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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public Cisco Global Cloud Index...

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details

© 2016 Cisco and/or its affiliates. All rights reserved.

Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

What You Will Learn

The Cisco® Global Cloud Index is an ongoing effort to forecast the growth of global data center and cloud-based IP traffic. The study also includes a “Cloud Readiness” analysis that investigates the ability of each global region (Asia Pacific, Central and Eastern Europe, Latin America, Middle East and Africa, North America, and Western Europe) to support a sample set of basic, intermediate, and advanced business and consumer cloud applications. Each region’s cloud readiness is assessed with relation to the sample services based on download and upload fixed and mobile network speeds as well as associated network latencies. This supplement provides additional countrylevel data that contributes to the infrastructural and end-user preparedness for cloud computing adoption within each respective region. These collective results represent the basis for each region’s network performance averages (speeds and latencies). Please refer to the Cisco Global Cloud Index: Forecast and Methodology, 2015–2020 for complete research findings and projections. Country-Level Details of Regional Cloud Readiness The Cloud Readiness portion of the Cisco Global Cloud Index includes more than 300 million records from Ookla1, along with inputs from the Data Meter application, Ovum/Informa, Point Topic, Synergy research, NetCraft, the International Telecommunication Union (ITU), World Bank, International Labor Organization, and the United Nations (UN). The network performance data gathered represents over 200 countries around the world, covering a span of 2 years. The regional averages presented in the Cisco Global Cloud Index: Forecast and Methodology, 2015–2020 are based on the detailed analysis of these speed tests. To understand cloud readiness further, we look at numerous factors that influence end-user behaviors and Internet access. There are many intrinsic and extrinsic factors that influence the adoption of cloud computing, and make some countries and regions more cloud-ready than others. In this paper, we examine a few, namely demographic and economic factors such as the role of the members of Generation (Gen) Y, percentage of gross domestic product (GDP) per capita spend on fixed Internet, electricity production, and kilowatt-hours (kWh) per capita. Percentage of households with a computer,

mobile subscriptions per household, percentage of fiber subscribers to all fixed broadband subscribers, percentage of fourth-generation (4G) subscriptions compared to all mobile subscriptions, the percentage of secure Internet servers to all webfacing servers, and fixed and mobile broadband speeds are then examined as key factors of network readiness for cloud computing.

Demographic Cloud Adoption Factor: Gen Y

By 2020, 62% of organizations in a recent survey say they will be running 100% of their information technology in the cloud. But younger startup companies are already close to that point.2 Technology, and specifically the cloud, will play an important role in satisfying the highly connected members of Generation Y (born: 1977–1994) who don’t want to be constrained by a limited suite of corporate and consumer applications and gadgets. It comes as no surprise that 60 percent of employees will be provisioned from the cloud by 2020, up from just 15 percent today.3 By 2020, 50 percent of the workforce will be Generation Y and Z (born: 1995–2012) members—and they have grown up in a highly connected, collaborative, and mobile environment. Figure 1 shows details about the percentage of Gen Y members within the global population in 2015.4

1

Measured by Speedtest.net, small binary files are downloaded and uploaded between the web server and the client to estimate the connection speed in kbps.

2

https://www.bettercloud.com/monitor/cloud-office-systems-adoption/

3

www.channelnomics.com/channelnomics-us/news/2424142/saas-adoption-boosts-enterprise-software-fortunes

4

www.lifehealthpro.com/2015/01/07/in-5-years-millennials-will-make-up-50-of-the-work

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 1. Percentage of Gen Y to Total Population by Country; Bubble Size Denotes Population

Brazil 34%

Germany 26%

Spain

Nigeria 33%

Iraq

Mexico 44%

India 35%

Japan 24%

Philippines Korea

Iran 39%

Nepal

Italy 25%

Peru

France 29%

Turkey 42%

Bangladesh 37% Russia 29%

Ethiopia 35%

Egypt 35%

China 31%

Indonesia 24%

Thailand 28% Vietnam 35%

Cisco Region Asia Pacific Central and Eastern Europe Latin America Middle East and Africa North America Western Europe

US 27% Pakistan 38%

Kenya South UK 26%

Source: Cisco Global Cloud Index 2016, International Labor Organization, United Nations

Economic Cloud Adoption Factor: Percentage of GDP per Capita Spend on Fixed Internet Affordability of fixed broadband is an important accelerator for cloud adoption and country digitization. Fixed broadband spend is the price of the monthly subscription to an entry-level fixed broadband plan. For comparability reasons, the fixed broadband spend is based on a monthly usage of a minimum of 1 Gigabyte (GB). For plans that limit the monthly amount of data transferred by including caps below 1 GB, the cost for additional bytes is

