Note: The full report can be found here as well as chapter 1.2, “The Internet of Everything: How the Network Unleashes the Benefits of Big Data“
The World Economic Forum launched the 2014 Global Information Technology Report (GITR) today, and the annual assessment provides insight into two questions: where will see the next evolution of the Internet take hold, and how can we as a society improve on Big Data?
The report includes the Networked Readiness Index (NRI), assessing 148 countries across 54 different indicators. Finland, Singapore and Sweden again top the NRI rankings, followed by the Netherlands, Norway and Switzerland, with the US rising two spots to 7th. Hong Kong, the UK and Korea round out the top 10. Because the NRI comprehensively measures the level of information and communications technologies (ICTs) development in countries, it provides an early indication of where the next evolution of the Internet will first take hold: the Internet of Everything.
The Internet of Everything is the value from connecting devices, data, processes and people, underpinned by the ubiquity of Big Data applications. Countries leading in the NRI have the infrastructure and policy environment to facilitate the growth of the Internet of Everything. And the NRI also points to specific actions that countries need to take to improve their ICT infrastructure and business environment. While Big Data insights are creating tangible benefits for governments, businesses and citizens, there is more we can do to make Big Data even better by improving networks to facilitate Big Data, as well as addressing critical technology and policy challenges.
Big Data applications are all around us, improving the way we work, live, learn and play. In Spain for example, the municipal government of Barcelona is using data from connected devices and sensors to increase productivity and create jobs, improving the quality of life for all Barcelonés. Devices that remotely monitor water pressure and pipe leakage is saving $58 million per year; Internet Protocol (IP) controlled street lights are reducing annual maintenance costs by one-third; revenue from remotely monitored parking is increasing revenue by $50 million and the data-driven economy has created 47,000 jobs over the last seven years not withstanding the economic crisis. In the private sector, businesses that apply Big Data analytics have experienced 26% improvement in business performance, and harvesting big data for decision-making can increase global corporate profits by 21%.
The ubiquity of Big Data applications is fueled by the fact that IP networks are connecting billions of physical devices and this accelerating volume of data is driven by four major trends:
- IP is fast becoming the common language for most data communication particularly for proprietary industrial networks.
- Previously unconnected places, people, things, and processes are connecting to networks bringing billions of people and devices online over the next five years.
- Existing physically stored information is being digitized in order to record and share previously analogue material, and the digital share of the world’s stored information has increased from 25 percent to over 98 percent over the last decade.
- The introduction of Internet Protocol version 6 (IPv6) now removes the technical limit on the number of devices that can connect to the Internet, theoretically allowing for trillions of trillions (1038).
Improving the ability of IP networks to transmit data for processing, as well as enabling networks to create, analyze and act on data insights can accelerate the positive impact from Big Data. Building this capability will require improving network infrastructure, enhancing analytical capabilities and ‘intelligence’ in the network with distributed computing.
There are however, several critical challenges that need to be addressed because these technical and policy issues can either accelerate, or impede, the positive impact of big data analysis as part of the Internet of Everything.
For example, robust industry standards are needed for interoperability and economies of scale. While there are different requirements for critical networks, such as utilities that are closed, and networks connected to the open Internet (for example, those that monitor parking space availability), common standards will allow information to be exchanged within, and among, these networks as needed and appropriate.
Similarly, policymakers must also identify the appropriate balance between protecting the privacy of individuals’ data and allowing for innovation in service delivery and product development. And robust security is needed to reliably prevent hacking and access by unauthorized and unwanted users. In order to ensure a healthy ecosystem where users, consumers, and businesses feel safe in engaging in Big Data activities, network security is essential.
Careful radio spectrum planning is needed to enable wireless machine-to-machine (M2M), as well as people-to-people (P2P) and people-to-machine (P2M), connectivity. Spectrum requirements are going to be heterogeneous and will include narrowband and broadband; short haul and long haul; continuous data transmission and short bursts of data; and licensed spectrum as well as license-exempt spectrum.
These and other technical and policy issues require careful consideration and are discussed further in chapter 1.2, of the 2014 GITR. How the global community tackles these challenges will go far in determining Big Data’s impact on countries, businesses and individuals.
As consideration of the Net Neutrality legislation in Europe moves to the next phase, it is important that policymakers reflect on two real-world issues that were not fully resolved in the debate in the European Parliament. These include whether networks under the currently proposed framework can handle the projected growth in fixed and mobile network traffic; and whether the proposal will hinder or help innovation, particularly as it relates to specialized services. These are critical issues given the technology and traffic trends that exist today.
The simple truth is that the ICT industry is fast-paced and ever changing, with new technologies and innovations brought to market every day. Just think: in less than a decade, smartphones, tablets and apps have gone from nowhere to being nearly ubiquitous. Where will we be five years from now, when a new generation of technology unfolds?
