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Cisco’s 10th Visual Networking Index predicts hyperconnectivity set to arrive sooner than anticipated; Australian businesses urged to prepare for the opportunity



This week saw the release of the 10th annual Cisco Visual Networking Index™ (VNI) Australian results, which indicate Australia is set to continue experiencing exponential growth in Internet usage and will reach a stage of hyperconnectivity faster than anticipated.
 
The research points to huge increases in IP traffic, mobile usage, number of connected devices, consumption of data per capita and video consumption. Cisco is urging businesses to take the necessary steps to ensure they are not just ready for this hyperconnected future, but prepared now for the opportunity it presents.
 
Kevin Bloch, Chief Technical Officer for Cisco ANZ, said: “Our research quantifies and clearly illustrates the scale of connectivity and the level of Internet usage that will be reached over the next four years, and we urge businesses to look at the predicted growth and get ready. Online connectivity is already one of the most important ways to keep in touch with your customers, workers, partners and others. If you don’t, someone else will.”
 
The VNI predicts that IP traffic in Australia will increase three-fold by 2019 with a compound annual growth rate of 22 percent.
 
IP traffic will reach a massive 1.4 Exabytes (1018) per month in 2019, up from 499 Petabytes (1015) per month in 2014. This equates to 45 Petabytes per day in 2019 (up from 16 Petabytes per day in 2014).
 
“To put this in some context, that’s 154 times the amount of traffic in 2005,” Mr Bloch added.
 
“This type of growth is unparalleled. Our research shows that technology and connectedness are being embraced and driven by consumers faster than businesses have time to adapt or that the current network has the capacity to hold. The implications of this are that growth and, importantly, consumer satisfaction will be hampered by companies’ technological shortfalls.”
 
Where is this growth coming from?
 
Although there will be an increase to the number of people online in Australia by 2019, the growth in Internet use comes more from the number of devices that will be connected and the mobility of those devices. People will be online for more hours of the day and there will be more things connected.
 
The Cisco VNI research highlights that in Australia there will be a massive 219.6 million networked devices by 2019, up from 115.7 million in 2014. Wi-Fi and mobile connected devices will generate 72 percent of IP traffic by 2019. Wi-Fi will become the dominant form of mobile connectivity and cross the half-way mark (60 percent) of total traffic. Cellular will comprise 12 percent. In 2019, mobile device traffic will be equivalent to 19 times the entire volume of the Australian Internet in 2005.
 
 
What does this mean for businesses and the Australian economy?
 
Business IP traffic is set to double in size by 2019, a compound annual growth of 14%. Business mobile data traffic will grow five-fold, and business Internet video will grow 3.4-fold from 2014 to 2019.
 
Bloch continued, “We are all aware that the Internet of Everything has arrived, yet few businesses have prepared for it. The numbers and trends are clear and sometimes quite amazing. Whether you look at the average number of connected devices per person by 2019 (eight), or consumer mobile data traffic growing six-fold, or internet video growing 3.8-fold, the opportunities and threats to every business is significant.”
 
As Australia positions itself in the 21st century to compete globally, it is more important than ever that it builds the appropriate smart, connected digital infrastructure. The VNI provides a quantified perspective of what this actually means to business, government and the services required to support a competitive Australian knowledge economy.”
 
 
- ENDS-
Editor’s Notes
Cisco also welcomes press, analysts, bloggers, service providers, regulators and other interested parties to use and reference our research with proper attribution, such as “Source: Cisco Visual Networking Index Global Traffic Forecast Update, 2014-2019.”

You can also feel free to download:
-          A factsheet with detailed Australian data
-          A headshot of Kevin Bloch, CTO of Cisco Australia
-          An APAC deck presenting the VNI data for the APAC region
 
You can also find Kevin's comments on this data on Cisco ANZ YouTube page through his Q&A video.
 
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide leader in IT that helps companies seize the opportunities of tomorrow by proving that amazing things can happen when you connect the previously unconnected. For ongoing news, please go to http://newsroom.cisco.com.
 
Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. 
 
Appendix
 
Raw Australian Statistics from Cisco’s VNI
 
*See accompanying factsheet
 
Cisco VNI Methodology
The Cisco VNI Global Forecast and Service Adoption for 2014 to 2019 rely upon independent analyst forecasts and real-world mobile data usage studies. Upon this foundation are layered Cisco's own estimates for global IP traffic and service adoption. A detailed methodology description is included in the complete report.  Over its 10-year history, Cisco VNI research has become a highly regarded measure of the Internet's growth. National governments, network regulators, academic researchers, telecommunications companies, technology experts and industry/business press and analysts rely on the annual study to help plan for the digital future.