pacnet news 2011q3
TRANSCRIPT
PacnetNews Jul – Sep 2011
Pacnet News Team
Executive Editor
Lorain Wong
Editor
Roland Lim
Contributing Editor
Lynn Tan
Design
Ampersand
Contributors
Lalou Ramos
Genevieve Li
CY Hui
Production
Dorothy Yip
Jennifer Bao
Pacnet News is published
quarterly by Pacnet Limited
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Pacnet, please visit our website
www.pacnet.com or email
© 2011 Pacnet Limited
All rights reserved
As we cross the halfway mark of 2011, it is becoming clear what the next wave of the Internet will be about – zettabytes of data. From text and photos to videos and software applications, digital content in all forms and sizes, generated by the ever-increasing number of web users all over the world, will become so pervasive that burgeoning traffic volume will burden the Internet backbone tremendously. In this issue of Pacnet News, we throw the spotlight on the massive growth in digital content Asia is seeing and look into how it will reinvent the ways data is delivered to web users in the region (see pages 4–7).
June was an exceptional month for Pacnet. We appreciate the recognition by industry peers as Pacnet was named Wholesale Operator of the Year at the Asia Communication Awards 2011 held in Singapore (see page 1). The awards ceremony was held on the side of CommunicAsia 2011, at which my team and I had the privilege of sharing our perspectives with industry leaders and analysts (see pages 8–9). Around the same time, Pacnet team members also won accolades for living up to our core value of putting customers first. Two of our Hong Kong sales managers were bestowed the prestigious HKMA Distinguished Salesperson Award, the bar of excellence in selling recognized worldwide by sales professionals (see page 3).
To keep up with the demands of our customers, we are continually growing our network in the region through infrastructure enhancements and partnerships (see pages 2–3). Through the launch of our new international gateway in Chennai and the partnership with Philippine telco PLDT, Pacnet is now able to deliver high-speed connectivity solutions to businesses in India and the Philippines. Our partnership with India telco Bharti Airtel and the new link to Vietnam has also expanded our network connectivity (see page 12). The pact strengthens our delivery of enhanced high-speed broadband connectivity to the US via Asia, while increased connectivity through a new direct subsea route to Ho Chi Minh City via Singapore places Pacnet in an advantageous position to handle the growing international connectivity requirements of Vietnamese businesses.
We hope you enjoy this edition of Pacnet News. As always, we look forward to your continued feedback and comments on how Pacnet can better serve your communication and network requirements
Best regards,
Bill Barney Chief Executive Officer, Pacnet
—01–03News
—
04– 07Cover Story
—
08– 10Events
—11CaseStudy
—12ProductUpdates
—13TechQ&A
CEO’s Message
Pacnet Named Wholesale Operator of the Year at Asia Communication Awards 2011
SINGAPORE Pacnet has been named Wholesale Operator of the
Year at the Asia Communication Awards 2011. The Awards, currently
in its first year, recognize and honor the achievements, innovations
and outstanding new services of the region’s telecommunications
carriers and executives.
“We are extremely honored to receive this award, which recognizes
us as Asia’s best in the wholesale telecommunications space,” said
Bill Barney, Chief Executive Officer of Pacnet at the awards ceremony
held on 22 June 2011 in Singapore, on the side of CommunicAsia
2011, the region’s largest international communications and
information technology event.
“This award endorses our strategy of leveraging our unsurpassed
subsea network coverage in Asia to deliver innovative, industry-
leading wholesale network services packaged with class-leading
service delivery, enabling carriers to build the resilient and redundant
networks that are core to their business,” added Mr Barney.
Winners of the inaugural Asia Communications Awards were chosen
by a panel of independent judges comprising industry professionals
and analysts, as well as editors from leading telecommunications
trade publication Total Telecom.
Pacnet delivers a wide variety of wholesale capacity services ranging
from Indefeasible Rights of Use (IRUs) to private line networks, which
is backed by its ownership of 46,420 km of fiber optic submarine
cable infrastructure connecting key locations in Asia and across the
Pacific Ocean.
One of the key products in its product suite is Pacnet SmartTransport,
Asia’s first international private line service to address the
growing demand for uninterrupted network connectivity. Pacnet
SmartTransport brings to the market a unique protected international
private line connectivity service that offers customers the flexibility
of choosing between three levels of protection, to meet their need for
increased network resilience.
Through the highest grade of protection called “1:1 Protection”,
Pacnet SmartTransport enables almost instantaneous automatic
network restoration across a dedicated alternative network path
should a network segment experience disruption, thus allowing
business operations to continue uninterrupted. This premium service
is also delivered with Pacnet’s industry-leading availability and
latency service level agreements (SLAs).
Panel of esteemed judges comprising industry professionals, analysts and editors selected Pacnet as the best wholesale telecommunications operator in the Asia Pacific region
Pacnet CEO Bill Barney (right), receiving the award from David Kennedy, Telecoms Research Director at Ovum, one of the judges of the inaugural Asia Communication Awards
01
“ We are extremely honored to receive this
award, which recognizes us as Asia’s best
in the wholesale telecommunications
space. This award endorses our strategy of
leveraging our unsurpassed subsea network
coverage in Asia.”
