2014 MACOM All Rights Reserved
The Cloud Connected Apps Economy: Achieving Frictionless Global Connectivity with New Innovation in Wireless and Wireline Technology Trends and transformations in online multimedia distribution, mobile wireless and cloud computing require new approaches to Internet bandwidth optimization As Internet technology has evolved, our methods of communication, entertainment, education, healthcare and business have evolved as well, radically transforming entire industries and institutions. We consume, produce and share information and multimedia content in brand new ways at previously unimaginable speeds, with profound implications for the global community. With the ever accelerating distribution of HD video and multimedia content, the continued proliferation of wireless devices and infrastructure, and increased reliance on cloud computing platforms, bandwidth requirements are growing exponentially. To keep pace with these demands, new innovation in wireless, cable and optical networking technology will be essential. Sustained progress in these domains will one day yield a true global network thats accessible from anywhere on the planet, providing near real-time responsiveness with seemingly limitless bandwidth elasticity, in the smallest possible environmental footprint. This is MACOMs vision of the Infinite Internet, and it will require a new breed of high-performance semiconductor solutions to underpin tomorrows wireless and wireline infrastructure.
The Online Video and Multimedia Content Deluge The growing popularity of bandwidth-intensive streaming media and video on demand (VOD) platforms like Netflix, YouTube, and Hulu is changing the way we consume multimedia, giving us access to an ever expanding range of programming whenever and wherever we want it via our set top boxes, PCs, tablets and smartphones. Demand for online multimedia content delivery is growing quickly and is expected to soar in the coming years. Recent research indicates that global Internet video traffic will grow four-fold from 2012 to 2017 - a compound annual growth rate of 30% - and total global
2014 MACOM All Rights Reserved
Internet video traffic is projected to be 67% of all Internet traffic in 2017, up from 52% in 2012 (source: Cisco). This accelerating demand for online video and multimedia content is putting increasing strain on our Internet backbone, and this strain can directly impact the user experience. Screen freeze and slow download/buffering speeds remain frustratingly commonplace. In the absence of new and/or upgraded Internet infrastructure, these issues will only grow more pronounced as more and more consumers vie for less and less available bandwidth. The continued roll-out of 3D programming and the advent of the 4K Ultra HD video format will compound these issues considerably, and the bandwidth burdens associated with these formats will likely delay their mass market adoption. For consumers, content providers and carriers alike, realizing the full promise of seamless, anytime anywhere HD+ caliber online video and multimedia content delivery hinges on our ability to defy these Internet bandwidth limitations. Wireless for Everyone and Everything Skyrocketing global demand for high-speed mobile/remote broadband access is fueling unprecedented innovation in the wireless domain. From developed to developing countries, from metro to rural communities, global wireless connectivity promises more than just a means to communicate more easily with friends and family or access online entertainment. Global wireless connectivity is the key to unlocking the full potential of telemedicine, long-distance education, mobile commerce, and scientific exploration essential drivers of prosperity and development. There were more than 1 billion mobile broadband users in 2012; by 2016 there will be 5 billion mobile broadband users (source: Ericsson). This is a staggering growth rate, and yet it only accounts for one dimension of wireless usage personal wireless communication. The coming era of the Internet of Things comprised of uniquely identifiable/traceable physical objects wirelessly interconnected with the Internet will introduce a host of new wireless requirements for a wide range of applications including supply chain management, smart metering, home automation, big data analytics, and many more. More than 30 billion devices are expected to be wirelessly connected to the Internet of Things by 2020 (source: ABI Research), and the Internet of Things has the potential to add $10-15 trillion to global GDP by 2030 (source: General Electric). To accommodate these burgeoning demands on our wireless networks, wireless infrastructure will continue to proliferate at a very high rate. The underlying strain on our point-to-point radio backhaul networks and cellular base stations will introduce significant challenges for designers of next-generation wireless communication systems.
2014 MACOM All Rights Reserved
Computing in the Cloud The rise of cloud computing has fundamentally transformed the management of information technology for business applications. Where previously businesses relied on dedicated onsite hardware and software to meet their IT requirements, the shift toward globally-accessible, virtual IT resources spanning server, storage and networking platforms has enabled breakthrough management agility and cost efficiencies. The cloud computing value proposition is particularly compelling for the high-growth small and medium businesses (SMB) market. Cloud-based applications and on-demand computing resources help SMBs minimize capital expenditures and maximize IT budget flexibility while allowing them to take advantage of advanced technologies via affordable, pay-as-you-go software as a service (SaaS) subscription models. As more and more SMBs transition to cloud computing platforms, SMB spending on cloud solutions is expected to grow by almost 20% annually over the next five years (source: IDC). As the adoption of cloud computing accelerates for businesses of all sizes, petabytes of aggregate data traffic will shift from local area networks to the Internet. Ironically, the stress this puts on our Internet infrastructure will test cloud providers abilities to ensure seamless business continuity and optimal network performance and data access speeds for their customers. Next-generation Internet Infrastructure Requirements Whether building out new Internet infrastructure or upgrading existing network foundations, its imperative that network operators make the most of their investments. Hardware must be optimized for maximum performance and future-proofed for maximum longevity. Benefits will be measured across system size, weight, power (SWaP) and performance profiles, and investments prioritized by projected revenue returns. By minimizing design and deployment complexity, time-to-market is accelerated. MACOM is setting the pace for industry innovation across the wireless and wireline domains. Innovations in Wireless Technology With global 2G wireless infrastructure coverage at greater than 95% and 3G coverage at similar rates in the developed world, the market emphasis has clearly shifted to delivering the data capacity that subscribers require to access their rich multimedia and cloud based services on the go. It is estimated that demand for wireless capacity doubles every 18 months. Furthermore, as subscribers grow accustomed to high data rate connections, they expect these services to be accessible everywhere, both indoor and outdoor, from rural areas to high density geographies and large buildings and facilities.
2014 MACOM All Rights Reserved
A wireless networks capacity can effectively be summarized with the following simple equation:
Network capacity, expressed in Mb/s/km2, quantifies how much data traffic can be delivered to subscribers in a 1km2 area. Spectral efficiency, expressed in Mb/s/Hz, quantifies how efficient the wireless access technology is at utilizing available spectrum. Spectrum availability, expressed in Hz, is simply the licensed spectrum available to an operator. Its been forecasted that without revolutionary changes to access technologies for example, use of millimeter waves as a cellular access technology there is little room to increase available spectrum by more than a factor of 2X, accompanied by a factor of 2X improvement in the spectral efficiency, achievable by refarming existing 2G and 3G spectrum to more efficient LTE or LTE-A, or by means of carrier aggregation and higher order MIMO techniques. It stands to reason that on the current trajectory of data demand, increased improvements in spatial efficiency will be required within a 3 to 5 year timeframe. It has been estimated that small cells could deliver a 10X spatial efficiency improvement relative to macro cells, and thus would extend the useful life of existing wireless protocols such as WCDMA, LTE and LTE-A by up to 5 years. With the exception of low power indoor consumer small cells (otherwise known as femtocells), interference and handover between small cells and the macro cell under which they fall introduce significant network integration challenges, requiring Self-Optimizing Network (SON) strategies and technologies such as Enhanced Inter-cell Interference Coordination (eICIC) to be employed. The initial concept of the small cell was born of the desire to provide capacity enhancements to hot-spots in the network. More recently, however, this perceived role has begun to change, and now small cells are being deployed to address coverage gaps. As such, the required reliability of both the small cell access and its backhaul to the core network is now being held to the highest standards of the macro network. For this reason, technologies with high intrinsic reliab