Cisco and the Zettabytes Internet

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By Douglas A. McIntyre Published
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Almost no one knows what a zettabyte is. Cisco Systems (NASDAQ: CSCO) uses the term to measure the volume of data center IP traffic. According to the router giant, “Annual global data center IP traffic will reach 4.8 zettabytes by the end of 2015.” Cisco does not make clear whether the internet can handle this volume without large hardware upgrades, which is a problem.

In its new “Global Cloud Index and Methodology: 2010 – 2015,” Cisco points out the obvious. The growth of broadband and the amount of data that has to be moved from point-to-point has exploded, and it will continue to do so. Cisco has advice for how this can be done seamlessly. It comes as no surprise that the solution involves the use of Cisco products.

Cloud computing will be essential to the growth of data storage and traffic. The use of the cloud is already important to companies like Google (NASDAQ: GOOG), which has its applications available on its servers so that customers can access their information directly from nearly any point in the world. Consumer applications also have grown as firms such as Apple (NASDAQ: AAPL) make more of their multimedia products available on the cloud.

Cisco’s conclusion is that much of the internet’s structure and server centers are probably too immature to be ready for the world of IP use in 2015:

In terms of data center and cloud traffic, we are firmly in the zettabyte era. Global datacenter traffic will grow fourfold from 2010 to 2015 and reach 4.8 zettabytes annually by 2015. A subset of data center traffic is cloud traffic, which will grow 12-fold over the forecast period and represent over one-third of all data center traffic by 2015 . A key traffic driver as well as an indicator of the transition to cloud computing is increasing data center virtualization. The growing number of end user devices combined with consumer and business users preference or need to stay connected is creating new network requirements. The evolution of cloud services is driven in large part by users’ expectations to access applications and content anytime, from anywhere, over any network and with any device. Cloud-based data centers can support more virtual machines and workloads per physical server than traditional datacenters. By 2014, more than 50% of all workloads will be processed in the cloud.

From a cloud readiness perspective, the study covers the importance of broadband ubiquity. Based on the regional average download and upload speeds and latencies for business and consumer connections, all regions can support some level of cloud services. However, few regions’ average network characteristics are currently able to support the high-end advanced cloud apps.

Parts of the world will have to make hundreds of millions, if not billions, of dollars in upgrades to operate in the zettabytes world — a world that only a few people can imagine because the hardware and advance software needed will be so complex.

Few people know what a zettabyte is. It is a measure of internet traffic. Cisco is worried that the internet cannot hold the weight of the data rush that is coming. Cisco routers and server products might be the only solution. At least Cisco hopes so.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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