Data center locations - An international carrier's perspective

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Information about Data center locations - An international carrier's perspective

Published on February 20, 2014

Author: TeliaSoneraIC



To satisfy ever-increasing traffic and storage demands, there will need to another 100 data centers built in Europe by the year 2020. These data centers will need to be +5MW and will consume a lot of energy and require a lot of cooling.
Where they are located will make a big difference in what they cost to run. The ideal location would provide green energy resources, have a climate that provides free cooling for much of the year – and of course – be well connected.

Data center location – An International Carrier´s perspective Mattias Fridström CTO, TeliaSonera International Carrier Delivery speed 299,792,458 m/s

TeliaSonera Our footprint • 460 million population • 183 million subscriptions - 71.2 m consolidated Last updated: April 2013 - 111.8 m in associated companies

TeliaSonera International Carrier • Control and management of optical and IP • Two distinct core networks at duct level • Diversity at duct, cable and node level 3 12 November 2013 Putting data centers at the core of the global network

Exploding bandwidth

Five trends shaping our world Socialization of everything Connecting the dots We believe that every industry will eventually rely on connectivity to create value. The ones that best leverage the network will Connecting the dots outpace their competitors. Online socialization is Socialization very basis for changing the of everything how people behave and interact. On an individual level, and in society at large. Anywhereization Wherever you are, you want instant access to everything, no matter where it is. As a global carrier we are keeping Anywhereization it all together. A flattening world The age of diversity Access network The age towill come in of diversity capabilities many shapes and forms, with diverse business models coexisting for the foreseeable future. 5 12 November 2013 Today we see global access toA flattening world knowledge that previously was limited to a chosen few – all made possible through connectivity. … with industry consequences

Bandwidth demand is continuing to grow… Bandwidth Mbit/s >250 VDSL2 4G ADSL2+, VDSL ADSL 3G 2G DSL 6-16 • IPTV 1-2 ISDN • Peer-to-peer music sharing 0.128 • Base Internet usage 1996 2000 Source: McKinsey 6 12 November 2013 • Video streaming 25-50 • HD TV • 3D multiplayer gaming 50-100 • HD • Remote hosting • 3D TV and interactive solutions 100-250 • Multiple streaming HD/3D TV • Full 3D (real time & voice & 3D holograms) • More services that • Mass market we can not cloud even services imagine • Full scale today 3D emulating • HD voice • Video on demand 2003 2006 2010 2012 2015 Time

…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

…and irrespective of economic slowdowns No link between economic slowdowns and growth of bandwidth demand (2006-2013) Dow Jones Index TSIC bandwidth mar-06 9 mar-07 12 November 2013 mar-08 mar-09 mar-10 mar-11 mar-12 mar-13

• Changes in the IP Ecosystem

Each layer has value Applications (and web browsers) fetch data from remote servers Users Application / content providers Operators / service providers Applications Access network (fixed / mobile) Backbone (”lit” equipment) Regional / Global carriers Infrastructure (ducts, fibers, technical sites) Server farms 11 12 November 2013 Data Centers Online applications are dependent on each layer working with high bandwidth and Quality of Service

Borders are disappearing……but • Listed Company Example – Personnel are in Norway – Customers are in Sweden – Internet servers are in Finland Server towards Internet Connectivity is business critical. Storage is a big question mark 12 12 November 2013 Personnel Customers

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. IPv6 is the answer. We all need to ”walk the walk” Source: Internet Intelligence Authority Renesys for screenshots and blog commentary. Retrieved May, 2013 13 12 November 2013

While Major players are building out dedicated data-centers and networks, carriers remain vital ”Internal backbone approach” ”CDN approach” TRENDS “Best effort” to everyone is not good enough anymore Some Carriers have already built massive networks. Why not let them build some more X X Those with fiber have all the capabilities needed X X X X X X X ISP 1 ISP 2 ISP 3 ISP 4 Ownership of logotypes are respected and just used for illustrative purpose 14 12 November 2013 ISP 5 X ISP 6

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 15 12 November 2013

New big Datacenters have challenging requirements • • • • • 16 ”Cold” places Green energy ONLY Politically stable countries No seismographic activities High power knowledge and experience 12 November 2013 This is not where the worlds fibers are

Optical Transport Partner Requirements • Enable differentiation in a competitive market • Exceptional focus on customer experience • Technology leadership • Outstanding reliability • Quick deliveries 17 12 November 2013

Buzz words • 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 18 12 November 2013

but new routes give better latency….. • Uleåborg – San Francisco 205ms Putting data centers • Hong Kong – London 130ms at the core of the • Boden - Istanbul 30ms global network 19 12 November 2013

• The Datacenter Ecosystem

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 and many more….. and a few more….. 21 12 November 2013

The Datacenter Ecosystem • 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. 22 12 November 2013

Summary 1 2 3 4 5 23 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 Infrastructure more important than ever - combination of fiber and IP Choose you allies carefully - customers and network spanning the globe 12 November 2013

Carrier of the future

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