Asia and Australia as well Strong focus on network security and keeping malicious traffic off the network First to deploy native IPv6 globally (2006) BGP Automation (RADB) Direct connectivity with top Internet destinations Content: Google, Facebook, Youtube, Yahoo, Live, Blogspot, MSN, Amazon CDN s: Akamai, Limelight, nlayer, CD-networks, EdgeCast Major access networks and other Tier1 s 6 Renesys reports Global Crossing as 2 rd most connected backbone Tier 1 ISP, globally

7 Central & East European POP expansion Added in the last 24 months: Bratislava, Slovakia, Sitel building at Kopèianska Bucharest, Romania, NXData Feper Building (NXDATA-1), Sofia, Bulgaria, Neterra in the Sofia Teleport/Data Centre Kiev, NewTelco Budapest, Hungary, BIX/CE Colo building Warsaw, Poland, at LIM Building (PLIX) Helsinki, Finland at Kvaidankatu 2 All pops are diversely connected to the GC IP backbone with multiple 10G uplinks Connected Istanbul, Turkey on diverse STM4 providing SDH and Ethernet services 7 Pantel PoP location

8 Top 13 IP Transit Providers The rankings are a rather crude measure of size, as they are based entirely on the quantity of IP space ultimately transited by each provider. However, it's the ranking trends that are more revealing than any absolute number (source: Renesys Blog 2011) 8

9 Tier 1?... Second in Renesys Ranking?... Network into LatAm, Asia, Australia? Central & Eastern European Expansion... So what? 40-50% of our traffic stays On-Net End-to-end transport across 5 regions means. Maximum control of latency and packet loss Independent from peering capacity with other networks Best security against malicious traffic Better end-user experience and lower total cost of operation 9 to run your network

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11 Integrating with Level3 overview Level 3 to Acquire Global Crossing Combination Creates a Premier Global Communications Provider with Extensive Network Reach, Global Scale and a Comprehensive Service Portfolio to Deliver Enhanced Capabilities to Customers. BROOMFIELD, Colo. and FLORHAM PARK, N.J., April 11, 2011 Level 3 Communications, Inc. (NASDAQ: LVLT) and Global Crossing Limited (NASDAQ: GLBC) today announced that they have entered into a definitive agreement under which Level 3 will acquire Global Crossing in a taxfree, stock-for-stock transaction. The combined company will operate a unique global services platform anchored by fiber optic networks on three continents, connected by extensive undersea facilities. The combined network will serve a worldwide customer set with owned network in more than 50 countries and connections to more than 70 countries. This transaction will create a company with pro forma combined 2010 revenues of $6.26 billion and pro forma combined 2010 Adjusted EBITDA of $1.27 billion before synergies and $1.57 billion after expected synergies.

12 Power of the Combined Company A services platform based on a world class set of assets Multi-conduit, long-haul terrestrial; extensive submarine fiber networks Metro networks with dense fiber connectivity Data centers and colocation facilities on three continents Content delivery technology and intellectual property rights

13 Combined Company Overview

14 CLOUD COMPUTING: WHERE IS YOUR OPPORTUNITY IN THE VALUE CHAIN

15 Senior Analyst Frost & Sullivan Our Point of View on Cloud Services The Cloud is more than just computing. It is a new way of thinking about consuming and delivering networked technology Global Crossing

16 Senior Analyst Frost & Sullivan Our Point of View on Cloud Services The Cloud is more than just computing. It is a new way of thinking about consuming and delivering networked technology Global Crossing

17 Senior Analyst Frost & Sullivan Our Point of View on Cloud Services The Cloud is more than just computing. It is a new way of thinking about consuming and delivering networked technology. In the Cloud: Services that can be consumed remotely over the network Dynamic growth and scaling without operational impact Highly available and resilient services A New Consumption Model Automated service activation from port-based or circuit-based to per-seat or usage model Give the user the control, without the hassle. Move the applications from the LAN to the WAN A Global IP network is the key to enabling cloud to be used in a consistent, predictable, and reliable way Global Crossing

18 Market Opportunity Gartner View of Areas of Cloud Computing Total Market Opportunity is $46B in 2008 growing to $150B in 2013, a 5 year CAGR of 26.5% Why The Cloud Is Inevitable Top CIO Concerns With Cloud Computing Security Interworking Performance Customization Availability 18 Integration