– Bill Barney, CEO, Pacnet
News
02
PacnetNews Jul – Sep 2011 PacnetNews Jul – Sep 2011
Pacnet Boosts Capabilities in India with New International Gateway
New Country Heads at Pacnet India and Korea
Pacnet Sales Managers Win 43rd HKMA Distinguished Salesperson Award
News
Pacnet announced on 18 May 2011 the launch of its international
gateway in Chennai, enabling the delivery of unprecedented access
to high-speed international broadband connectivity and a full suite of
advanced communication solutions to businesses in India.
Through the enhanced Pacnet infrastructure in India, carriers and
businesses will be able to enjoy Pacnet’s full suite of connectivity
solutions designed to meet India’s broadband needs, including
Indefeasible Rights of Use (IRU), International Private Lines (IPL),
Ethernet International Private Lines (EIPL), IP Virtual Private Networks
(IP VPN), IP Transit and Dedicated Internet Access (DIA). Businesses
will also be able to tap into Pacnet’s comprehensive hosting and
managed services offerings.
Pacnet, through its joint venture Pacific Internet India Pvt. Ltd. (Pacnet
India), currently operates points of presence (PoPs) in major cities
across India including New Delhi, Gurgaon, Bangalore, Chennai,
Mumbai, Pune and Hyderabad.
In January 2010, Pacnet India obtained its National Long Distance (NLD)
and International Long Distance (ILD) licenses from the Department of
Telecommunications of India (DoT) and has also obtained full security
clearance from DoT. This complements its Internet Service Provider
(ISP) Class A license, which allows Pacnet India to offer a full suite of
Internet connectivity solutions, as well as a range of managed and
hosted services in India.
Pacnet also announced recently that it has boosted network
connectivity into India by adding additional capacity between India
and Singapore that is interconnected to Pacnet’s EAC-C2C subsea
cable and Pacnet’s trans-Pacific cable EAC Pacific. This allows
businesses in India to get access to high-speed connectivity into
Asia, as well as on to the US on a single Pacnet network.
According to the Telecom Regulatory Authority of India (TRAI), there
were 11 million broadband subscribers in India at the end of 2010 and
as part of their proposed National Broadband Plan, they are targeting
to increase broadband subscriptions to 75 million by 2012 and 160
million by 2014.
Pacnet and PLDT Team Up on Ethernet ServiceMANILA Pacnet and Philippine
telecommunications provider PLDT, through
its business group PLDT ALPHA Enterprise,
announced on 25 May 2011 a partnership
to deliver an enhanced high-speed
international Ethernet network service to
businesses in the Philippines.
Through the partnership with Pacnet,
businesses in the Philippines will be able
to enjoy a new Global Ethernet International
Private Leased Line (EIPL) service that
simplifies the network requirements of
enterprises by providing high-speed, end-to-
end international Ethernet connectivity.
The new Global EIPL service is available now
and is offered as a Point-to-Point or Point-to-
Multipoint service connecting the Philippines
with Australia, China, Europe, Hong Kong,
Japan, India, Indonesia, Korea, Malaysia,
New Zealand, Singapore, Taiwan, Thailand,
Vietnam and the United States.
PLDT is the only Philippine
telecommunications provider to be awarded
the coveted Metro Ethernet Forum (MEF) 9
and 14 certification.
BANGKOK Pacnet Thailand has signed an
agreement with Theppadungporn Coconut
Co. (TCC), Thailand’s leading manufacturer
and exporter of processed food under the
brand name “Chaokoh”, to become its
network service provider for its operations
in the country.
Pacnet Thailand has delivered a suite of
managed network services to TCC, including
connecting TCC’s offices and factories in
Thailand with Multiprotocol Label Switching
(MPLS) network connectivity, delivering a
Pacnet Thailand Wins Deal with Leading Food Manufacturer
highly stable and secure network to support
the company’s business critical applications.
Pacnet also manages the company’s
redundant backup network connection to
ensure that the company’s network, and its
business, always stays up.
Additionally, Pacnet Thailand also introduced
Voice over IP (VoIP) solutions to TCC,
enabling the company to reduce its phone
expenses substantially by tapping on its
robust network.
HONG KONG Pacnet’s Billy Chau Man Lai and Alvin Leung Chi
Pong have been named winners of the 43rd HKMA Distinguished
Salesperson Award at the award presentation ceremony held on
10 June 2011 at the Hong Kong Convention and Exhibition Center.
Mr Chau is Assistant Sales Manager at Pacnet Hong Kong and
has worked in the telecoms industry for 10 years, while Mr Leung
is Account Manager at Pacnet. Both of them shared that paying
close attention to the needs of customers, so as to tailor relevant
solutions, is an essential requirement in winning them over, as well
as keeping them.
The award, which is part of the Distinguished Salesperson Award
Program, is given out annually to recognize outstanding sales
personnel in the territory. First launched in the United States in 1950,
the award is now recognized worldwide by sales professionals as the
standard of excellence in selling.
Pacnet Assistant Sales Manager Billy Chau (left) and Account Manager Alvin Leung (right) with Pacnet Greater China Managing Director Alice Ting (center) at the awards ceremony
Chun Kyu (CK)
Park was recently
named Country
Manager for
Pacnet Korea and
is responsible
for the strategic
growth and expansion of the company’s
business in Korea. Since joining the company
(Asia Global Crossing) in 2002, Mr Park has
contributed significantly to the company’s
Carrier business in Korea. He is also a five-
times winner of the company’s “President’s
Club” (top achievers) honor.
With more than 25 years of telecom
experience, Mr Park previously served as
Head of Sales at MCI WorldCom, where he
built the company’s business in Korea and
won the prestigious “Best Employee of the
Year Award” during his two-year tenure.
