The Future of IT. A Hoteliers View June 18 th, Matthew Baio Vice President IT, Americas Marriott International
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1 The Future of IT A Hoteliers View June 18 th, 2017 Matthew Baio Vice President IT, Americas Marriott International
2 Agenda Trends Where are we Headed Network Basics Practical Analogy Infrastructure Investments
3 Trends
4 Trends Internet User Growth
5 Trends Mobile Growth
6 Trends Advertising Growth is Driven by Mobile
7 Trends Advertising Spend When will internet related ad spend eclipse TV ad spend?
8 Trends Advertising Spend
9 Trends Internet Search and Mobile
10 Trends Internet Search in Mobile
11 Trends Mobile Data
12 Trends Mobile Data Where do Mobile Products get their data from? Cellular Networks WiFi Networks
13 Trends Mobile Facts Internet users are growing Mobile device users are growing Advertising spend and innovation is targeted toward mobile users Mobile device data consumption is growing Why does any of this matter?
14 Trends WiFi Mobile devices rely on WiFi networks in buildings
15 Network Basics
16 WiFi Basics WiFi Networks General Principles WiFi networks are powered by wired networks WiFi Technologies evolve faster than wired technologies Wiring infrastructure decisions affect the performance of WiFi networks Newer WiFi technologies can operate faster than the wired networks the are connected to. Signal strength is not the answer to WiFi network performance WiFi clients talk one at a time (half-duplex) Available airtime is affected by a variety of factors Number of WiFi clients Floor Noise Interference
17 In General, Higher Frequencies: WiFi Basics Frequencies Translate to faster potential speeds Reach less distance Penetrate less through objects WiFi Standard Frequency Speed Distance b 2.4 GHz 0-11mbps Far g 2.4GHZ 0-30mbps Far n 2.4 and 5GHz 0-300mbps Medium ac 5GHz 0-1.3gbps Medium ad 60GHz 0-7gbps Short
18 Cabling Basics Network Basics Cabling Types Cable Type Frequency Speed Distance CAT3 16MHz 0-11mbps 328' CAT5 100MHz 100mpps 328' CAT6 250MHz 1gbps 328' CAT6A 500MHz 10gbps 328' Single Mode Fiber Many pbps Multiple km
19 Wired Network Basics Wired Networks Wired Networks When you buy a network, you buy 2 things: Cabling Wires that can be used to make a network Electronics The gear that uses the wires (Switches, Access Points, Routers, Computers)
20 Wired Network Basics Cabling and Electronics Facts Wired Networks Cabling standards and technologies evolve slower than that of electronics Cabling investments tend to be used far longer than electronics investments Cabling investments tend to be more expensive Cabling installations are harder to implement in buildings
21 Wired Network Basics Wired Networks Highway Analogy The cabling is like the field or path Buy the property Create the pathway Grade the field Setup drainage The Electronics are like the road Pavement Reflectors and paint Guardrails
22 Wired Network Basics Wired Networks Highway Analogy Things affect speed capacity on a highway Number of lanes Speed Limit Quantity of Traffic Traffic Incidents Things affect speed capacity on a network Technology deployed (Number of lanes and Speed) Load (Traffic) Quality of data transmission (Error Rates)
23 Wired Network Basics Highway Analogy Wired Networks Theoretical Bandwidth Current Speeds Cabling The Field - Width of the Field Electronics The Road Number of Paved Lanes (today) CAT3/10BaseT 10 10mbps CAT5/100BaseT mbps CAT5E and CAT6/1000baseT mbps Single Mode Fiber/GPON mpbs
24 Wired Network Basics Wired Networks Highway Analogy - Summary Copper wiring has bandwidth limits Single Mode Fiber has nearly limitless bandwidth Cabling is relatively difficult and costly to install Buying the right cable is critical to keep up with future bandwidth needs You can always buy faster electronics (more lanes of road) later if your cabling can support it (if the field or path is wide enough)
25 Infrastructure Investments
26 Infrastructure Investments Wired Networks Technologies that can use Single Mode Fiber Active Ethernet Software Defined Networks GPON
27 Infrastructure Investments GPON Fiber Network What is GPON? GPON (Gigabit Passive Optical Networking) is a type of network that uses fiber optic cabling and passive (nonpowered) components throughout system to transmit data at very high speeds Mature Technology Used for many years, primarily in government and defense industry or to deliver residential internet service (FIOS) New to Hospitality Recently Installing in several New Build and Renovated Hotels Orlando World Center Marriott In-Room Device (ONT) Marco Island JW Marriott Chicago Marquis Marriott Atlanta Marquis Marriot
28 Infrastructure Investments GPON GPON Benefits Future-proof your building GPON Networks use a type of fiber optic cabling that has near limitless bandwidth capacity (over 100 terabytes per second of theoretical capacity) Once the cable plant is installed, only the electronic components will need to be upgraded over time All services such as TV, Voice, and Data can be run across a single cable Dramatic reduction of copper cabling and associated cost Reduction of project cost for new-builds Fiber optic cabling is smaller, stronger and lighter than copper cabling Reduce Power GPON devices much require less power than traditional network equipment Reduce Space Less space is needed for equipment Fiber vs. Copper bundle
29 Infrastructure Investments GPON GPON Drawbacks Power Devices supplied by fiber for data need an alternative power source. Distributed DC power plants are expensive and quickly erode savings. Vendor Interoperability Products do not function between vendors. Think proprietary DSL systems and previous EBay maintenance strategies. Vendor Diversity There are only three major GPON manufacturers. It is impossible to predict the Motorola Effect Configuration Tools Born from the Telco Industry, tools have not fully matured. GPNS Provider Lack of Experience and in some cases Interest Guest-Tek and Swisscom have shown interest. Deployment Methods Fiber deployment methods may not directly translate to future/multi- Gig Ethernet Models Market Adoption in Campus Environments It is unclear if this infrastructure will win out vs other fiber based deployments
30 Infrastructure Investments GPON Core Network Switch Cable Cost Comparison GPON vs. Traditional Ethernet Traditional Ethernet Network MDF Computer Room GPON Network Optical Line Terminal (OLT) MDF Computer Room $ $ Fiber Cable Copper Cable (CAT6 Network Switch IDF Closet Support Systems HVAC Emergency Power UPS Battery $$$$$ Fiber Splitter (No Power) IDF Closet $$$$$ $$ Guest Room Guest Room Optical Network Terminal (ONT) $ T T WiFi Access Point Laptop Telephone Thermostat Minibar WiFi Access Point Laptop Telephone Thermostat Minibar
31 Infrastructure Investments Anticipated CAPEX Saving New Builds GPON Installation CPE Electronics Cross Connects Cables Core Electronics Fiber Savings Installation 75% CPE Electronics -130% Cross Connects 41% Cables 50% Core Electronics 39% Total Savings 39% Copper Fiber
32 Infrastructure Investments GPON Summary Fiber should be considered when making investments in hotel networks Cabling is expensive Cabling is difficult to install Single mode fiber offers the most potential for future growth GPON is a proven technology that uses single mode fiber Used to deliver residential service and in the government sector for well over a decade GPON is proving a useful networking technique for in-building applications, like hotels The Fiber GPON networks use today can be used by tomorrow s networks Future speeds are nearly limitless The fiber s capabilities will likely outlast the buildings in which it is installed GPON network deployment costs are decreasing GPON Networks are typically less costly for new builds Costs tend to be on par with copper networks for renovations
33 Questions Matthew Baio Vice President, IT Americas Marriott International
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