The Future of ITA Hoteliers View

June 18th, 2017

Matthew BaioVice President IT, AmericasMarriott International

AgendaTrends

Where are we HeadedNetwork Basics

Practical AnalogyInfrastructure Investments

Trends

Internet User Growth

Trends

Mobile Growth

Trends

Advertising Growth is Driven by Mobile

Trends

Advertising Spend

Trends

When will internet related ad spend eclipse TV ad spend?

Advertising Spend

Trends

Internet Search and Mobile

Trends

TrendsInternet Search in Mobile

Mobile Data

Trends

Mobile Data

Trends

Cellular Networks

Where do Mobile Products get their data from?

WiFi Networks

TrendsInternet users are growing

Mobile device users are growing

Advertising spend and innovation is targeted toward mobile users

Mobile device data consumption is growing

Why does any of this matter?

Mobile Facts

WiFi

Trends

Mobile devices rely on WiFinetworks in buildings

Network Basics

WiFi Networks

WiFi Basics General Principles

• WiFi networks are powered by wired networks• WiFi Technologies evolve faster than wired technologies• Wiring infrastructure decisions affect the performance of WiFi

networks• Newer WiFi technologies can operate faster than the wired

networks the are connected to.• Signal strength is not the answer to WiFi network performance

• WiFi clients talk one at a time (half-duplex)• Available airtime is affected by a variety of factors

• Number of WiFi clients• Floor Noise• Interference

WiFi Basics

In General, Higher Frequencies:

Translate to faster potential speeds

Reach less distance

Penetrate less through objectsFrequencies

WiFi Standard Frequency Speed Distance

802.11b 2.4 GHz 0-11mbps Far

802.11g 2.4GHZ 0-30mbps Far

802.11n 2.4 and 5GHz 0-300mbps Medium

802.11ac 5GHz 0-1.3gbps Medium

802.11ad 60GHz 0-7gbps Short

Network BasicsCabling Types

Cable Type Frequency Speed Distance

CAT3 16MHz 0-11mbps 328'

CAT5 100MHz 100mpps 328'

CAT6 250MHz 1gbps 328'

CAT6A 500MHz 10gbps 328'

Single Mode Fiber Many pbps Multiple km

Cabling Basics

Wired Networks

Wired Network Basics

Wired Networks

When you buy a network, you buy 2 things:

• Cabling – Wires that can be used to make a network

• Electronics – The gear that uses the wires (Switches, Access Points, Routers, Computers)

Wired Networks

Wired Network Basics

Cabling and Electronics Facts

• Cabling standards and technologies evolve slower than that of electronics

• Cabling investments tend to be used far longer than electronics investments

• Cabling investments tend to be more expensive• Cabling installations are harder to implement in

buildings

Wired Networks

Wired Network Basics

Highway Analogy

• The cabling is like the field or path• Buy the property• Create the pathway• Grade the field• Setup drainage

• The Electronics are like the road• Pavement• Reflectors and paint• Guardrails

Wired Networks

Wired Network Basics

Highway Analogy

• Things affect speed capacity on a highway• Number of lanes• Speed Limit• Quantity of Traffic• Traffic Incidents

• Things affect speed capacity on a network• Technology deployed (Number of lanes and

Speed)• Load (Traffic)• Quality of data transmission (Error Rates)

Wired Networks

Wired Network Basics

Highway Analogy

Theoretical Bandwidth Current Speeds

Cabling Electronics

The Field - Width of the Field The Road – Number of Paved Lanes (today)

CAT3/10BaseT 10 10mbps

CAT5/100BaseT 100 100mbps

CAT5E and CAT6/1000baseT 1000 1000mbps

Single Mode Fiber/GPON 128000000000000000 1000mpbs

Wired Networks

Wired Network Basics

Highway Analogy - Summary

• Copper wiring has bandwidth limits• Single Mode Fiber has nearly limitless bandwidth• Cabling is relatively difficult and costly to install• Buying the right cable is critical to keep up with

future bandwidth needs

You can always buy faster electronics (more lanes of road) later if your cabling can support it (if the field

or path is wide enough)

