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“The Power of Participation”




klinker@bittorrent.com
November 16, 2007
Web 2.0
 “Software that gets better the more people use it”
 User contributed content
   Blogs
   Wikis
   Social networks
   User generated video
 User contributed applications
   Open source
   “Widgets”
   Platforms
 User contributed infrastructure
   P2P content delivery
   “Services as Software”


         Distributed Social Computing Platform
         Distributed Social Computing Platform
                                 © 2001-2007 BitTorrent,Inc. All rights reserved.   2
Market for IP Video
                           Consumer Internet Traffic Growth
                           Consumer Internet Traffic Growth

              8,000,000
              8,000,000
                                                                                   Internet Video to TV
                                                                                   Internet Video to TV
              6,000,000
              6,000,000                                                            Internet Video to PC
                                                                                   Internet Video to PC
   TB/month
   TB/month




                                                                                   VoIP
                                                                                   VoIP
              4,000,000                                                            Video Communications
              4,000,000                                                            Video Communications
                                                                                   Internet Gaming
                                                                                   Internet Gaming
                                                                                   Web, Email, File transfer
                                                                                   Web, Email, File transfer
              2,000,000
              2,000,000
                                                                                   P2P
                                                                                   P2P
                     0
                     0
                           2005 2006 2007 2008 2009 2010 2011
                           2005 2006 2007 2008 2009 2010 2011


                          P2P: 1014 PB/mo, 35% CAGR

                                                                    © 2001-2007 BitTorrent,Inc. All rights reserved.   3
1: Source: Cisco Systems, The Exabyte Era, Whitepaper August 2007
A New World Order… of Magnitude
   A new order of magnitude has arrived – the
   ExaByte (EB)
         One Exabyte = 2^60 bytes
         Roughly = 1000 PetaBytes = 1 million TeraBytes
         = 1 billion GigaBytes = 1 trillion MegaBytes
         = 3,507 Gbps (assuming 100% network utilization)
3,507,000 months of TV (stream encoded at 1 Mbps) (292,000 years)
   64,944 months of Blu-Ray DVD (max std 54Mbps)      (5,412 years)
   POP QUIZ 2007 OnlineBIG IS AN EXABYTE?
      351 months - HOW Radio Site Traffic                 (29 years)
       20 months of 2007 YouTube traffic                 (1.7 years)
        1 months of P2P traffic



                                         © 2001-2007 BitTorrent,Inc. All rights reserved.   4
How to Deliver an ExaByte : Web 1.0

     Client-Server                     CDN                           1000                   PB/Mo

                                                                     6.5                    Tbps peak

                                                                     ~70,000                Servers

                                                                     60-70                  MWatts



• http:// or ftp://         • Content distributed to
                              servers at the network
• File requested from +
                              edge
  delivered by a server
                            • Reduces load on central
• Linear Scalability
                              servers and speeds content
• Foundation of modern        delivery to end users
  internet
                            • Provides one-stop shop to              $20                    Mbps
                      1st
• Foundation of               assure consistent levels of
  generation CDNs             content delivery                       $130M                  Monthly


                                                            © 2001-2007 BitTorrent,Inc. All rights reserved.   5
How to Deliver an ExaByte: Web 2.0
              P2P                Hybrid P2P/HTTP




                                • e.g., BitTorrent DNA
  • More Efficient
                                • Optimized for large file
  • Users decide what content
                                  delivery
    is popular
                                • Server provides addresses
  • Popular content is
                                  of peers AND a download
    accelerated the most
                                  server
                                • QoS of download server is
                                  only ever improved by
                                  peers




                                     © 2001-2007 BitTorrent,Inc. All rights reserved.   6
Big CDN




           1M – 5M     100K – 500K   10K – 50K            1K – 5K                  1 – 100
>10M
                                     5K – 10K             100 – 1K                 0
5M - 10M   500K – 1M   50K – 100K

                                           © 2001-2007 BitTorrent,Inc. All rights reserved.   7
A Network of Participation




           1M – 5M     100K – 500K   10K – 50K            1K – 5K                  1 – 100
>10M
                                     5K – 10K             100 – 1K                 0
5M - 10M   500K – 1M   50K – 100K

                                           © 2001-2007 BitTorrent,Inc. All rights reserved.   8
The Evolving World of Content




                                con
                                   sum
                                      er                               NAS


                                                                                BitTorrent SDK
                                     BitTorrent DNA                                       DMA            Game console
                                                                           Router

              BitTorrent.com                                                            STB



                                     rnet
                                                                         DVR                                    DVD


                                 inte
          • New internet
            content providers

          • New rich internet
            content




                                                      © 2001-2007 BitTorrent,Inc. All rights reserved.          9
© 2007 BitTorrent Inc.
BitTorrent’s Mission



    Deliver the content that entertains and
           informs the digital world




                                © 2001-2007 BitTorrent,Inc. All rights reserved.   10
© 2001-2007 BitTorrent,Inc. All rights reserved.   11
Consider Search
 Google: 500,000 – 1M+ servers
   $4.5B in cumulative capex at 21% of Q2 net earnings (Morgan Stanley)

 And yet, still not a great experience today
   Not contextual
   Does not see the “dark web”
   Not personalized
   Not localized
   Not dynamic (cannot keep up with Web2.0
   applications)

 How can users participate and make search better?
 How can users participate and make search better?
                                             © 2001-2007 BitTorrent,Inc. All rights reserved.   12
Conclusions
 The best applications involve user participation
 Users are contributing to all aspects of the application
   Including the infrastructure of the application
 As developers, consider how users will contribute to
 your application
   Content
   Code
   Computing power
 Harness the power of participation and multiply your
 ability to deliver a rich and powerful application.