19 Global Crossing s Cloud Services are Anchored In Our Global IP Network Communications as a Service Audio and video SIP collaboration with presence, IM, and web communications are combined by customers to create a targeted experience Infrastructure as a Service Platform as a Service Flexible computing and storage capacity with metered usage Software as a Service Hosted applications with network service level agreements (SLAs) Platform for application development, hosting and virtual computing Security as a Service Network based security protection, detection, and filtering See Global Crossing s Global Crossing Proprietary Not for Further Circulation without Company Permission

20 Communication as a Service CaaS is a High Quality Audio Collaboration application offering high touch enterprise features in a cloud-based, as-a-service model. These includes: SIP-based Audio Conferencing MPLS connection with Quality of Service (QoS) Customer facing API for integration with enterprise applications (using Global Crossing Connect) Smart Phone Apps for roaming users Per shared seat bundled pricing ucommand seat-based utilization reporting 20 -Global Crossing Proprietary Not for Further Circulation without Company Permission

21 CaaS is Unified Collaboration The Audio bridge is a shared resource in the cloud. It calls you in stead of you calling into the bridge Control is at your hands on your desktop or smartphone Integration with your calendar and contacts At a per seat price, not metered

22 The sophistication and targeted nature of attacks are becoming too much for small security staffs to handle. Forrester Research, Inc.: Market Overview: Managed Security Services by Khalid Kark, March Global Crossing 22

23 Security: A Challenging Environment Increased use of wireless networks Remote employee access of critical information Social networking sites gaining widespread adoption Business processes and applications in the cloud Increasing demands for compliance to government standards

24 The Threat Landscape 21% in % in 2010 Percentage of Organisations infected by a virus or malicious software. 31% in % in 2010 Percentage of Organisations who detected a significant attempt to break into their network. 61% in % in 2008 Percentage of Organisations who detected an actual penetration by an unauthorised outsider into their network. Source: information Security Breaches Survey 2010 by Price Waterhouse Coopers and commissioned by Infosecurity Europe, 28 April 2010

25 The Frequency of a Breach Large Organisations: 2008: 72% reported a breach 2010: 92% reported a breach 2008: Average number of breaches was : Average number was 45 Small Organisations: 2008: 45% reported a breach 2010: 83% reported a breach 2008: Average number of occurrences was : Up to 14 occurrences on average Source: information Security Breaches Survey 2010 by Price Waterhouse Coopers and commissioned by Infosecurity Europe, 28 April 2010

26 A Security Breach Can Cost a Company Damage to Reputation Cost of a Breach The cost of a security breach for a large organisation ranged from 90, ,000. For a small organisation, the cost ranged from 10,000 to 20,000. In 2010 Significant Increase A security breach for a large organisation ranged from 280, ,000! For a small organisation, the cost ranged from 27,500 to 55,000! Customer Complaints Source: information Security Breaches Survey 2010 by Price Waterhouse Coopers and commissioned by Infosecurity Europe, 28 April 2010

27 Global Crossing Security Solutions a Trusted MSSP Firewall Intrusion Prevention Web Content Filtering Antivirus/Anti-spam Security Appliance Global Crossing Security Consulting Penetration Testing Vulnerability Assessment Security Policy Review & Creation Security Audits Incident Response Security Analysts & Engineers Personal response to alerts 24x7x365 in Phoenix, Arizona, USA Security Operations Center (SOC) Security Information Event Management (SIEM) Correlation Aggregation Reporting and Analysis

28 NET NEUTRALITY IN THE US AND EUROPE: THE END OF THE ALL YOU CAN EAT MODEL?

29 Net Neutrality what is it? Net Neutrality is a principle that advocates no restrictions by Internet service providers or governments on consumers' access to networks that participate in the internet. Specifically, network neutrality would prevent restrictions on content, sites, platforms, types of equipment that may be attached, and modes of communication

30 Net Neutrality wasn t that a US thing? Net Neutrality used to be a US topic. It has now come to Europe. New FCC Rules in US on Net Neutrality will go into effect on November 20. The Netherlands and Belgium are preparing legislation. The European Commission is preparing itself for a debate and decision.

