booming demand for high-bandwidth network connectivity services in asia
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Copyright© 2013 by KVH Co. LTD
All Rights Reserved. Not to be copied or reproduced without express permission of KVH Co LTD
Page 1 of 6
Booming Demand for High-bandwidth
Network Connectivity Services in Asia
Key Drivers for 100G Networks and How KVH is Responding
WHITE PAPER: KVH Network Solutions
Table of Contents
2 Introduction: Changes in Data Consumption and Management
2 Response to Changes and New Capabilities for Enterprises
Increasing Bandwidth Demand
Growing Adoption of Data Center Services
Shift in Data Center and Network Usage
Improved Cost-Efficiency
4 Conclusion
6 About KVH
Booming Demand for High-bandwidth Network Connectivity Services in
Asia
Copyright© 2013 by KVH Co., Ltd. All Rights Reserved
Page 2 of 6
Introduction: Changes in Data
Consumption and
Management
Demand for high capacity networks today has
never been higher. Carriers, service providers, and
content providers, in particular, need to
reconsider how they manage their network
infrastructure. Big data, mobile, internet traffic,
online and social media, and the evolution of
cloud computing are only some of the major
technological shifts these enterprises can no
longer risk overlooking.
In Asia, international bandwidth requirements
grew at a compounded rate of over 55 percent
annually between 2007 and 2011, while
broadband subscriptions doubled to 250 million
over the same period . Consequently, is comes as
no surprise that enterprises are looking to network
service providers like KVH for robust 100Gbps
network connectivity to help them handle more
data at faster speeds, without affecting network
performance.
Furthermore, as competition heightens in the
online, e-commerce, content management, and
carrier industries throughout Asia, enterprises are
increasingly forced to consider latency as a key
part of their network’s quality. High-speed,
low-latency network connectivity that can flex
on-demand, can nowadays be a major
differentiator between one-hit wonders, and
long-term success, particularly for businesses
involved in online media, such as online gaming
companies or Internet TV portals, where even one
or two seconds of waiting too long could drive
end-users away.
Meanwhile, for large enterprises with
mission-critical information, such as financial
institutions, the highest level of network security is
critical. Despite the globally growing adoption of
cloud environments, data privacy remains a key
concern for businesses and is an issue many
service providers have to address when offering
cloud-based infrastructure.
The following whitepaper outlines how KVH aims to
address the aforementioned market changes and
customer demands by leveraging its newly
released 100G network service.
Response to Changes and New
Capabilities for Enterprises
Increasing Bandwidth Demand
In response to the significantly expanding data
needs of enterprises, demand for
high-performance, high-bandwidth international
network connectivity is growing. With more
network capacity, businesses can seamlessly flex
their network to address peaks in data traffic, while
also managing their usual data flow more
cost-efficiently. For cloud services providers,
Booming Demand for High-bandwidth Network Connectivity Services in
Asia
Copyright© 2013 by KVH Co., Ltd. All Rights Reserved
Page 3 of 6
Internet Service Providers (ISPs), data center
providers, and Internet Exchanges (IX) in particular,
high-bandwidth services like KVH 100Gigabit
Ethernet Leased Line will enable those firms to offer
10G or above connectivity service to their
customers without complicated network channel
management.
Growing Adoption of Data Center Services
According to analyst firm, IDC, spending on
technologies and services related to managing
big data is expected to reach nearly US$10 billion
in 2013 , while the Asia Pacific storage market is
forecast at US$16 billion with a CAGR of over 22% .
These trends are leading to a strong uptake of
data center services, as awareness is also growing
among enterprises of the cost and security
benefits of leveraging a data center services
provider in comparison to building and managing
such an environment internally.
Shift in Data Center and Network Usage
Example 1:
High bandwidth point-to-point network
connectivity presents an opportunity for
enterprises to connect their IT environments in
various data centers and enable high-speed
domestic or international interconnectivity. By
connecting into a single interconnected data
center environment, otherwise known as a ‘Virtual
Data Center’, rather than setting up separate
connections to each data center, businesses can
experience high cost-efficiency and less hassles
related to configuration, installation and
maintenance.
KVH’s self-service portal will enable customers to
select their preferred bandwidth, location, and
usage timeframe for their high-capacity software
defined network (SDN) services from a single
online point of contact*.
Without DC Interconnection With DC Interconnection
Booming Demand for High-bandwidth Network Connectivity Services in
Asia
Copyright© 2013 by KVH Co., Ltd. All Rights Reserved
Page 4 of 6
Example 2: Internet usage and, consequently,
Internet data traffic continues to soar as it
becomes more and more integrated into
consumers’ and business’ daily activities. With the
added growth of mobile Internet usage, which
alone is expected to multiply 13 times by 2017 , ISPs
are increasingly requiring faster and higher
capacity connectivity to backbone networks.
Many will be looking to shift to 100G point-to-point
network service providers immediately or within
the near future to be able to continue offering
high quality Internet services at competitive
pricing.
Improved Cost-Efficiency
While the data and network needs of enterprises
have advanced over the last decade, so have
the technologies used by network service
providers. With today’s leading-edge network
technology and infrastructure, 100G network
connectivity can be offered to customers with
high reliability over a low-latency network, on a
premium and high-performance platform, at less
than half the price of ten 10G networks. Thus, 100G
network service providers, such as KVH, can not
only support the growing data demands of
customers as these evolve, but also address the
tightening IT budgets of enterprises in these
economically volatile times.
Conclusion
100G network services enable service providers to
have 10G or broader network services in their
10G Network Connectivity 100G Network Connectivity
Booming Demand for High-bandwidth Network Connectivity Services in
Asia
Copyright© 2013 by KVH Co., Ltd. All Rights Reserved
Page 5 of 6
portfolio to address the rapid growth in data,
content, and Internet traffic. In particular, with the
added growth of mobile Internet usage, network
capacity between ISP, IX, and data centers is
expected to face further expansion demands in
the near future, driving more demand for these
high-capacity point-to-point network services.
KVH 100Gigabit Ethernet Leased Line Service offers
customers an optimal solution to these growing
needs. By leveraging KVH, enterprises can adopt
highly reliable 100G network services at a lower
cost than five 10G circuits, and will also be able to
choose their desired bandwidth, location, and
duration of network usage by applying SDN over
interconnected data centers in the near future.
Booming Demand for High-bandwidth Network Connectivity Services in
Asia
Copyright© 2013 by KVH Co., Ltd. All Rights Reserved
Page 6 of 6
About KVH
KVH is an Asia Pacific IT Services and Data Center Services Provider established in Japan. KVH’s
Information Delivery Platform delivers integrated cloud and network solutions and best-in-class service to
its customers. KVH owns infrastructure and provides services that enable clients to store, process, protect
and deliver their vital business information. KVH provides IT Services, Cloud Services, Data Center Services,
Managed Network Services, and Professional Services.
KVH has a presence in Tokyo, Yokohama, Osaka, Hong Kong, Shanghai, Singapore, Seoul/ Busan, and
Chicago, and serves over 1,900 customers in broad industry segments such as financial services,
manufacturing, media, gaming, and e-commerce. More information on KVH can be found at
www.kvh.co.jp/en/
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