Mr Park also spent 13 years in Product
Development, Business Development and
Sales roles at Dacom, where he achieved
a solid track record in sales and earned
numerous accolades.
A native of Korea, Mr Park received his
Bachelor of Micro Electronics degree from
Myung Ji University in Seoul.
Pacnet Inks Partnership with India’s Bharti AirtelPacnet announced on 7 April 2011 that it has
signed agreements with Bharti Airtel Limited to
deliver a new high-speed network connecting
Chennai to the US.
The US$120 million network, created through
the synergy of Bharti Airtel’s i2i cable
system and its domestic network in India,
together with Pacnet’s EAC-C2C and EAC
Pacific submarine cable network, will enable
businesses and consumers across India
to enjoy enhanced high-speed broadband
connectivity to the US via Asia.
Simultaneously, both firms will also benefit
from gaining additional complementary fiber
capacity, as well as additional network routes
to increase the diversity and resiliency of their
global IP networks.
Pacnet owns and operates EAC-C2C, Asia’s
largest privately-owned submarine cable
network at 36,800 km, with a design capacity
of 17.92 Tbps to 30.72 Tbps to and from each
of the landing countries, as well as EAC Pacific,
which spans 9,620 km across the Pacific
Ocean and delivers up to 1.92 Tbps of capacity
between Asia and North America.
Pacnet has appointed new country heads in
India and Korea to lead the company’s growth
in these markets.
Sunanda Das has
been appointed
Managing Director of
Pacnet India, where
he is tasked with the
management and
strategic development
of the company’s business in India. Based in
Bangalore, Mr Das joins Pacnet from Cable and
Wireless, where he was Managing Director
and oversaw business in India and SAARC as
well as provided strategic guidance to offshore
operational support from India.
During his 12 years with Cable and Wireless,
Mr Das turned the company’s India business
around from a project office to a full-fledged
business unit with significant market presence.
He was instrumental in acquiring
its International Long Distance (ILD) and
National Long Distance (NLD) licenses, rolling
out the company’s NGN platform in India and
also building up the Network Operation Center
in India to support global customers.
Mr Das is a Chartered Accountant who
attended St. Xaviers College in Calcutta.
“The decision to choose Pacnet as our
service provider was made after a thorough
assessment as well as a trial run to test
out its proposed solution, where Pacnet’s
solution proved to be best-in-class.”
– Dr Koranuth Theppadungporn, Managing Director
of Accounting and Finance of TCC
03
PacnetNews Jul – Sep 2011 PacnetNews Jul – Sep 2011
0504
Digital content is experiencing unprecedented growth in Asia and is set to change the face of
data delivery architectures in the region
From the 2008 Games of the XXIX Olympiad in Beijing, billed
as the first digital Olympics, to the recent Royal Wedding of
the decade, which saw United Kingdom’s Prince William and
Kate Middleton tie the knot at Westminster Abbey in London,
technology observers have been keeping a close watch
on the global Internet infrastructure to see just how much
mass consumption of live streaming video it would be able
to handle.
As history has recorded, neither events – nor any to date
– have caused networks to buckle under the pressure of a
significant surge in web traffic volume. However, fears of an
impending meltdown continue to be confounded in the face
of a global Internet traffic boom, which is driven largely by a
ravenous hunger for online video.
The Transformational Impact of Digital VideoWatching video content over the Internet has grown in
popularity because of video-sharing sites such as YouTube,
which has made available the abundance of free video clips
on the web. To get a sense of the scale of the online video
universe, Cisco puts into perspective this scenario: four
years from now, one million minutes of video content will be
streamed or downloaded each second - an amount which
would take a person over five years to finish watching.
This comprises of all forms of video criss-crossing the
Internet, which will continue to be approximately 90% of
global consumer traffic by 2015, according to Cisco’s latest
report1.
The region’s most populous countries are driving the
need to expand the region’s digital pipes, observed
John Hibbard, President & Chairman of the Pacific
Telecommunications Council’s Board of Governors and
CEO of Hibbard Consulting. “China, India and Indonesia are
the three big growth areas in Asia,” he said.
In the case of China, Mr Hibbard says, the country has
been bumping up capacity to meet requirements that
come mostly from the domestic market at present, but that
is set to change. “At some stage, there will be a need for a
massive increase in international connectivity,” he said.
The country to keep an eye on is Indonesia, the world’s
fourth-largest nation with a population of 240 million,
which has the latent potential to unleash greater
connectivity demands, Mr Hibbard noted. “In my view, the
sleeper is Indonesia. For its population and potential, it is
way underdone for international capacity.”
“I suspect that within 10 years we will see numerous new
cables emanating from Indonesia direct to the Pacific and
Indian Oceans with reduced focus on interconnection
in Singapore and Malaysia,” he predicted. “In fact, by
moderating the use of the South China Sea and the Straits
of Malacca, Indonesia could arguably develop one of the
more robust networks in the region.”
The increase in video content, coupled with more mobile
phones and other Internet-connected gadgets, more
Internet users and faster broadband speeds, will cause
the demand for bandwidth to skyrocket. Cisco says global
IP traffic will hit a staggering 80.5 Exabytes per month in
2015, growing four-fold at a compound annual growth
rate of 32% from 20.2 Exabytes per month in 2010. That is
equivalent to 241 billion DVDs per year, 20 billion DVDs per
month, or 28 million DVDs per hour!