© 2016 Cisco and/or its affiliates. All rights reserved.

added to the sub-basket. Figure 2 represents fixed Internet spend and GDP per capita from the latest world development indicators from 2013 by the World Bank. In emerging markets, countries are devising ways to bridge the gap by either improving fixed infrastructure and offerings or leapfrogging fixed networks by deploying ubiquitous mobile technologies that offer Internet and as a result cloud services.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 2. Percentage of GDP per Capita Spend on Fixed Internet; Bubble Size Represents Percentage of Each Country’s GDP Spend on Fixed Internet Asia Pacific Central and Eastern Europe Latin America Middle East and Africa North America Western Europe Mali 80% Togo 85%

Rwanda 572%

Zambia

Burkina Faso

Kenya

Ethiopia Iraq Haiti 66%

Malawi 290%

Burundi 202%

Madagascar 150%

Source: Cisco Global Cloud Index 2016, World Bank World Development Indicators, International Monetary Fund

Economic Cloud Adoption Factor: Electricity Production, kWh per Capita Data centers are the backbone of the modern economy and cloud adoption. However, the explosion of digital content, big data, e-commerce, and Internet traffic is also making data centers one of the fastest-growing consumers of electricity. Total data center electricity usage in the U.S., which includes powering servers, storage, networking and the infrastructure to support it, was at 70 billion kWh (kilowatt hours) in 2014. Based on current trends, data centers are expected to consume approximately 73 billion kWh in 2020, becoming nearly flat over the next four years. Increase in 5

server efficiency is resulting in reduced server growth rate, better utilization due to virtualization, and a shift to cloud computing. This includes concentration of workloads in “hyperscale” data centers, defined as 400,000 square feet in size and above. Energy use by data centers may also decline if more work is shifted to hyperscale centers.5 Figure 3 is based on the latest available data from the World Bank.

http://www.computerworld.com/article/3089073/data-center/cloud-computing-slows-energy-demand-us-says.html

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 3. Electric Power Consumption (kWh per Capita); Bubble Size Denotes kWh per Capita Asia Pacific Central and Eastern Europe

Qatar 16,183

Finland 15,687

Latin America

Italy

Middle East and Africa

Austria

Western Europe

Malta

Bahrain 17,395

Kuwait 15,722

North America

Israel

Russia

France

Australia 10,398

Sweden 14,290 United Arab Chile

Belgium

Oman

Norway 23,658

United States

Canada 15,615 Spain Iceland 53,203

Source: World Bank World Development Indicators

Network Cloud Adoption Factor: Percentage of Households with a Computer Personal Computer (PC) usage in households has led to the wide adoption of the Internet, and is an important accelerator in the adoption of cloud services. While social networking, file sharing, and web browsing applications have paved the way, video streaming with the DVR, cloud storage, home automation, and controls among others will lead the next wave of the adoption of cloud services. Figure 4 shows the relative percentage of households with a PC based on the most recent World Bank Indicators report.

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 4. Percentage of Households with a PC; Size of the rectangle also depicts the value as a percentage of the total country households Iceland 97%