31 Market Dynamics Video creating large investment needs both in fixed and mobile networks OTT (Over-The-Top) providers competing with access providers portfolios Mobile operators losing SMS revenue to free and low cost IP based solutions like WhatsApp, Ping etc Fixed internet access subscription fees still the dominant business model for internet access

32 Studies are being done on future model for the Internet

33 Internet Eco system by A.T. Kearney Study commissioned by: Deutsche Telecom, France Telecom, Telecom Italia and Telefonica

34 Conclusions from A.T. Kearney report, but. Telco investors are seeing lower returns than investors in other players in the internet value chain. Telcos face ballooning capex ( this capex is unsustainable ) OSPs are not contributing to the costs of traffic In a two-sided market, both sides pay. Traffic charges are necessary because otherwise OSPs have no incentive to constrain traffic costs. OSPs can easily afford increased charges. Increasing retail prices for Internet access will be challenging. It is practical to implement traffic charges to OSPs. True? What about the global internet backbones? How many other players are successful? Is capex really growing? but who pays the bill? Ultimately the end-user.. unless the end-user decides to avoid the service. what about the smaller ones? charge heavy usage? or to customers? Enhanced quality services can be introduced without degrading the basic internet...but how to ensure equal access and consumer choice?

35 Changes are happening Mobile operators start to move away from flat fee internet models Fixed carriers as well but still very careful OSP s might starts deals with access providers Some start charging or prohibiting applications THERE WILL BE CHANGE

36 What will the future bring? As the A.T. Kearney study states we indeed need a Viable Model or the future Internet There will be lengthy debates on what that model will look like however Will consumers act with their feet? Or do we need neutrality legislation?

37 BALANCING COST AND QUALITY: BUYING IP TRANSIT, EXTEND PEERING

38 Peering Cultures?

39 IP Transit versus Peering Relations Transit is a simple service from the customer perspective. All one needs to do is pay for the Internet Transit service and all traffic sent to the provider is delivered to the Internet and vice versa. Peering is a limited routing table only exchanging customer routes Supplier / customer relation versus Peers with no real transactional behaviour rules Contract covered by SLAs, with peering this is often omitted Transit is a metered service with benefits based on volume, vs peering with relatively fixed costs Transit is a commodity with multiple suppliers to choose from. A peer can be a monopoly

40 Simplified Internet Model Tier 1 Tier 1 Content Tier 2 Access Tier 2 Access Tier 2 Access Tier 2 Access Tier 2 Access GX Content Content Content Content Content Content Content Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Transit providers play aggregator role 40

41 Economical model for peering? Source; Dr Peering

42 Economical model for peering? Transit prices continue to decline Why are we in this Business???

43 Economical model for peering? Transit prices continue to decline But traffic continues to grow

44 Economical model for peering? Prices continue to decline But traffic continues to grow What does this do to the Transit vs peering economical model Source; Dr Peering

45 What are the costs of peering IX port

46 What are the costs of peering IX port Colo Capacity from your location to the IX 2,50 2,00 1,50 Peering Costs/Mb The more traffic colo becomes less important Backhaul costs remain a large chunk of the costs Backhaul (100G) needs to become affordable 1,00 0,50-1GE 10GE 100GE IX port Capacity Colo Equipment, Personnel costs not taken into account

47 Why And When Would You Peer Peering is a Local Optimization, according to Bill Woodcock (research director of Packet Clearing House). Where local can be City, Country, Continent Diversity and Redundancy in combination with Transit Quality; more routing control, improved latency Less dependency on your transit providers Relationship building; Peering is often a strong community. This are also used to keep being informed on market dynamics Historical reasons/peering culture

48 What Shapes a Peering Culture? Traffic Demand (market size population combined with broadband penetration ) Traffic Supply from content providers and CDNs Internet Exchanges? Peering Culture Presence of international networks (tier1 networks, content) Facilities (Carrier-neutral Data Centres)? Regulation? Dominant access network that controls the majority of eyeballs?

49 Peering Challenges It requires more IP routing expertise than simply buying a few transit pipes. Peering can require more negotiation skills and can be less straightforward than just ordering an upgrade on transit. Personal relations play a big role Problem resolution might be slower than with transit, which is coupled to an SLA It requires more staff than just transit You need to be involved in the peering community You need to negotiate with multiple peers. Typically you have more peers than transit providers Problem resolution is on both sides Risks of de-peering, upgrade discussions, traffic ratio s. With buying transit you move these discussions up stream

50 To Peer or not It really depends on the situation

51 Wanna know more? Ask us! Yuliya Bart Nivaldo Boleslaw Kraus Jos

52 Thank You