Asia Works Up Appetite for More BandwidthLeading the massive global Internet traffic growth is
Asia Pacific, which is forecast to be the highest IP-traffic
generating region with 28.9 Exabyte’s per month by
2015. Of that, video will devour approximately half of all
bandwidth on regional networks.
Exacerbating the problem is an exponentially growing
amount of user-generated content birthed from a variety of
flavors of social media websites across Asia, causing intra-
Asia Internet to expand at break-neck speed and placing
tremendous burden on the already stressed Internet
backbone.
To Internet users, a stressed Internet backbone will mean
poor web performance, as seen through long download
times for everything from e-mails and web pages,
to software applications, music files and even digital
magazines.
“Like the Asian economic growth story, the boom seen in
intra-Asia Internet traffic is here to stay,” said Bill Barney,
Chief Executive Officer of Pacnet. “As the volume of digital
content within Asia and originating from Asia to the rest
of the world rises unabated, there has never been a
more important time to address the constraints on Asian
network infrastructure.”
Souping Up the Digital HighwayTo keep up with escalating bandwidth demands,
telecommunications carriers have beefed up their pipes
across the region. But is simply bolstering network
capacity sufficient to relieve congestion on the digital
superhighway?
According to Mr Barney, “Internet users in Asia are
snapping up data fast, and we need to get creative in the
ways we deliver and distribute content to them.”
One such strategy to optimize network capacity is through
content distribution network (CDN) technologies, which
have gained prominence with the flood of media-rich
websites on the World Wide Web which are all fighting to
grab the attention of visitors.
A CDN is made up of a system of servers containing copies
of the same content, and these computers are housed at
edges of the network that are closer to Internet users. The
distance content takes to travel over networks to the user
is reduced, resulting in lower latency access and enhanced
redundancy.
Consequently, Internet users would experience an overall
improvement in web performance and the volume of
traffic being carried over international networks will be
reduced. A broad range of content types are cached in
CDNs, and examples include documents, software and
media files including streaming audio and video files.
A CDN also helps to manage a spike in traffic to a website
by spreading out the large number of client requests at any
one time across its network of distributed servers. This not
only accelerates the transportation of content, but also
ensures the success of the delivery.
Cover Story
The Digital Network Transformation
1 “Visual Networking Index: Forecast and Methodology, 2010 – 2015” report, Cisco, 1 June 2011
PacnetNews Jul – Sep 2011 PacnetNews Jul – Sep 2011
0706 Cover Story
Speed is Still King A Gartner report published last year2 noted that the
speed of website responses is a key determinant of user
experience quality. If a web page does not load completely
in four to five seconds, a user is more likely to abandon
the website, as the person’s attention shifts to other
matters. This, the research says, is attributed to the human
attention span and the visual processing of information.
“Speed and reliability are essential to keep users satisfied
with their Internet experience,” said Wilfred Kwan, Chief
Technology Officer of Pacnet. “ The average users do not
know, nor care, how the content is delivered. All they want
is raw speed that gets them to their destination.”
Data centers will complement content delivery services
in alleviating network infrastructure constraints in the
region. “The rollout of data centers in every country in the
region can contain the need for hosting in another country,
hence reducing slightly the demand for international
connectivity,” Mr Hibbard noted.
In anticipation of the robust growth in bandwidth demand
and rapidly changing online consumption habits in Asia
Pacific, Pacnet has continuously invested into growing
its network infrastructure. Last year, the company added
capacity on EAC Pacific, its subsea cable spanning 9,620
km across the Pacific Ocean and connecting Chikura,
Japan, to Los Angeles.
More recently, Pacnet has also launched two Data Landing
Stations (DLSs) in Asia Pacific. These DLSs, which are
backed by an extensive 46,420 km of fiber optic subsea
cable network which ensure data hosted there is delivered
as fast as possible through direct access to Pacnet’s
subsea network.
Scaling Up as the Zettabyte Beckons“As the shift toward online video gains momentum, it is
imperative to prep our pipes for the age of zettabytes.
Alternative strategies, such as CDNs, work hand-in-hand
with cloud, as well as colocation and hosting infrastructure
to brace Asia for this mighty digital transformation,” Mr
Kwan added.
According to Cisco, the annual global IP traffic will reach
the zettabyte threshold by 2015, largely driven by the
consumption of video over the Internet. A zettabye is
approximately 1 sextillion bytes, or 1 trillion gigabytes.
In tangible terms, 1 zettabyte is equivalent to about 250
billion DVDs.
“Through our fully meshed optical network across Asia, we
are able to deliver additional bandwidth and redundancy
to support future growth, while staying cloud and video-
centric,” Mr Kwan said.
This next-generation technology, Mr Hibbard noted, has
helped to cushion the impact on the network in the face
of natural disasters such as earthquakes and tsunamis.
“The telecommunications carriers of Asia Pacific have
done a fantastic job in responding to enhanced networking
techniques since the Taiwan earthquake in 2006,” he said.
“The adoption of mesh networking has resulted in a vastly
increased number of paths by diverse routes, and this
benefit was clearly demonstrated in both the 2009 Taiwan
typhoon and the recent Japan earthquakes.”
“At some stage, there will be a need for a massive increase in international connectivity.”