Sweden 92%

Netherlands 95%

Germany 89%

Ireland 84%

Belgium 82%

France 82%

Austria 81%

Malta 80%

Monaco 74%

Luxembourg 94%

Finland 89%

Norway 93%

United Kingdom 88%

Spain 73%

Denmark 93%

Switzerland 87%

Italy 71%

Slovakia 80%

Estonia 79%

Slovenia 76%

Poland 75%

Czech Republic 74%

Cyprus 70%

Portugal 67%

Latvia 72%

Russia 70%

Turkey 53%

Bulgaria 55%

Moldova 50%

Montenegro 53%

Armenia 49%

United Arab Emirates 87%

Oman 83%

Aruba 73%

Kuwait 82%

Israel 81%

Lebanon 78%

Saudi Arabia 73%

Trinidad and Tobago 62%

Kazakstan 63%

Mauritius 49%

Serbia 63%

Morocco 46%

Hungary 73% Belarus 55%

Bahrain 94%

Jordan 50%

Greece 60%

Croatia 66%

Qatar 97%

Ukraine 47%

Syrian Arab

Iran 46%

Tunisia 28% Algeria Gabon Kenya

Iraq

Brunei Darussalam 91%

Japan 82%

Singapore 87%

Hong Kong 82%

Australia 84%

Macau 82%

Costa Rica 51% Brazil 49%

Bolivia 33%

Belize 30%

Peru 32%

EI

Venezuela 41%

Paraguay 32%

Panama 39%

Jamaica 31%

South Korea 81%

New Zealand 77%

Malaysia 65%

Chile 57%

Puerto Rico 60%

Colombia 42%

Bosnia and Georgia 40%

Egypt 43%

Saint Uruguay Vincent 66% and the

Maldives 63%

China 44%

Mongolia 33%

Canada 86%

Sri United States 80%

New Caledonia Thailand 29%

Fiji 34%

India

Region Asia Pacific Central and Eastern Europe Latin America Middle East and Africa North America Western Europe

Source: World Bank World Development Indicators, 2015

Network Cloud Adoption Factor: Mobile Subscriptions per Household Although mobile phone usage is nearly ubiquitous in most regions, smartphone and tablet use in emerging countries and regions with widespread rural populations and vast terrains is the next level of mobility that will advance cloud services adoption. Figure 5 depicts the overall mobile subscriptions per household in 2016. Size of the rectangles depict the total number of mobile subscriptions in each country.

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 5. Mobile Subscriptions per Household. Size of the heatmap rectangle indicates the number of mobile subscribers per country

Russia 5

India 4

China 3

Turkey 4

Ukraine 3 Poland 4

Pakistan 5

Iran 7 Indonesia 6

Japan 3

Bangladesh 4

Philippines 7

Vietnam 5

Thailand 6

Brazil 4

Argentina 5

Peru 5

Colombia 5

Ecuador

South Africa 7

Mali 10

Mexico 5

Ethiopia 3

Chile 5

Bolivia US 3

UAE Senegal Benin

Korea 3 Germany 3

Italy 3

UK 3

France 3

Spain 3

Malaysia 7 Australia 4 Taiwan

Canada 2

Region Asia Pacific Central and Eastern Europe Latin America Middle East and Africa North America Western Europe

Source: Cisco Global Cloud Index 2016, Ovum/Informa

Network Cloud Adoption Factor: Percentage Fiber Subscribers to All Fixed Broadband Subscribers An important accelerator to advanced cloud applications such as telemedicine, ultra-high-definition (UHD) video streaming, and virtual offices (as well as other high-end services) is higher fixed broadband quality. The ongoing deployments of residential fiber infrastructures provides the basis for enhanced fixed network performance. Higher broadband speeds and lower latencies enable optimum user experiences. Figure 6 shows the percentage of fiber to all fixed broadband subscribers in 2016.

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 6. Percentage of Fiber Subscribers to All Fixed Internet Subscribers. Size of the heatmap rectangle indicates the number of fixed Internet Subscribers per Country China 69%

US 11%

Germany 2%

France 9%

Italy 5%

Portugal 21%

Spain 24%

Sweden 50%

Canada 7% Russia 52% Japan 74%

India 1%

Thailand 12%

Turkey 19%

Brazil 6%

Mexico 3%

Norway Finland Iran 0%

Taiwan 55% Saudi

South Korea 69%

Australia 8% Vietnam 35%

Hong Kong

Poland 2%

Romania 4%

Ukraine 17%

Czech Republic

Argentina 1%

Colombia 2%

Chile

Region Asia Pacific Central and Eastern Europe Latin America Middle East and Africa North America Western Europe

Source: Cisco Global Cloud Index 2016, Point Topic, Ovum/Informa

Network Cloud Adoption Factor: Percentage of 4G Subscriptions Compared to All Mobile Subscriptions As 4G deployments become more pervasive, connectivity will no longer be the weakest link to cloud adoption. The widespread availability and adoption of 4G will lead to the usage of cloud-based applications almost anywhere, anytime from a user’s chosen mobile device. Figure 7 shows the percentage of 4G subscriptions compared to all mobile subscriptions in 2016. The total number of mobile subscribers is depicted by the size of the rectangle.

