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Next-generation internet needs more focus on innovative infrastructure: Cisco Malaysia

AvantiKumar | Jan. 27, 2010
Enterprise strategy for Asia includes switching and routing
KUALA LUMPUR, 27 JANUARY 2010 - The solution to increasing demand for Internet bandwidth must include innovations in switching and routing, according to Cisco Malaysia.

Cisco senior vice president/general manager, data centre, switching and services group, John McCool, said the demand for next-generation Internet needed a unified fabric at the data centre level to cope with both storage and video data demands.
"As cloud computing and virtualisation evolve, network traffic will increase six-fold," McCool said. "Cisco's virtualisation vision is to aggregate siloed pools of storage, compute, network, operating systems and applications into a unified resource pool that can be optimised for users across the organisation."

"In 2007, 1.32 billion people were connecting to the Internet using computers, cell phones, PDAs, TV and various other devices, he said. Over the next five years, it is estimated that the number of users will double while the number of connections will increase five-fold."

"Cisco's business is expected to be driven by the increasing dependence and exponential needs for next-generation Internet, where more people, devices and applications are connected," he added. "[Cisco] has identified several key market transitions that will help enterprises reap the benefits of next-generation Internet."

"These market transitions include video, which would account for about 90 per cent of consumer Internet traffic by 2012," he said. "Greater intelligence within networks is required to ensure Internet traffic is delivered appropriately."

"In addition, collaboration is blurring the lines between work and private life, where non-stop, real-time and simultaneous communications are second nature, he said. Enterprises continue to look for greater consistency in available applications, security, policy and interoperability."

 The Malaysian opportunity

"[The new strategy] is relevant to our business in Malaysia as we are seeing an increasing value of the Internet for organisations and similar market trends happening in Malaysia," said Cisco Malaysia managing director, Anne Abraham. "Switching and routing infrastructure remains a dominant part of our business in Malaysia as we drive the convergence of security, wireless mobility, collaboration, video and many other technologies into IP networks."

"For example, analyst firm Frost & Sullivan sees the mobile video services market in Malaysia, increasing its revenue to US$12.1 million by the end of 2013, an annual growth rate of 42.7 per cent from 2007 to 2013, said Abraham. The unprecedented growth in rich, Internet media consumption [such as videos] among Malaysians calls for the need for service providers to continuously enhance and upgrade their existing infrastructure.

Abraham added that Cisco Malaysia saw tremendous opportunity for companies to explore and creatively use collaborative technologies such as unified communications, mobility solutions, IP-enabled networking solutions and TelePresence to increase business efficiencies, reduce operating costs and maintain competitive edge. Malaysia is an opportune market for collaborative technologies with mobile population penetration in Malaysia, surpassing 100 per cent in March 2009, and mobile connections are expected to reach 41.2 million by 2014, according to analyst firm Ovum in October 2009.

"In addition, a lot more companies are ready to embed green strategies in all aspects of the business to reduce carbon footprint. Take the property and real estate industry for example," she said. "The 2008 Green Building Market Report by BCI Asia found that 53 per cent of Malaysian architects, engineers, contractors and building owners surveyed are committed to the green building agenda."

"Cisco believes [to take a green approach] that power usage can be managed by the network to ensure on-demand usage and off-demand energy conservation, said McCool. Cities in particular that utilise the network can improve their energy efficiency by 30 per cent within 20 years.

"As the economy is set to recover in 2010, we are seeing a renewed interest in technology adoption among business corporations, enterprises and small and medium businesses (SMBs) to enable agility and productivity," said Abraham.


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