– John Hibbard, President & Chairman of the PTC’s Board of Governors and CEO of Hibbard Consulting,
referring to China’s connectivity needs
2 “Q&A: Website Performance and User Experience”, Gartner, 2010
Getting to a zettabyte
PacnetNews Jul – Sep 2011 PacnetNews Jul – Sep 2011
Events 0908
Pacnet North America at NANOG52
DENVER Richard Kahn, Technical Director
of Pacnet North America, spoke on undersea
cable operations in Asia and their impact
to IP Backbone Design at the recently
concluded North American Network
Operators’ Group (NANOG52) held over
12 –15 June 2011, at the Sheraton Downtown
Denver Hotel.
In his presentation, Mr Kahn shared about
how geographical limitations of the Asia
Pacific region drive the dependency on
submarine cables systems to provide
both inter- and intra-regional cross-border
connectivity.. He further elaborated
on the factors that impact the design,
reliability, outage susceptibility, and how
repair schedules of these systems have
downstream affects on the networks reliant
on their availability.
NANOG52, which was held in Denver this
year, is an educational and operational
forum for the coordination and
dissemination of technical information
related to backbone/enterprise networking
technologies and operational practices.
Pacnet North America also supported the
event as a sponsor.
Pacnet View On The Cloud Services Opportunity SINGAPORE Pacnet’s Vice President of
Product Strategy & Management, Enterprise
Services, Sanjay Nayak (first from right),
joined executives from Arthur D Little
Austria, Starhub, Reliance Communication
and Rackspace Hosting in a panel discussion
titled “The Cloud Services Opportunity
Debate: Telecom Operators vs Non-
Telecom Players – Threat Or Opportunity” at
CloudAsia 2011.
Issues discussed during the session included
whether telecom operators should compete
in public Infrastructure as a Service (IaaS)/
Platform as a Service (PaaS), the competitive
advantage of being a local provider of
cloud services, synergies between telecom
operators and non-telecom players and the
challenges ahead.
CloudAsia 2011, co-organized by IDA & ITM
Asia, was held in Singapore at the Grand
Copthorne Waterfront Hotel from 31 May –
1 June 2011. This event provided a platform
for the regional and international computing
industry to address both enterprise and
telecom cloud services.
Migrating Asian Networks to IPv6 SINGAPORE Pacnet’s Vice President of
Product Strategy & Management, IP & Cloud
Services, Hideo Ishii (first from right), shared
observations gleaned from Pacnet’s transition
to Internet Protocol version 6 (IPv6) at ICANN
41 Singapore, which was held on 23 June 2011
at the Raffles City Convention Center.
Part of a panel of speakers talking about the
IPv6 deployment through the eyes of different
stakeholders of the Internet, Mr Ishii noted that IPv6 currently has a considerably lower volume
of traffic, compared to the current version IPv4. This is set to change with the exhaustion of the
IPv4 addresses, which is fueling demand for IPv6 in Asia Pacific, Mr Ishii observed.The ICANN
meeting, hosted by the Infocomm Development Authority of Singapore (IDA), brought together
business leaders, technology officers and Internet experts to discuss issues relating to domain
names, IP addresses and website registration.
Build Up Networks for Expanding Asian CloudSINGAPORE Pacnet’s Vice President of
Product Strategy & Management, Data
Center Services, Martin Slater, shared how
service providers in Asia could cope with
growing network requirements brought
about by accelerating adoption of cloud
computing, in a presentation he gave
to telco leaders, vendors and industry
observers at the Commsday Singapore
Summit held on 20 June 2011 at M Hotel.
Mr Slater noted that businesses and
consumers in Asia are snapping up cloud
resources fast to cope with massive
Internet traffic growth, which in turn places
greater pressure on networks and hosting
infrastructures in the region. Asia thus needs
a network of interconnected, high-speed,
hosting infrastructures as additional network
capacity and hosting infrastructure is critical
to support future growth of the cloud, he
emphasized.
Mr Slater also highlighted trends in the
technology industry at the New Zealand
Tech Connect 2011 held on the same day
at Grand Copthorne Waterfront Hotel.
The annual event was hosted by the New
Zealand Trade and Enterprise, and attendees
included technology companies from New
Zealand and members of the ICT community
in Singapore.
Explore New Ways to Connect Asia
SINGAPORE Pacnet CEO Bill Barney
(above left) underscored the need for new
approaches to keep up with the growing
demand for connectivity in Asia Pacific in
a CommunicAsia Summit 2011 address he
delivered on 22 June 2011, at Marina Bay
Sands. His presentation was part of the
“Next Generation Broadband Infrastructure”
series of talks focusing on highlighting the
challenges and trends encountered in the
region’s broadband deployments.
Mr Barney threw the spotlight on several
factors affecting the rollout of broadband
projects in the region, among which Asia’s
dependency on subsea cables for web
connectivity topped the list. Subsea cables
are susceptible to natural catastrophes and
damage caused by ship anchors and fishing
trawlers, Mr Barney noted.
Also speaking at the same conference
was John Garrett (above right), Pacnet’s
Vice President of Product Strategy and
Management, Carrier Services. In a
session on 21 June 2011 dedicated to
Cloud Computing, Mr Garrett shared that
consumers, instead of enterprises, are
behind the explosive traffic growth, notably
through online video.
A majority of the Internet traffic moving
into and out of Asia is sent through subsea
cables, Mr Garrett noted, and as such,
telecommunications service providers in
the region should place greater focus and
emphasis on the investments into their
backend systems.
Pacnet Japan at Major IT Industry Trade ShowsTOKYO Pacnet Japan showcased its range
of products and services at two major IT
trade shows in the second quarter of 2011.