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 7. Percentage of 4G Subscriptions to All Mobile Subscriptions. Size of the heatmap rectangle represents the percentage of 4G subscriptions per total mobile subscriptions Norway 51%

Monaco 44%

Sweden 51%

Netherlands 42%

United Kingdom 49%

Iceland 42%

Ireland 37%

France 36%

Belgium 29%

South Korea 78%

Japan 63%

Australia 58%

Germany 33%

Potugal 29%

Spain 37%

Denmark 28%

Hong Kong 57%

Taiwan 49%

New Zealand 39%

Singapore 56% Malaysia 26% China 54%

Kazakhstan 18%

Thailand 12% Fiji 12%

Cayman Islands 28%

Chile 26%

Qatar 45%

United Arab Emirates 44%

kuwait 40%

Saudi Arabia 35%

Oman 34%

Bahrain 29%

Israel 19%

Iran 13%

Turkey 19%

Jordan 9%

Brazil 21%

Peru 17%

Greece 15%

Austria Isle of Man 14% 16%

Uruguay 32%

Puerto Rico 25%

Italy 22%

Malta 21% Switzerland 48%

Finland 34%

Jersey Guam 32%

United States Virgin Bolivia Islands 12% Aruba Paraguay 14% 11% Colombia 14% Slovenia 37%

Estonia 33%

Croatia 28%

Lithuania Latvia 26% 21%

Hungary 17%

US 62%

Slovakia 17% Russia 15%

Canada 67%

Albania

Region Asia Pacific Central and Eastern Europe Latin America Middle East and Africa North America Western Europe

Source: Cisco Global Cloud Index 2016, Ovum/Informa

Network Cloud Adoption Factor: Secure Internet Servers With more secure Internet servers, service providers, data center operators, and large enterprises are able to establish a larger footprint for security and authentication, and more reliably serve end users with secure transactions and communications. The percentage of secure Internet servers that conduct encrypted transactions over the Internet using a Secure Sockets Layer (SSL) in 2015 to the total number of web-facing servers is shown in Figure 8. In the past year, North America and Western Europe led with the number of secure Internet servers compared to all web facing servers.

© 2016 Cisco and/or its affiliates. All rights reserved.

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Figure 8. Percentage of Secure Internet Servers to Total Web-Facing Internet Servers by Region and change from 2014 to 2015

Western Europe 51%

+1% YoY

Asia Pacific 24% North America 28%

+1% YoY

+1% YoY

MEA 12%

+2% YoY

Central and Eastern Europe 34%

+5% YoY

Latin America 14%

+1% YoY

Source: Cisco Global Cloud Index 2016, Synergy Research, NetCraft, United Nations World Development Indicators

Network Readiness: Download Speed, Upload Speed, and Latency Cloud computing architectures have made it feasible to run hardware components, operating systems, libraries, and third-party software effectively as virtual machines and containers. Today, data centers contain many thousands of interconnected computers as part of cloud platforms, which can simultaneously host a large number of applications and services for consumer and enterprise users. Applications such as video conferencing, telemedicine, connected vehicle safety applications, and others have high requirements of download and upload speeds in Mbps and stringent requirements of latency in ms. Download speeds in megabits per second (Mbps), upload speeds in Mbps, and latency in milliseconds (ms) were given equal weights in calibrating each country’s network performance. The study has traditionally focused on average or mean download, upload, and latency characteristics. Median download speed in Mbps , median upload speed in Mbps , and the median latency in ms are reported in the study to understand the variability of speeds experienced by the end users within each country. In most countries, median speeds are lower than mean and average speeds because of the higher occurrence of lower speeds in the © 2016 Cisco and/or its affiliates. All rights reserved.

lower 50th percentile, compared to the longer tail of distribution of the higher speeds. The median of a set of numbers is the midpoint, where half the numbers are lower and half the numbers are higher. The average of a set of numbers is the total of those numbers divided by the number of items in that set. In analyzing broadband speeds and latencies in more than 200 countries, individual countries may have slightly or significantly higher or lower averages compared to their regional averages for download speed, upload speed, and network latency. In some cases, individual countries did not have enough test results to warrant inclusion in a particular network metric category (for example, fixed or mobile download or upload speed). For normalization and to prevent skewing of the data, we have applied the 5th to 95th percentile methodology to our study (the top 5 percent and bottom 5 percent of results in fixed and mobile performance categories by country are excluded). The download speeds, upload speeds, and latencies were given an equal weightage resulting performance indicator for each country, as seen by the size of the bubbles in Figures 9 and 10. Please refer to the Cisco Cloud Readiness Tool for additional countries and speeds and latency figures. 10

Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 9. Fixed Cloud Readiness, 2016. Size of the bubble is based on a formulaic factor where download and upload speeds, and latency are given equal weights for each country and are normalized and ranked

