Why Highly Distributed Computing Matters. Tom Leighton, Chief Scientist Mike Afergan, Chief Technology Officer J.D. Sherman, Chief Financial Officer

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1 Why Highly Distributed Computing Matters Tom Leighton, Chief Scientist Mike Afergan, Chief Technology Officer J.D. Sherman, Chief Financial Officer

2 The Akamai Platform The world s largest on-demand, distributed computing platform delivers all forms of Web content and applications for over 2,400 customers. The Akamai EdgePlatform: 25,000+ Servers 1,200+ Locations 900+ Networks 650+ Cities 69 Countries Typical daily traffic: 170+ billion hits 100+ million streams 3,000+ terabytes delivered

3 Why Does Highly Distributed Computing Matter? The Answer in a Nutshell: Because Internet users are highly distributed. Greater distribution means greater performance and reliability. Greater distribution means greater scalability. Greater distribution lowers Akamai s cost.

4 The Edge of the Internet Where people and services connect to the Internet (the first and last miles).

5 The Edge is Highly Distributed No one network has more than about 8% of the access traffic. The top 30 networks combined add up to only 50%. % of Access Traffic 8.1% Network A 5.1% Network B 5.0% Network C 3.1% Network D 2.5% Network E 2.4% Network F 2.0% Network G 1.9% Network H ISPs (13,000+)

6 Edge Proximity From 1 Location Average Miles to Edge Locations

7 Edge Proximity From 30 Locations Average Miles to Edge Locations

8 Edge Proximity From 1000 Locations Average Miles to Edge Locations

9 Some Economic Truths of the Internet Internet users are highly distributed. Capacity is not free nor is it infinite. Dollars flow in at the edge, so there is little incentive to build capacity between network peers. Routing is determined by business rules (who pays who for what), not by performance or reliability.

10 Why Does Highly Distributed Computing Matter? The Answer in a Nutshell: Because Internet users are highly distributed. Greater distribution means greater performance and reliability. Greater distribution means greater scalability. Greater distribution lowers Akamai s cost.

11 Internet Limits on Performance and Reliability Normal Internet routing creates paths with high latency and packet loss.

12 Internet Limits on Performance and Reliability Normal Internet routing creates paths with high latency and packet loss. Ack Ack

13 Internet Limits on Performance and Reliability Normal Internet routing creates paths with high latency and packet loss.

14 Akamai Edge Overlay Network Creates a high performance and reliable tunnel through the Internet. Akamai Overlay

15 Akamai Edge Overlay Network Creates a high performance and reliable tunnel through the Internet. Akamai Overlay

16 Akamai Edge Overlay Network Creates a high performance and reliable tunnel through the Internet. Ack Akamai Overlay Ack

17 Ross-Simons With Akamai, response times were 3.3x faster $20+ million annual revenue increase $300,000 annual infrastructure savings

18 Internet Limits on Throughput Often it s latency that limits throughput, not access bandwidth. Ack 1 1 Ack

19 Akamai Edge Throughput Edge servers eliminate the latency bottleneck and increase throughput. Ack

20 Throughput From 1 Location Mbps Throughput < Locations

21 Throughput From 30 Locations Mbps Throughput < 0.5 < Locations

22 Throughput From 1000 Locations Mbps Throughput > 10 < 0.5 < Locations

23 Why Does Highly Distributed Computing Matter? The Answer in a Nutshell: Because Internet users are highly distributed. Greater distribution means greater performance and reliability. Greater distribution means greater scalability. Greater distribution lowers Akamai s cost.

24 Internet Limits on Capacity Peering links are capacity bottlenecks.

25 Internet Limits on Capacity Peering links are capacity bottlenecks. X X X X X

26 Akamai Edge Capacity Edge delivery bypasses the peering bottlenecks.

27 Akamai Edge Capacity Edge delivery bypasses the peering bottlenecks.

28 How much capacity is needed? Consider an audience of 50 million (Nielsen viewership for Grey s Anatomy and CSI Miami) Quality Encoding Rate Aggregate Demand Recreational 700 Kbps 35 Tbps Television 2 Mbps 100 Tbps

29 Why Does Highly Distributed Computing Matter? The Answer in a Nutshell: Because Internet users are highly distributed. Greater distribution means greater performance and reliability. Greater distribution means greater scalability. Greater distribution lowers Akamai s cost.

30 Akamai Edge Cost Additional locations at low incremental cost Scale enabled by our software automation Main cost is commodity servers Reduced or free bandwidth and colocation Better performance & reliability for ISP customers Significant savings on upstream bandwidth for ISP

31 Conclusion Being at the edge requires highly distributed infrastructure, because Internet users are highly distributed. Being at the edge is paramount for performance and reliability, because that s where the people are. Being at the edge is paramount for scaling, because that s where the capacity is. Being at the edge lowers Akamai s cost. Akamai software solutions, running on our distributed platform, enable our customers business models.

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