In May, Pacnet reached out to more than
120,000 IT professionals at Cloud Japan
Spring 2011, one of Japan’s largest and most
influential IT industry trade shows featuring
cloud computing products and services.
The three-day expo was held at Tokyo Big
Sight from 11–13 May 2011 and gave the
Pacnet Japan Sales team an opportunity
to introduce our cloud related services
including Pacnet DataVault, Pacnet’s Data
Landing Stations and Pacnet’s key cloud
initiatives in Chongqing, China.
Over 7 – 10 June 2011, Pacnet Japan
showcased services for business and
technology leaders at the INTEROP Tokyo
2011 that was held at Makuhari Messe.
Pacnet Japan also shared perspectives on
how to improve application performance
while optimizing network bandwidth at a
seminar at the Riverbed booth. INTEROP
Tokyo is the leading business technology
event and attracted over 130,000 attendees
from over 75 countries, representing every
industry and across all sizes of companies.
The Pacnet booth at Cloud Japan Spring 2011 Pacnet Japan at INTEROP Tokyo 2011
PacnetNews Jul – Sep 2011 PacnetNews Jul – Sep 2011
Pacnet Australia Helps Grow Partners’ SkillsSYDNEY, MELBOURNE Pacnet recently held two unique
workshops in Sydney and Melbourne in conjunction with Green
Ant Marketing for members of their Partner Program. The one-
day interactive workshops allowed partners to hone sales and
marketing techniques to gain more leads and to close more sales
for their businesses. Nine partners signed up to a Pacnet sponsored
education program that will expand on the
techniques taught at the workshops over
the coming months.
The workshops also featured networking
sessions with high-profile guests including
Ron Gauci, CEO of Melbourne Storm
Rugby League Football Club.
10
Japanese Machine Parts Maker Increases Productivity with IP VPN
Founded in 1985, Japan-based fabricated metal products and precision machine parts maker Parts Seiko has established a reputation for producing high-quality components for a broad range of products across verticals in domestic and overseas markets.
The company specializes in low-volume and fast turnaround manufacturing of customized components using unconventional materials, and these metal products are found in the gears of automobiles, as well as printing and medical equipment. The company’s other product lines include semiconductor and optical components, industrial assembly parts and various surface treatments such as electroplating.
To develop new products and boost local and global sales, Parts Seiko set up its wholly-owned Hong Kong subsidiary, Hong Kong Parts, in 2000, followed by its first China factory in Shenzhen a year later to capitalize on the country’s cost-effective labor force, to meet its accelerating production demand.
The expansion was initially to support the export sales of domestic customers, but Japanese companies that had entered the East Asia and Southeast Asia markets were subsequently included. In May 2008, the company grew its footprint in China by building a second plant in Shenzhen to keep up with demand.
ChallengesAs with any company expanding abroad, Parts Seiko was aware of the importance of efficient connectivity to ensure reliable communications and fast data access between its branch offices and its headquarter. That prompted the company to develop a proprietary Enterprise Resource Planning (ERP) system linking its Japan and China sites.
“Consolidated information is critical to our production efficiency, which is why our remote sites must be supported by a reliable international telecommunications network that will ensure the availability of our production management system,” said Satoshi Okuyama, Assistant Manager, Systems Department, Parts Seiko.
The ERP system manages the company’s inventory and production information using an efficient production model and processes large volumes of data. “That is why we need a powerful network capable of scaling bandwidth capacity according to our business demands and secures our connectivity. Adequate bandwidth is also necessary to support our real-time communication tools and bandwidth-hungry Computer-Aided Design (CAD) applications,” Mr Okuyama explained.
Why Pacnet?When the company began searching for a service provider to support their requirements, one of their key criteria was solid experience in delivering Japan-China network connections. “We needed a service provider familiar with the current telecom situation in China to help us identify our actual connectivity requirements as well as our future demands,” Mr Okuyama said.
Parts Seiko’s plan to deploy IP VPN to facilitate the execution of business processes between China and Japan eventually led the company to choose Pacnet over local carrier partners, which usually managed the China section of the Japan-China network.
“Pacnet is the only provider that can deliver one-stop solutions to China among all others we considered. We wanted a reliable and secure network with scalable bandwidth capacity to maintain the security of our network, and ensure the smooth and stable operation of our ERP system. We knew Pacnet’s IP VPN services are the perfect solution to our needs, as Pacnet is well-positioned to support the demands of our business with its expanded and upgraded network infrastructure throughout China,” Mr Okuyama said.
Pacnet supported the rollout of Parts Seiko’s ERP system to China with its MPLS IP VPN service. Parts Seiko’s network went live in February 2009 and the company is happy with the results, Mr Okuyama said.
“The seamless operation of our ERP system has radically improved our production efficiency. We benefit from quicker lead time and flexible support that comes from Pacnet’s ability to control and manage service delivery and customer service. I consider it a huge advantage,” Mr Okuyama said.
The FutureParts Seiko will continue its business expansion in China and plans to tap its enhanced production model to support both domestic and global demands. The company is looking to deploy an enterprise-wide accounting system linking its Japan, China and Hong Kong operations next, Mr Okuyama said. Pacnet is positioned to continue to support the company’s Asian market expansion through its extensive IP network solutions.
