Presentation from Craig Labovitz , DeepField #structureeurope More at http://event.gigaom.com/structureeurope/

1. Tuesday, October 1, 13

2. MASSIVE, ONGOING CHANGES IN HOW THE INTERNET IS
CONSTRUCTED
SPEAKER: Craig Labovitz
Co-Founder
DeepField
Tuesday, October 1, 13

3. Dr. Craig Labovitz
labovit@deepfield.com
Massive, Ongoing Changes in How
the Internet is Constructed
Structure Europe 2013
Tuesday, October 1, 13

4. This Talk
This talk about how changing Internet economics and
the fierce battles between content, infrastructure and
consumer companies is altering how almost all global
Internet traffic is generated and delivered.
Tuesday, October 1, 13

5. Multi Year Study of Internet Infrastructure
• Data from backbone routers around the Internet
• One of the largest ongoing studies of it kind
• Studying both the evolving core infrastructure and economics of the
new Internet
Tuesday, October 1, 13

6. Internet Core 2008
• Almost all Internet traffic goes through ten companies
• Most investment is in long haul backbones
• Large backbone providers incur most of the cost, provide most
of the value, and deliver the majority of Internet traffic
Internet Core Transit
Last Provider
Enterprise / Consumer
FREE
Tuesday, October 1, 13

7. Explosion of Content
• Massive consolidation of videos, music and web pages
• Majority of traffic goes comes from 150 companies
• Growing share of revenue goes to smaller share of companies
0"
10"
20"
30"
40"
50"
60"
Top$200$Companies$as$Percentage$of$all$Internet$Traffic$
Tuesday, October 1, 13

8. Internet Core 2010
• Almost all content shifts to datacenters
• Massive investment and revenue in datacenters
• New Internet Core
Enterprise / Consumer
Data CentersContent
Transit
Last Provider
FREE
Tuesday, October 1, 13

9. HyperGiants 2013
• 50 companies deliver more than half of all Internet traffic
• Using an even smaller number of datacenters and CDN
Tuesday, October 1, 13

10. Last Mile 2013
• Content Distribution (CDN) now delivers more than 50% of
all traffic
• Most investment in datacenter and last mile content
distribution, including CDN and edge caches
Tuesday, October 1, 13

11. Internet Core 2013
• New datacenters support new content
• Driving growth of traffic and costs to last mile
• Rapid growth in Content Distribution Networks
Last Mile
Enterprise / Consumer
Data CentersContent
Enterprise / Consumer
OpenConnect CDN
Transit
FREE
Tuesday, October 1, 13

12. Netflix 2013
Tuesday, October 1, 13

13. The Last Mile
• Datacenters in major (“NFL”) cities is no longer sufficient
• New battle is for control of rack space in secondary cities and
last mile edge servers and caches
• Growing cost but fixed revenue in last mile
Tuesday, October 1, 13

14. www.deepfield.com
Tuesday, October 1, 13

15. Tuesday, October 1, 13