                                         © 2001-2007 BitTorrent,Inc. All rights reserved.   13
“Thank You”




klinker@bittorrent.com
November 16, 2007

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S29

  • 1. “The Power of Participation” klinker@bittorrent.com November 16, 2007
  • 2. Web 2.0 “Software that gets better the more people use it” User contributed content Blogs Wikis Social networks User generated video User contributed applications Open source “Widgets” Platforms User contributed infrastructure P2P content delivery “Services as Software” Distributed Social Computing Platform Distributed Social Computing Platform © 2001-2007 BitTorrent,Inc. All rights reserved. 2
  • 3. Market for IP Video Consumer Internet Traffic Growth Consumer Internet Traffic Growth 8,000,000 8,000,000 Internet Video to TV Internet Video to TV 6,000,000 6,000,000 Internet Video to PC Internet Video to PC TB/month TB/month VoIP VoIP 4,000,000 Video Communications 4,000,000 Video Communications Internet Gaming Internet Gaming Web, Email, File transfer Web, Email, File transfer 2,000,000 2,000,000 P2P P2P 0 0 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 P2P: 1014 PB/mo, 35% CAGR © 2001-2007 BitTorrent,Inc. All rights reserved. 3 1: Source: Cisco Systems, The Exabyte Era, Whitepaper August 2007
  • 4. A New World Order… of Magnitude A new order of magnitude has arrived – the ExaByte (EB) One Exabyte = 2^60 bytes Roughly = 1000 PetaBytes = 1 million TeraBytes = 1 billion GigaBytes = 1 trillion MegaBytes = 3,507 Gbps (assuming 100% network utilization) 3,507,000 months of TV (stream encoded at 1 Mbps) (292,000 years) 64,944 months of Blu-Ray DVD (max std 54Mbps) (5,412 years) POP QUIZ 2007 OnlineBIG IS AN EXABYTE? 351 months - HOW Radio Site Traffic (29 years) 20 months of 2007 YouTube traffic (1.7 years) 1 months of P2P traffic © 2001-2007 BitTorrent,Inc. All rights reserved. 4
  • 5. How to Deliver an ExaByte : Web 1.0 Client-Server CDN 1000 PB/Mo 6.5 Tbps peak ~70,000 Servers 60-70 MWatts • http:// or ftp:// • Content distributed to servers at the network • File requested from + edge delivered by a server • Reduces load on central • Linear Scalability servers and speeds content • Foundation of modern delivery to end users internet • Provides one-stop shop to $20 Mbps 1st • Foundation of assure consistent levels of generation CDNs content delivery $130M Monthly © 2001-2007 BitTorrent,Inc. All rights reserved. 5
  • 6. How to Deliver an ExaByte: Web 2.0 P2P Hybrid P2P/HTTP • e.g., BitTorrent DNA • More Efficient • Optimized for large file • Users decide what content delivery is popular • Server provides addresses • Popular content is of peers AND a download accelerated the most server • QoS of download server is only ever improved by peers © 2001-2007 BitTorrent,Inc. All rights reserved. 6
  • 7. Big CDN 1M – 5M 100K – 500K 10K – 50K 1K – 5K 1 – 100 >10M 5K – 10K 100 – 1K 0 5M - 10M 500K – 1M 50K – 100K © 2001-2007 BitTorrent,Inc. All rights reserved. 7
  • 8. A Network of Participation 1M – 5M 100K – 500K 10K – 50K 1K – 5K 1 – 100 >10M 5K – 10K 100 – 1K 0 5M - 10M 500K – 1M 50K – 100K © 2001-2007 BitTorrent,Inc. All rights reserved. 8
  • 9. The Evolving World of Content con sum er NAS BitTorrent SDK BitTorrent DNA DMA Game console Router BitTorrent.com STB rnet DVR DVD inte • New internet content providers • New rich internet content © 2001-2007 BitTorrent,Inc. All rights reserved. 9 © 2007 BitTorrent Inc.
  • 10. BitTorrent’s Mission Deliver the content that entertains and informs the digital world © 2001-2007 BitTorrent,Inc. All rights reserved. 10
  • 11. © 2001-2007 BitTorrent,Inc. All rights reserved. 11
  • 12. Consider Search Google: 500,000 – 1M+ servers $4.5B in cumulative capex at 21% of Q2 net earnings (Morgan Stanley) And yet, still not a great experience today Not contextual Does not see the “dark web” Not personalized Not localized Not dynamic (cannot keep up with Web2.0 applications) How can users participate and make search better? How can users participate and make search better? © 2001-2007 BitTorrent,Inc. All rights reserved. 12
  • 13. Conclusions The best applications involve user participation Users are contributing to all aspects of the application Including the infrastructure of the application As developers, consider how users will contribute to your application Content Code Computing power Harness the power of participation and multiply your ability to deliver a rich and powerful application. © 2001-2007 BitTorrent,Inc. All rights reserved. 13