11Case StudyEvents
Pacnet Greater China Managing Director Alice Ting (left) presenting the Diamond Partner Award to Ravi Nagdev of Dual Layer IT Solutions Ltd
Pacnet Recognizes Hong Kong Channel Partners HONG KONG Pacnet Hong Kong organized an exclusive reception
on 1 April 2011 at Manchester United Restaurant Bar in Tsim Sha Tsui,
Hong Kong, to recognize the outstanding sales performance of top
channel partners.
Alice Ting, Managing Director, Pacnet Greater China, presented the
awards to Pacnet’s top 20 channel partners.
Yan Chi Tat, Deputy General Manager of Pacnet Business Solutions
(China) also took the opportunity to give an update on China’s Cloud
Computing market, while Becky Wong, Channel Sales Manager of
Pacnet Hong Kong, introduced Pacnet DataVault, a cloud-based
backup and recovery service.
Pacnet’s Top Channel Partners
Diamond Partners
- Dual Layer IT Solutions Ltd
- EC-Connect Ltd
- KGP Computer Consultants Company Ltd
Platinum Partners
- Alliance Technology Consultancy
- I Consulting Group Ltd
- Infocan Computer (HK) Ltd
- Media World Co., Ltd
Gold Partners
- Eastech Systems Ltd
- Epochsoft Consultants Ltd
- Greatsky Information Technology Ltd
- Healthy Win Technology Enterprises Ltd
- Hong Kong Mediacast Ltd
- I4HK Internet Solutions Company
- Login Us (Hong Kong) Ltd
- Muchinfo Consulting Ltd
- Quick Time Networking Ltd
- Sky Systems Ltd
- Televoice Technology Systems Ltd
- Time Rise Engineering Ltd
- Velocity Solutions Ltd
Enhancing Partnerships in the Hospitality IndustryBANGKOK Pacnet Thailand hosted an exclusive IT Workshop for
The Erawan Group, a leading developer and operator of luxurious
hotels, office buildings and shopping centers in the heart of Bangkok,
at Ibis Pattaya Hotel
on 19 May 2011 (top
picture). Pacnet Thailand
provided an update to the
IT department of
The Erawan Group on
the company’s latest
products and services.
Pacnet Thailand also participated in the hospitality’s innovation forum
(bottom picture) organized by Pyramid Solutions Co. Ltd.,
one of Pacnet Thailand’s Official
Partner, that was held on 15
June 2011 at Nora Buri Resort &
Spa Hotel on Koh Samui.
At the forum, Pacnet Thailand
introduced Pacnet’s capabilities
to over 80 IT executives from
the hospitality industry in
Thailand.
PacnetNews Jul – Sep 2011 PacnetNews Jul – Sep 2011
12
Future-Proofing Networks with 10 Gigabit Ethernet LAN PHY
Network infrastructures are under tremendous pressure as exploding Internet traffic volumes consume bandwidth capacity fast. To maneuver this challenging landscape, enterprises and service providers are now turning to more cost-effective solutions, such as the 10 Gigabit Ethernet Local Area Network Physical Layer
(10GbE LAN PHY). This growing preference is reflected in the dramatic increase in recent shipments of LAN PHY ports. What exactly is 10GbE LAN PHY and why are customers opting to future-proof their network with it? Hui Chun Yim, Pacnet’s Senior Manager, Product Strategy and Management – Carrier, weighs in.
Pacnet News (PN): What is 10GbE LAN PHY? How does it differ from 10GbE WAN PHY?Hui Chun Yim (CY): LAN PHY and WAN PHY are networking specifications that allow data transfer of 10 Gigabits (10G) per second in LANs and Wide Area Networks (WANs) respectively. They are among different PHY specifications of the IEEE 802.3ae 10GbE standard ratified in 2002, which is part of the 10G transport.
LAN PHY is commonly used in aggregated switches, operates at line rate of 10.3 Gbps, and is 10 times faster than a Gigabit Ethernet interface. It encapsulates Ethernet data using 64B/66B line coding.WAN PHY, differentiated from LAN PHY only by the WAN Interface Sublayer (WIS), provides a simplified Synchronous Digital Hierarchy (SDH)/ (Synchronous Optical Network ) SONET framer function. It is commonly used for core routers, operates at line rate of 9.95 Gbps, and is compatible with OC-192c/SDH VC-4-64c interfaces.
PN: What drives the demand for 10GbE?CY: Traffic growth in corporate and carrier networks. The latest statistics from TeleGeography indicate that Intra-Asia and Trans-Pacific bandwidth will increase at a compound annual growth rate (CAGR) of 77% and 50% respectively, between 2010 and 2016. Carriers need 10G transport to support and monetize video and other bandwidth-hungry applications, while enterprises need high-speed transport to support increasingly complex internal applications and increasing server and storage workload.
PN: What is 10GbE’s biggest advantage over traditional 10G network?CY: Its ability to lower significant equipment cost and ongoing maintenance. Customers are adopting 10GbE service for traffic aggregation. However, 10GbE is not necessarily a replacement for Wavelength as there are customers that still prefer 10G Wavelength for its transparency and manageability.
PN: Why do enterprises achieve better return on investment (ROI) on LAN PHY than WAN PHY?CY: Since most companies have an existing Ethernet-based network, the LAN PHY interface is more cost-effective for network upgrades. WAN PHY’s cost is significantly higher as it uses more proprietary technologies, equipment and interfaces produced by limited vendors. LAN PHY, however, uses more open systems supported by a growing number of equipment and interface vendors. For instance, a 24-port 10GbE LAN PHY switch costs about $4,000, while a 10G-port core router costs $70,000.
