Data center location – An

International Carrier´s

perspective

Mattias Fridström

CTO, TeliaSonera International Carrier

Delivery speed 299,792,458 m/s

TeliaSonera

La

st u

pd

ate

d:

Ap

ril 2

01

3

Our footprint

• 460 million population

• 183 million subscriptions

- 71.2 m consolidated

- 111.8 m in associated companies

3

Putting data centers

at the core of the

global network

• Control and management of optical and IP

• Two distinct core networks at duct level

• Diversity at duct, cable and node level

TeliaSonera International Carrier

12 November 2013

Exploding

bandwidth

5

Five trends shaping our world

Anywhereization

A flattening world

Connecting the dots

Socialization of everything

The age of diversity

The age of

diversity Access to network

capabilities will come in

many shapes and forms,

with diverse business

models coexisting for the

foreseeable future.

Anywhereization Wherever you are, you

want instant access to

everything, no matter

where it is. As a global

carrier we are keeping

it all together.

Connecting the dots We believe that every

industry will eventually rely

on connectivity to create

value. The ones that best

leverage the network will

outpace their competitors.

A flattening world Today we see global access

to knowledge that previously

was limited to a chosen few

– all made possible through

connectivity.

Socialization of

everything Online socialization is

changing the very basis for

how people behave and

interact. On an individual

level, and in society at large.

… with industry consequences

12 November 2013

Bandwidth demand is continuing to grow…

1996 2000 2003 2006 2010 2012 2015

Bandwidth Mbit/s

Time

• Base Internet usage

• Peer-to-peer music sharing

• IPTV

• Video streaming

• Video on demand

• HD TV

• 3D multiplayer gaming

• Multiple streaming HD/3D TV

• Mass market cloud services

• Full scale 3D emulating

• HD voice

• Full 3D (real time & voice & 3D holograms)

• More services that we can not even imagine today

3G

2G

4G

VDSL2

ISDN

DSL

ADSL

ADSL2+,

VDSL

0.128

1-2

6-16

25-50

50-100

100-250

>250

Source: McKinsey

• HD

• Remote hosting

• 3D TV and interactive solutions

6 12 November 2013

…it comes to us from new sources…

7 12 November 2013

New devices bring new traffic…

50 billion M2M connected devices are forecasted by 2020

8 12 November 2013

mar-06 mar-07 mar-08 mar-09 mar-10 mar-11 mar-12 mar-13

9

No link between

economic slowdowns

and growth of

bandwidth demand

(2006-2013)

12 November 2013

Dow Jones Index

TSIC bandwidth

…and irrespective of economic slowdowns

•Changes in the

IP Ecosystem

Applications

Infrastructure (ducts, fibers, technical sites)

Data Centers

Backbone (”lit” equipment)

Access network (fixed / mobile)

Server farms

Application /

content providers

Operators /

service providers

Regional /

Global carriers

Users

Applications

(and web

browsers) fetch

data from

remote servers

Each layer has value

Online

applications

are dependent

on each layer

working with

high

bandwidth

and Quality

of Service

12 November 2013 11

• Listed Company Example

– Personnel are in Norway

– Customers are in Sweden

– Internet servers are in Finland

Personnel

Customers

Server towards

Internet

12 November 2013 12

Borders are disappearing……but

Connectivity is

business critical.

Storage is a big

question mark

Public IP – who connects data centers?

IPv4 (99.5%)

IPv6 (<0.5%)

• Some big names fall away

• TeliaSonera International Carrier rises

• Level3 ‘x2’ is mega-sized

• Making ”the change” - not just network

but DNS, routing, tools, reporting.

• Users - still too few, and mainly large

networks.

Source: Internet Intelligence Authority Renesys for screenshots and blog commentary. Retrieved May, 2013

IPv6 is the answer.

We all need to

”walk the walk”

12 November 2013 13

While Major players are building out dedicated data-centers and networks, carriers remain vital

ISP 1

ISP 2 ISP 3 ISP 4

ISP 6

ISP 5

”Internal backbone approach” ”CDN approach”

X

X

X X X X X

X X X

TRENDS

“Best effort” to everyone

is not good enough

anymore

Some Carriers have

already built massive

networks. Why not let

them build some more

Those with fiber have all

the capabilities needed

Ownership of logotypes are respected and just used for illustrative purpose

12 November 2013 14

Outsourcing to optical operators – a new Business Model

For carriers… …and content providers

Photos: Wikicommons . Rostelecom Cup, Russia (left) and Facebook’s “like” symbol in Luleå, northern Sweden

12 November 2013 15

New big Datacenters have challenging requirements

• ”Cold” places

• Green energy ONLY

• Politically stable countries

• No seismographic activities

• High power knowledge and experience

This is not where the

worlds fibers are

12 November 2013 16

Optical Transport Partner Requirements

• Enable differentiation in a competitive market

• Exceptional focus on customer experience

• Technology leadership

• Outstanding reliability

• Quick deliveries

12 November 2013 17

• After cloud “latency” is today’s buzz word

• Latency has always been a factor

– but not driven by the same needs

– This leads to new ways of building networks

Buzz words

12 November 2013 18

19

Putting data centers

at the core of the

global network

• Uleåborg – San Francisco 205ms

• Hong Kong – London 130ms

• Boden - Istanbul 30ms

but new routes give better latency…..

12 November 2013

•The Datacenter

Ecosystem

• To attract investment and establishments into the Nordic market there is a need for a working Ecosystem

− No player can themselves meet all the demands

The Datacenter Ecosystem

12 November 2013 21

and many more…..

and a few more…..

The Datacenter Ecosystem

12 November 2013 22

• A Datacenter investment is so much more than just a cheap land plot

• Connectivity

• Permissions

• Tax agreements

• Power availability

• Construction limitations

• Transport availability

• Manpower

• Etc.

Demand for capacity remains strong - from corporate to consumer driven

Opportunities for those that move fast - differentiating services in time adds value

Datacentres should be located correct

- power & cooling cost vital

Summary

1 2 3

Infrastructure more important than ever - combination of fiber and IP

Choose you allies carefully - customers and network spanning the globe

4 5

12 November 2013 23

Carrier of the future