One thing that we’re confident about of is that network traffic is going to increase dramatically over time, placing strains on fixed and mobile networks alike. According to the Cisco Visual Networking Index, IP traffic in Western Europe will increase from 7.7 exabytes per month in 2012 to 16.8 exabytes per month by 2017, at a compound annual growth rate of 17 percent (16.8 exabytes is the equivalent of 4 billion DVDs’ worth of traffic.). Mobile traffic alone will increase at a compound annual growth rate of 50% every year for the next five years – to an astounding 1.9 million terabytes a month.
Given this dramatic growth, it’s imperative that policymakers put rules in place that encourage innovation and job creation, as well as reasonable resource management functionality to prevent traffic jams that will degrade the quality that consumers have come to expect. However, we are concerned that the Net Neutrality proposal voted today raises significant technical and implementation issues, and risks hampering the very innovation that we would all like to see encouraged.
To be sure, Cisco is supportive of the European Commission’s efforts to provide legislative safeguards for an open, global Internet, as part of its broader “Connected Continent” package. No doubt content and services should reach users without being blocked, throttled or degraded by internet service providers (ISPs) managing internet traffic on their networks. Cisco supports this wholeheartedly, in Europe and elsewhere.
Moreover, we share the Commission’s view that it is better to anchor these safeguards in European-wide legislation, avoiding a patchwork quilt of different, and potentially contradictory, national laws.
But at the same time, we believe the current proposal needs additional discussion in two key areas:First, the proposal does not do enough to distinguish between reasonable and unreasonable forms of network traffic management. With the growth of network traffic described above, and the coming avalanche of video, real-time communications and other next-generation applications that consumers are demanding, it should be clear that traffic management is an essential set of tools that are vital for a fully functioning internet. The ‘all bits are created equal’ approach oversimplifies the realities of modern networks. Therefore, policymakers should do more to draw a bright line between the unreasonable blocking that no one wants, and the necessary traffic management techniques that ensure the fast, reliable and scalable networks that we all rely on, and need as consumers.
Second, there is also a need to clarify which tailored services can be offered alongside the open Internet, what the Commission’s proposal categorizes as ‘specialized services’. A new wave of technological innovation is coming, with the advent of the Internet of Everything (IoE) that connects people, process, data and things. Cisco estimates that the IoE holds some $19 trillion of value over the next ten years. This includes consumer products as small as Fitbits and Nest Thermostats to industrial applications as large as connected grids, improved transportation management, and technologies that prevent oil and gas pollution from pipelines. The common thread is that there will be increased need for network resource management tools to handle the anticipated 50 billion connected devices, with all the data they produce.But here is the challenge: the definition of ‘specialized’ services voted in the European Parliament today attempts to define this category in a very narrow and technology prescriptive way. This limited definition introduces additional complexity and cost burden for no clear benefit, and will soon be obsolete as innovation drives technology forward.
In contrast, we believe that any definition for specialized services should open up, rather than close off, potential paths to future digital innovation. We need to ask ourselves a simple question: will the current proposal have the unintended consequence of rolling back services that internet users have come to expect and rely on? If a consumer or a business chooses a video conference or TelePresence service with a guarantee of quality because they need to connect with the highest quality resolution, will this still be allowed? Is the definition sufficiently flexible and future proof to make sure there is room for future innovation –from IPTV to e-health, from Software Defined Networking (SDN) to the Internet of Everything?
So as this legislation moves closer to final adoption, we urge policymakers to take another look at these issues, and take into account the very real trends in network traffic and technological innovation.
We all want an open Internet, and the issues at stake are of crucial importance for the future digital economy of Europe. Let’s address the prevention of potential bad behavior, while making sure the remedy we put in place does not produce unforeseen and unintended effects on consumers and innovation down the road.
Pastora Valero is Director Governments Affairs EMEAR based in Brussels
The FCC made two groundbreaking decisions today to put more radio spectrum to work delivering broadband connectivity to consumers — one which will improve 5 GHz spectrum for Wi-Fi and the second that makes more licensed cellular spectrum available for wireless broadband. Taken together, these two decisions represent a meaningful down-payment on the 500 MHz of spectrum that the FCC said was necessary to meet the growing demand for spectrum in its 2010 National Broadband Plan.
The decision on 5 GHz spectrum is significant action that will allow consumers to use the full capabilities of the next generation of Wi-Fi technology. In effect, the FCC has eliminated the “speed bump” that impeded the full use of the 5150-5250 MHz band, and paved over two “potholes” that existed in the 5470-5725 and 5725-5850 MHz bands – one 50 MHz wide and one 25 MHz wide. As a result of these and other technical rule changes, the FCC has accelerated the ability of consumers to get the most out of new, Gigabit Wi–Fi technologies that are increasingly embedded in their smartphones, tablets and TVs. This will make it easier for all of us to consume a wide range of content on our mobile devices, most notably high definition video without frustrating lags or delays.