Ireland

Germany

France

Iceland

Spain Peru

Finland Turkey

Kuwait Switzerland

Romania

Slovenia

Kazakstan

Poland

Slovakia

Puerto Rico

Jordan

Belgium Israel

Ukraine Austria

Taiwan

Belarus

Denmark

Russian Federation

Moldova

Macau

Trinidad and Norway

Mexico

Iraq

Armenia

Lao

Albania

Cambodia Hong Kong

Vietnam

Serbia

New Zealand

India

Australia Guam

Mongolia

Georgia

Bahamas

Oman

China

Italy Singapore

Fiji

Luxembourg

Brunei

Aruba Thailand

Qatar Korea

Iran Portugal

Latvia

Nepal

Lithuania

Hungary Czech Republic

Estonia Sweden

Japan

Croatia

U.S Virgin

Bulgaria

Bahrain

Uruguay

Brazil Chile

United Kingdom

United States

Mauritius

Netherlands Malta

Canada

Isle of Man Cyprus

United Arab Emirates

Region Asia Pacific Central and Eastern Europe Latin America Middle East and Africa North America Western Europe

Source: Cisco Global Cloud Index 2016, Ookla Speedtest.net/Ziff Davis

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 10. Mobile Cloud Readiness, 2016. Size of the bubble is based on a formulaic factor where download and upload speeds, and latency are given equal weights for each country and are normalized and ranked

Belgium

United Kingdom

Qatar Bahrain

Malta Oman Ireland

United Arab Emirates

Turkey

Ukraine

Colombia

Slovakia

Kuwait Serbia Greece

Iran

Malaysia

Lithuania Netherlands

Puerto Rico

Jordan

Honduras

Latvia

New Zealand

Brazil

Georgia

Japan Croatia

Hong Kong India

Singapore

Tunisia

Kenya

Portugal

Chile Iraq

Albania Bulgaria

Norway

Guam

Australia

Czech Republic

Luxembourg

United States

Mexico

Maldives

China

Lao Korea

Nicaragua

Germany

Macau

Thailand

Trinidad and

Peru Hungary

Russian

Egypt

Cyprus

Panama

Estonia

Belarus

Ghana Italy

Canada

Slovenia

Taiwan

Denmark

Israel Ecuador

Finland

Moldova Montenegro Poland

Uruguay Sweden

Morocco

Romania Spain

Bolivia

France

Lebanon

Saudi Arabia

South Africa

Austria Switzerland

Region Asia Pacific Central and Eastern Europe Latin America Middle East and Africa North America Western Europe

Source: Cisco Global Cloud Index 2016, Ookla Speedtest.net/Ziff Davis

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Top Performers Tables 1 and 2 highlight the countries with the top fixed and mobile network performance in 2016. Nine out of 10 countries are in both the fixed and mobile network top-performer categories. Table 1.

Countries with Leading Fixed Network Performance (Top 10) in 2016 (Listed in Alphabetical Order)

Country

Average Download (Mbps)

Average Upload (Mbps)

Average Latency (ms)

Hong Kong

98

100

28

Iceland

53

46

15

Japan

67

58

33

Korea

60

53

21

Latvia

41

39

18

Lithuania

38

36

19

Luxembourg

96

64

20

Romania

65

47

22

Singapore

97

96

19

Taiwan

49

21

17

Source: Cisco Global Cloud Index 2016, Ookla Speedtest.net/Ziff Davis Table 2.

Countries with Leading Mobile Network Performance (Top 10) in 2015 (Listed in Alphabetical Order)

Country

Average Download (Mbps)

Average Upload (Mbps)

Average Latency (ms)

Australia

28

12

43

Denmark

25

13

36

Hungary

31

13

42

Korea

31

14

68

Lithuania

24

12

38

Malta

28

7

31

Netherlands

30

13

64

Norway

29

12

40

Romania

29

18

53

Singapore

38

22

58

Source: Cisco Global Cloud Index 2016, Ookla Speedtest.net/Ziff Davis

© 2016 Cisco and/or its affiliates. All rights reserved.

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Most Improved

Individual Country Speed Test Analysis

Tables 3 and 4 provide details about the countries with the most improved fixed and mobile network performance from 2015 to 2016.

Six countries from six regions were used to display the variation of download speeds within a country in 2016, as shown in Figures 11 through 16. No specific criteria were used in the selection of a country; selection was random. More frequent occurrences of lower speeds experienced by the end user result in suboptimal experience in usage of cloud applications available to them. Alternatively, users may choose to use a basic or smaller set of applications.

