User experience, a Cambrian moment for innovation ecosystems, net neutrality, and the Internet of Things... each of the four will have a profound impact on how the Internet works.

1. Top 4 Macro Trends Driving
Evolution of the Internet
March 10, 2014 – Austin, TX #SXSW
Cory von Wallenstein
Chief Technologist
@cvwdyn

2. Pg. 2 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Trend 1
User experience is the new
competitive differentiator.

3. Pg. 3 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
$3.2B
$2B+
$3.5B+

4. Pg. 4 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
2010: 58% of US consumers
h"p://cvw.gs/amex2010
would
pay
a
higher
price
if
they
had
a
strong
expecta>on
of
receiving
superior
service.
Consensus
around
9%
op6mal
premium.
2012: 66% of US consumers
h"p://cvw.gs/amex2012
would
pay
a
higher
price
if
they
had
a
strong
expecta>on
of
receiving
superior
service.
Consensus
around
13%
op6mal
premium.

5. Pg. 5 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
From 2010 to 2012:
The
number
of
folks
who
voted
for
superior
service
with
their
wallets
went
from
57%
to
75%.
Businesses
are
responding.

6. Pg. 6 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Why would you
switch banks?
A
slightly
more
beneficial
interest
rate
isn’t
compelling
to
go
through
the
hurdles
of
switching.
Give
me
a
mobile
experience
so
I
don’t
have
to
call
or
go
to
a
branch.

7. Pg. 7 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt

8. Pg. 8 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Speed == $$$
100ms = 1% lost sales (Amazon)
0.5s = 20% traffic drop (Google)
h"p://cvw.gs/amz-­‐latency
h"p://cvw.gs/ggl-­‐latency
h"p://cvw.gs/km-­‐latency

9. Pg. 9 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Superior Experience
More Value
Stakes are Raised
How
will
this
affect
the
Internet?

10. Pg. 10 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
How
will
this
affect
the
Internet?
Growth
of
net
new
Internet
users
is
far
away
from
the
original
backbone
of
the
Internet
(growth
is
in
APAC,
Africa,
South
America).
Urban
centers
are
more
network
congested
than
ever
before.
Content
and
apps
will
push
further
to
the
edges
of
the
Internet
to
deliver
excellent
experiences.

11. Pg. 11 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
h"p://www.cogentco.com/files/images/network/network_map/networkmap_global_large.png
Speed
of
light
299,792.458
km/second
(in
a
vacuum)
Theore>cal
RTT
~40ms
Real
RTT
~90ms

12. Pg. 12 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
USA
20ms
20Mbps

13. Pg. 13 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
3.1s

14. Pg. 14 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Japan
250ms
40Mbps

15. Pg. 15 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Japan
250ms
40Mbps

16. Pg. 16 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
4.2s
36%
slower

17. Pg. 17 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
South
Africa
400ms
4Mbps

18. Pg. 18 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
7.6s
146%
slower

19. Pg. 19 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
We
can’t
break
the
speed
of
light.
Customers
can
be
gained
through
superior
service,
but
slow
is
the
new
down6me.
We’ll
push
closer
to
the
edge
to
deliver.

20. Pg. 20 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Trend 2
A Cambrian moment of
innovation ecosystems.

21. Pg. 21 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
h"p://cvw.gs/econ-­‐camb

22. Pg. 22 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Trend 3
Net neutrality and the
evolving business model of
the Internet.

23. Pg. 23 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
h"p://cvw.gs/giga-­‐nn

24. Pg. 24 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Trend 4
“Things” outnumber
“people”.

25. Pg. 25 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
“People”: ~7B
h"p://cvw.gs/cisco-­‐iot
“Things” today: ~14B
IPv4 Addresses: ~4B
“Things” 2020: ~50B

26. Pg. 26 Macro Trends Driving Evolution of the Internet @cvwdyn #dynmmt
Four Macro Trends Driving
Evolution of the Internet
1. User
experience
is
the
new
compe>>ve
differen>ator.
2. A
Cambrian
moment
in
innova>on
ecosystems.
3. Net
neutrality
and
the
evolving
business
model
of
the
Internet.
4. “Things”
outnumber
“people”.
Dyn
/delivers/
Internet
Performance
• Traffic
management
(user
types
“twi"er.com”)
• Message
management
(user
receives
“file
shared”
email
from
Box)
• Performance
assurance
(understand
your
Internet
performance)