InfrastructureInvestments

Wired Networks

Infrastructure Investments Technologies that can use

Single Mode Fiber

• Active Ethernet• Software Defined Networks• GPON

GPON

Infrastructure Investments

What is GPON?• Fiber Network

• GPON (Gigabit Passive Optical Networking) is a type of network that uses fiber optic cabling and passive (non-powered) components throughout system to transmit data at very high speeds

• Mature Technology

• Used for many years, primarily in government and defense industry or to deliver residential internet service (FIOS)

• New to Hospitality

• Recently Installing in several New Build and Renovated Hotels

• Orlando World Center Marriott

• Marco Island JW Marriott

• Chicago Marquis Marriott

• Atlanta Marquis Marriot

In-Room Device (ONT)

GPON

Infrastructure Investments

GPON Benefits• Future-proof your building

• GPON Networks use a type of fiber optic cabling that has near limitless bandwidth capacity (over 100 terabytes per second of theoretical capacity)

• Once the cable plant is installed, only the electronic components will need to be upgraded over time

• All services such as TV, Voice, and Data can be run across a single cable

• Dramatic reduction of copper cabling and associated cost• Reduction of project cost for new-builds• Fiber optic cabling is smaller, stronger and lighter than

copper cabling• Reduce Power

• GPON devices much require less power than traditional network equipment

• Reduce Space• Less space is needed for equipment

Fiber vs. Copper bundle

GPON

Infrastructure Investments

GPON Drawbacks• Power

• Devices supplied by fiber for data need an alternative power source.• Distributed DC power plants are expensive and quickly erode savings.

• Vendor Interoperability• Products do not function between vendors.• Think proprietary DSL systems and previous EBay maintenance

strategies.• Vendor Diversity

• There are only three major GPON manufacturers.• It is impossible to predict the “Motorola Effect”

• Configuration Tools• Born from the Telco Industry, tools have not fully matured.

• GPNS Provider Lack of Experience and in some cases Interest• Guest-Tek and Swisscom have shown interest.

• Deployment Methods• Fiber deployment methods may not directly translate to future/multi-

Gig Ethernet Models• Market Adoption in Campus Environments

• It is unclear if this infrastructure will win out vs other fiber based deployments

GPON

Infrastructure Investments

WiFi Access Point

Telephone Thermostat Minibar

Guest Room

IDF Closet

MDF Computer

Room

Optical Network Terminal (ONT)

Fiber Splitter(No Power)

Optical Line Terminal (OLT)

$

$$

$

WiFi Access Point

Telephone Thermostat Minibar

Guest Room

IDF Closet

MDF Computer

RoomCore Network Switch

$

$$$$$

T

Laptop Laptop

T

Network Switch

Traditional Ethernet Network GPON Network

Cable Cost Comparison – GPON vs. Traditional Ethernet

Fiber Cable

Copper Cable (CAT6)

Support SystemsHVACEmergency PowerUPS Battery

$$$$$

GPON

Infrastructure Investments

Copper Fiber

Installation

CPE Electronics

Cross Connects

Cables

Core Electronics

Fiber Savings

Installation 75%

CPE Electronics -130%

Cross Connects 41%

Cables 50%

Core Electronics 39%

Total Savings 39%

Anticipated CAPEX Saving – New Builds

GPON

Infrastructure Investments

Summary• Fiber should be considered when making investments in hotel

networks• Cabling is expensive• Cabling is difficult to install• Single mode fiber offers the most potential for future growth

• GPON is a proven technology that uses single mode fiber• Used to deliver residential service and in the government sector

for well over a decade• GPON is proving a useful networking technique for in-building

applications, like hotels• The Fiber GPON networks use today can be used by tomorrow’s

networks• Future speeds are nearly limitless• The fiber’s capabilities will likely outlast the buildings in which it

is installed• GPON network deployment costs are decreasing

• GPON Networks are typically less costly for new builds• Costs tend to be on par with copper networks for renovations

Questions

Matthew Baio

Vice President, IT AmericasMarriott Internationalmatt.baio@marriott.com