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Updated! – Cisco Mobile Visual Networking Index

Over the past several years, Cisco introduced and has regularly updated and expanded its well-received Visual Networking Index (VNI), which projects IP traffic trends based upon independent analyst forecasts, mobile data usage surveys from operators and other primary research. 

As part of its VNI initiative, Cisco also developed the Global Mobile Data Traffic Forecast, and the most recent update has just been issued.

The updated forecast includes findings such as:

  • By 2016, global mobile data traffic will reach 10.8 exabytes per month (or 130 exabytes annually). Global mobile data traffic will increase 18X from 2011 -- 2016 (78% CAGR from 2011 -- 2016).  The 130 exabytes is 4.5 times more than all IP traffic (fixed and mobile) generated in 2005 (29 exabytes).
  • Based on Cisco VNI research, global mobile data traffic increased 133% from calendar year-end 2010 to calendar year-end 2011 (CY2011 = 597 petabytes per month or nearly 149 million DVDs per month).
  • In 2011, global mobile data traffic grew 3.4 times faster than global fixed broadband data traffic.  From 2011 to 2016, global mobile data traffic will grow 3 times faster than global fixed broadband data traffic.

Other pertinent points include:

  • In spite of uncertain economic conditions in many parts of the world, the demand for mobile services and content has in fact grown in every global region.
  • An increased amount of mobile traffic being offloaded to fixed networks, and the implementation of tiered mobile service pricing and data caps have not had a significant dampening effect on global mobile data traffic growth (the top 1% has been throttled to some degree).
  • In 2011, global mobile data traffic more than doubled (2.3X growth) for the fourth year in a row.

Following are links to relevant documents and information:

We welcome your questions . . . for greater detail, email traffic-inquiries@cisco.com.

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Operators Consider CDN Federations

As consumers continued demand more high-quality content over the Internet, service providers are finding it difficult to increase revenues while containing costs. This is due mainly to two trends: (1) over-the-top (OTT) content providers having outsourced delivery of content to pure-play content delivery network (CDN) companies and (2) traffic growth (with no resulting revenue benefit), increasing network build-out and maintenance costs.

In response, many SPs have begun to utilize CDNs within their networks.  While this approach has helped, results have been limited.   Now, SPs are exploring the potential of CDN federations, which Cisco’s Internet Business Solutions Group (IBSG) defines as multi-footprint, open CDN capabilities built from resources owned and operated by autonomous members.

IBSG has developed a paper that addresses this issue.  Titled “Content Delivery Network (CDN) Federations: How SPs Can Win the Battle for Content-Hungry Consumers”, it can be found on the Service Provider Thought Leadership section.  At this site, you will find a number of interesting, provocative papers on various subjects relating to the service provider segment.  

This paper provides an overview of the trends and challenges facing SPs today with regard to content delivery, describes a Cisco-led CDN federation pilot and results to date, and lays out the next steps for the pilot in an effort make CDN federations a reality.

Check it out, and the others, as well . . .

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Usage-Based Billing by Service Providers?

In the past five years, consumer monthly Internet usage has grown nearly three-fold, but users spend little more than in 2006. According to Cisco’s Visual Networking Index Global Forecast 2011, consumption per U.S. user grew 278 percent. In that same time frame, according to published research, the monthly U.S. cable broadband ARPU remained virtually flat.

As consumers increasingly rely on their broadband access for more of the basic everyday needs, broadband has become the most important core service provider service when compared to pay TV, mobile voice, landline phone and mobile data. But these broadband service providers are struggling to get consumers to equate the value of their online experiences with the value of their broadband service. To that end, SPs are actively considering usage-based billing strategies as a tool to align consumer value perceptions with their underlying networks. Anecdotal evidence from non-U.S. SPs that have introduced usage-based billing indicates that it can drive new value creation.

To help explore consumers’ perspectives, Cisco’s Internet Business Solutions Group (IBSG) conducted a survey of broadband users in the United States, Canada, France, and Italy to determine current views on usage-based billing policies and approaches.

This particular document is titled “Usage-Based Billing Strategies Can Enable SPs to Align Customer Value Perception with Network Investments”.   It can be found on the Service Provider Thought Leadership section of the website of Cisco IBSG.  At this site, you will find many interesting, provocative papers on various subjects relating to the service provider segment.  

Check this and others out . . .

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Network Convergence as an Enabler – Giving Customers a Choice!

February 1, 2012 at 11:32 am PST

Cisco and Gartner Research recently partnered on a newsletter on how to transform your IT to reap the full benefits of network convergence.  It includes the Gartner report on “Recommendations for SAN Fabric Dashboards” by analysts Valdis Filks and Bob Passmore.  Also there are additional resources, blog & recent news links, and make sure to check out the TCO calculator!

Please click here to read the Gartner newsletter: http://www.gartner.com/technology/media-products/newsletters/cisco_us/issue1/index.html

Read More »

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EANTC’s Test of Cisco’s CloudVerse Architecture

Since announcing Cisco’s CloudVerse architecture in December, we’re excited to see that this set of solutions is indeed helping our partners and customers in their journey to offer cloud services. On January 30, Light Reading published the Cisco CloudVerse test results found by EANTC, an internationally-recognized, vendor-neutral test center. Among many findings, EANTC revealed that over 70 percent of leading cloud providers are using Cisco CloudVerse on their journey to the cloud

The tests were created by Light Reading and EANTC around real-world customer care abouts including Security, Agility, Economics, and Experience. They completed 25 test segments across the 3 Cisco CloudVerse themes: Unified Data Center, Cloud Intelligent Network, and Cloud Applications and Services.

The full test results can be found here, and for the full Cisco perspective on this test, please see Pat Adamiak’s blog.

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