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Akamai Confidential Monthly Products Webcast Future of CDN – Next 10 Years DigiWorld Summit 2013 Ahmet Ozalp, VP Products and Strategy, International Markets Montpellier, Nov 20th, 2013

Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

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Ahmet Ozalp is the VP of International Products and Strategy for the Media (Sola) Division of Akamai. In this role Ozalp leads the product management and strategy initiatives for Akamai’s video, software and application delivery, storage and analytics products in EMEA and Asia Pacific regions. He also leads and supports key partnership initiatives with major Telecommunications companies in the region. Prior to Akamai, Ozalp was the CEO of Telenity, a global provider of mobile advertising and social network solutions. Prior to Telenity, Ozalp was a Partner at Atlas Venture, where he led investments in digital media, mobile and online advertising. While at Atlas, Ozalp was the lead investor and board member of Extend Media (acquired by CSCO) and also had board level involvement with Ellacoya Networks (acquired by Arbor Networks), Isilon (IPO, Nasdaq:ISLN) and Gotuit Media. Before joining Atlas, Ozalp held executive positions in marketing and product management at Narad Networks (acquired by Nasdaq:CIEN) and was also part of the founding team of Newnet, a telecom software startup acquired by ADC (Tyco Electronics). In the early part of his career, Ozalp was also a management consultant with Bain & Company’s technology and media practice. Ozalp holds an MBA from the Wharton School of University of Pennsylvania, an MS in EE from Columbia University and two US patents.

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Page 1: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential

Monthly Products Webcast

Future of CDN – Next 10 Years DigiWorld Summit 2013

Ahmet Ozalp, VP Products and Strategy, International Markets

Montpellier, Nov 20th, 2013

Page 2: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Brief History of CDN

Mass Adoption, Multiple Devices

Quality, Scale, VAS

4th Gen

2014

Analytics, ABR, Mobile

Transcoding, multi format, explosion in

devices

3rd Gen

2008

VoD, Live Streaming,

Global

Cloud, P2P, Origin

Storage

2nd Gen

2005

Edge DeliveryIntelligent Routing,

Replication

Static & Dynamic Content

1st Gen

1999

Traditional webhosting,

Storage

1990s

Traditional Server Hosting

Page 3: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

THE INTERNET HAS COME A LONG WAY…

…BUT WE’RE REALLY JUST AT THE BEGINNING

Page 4: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

EVERYONE AND EVERYTHING IS

GETTING CONNECTED

Page 5: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Buy

Now!

Page 6: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Source: Cisco

Video as the killer App and driver for traffic

Page 7: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #1

Traffic will grow exponentially!

CDNs will carry more and more of it!

Page 8: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

2012 20170

50

100

150

200

250

300

All Consumer Internet CDN Enabled

Consumer Internet Traffic

34%

51%

tbp

s (a

ve)

Source: Cisco

% of Video Traffic CDN

enabled = 65%

% of Video Traffic CDN

enabled = 53%

Page 9: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

2012 2017 20220

200

400

600

800

1000

1200

1400

1600

All Consumer Internet CDN Enabled

2022…

34%51%

tbp

s (a

ve)

Source: Cisco, Akamai Analysis

80%+

Page 10: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks.

100MB Primetime Viewers

x 10 Mbps

~1,000 Tbps

Let’s do the math…

Page 11: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #2

Connected devices will drive complexity

Mobile apps, OS and gaming downloads will cause“spikes”

Page 12: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

3.1BTablet & PC

1.5 - 2B

Device FunctionalityMost functionality(Processing, Memory, Storage)

Least functionality(Processing, Memory, Storage)

Frequentl

y “

off

” or

not

availa

ble

Frequentl

y “

on”

or

availa

ble

Smart Phones

400-600M

Home Consoles

Media Boxes

Smart TVs

Smart Router & DVR

2.2B

400M

30-60M

Re

sou

rce

Ava

ilab

ility

Connected Device Landscape

Page 13: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

10/12/11

8/19/12

6/10/13

6/23/10

9/18/13

Major events stress the Network

Page 14: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

ComplexityShort to Mid-term Diverse standards and practices for video

encoding and packaging, DRM

Long-term Standardization around MPEG-DASH, one

or two DRM and encoding models

Page 15: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #3CDN Architectures will

evolve!Content will move closer to

the Edge!

Page 16: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

X

(Cloud) Datacenters

End-Users

12,000 networks connected by peering points

X

Internet is Complex

Page 17: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

(Cloud) Datacenters

X

X

End-Users

CDNServer

Closer to the Edge…

Page 18: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #4

Innovation and scale will drive success!

Page 19: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Client Side

HTTP/UDPAcceleration

Multicast Delivery

Peer Assisted Delivery

Intelligent Pre-

Positioning

Cache

Server Side

Optimized TCP

Technology Innovation

Page 20: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #5

CDNs will be trusted partners for value added services

Page 21: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

AcquirePrepare/Protect

Publish Deliver Consume Analyze

Value Added Services

Video Workflow

Advanced Web Acceleration

Security

Page 22: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #6

CDNs and Telcos will cooperate closely!

Solo players will lose!

Page 23: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #7Content deliver echo system

will grow to include new categories!

Page 24: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Chip Manufacturer

OS Developer

Device Manufacturer

Carrier/MSO

Application Developer

Fast Time to Market

Broad Impacts

CDN echo system will grow

Page 25: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #8

OTT video quality will meet and exceed broadcast level!

Page 26: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

CDN Video Quality High capacity, multi-protocol CDNs Sophisticated encoding and

transcoding technologies 3D, 4K, 8K, multi-camera angles,

second screen, social media, companion content

Page 27: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #9Pricing will get more

sophisticated!

Page 28: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

CDN Pricing Content and use case specific pricing

Geo-based pricing

Tiered Pricing (QoS)

Page 29: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #10CDN services will become

more and more cost effective!CDN will be an enabler of

business innovation!

Page 30: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

% of revenue0%

5%

10%

15%

20%

25%

2008 2013 2017

< 1%

CDN Cost as % of Revenue

Page 31: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

Prediction #11CDN Market will have a

healthy growth!

Page 32: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Increased Consumption

ShortTerm

MidTerm

LongTerm

More Content Online

Higher BitratesBroadband Penetration

Larger File Sizes

ShortTerm

MidTerm

LongTerm

Pricing Pressure

DIY and Internal CDNs

New Entrants

Drivers

Restraints

HIGH MEDIUM LOW

Market Summary

Op

po

rtun

ity

ShortTerm

MidTerm

LongTerm

Ever-growing Traffic

Online Video Growth

Connected Device Growth

Broadcast IPTV

Workflow/VAS

Evolution of Video Formats Online

Page 33: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

All segmetns of CDN echo system will win!

The biggest winners will be the customers and

consumers!

Page 34: Future of CDN - Next 10 Years - Ahmet Ozalp, Akamai Technologies - DigiWorld Summit 2013 - Future Internet Networks Executive Seminar

Akamai Confidential ©2012 AkamaiFaster ForwardTM

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.Thank you!