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.

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

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

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

4. Exploding
bandwidth

5. 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.
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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

6. 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
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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

7. …it comes to us
from new sources…
7
12 November 2013

8. New devices bring new traffic…
50 billion M2M connected devices are forecasted by 2020
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12 November 2013

9. …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

10. • Changes in the
IP Ecosystem

11. 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
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12 November 2013
Data Centers
Online
applications
are dependent
on each layer
working with
high
bandwidth
and Quality
of Service

12. 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

13. 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
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12 November 2013

14. 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
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12 November 2013
ISP 5
X
ISP 6

15. 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
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12 November 2013

16. 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

17. 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

18. 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

19. 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
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20. • The Datacenter
Ecosystem

21. 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…..
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12 November 2013

22. 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

23. 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

24. Carrier of the future