PN: Which type of companies will benefit most from LAN PHY? Why?CY: Content Delivery Networks and Internet Service Providers that need to aggregate large traffic volumes. They are also the early adopters of LAN PHY. Multinational companies and large corporations will follow when their traffic volume exceeds their network capability.
PN: Where do you see a demand for LAN PHY?CY: Asia. It is leading the adoption of 10GbE LAN PHY, as Asian countries are separated by water and aggregating 10G traffic requires the extension of LANs over subsea cable networks. US and European customers are also looking for a similar solution using their terrestrial networks. Building a LAN PHY network is challenging for subsea cable operators as additional equipment, or major network enhancements, may be required. Pacnet has the advantage in this area, because we have full ownership and control of our network. We can upgrade and configure our network to support our customers’ requirements, if necessary.
PN: Tell us more about Pacnet’s 10GbE LAN PHY offering?CY: It is the latest addition to our 10G portfolio, created to address the demands of our customers that are looking for a cost-effective way to upgrade their networks. We also offer 10G Wavelengths and end-to-end Ethernet through our WAN PHY services.
Different types of customers have varying business needs, but all of them demand speedier transport. We offer customers more choices to support their growing bandwidth requirements and our key differentiator across all our 10G services is the ability to offer high-availability and protected bandwidth.
Product Updates Tech Q&A
Pacnet Builds New Link to Vietnam As part of the company’s strategy to further
enhance presence in Asia’s emerging
economies, Pacnet has recently increased
connectivity to Vietnam through a new
direct subsea route to Ho Chi Minh City
via Singapore, complementing the existing
terrestrial link from Hong Kong.
Having diverse routes to Ho Chi Minh City
puts Pacnet in a better position to handle
the growing international connectivity
requirements of Vietnamese businesses
and explore opportunities in Vietnam’s
burgeoning economy.
Business analysts see huge potential in
Vietnam, the easternmost country on the
Indochina Peninsula in Southeast Asia and
home to over 90 million people. Goldman
Sachs in a 2005 report predicted that
the Vietnamese economy will become
the 17th largest economy in the world
with nominal GDP of $436 billion and
nominal GDP per capita of $4,357 by 2025.
PricewaterhouseCoopers in 2008 forecast
that Vietnam will be the fastest growing
of emerging economies by 2025 with a
potential growth rate of almost 10% per
annum in real dollar terms, to about 70% of
the size of the UK economy.
The 2000 signing of Bilateral Trade
Agreement (BTA) between the US and
Vietnam has been an important milestone
in the country’s march for long-term
sustainable growth. The agreement paved
the way for the entry of Vietnamese goods
in the US market, which is expected to
accelerate the country’s transformation
into a manufacturing-based, export-
oriented economy and attract more foreign
investments to the country.
Pacnet formally established presence in
Vietnam in 2010 when the company deployed
a Point of Presence (PoP) in Ho Chi Minh City,
offering IP VPN and IPL services to the country
via a terrestrial North-bound link from Hong
Kong. Having two routes to Ho Chi Minh City
not only enhances network redundancy but
also allows Pacnet to provide lower-latency
connectivity to Vietnam through a shorter
South-bound Singapore route.
Anticipating the country’s increased
international connectivity demand, Pacnet
has deployed a new Layer 1 PoP in Ho Chi Minh
City early this year, which enabled Pacnet to
provide full E1 (2048bkps) IPL services with two
different route options for protected services.
Having two routes to Ho Chi Minh City also
results in dramatic latency enhancements for
our IP VPN service to Vietnam.
Adding Mobile to Fixed Voice-Data Bundle in Australia
Pacnet has launched Pacnet Mobile Voice
in Australia, adding mobility services to its
existing business-grade broadband and fixed-
line voice services bundle.
The bundling enables Pacnet to offer cost-
effective business communication packages
to answer the demand of Australia’s mobile
workforce who appreciate the ease and efficiency of having one service provider handling all
their communication needs.
By partnering one of Australia’s largest mobile communications providers, Pacnet is able to
offer advanced 3G mobile service which covers 97% of the Australian population. The bundling
covers both 2G and 3G services with support for single- and dual-band handsets.
Pacnet’s flexible package includes standard call credit, as well as Pacnet-to-Pacnet call credit,
with the option to order additional data or BlackBerry support.
As with all Pacnet services, Pacnet Mobile Voice is supported by Pacnet’s award-winning
technical support team that has a long history of service excellence. Mobile Voice customers
will also get access to the Pacnet Account Toolkit. This gives them access to administer all
Pacnet services through a convenient, web-based portal, including managing mobile voice
usage, monitoring office broadband traffic and reviewing fixed voice consumption.
Singapore Boosts Business Broadband To win new customers and explore up-sell
opportunities among Pacnet’s broadband
subscribers in Singapore, Pacnet has enhanced
its copper-based Business Broadband service
to offer 4 Mbps and 10 Mbps bandwidth.
The service targets SMEs that require fast,
reliable, yet cost-effective access to support
bandwidth-hungry applications. With a simple
upgrade, customers will immediately benefit
from enhanced access speeds, which means
a faster Internet connection and more reliable
performance of web-based applications.
The service is targeted for customers who
want faster access but whose premises are not
within the coverage area of Singapore’s Next
Generation Nationwide Broadband Network
(NGNBN), a nationwide initiative to deploy fiber-
based high-speed broadband in Singapore.
Architectural components of LAN PHY and WAN PHY
13
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