The second decision – which establishes auction rules for paired, AWS-3 spectrum — is a true milestone in U.S. spectrum policy. Two years ago, it was anybody’s guess whether this spectrum could be re-purposed for commercial use. Despite the fact that this band is harmonized for mobile broadband globally, in the U.S., it is populated by many federal spectrum systems. But over the past year, the mobile industry, the Commerce Department, the Department of Defense, White House and Executive Branch agencies generally, along with tremendous leadership from the committees of jurisdiction in Congress, each rolled up their sleeves to solve this very tricky spectrum transition problem. Now it’s the FCC’s turn to complete the work by hosting a spectrum auction for this very valuable piece of spectrum.
These decisions must be set against the backdrop of how consumers are taking advantage of mobile broadband connectivity. Simply put, consumers are devouring their data “bytes” on an unprecedented scale. Cisco projects that on licensed mobile spectrum, consumers will generate 600,000,000,000,000 bytes of data/month (that’s 0.6 exabytes) this year in the United States. By 2018, we’ll be chomping through 2,700,000,000,000,000 per month (or 2.7 exabytes). And that’s less than half the data consumed by your mobile enabled devices – those same devices are generating even more traffic on Wi-Fi networks in your home, office or on the go. Our devices are becoming more powerful with each new model, our networks are becoming faster, the number of connections is rising, and video, already the dominate application, continues to grow in importance.
Why then are these two decisions groundbreaking?
Because they both expose the reality that our previous decisions as a country about how to use radio spectrum have to evolve given the new marketplace realities.
Nearly all Americans today use mobile broadband and Wi-Fi on a daily basis. Whether 5 GHz Wi-Fi or AWS-3, these bands are critical because in both cases, an enormous ecosystem of manufacturers, innovators, and service providers exists offering transformative technology to billions of consumers around the globe. Make no mistake – these two bands do not represent a bet that an innovative new technology with spring forth in the wake of an FCC decision. The technologies are already here, and now we need to catch up.
As soon as the rules are final, and in the case of AWS-3 the auction closes and spectrum is awarded, Wi-Fi and mobile use of the bands is ready to explode.
By beginning consideration of patent reform legislation, the Senate Judiciary Committee today took a significant step toward ending the abusive patent assertion entity business model. Yet, there is still a great deal of hard work necessary to get a strong, bipartisan agreement across the finish line.
Significantly, we appreciate Chairman Pat Leahy’s statement today describing the work being done to bring together his bill and major elements of the bills sponsored by Senators John Cornyn and Orrin Hatch.
We know that members on both sides of the aisle are working in good faith to forge a bipartisan compromise. This includes major contributions and leadership from Chairman Leahy and Senator Cornyn, as well as Senators Dianne Feinstein, Chuck Grassley, Chuck Schumer, Orrin Hatch, Amy Klobuchar, Mike Lee, Richard Blumenthal and other members of the committee. With this level of commitment and engagement on the issue, we are looking forward to a strong bipartisan bill
The problem of abusive patent litigation is large and growing. Nearly 60 percent of new patent lawsuits are being filed by patent assertion entities, up from 25 percent in 2007. These are speculators manipulating the patent system to shake down business of all sizes — from innovators like Cisco to tens of thousands of small businesses around the country, including Cisco customers.
So we need a bill that ends the patent scam business model. Patent reform should include strong fee shifting that can’t be gamed by speculators hiding behind shell corporations; pleading standards that force plaintiffs to investigate their claims before suing; and limits on expensive discovery fishing expeditions. Such reforms would provide a level of accountability and transparency that simply does not exist today.
At a time when it difficult for Democrats and Republicans to find common ground on many issues, patent litigation reform is one area where a bipartisan agreement is possible, and indeed, within reach. Cisco stands ready to work with the Committee in any way possible to help find a lasting solution to this significant problem.
On Friday, March 14, the US Commerce Department’s National Telecommunications and Information Administration (NTIA) announced its intent to transition key Internet domain name functions to the global multi-stakeholder community. As the first step, NTIA is requesting the Internet Corporation for Assigned Names and Numbers (ICANN) to convene global stakeholders and develop a proposal to transition the current role played by NTIA in the coordination of the Internet’s domain name system (DNS).
This is a significant milestone in the transition of Internet governance to a global multi-stakeholder model, and Cisco welcomes this development. We applaud the NTIA for seeking to complete the final phase of the privatization of DNS management, as outlined by the U.S. Government in 1997. Cisco has long supported an open and innovative multi-stakeholder Internet governance process and this next step in its evolution.
NTIA has outlined a powerful process for the move towards full privatization and globalization of DNS management. It is based upon the recognition that the ecosystem of organizations, groups and individuals which make up the multi-stakeholder Internet governance community is mature and robust and can stand on its own.
At the same time, NTIA has outlined a transition designed to ensure participation by the entire Internet community, and that will continue to support the open and multi-stakeholder nature of the Internet. Key to this process will be the continued strong collaboration between ICANN, the Regional Internet Registries who allocate addresses, and the IETF that specifies Internet standards.
We look forward to working with the Internet community stakeholders to make this transition as successful as possible.