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P2P & Cloud Media Summit Mark (Buck) Peterson General Manager, Alcatel-Lucent Ventures
All Rights Reserved © Alcatel-Lucent 2010 2 | Alcatel-Lucent Ventures | 2010 Alcatel-Lucent Ventures Alcatel-Lucent Ventures is a strategic venture group within the communications industry New business innovation and investment engine inside of Bell Labs Internal ventures, external venture investments and joint ventures Moving at the speed of a start-up with the resources of a global company
All Rights Reserved © Alcatel-Lucent 2010 3 | Alcatel-Lucent Ventures | 2010 Alcatel-Lucent corporate strategy High Leverage Network Application Enablement How does a Network Providers network keep pace?
All Rights Reserved © Alcatel-Lucent 2010 4 | Alcatel-Lucent Ventures | 2010 Internet service providers are challenged by the rising cost of P2P traffic Simply adding bandwidth wont solve the problem … … content sizes are growing exponentially * Source IDC HTML, JS, CSS Website images SD movie HD movie 100 b 1 kb 10 kb 100 kb 1 Mb 10 Mb 100 Mb 1 Gb 10 Gb 100 Gb Photos MP3 TV shows UGC S/W and games Number of objects online Patch files Mobile video P2P HTTP Streaming Subscribers Source: Cisco, Global IP Traffic Forecast and Methodology, 2006 - 2012 Total 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2006200720082009201020112012 Network Petabyte/month P2P
All Rights Reserved © Alcatel-Lucent 2010 5 | Alcatel-Lucent Ventures | 2010 P2P is contributing to subscriptions for high bandwidth services and those users are sharing large files Of users who share TV or movies… (%) Full length movies (~800 Mb - 1.3 Gb)87 Television episodes (~100 Mb - 400 Mb)75 Full television series (~10 Gb+)53 High resolution (possibly HD) TV episodes (~700 Mb - 1.5 Gb+)54 High resolution (possibly BluRay) movies (~4 Gb – 16 Gb+)51 These activist respondents have at least two of the following criteria: Concerned about Net Neutrality Concerned about Government action Read websites/blogs/forums on topic Comments/posts on websites/blogs/forums Music Movies TV Software Games Patches Other 87% 76% 66% 62% 51% 49% 0%20%40%60%80%100% What do they share? Pays for highest bandwidth Has own blog Believes ISP is slowing connection 61% 34% 31% 0%20%40%60%80% Alcatel-Lucent confirms ongoing popularity of P2P activity
All Rights Reserved © Alcatel-Lucent 2010 6 | Alcatel-Lucent Ventures | 2010 End-user focus group – Dec 2009
All Rights Reserved © Alcatel-Lucent 2010 7 | Alcatel-Lucent Ventures | 2010 Alcatel-Lucent research shows bandwidth throttling as a reason to change ISPs If your ISP offered bandwidth throttling would you… ALL (%) Segment Activist Non- activist United States United Kingdom Accept the change it was only a matter of time before the ISPs changed usage policies 2022152219 Accept the change it probably wont affect me given my usage anyway20 191821 Demand to opt-out, not be subject to bandwidth throttling30 293228 Find another ISP3027362832 89% of P2P users do not want their ISP to offer this; 60% say they would opt-out or walk away 60% 50% 40% 30% 20% 0% 10% Strongly agree Somewhat agree Somewhat disagree Disagree 49% 40% 10% 1% I would not want my ISP to offer bandwidth throttling
All Rights Reserved © Alcatel-Lucent 2010 8 | Alcatel-Lucent Ventures | 2010 End-user focus group – Dec 2009
All Rights Reserved © Alcatel-Lucent 2010 9 | Alcatel-Lucent Ventures | 2010 End-user focus group – Dec 2009
All Rights Reserved © Alcatel-Lucent 2010 10 | Alcatel-Lucent Ventures | 2010 End-user focus group – Dec 2009
All Rights Reserved © Alcatel-Lucent 2010 11 | Alcatel-Lucent Ventures | 2010 Properly messaged peer optimization is supported by virtually all P2P users, including 95% of activists ActivistsPrePostChange Strongly support my ISP doing this2652+26 Somewhat support my ISP doing this5243-9 Somewhat oppose my ISP doing this153-12 Strongly oppose my ISP do this73-4 [Peer optimization] just seems like fine tuning, more efficient... an evolution of our current technology Activist, UK focus group 100% 80% 60% 40% 20% 0% Pre- messaging Post- messaging 52% P2P activists support for ISP-implemented peer optimization 43% 26% 52% +26 Pre- messaging Post- messaging 15% 3% 7% -16 3% 0
All Rights Reserved © Alcatel-Lucent 2010 12 | Alcatel-Lucent Ventures | 2010 Address consumer & policy concerns Net neutrality Honor the intent of the end-user No traffic blocking, throttling or shaping Use reasonable management that benefits the end-user & ISP Consumer privacy Do not track user data No determination of downloaded content (type, copyright etc.) No insight beyond IP addresses Data retention Do not store user data or content Piracy and copyright Work on technology protocol only No visibility into content No storing of content Wire tapping Do not copy or record activity
All Rights Reserved © Alcatel-Lucent 2010 13 | Alcatel-Lucent Ventures | 2010 Cloud Computing: motivation Today, equipment vendors are selling dedicated, specialized boxes to service providers. Service providers build their networks from the ground up using dedicated equipment for services (e.g., LTE, IMS). The hardware running these networks and services is dimensioned to meet the peak demand. This model requires every service provider to build up the entire network stack and service infrastructure. User Demand t t The goal of Telco Virtualization is to overcome these limitations by enabling service providers to use commodity hardware to run own and hosted services.
All Rights Reserved © Alcatel-Lucent 2010 14 | Alcatel-Lucent Ventures | 2010 Design Goal: To develop a cloud infrastructure that allows us to execute time-sensitive, stateful, session-oriented applications in a secure environment. Minimize specialized hardware to what is necessary (e.g., DSLAMs, routers, radio towers). Most services are performed in software running in clouds on commodity computers. Reliable execution on a collection of unreliable resources. Services can inherently grow and shrink. Dynamic reconfiguration without disruption. Bell Labs Research Areas: Resource description and discovery Application creation framework Dynamic resource monitoring and mapping Scalable resource monitoring Tomorrow: Telco virtualization Very low initial costs, highly effective resource utilization, support for emerging business models.
All Rights Reserved © Alcatel-Lucent 2010 15 | Alcatel-Lucent Ventures | 2010 Thank You
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