booming demand for high-bandwidth network connectivity services in asia

Copyright© 2013 by KVH Co. LTD

All Rights Reserved. Not to be copied or reproduced without express permission of KVH Co LTD

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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

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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,


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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


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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


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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.


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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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