Table 3. Countries with the Most Improved Fixed Network Performance from 2015 to 2016 (Listed in Alphabetical Order)

Country

Improvement (Y/Y)

Dominican Republic

151%

Guatemala

217%

Indonesia

109%

Jordan

97%

Myanmar

173%

Pakistan

97%

Paraguay

102%

Serbia

96%

Spain

100%

Trinidad and Tobago

181%

Source: Cisco Global Cloud Index 2016, Ookla Speedtest. net/Ziff Davis Table 4. Countries with the Most Improved Mobile Network Performance from 2015 to 2016 (Listed in Alphabetical Order)

Country

Improvement (Y/Y)

Albania

200%

Egypt

170%

Guatemala

228%

Honduras

231%

Jordan

237%

Morocco

240%

Nicaragua

383%

Oman

294%

Pakistan

170%

Venezuela

244%

Source: Cisco Global Cloud Index 2016, Ookla Speedtest. net/Ziff Davis

© 2016 Cisco and/or its affiliates. All rights reserved.

The mean speeds in Mbps in the following figures represent the overall average of the speed tests within each country. The median represents the midpoint of the speed tests. Large variations between the mean and the median represent a skew in the distribution of speeds. Some countries also display various peaks in download speeds, which show the experienced speeds due to the variety of tiered offerings by providers. Also depicted in the figures is the concurrent usage of three sample cloud applications representing basic (Text and IM), intermediate (Augmented Reality (AR) gaming), and advanced (Virtual Reality (VR) streaming) requirements.

North America Speed Test Distribution Country Spotlight: United States

Figure 11 depicts the distribution of download speed tests around the mean/average or median. In 2016, there were more frequent occurrences of lower download speeds of 5 to 17 Mbps. Besides the 10th through 40th percentile, in 2016 the speed test results also have a higher occurrence between the 70th and 80th percentile, showing a remarkable growth in experienced download speeds. The difference between the mean (the average) and the median speeds is 12 Mbps. A large majority of the users are able to experience the concurrent usage of sample applications optimally.

Latin America Speed Test Distribution Country Spotlight: Mexico Figure 12 depicts the distribution of download speed tests around the mean/average and the median in Mexico. The majority of the speeds are between 2 and 7 Mbps (10th and 50th percentiles), and there are fewer speed test records around the 80th to 90th percentile range, which is 13 to 22.5 Mbps. There is a wider distribution of higher speeds beyond the 70th percentile. The difference between the mean (average) and the median speeds is 3.5 Mbps. A good majority of the users are able to experience the concurrent usage of sample applications optimally.

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Figure 11. Download Speed Distribution Curve: United States

Millions

No. of Speed Tests

10th 20th 30th 40th 50th 60th

70th

80th

90th

3 Median 24.1 Mbps

2.5

Mean 36.1 Mbps

2 1.5 1 0.5 0 0

10

Text and IM

20

30

40

50

60

70

Augmented Reality Gaming

80

90

100

110

Virtual Reality Streaming

120

130

140

150

160

Three concurrent sample apps

Download(DL) speeds in Mbps

Source: Cisco Global Cloud Index, 2016

Thousands

No. of Speed Tests

Figure 12. Download Speed Distribution Curve: Mexico 10th 20th30th 40th

50th

60th 70th

80th

90th

500 Median 6.8 Mbps

450

Mean 10.3 Mbps

400 350 300 250 200 150 100 50 0 0.0

2.5

5.0

7.5

10.0 12.5 15.0 17.5 20.0 22.5 25.0 27.5 30.0 32.5 35.0 37.5 40.0 Download(DL) speeds in Mbps

Text and IM

Augmented Reality Gaming

Virtual Reality Streaming

Percentiles

Three concurrent sample apps

Source: Cisco Global Cloud Index, 2016

Asia-Pacific Speed Test Distribution Country Spotlight: China

Figure 13 depicts the distribution of download speeds around the mean/average and median in China. The most frequent occurrences of speeds are between 5 and 15 Mbps (10th through 40th percentiles), and there are fewer speed test records around the 70th to 90th percentile range (42 to 85 Mbps). The distribution has a long tail of high speeds beyond the 60th percentile. The difference between the mean (average) and the median speeds is nearly 11 Mbps, the largest difference in the samples represented in this section. A large majority of the users are able to experience the concurrent usage of sample applications optimally.

© 2016 Cisco and/or its affiliates. All rights reserved.

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Figure 13. Download Speed Distribution Curve: China

Thousands

No. of Speed Tests

10th 20th 30th 40th

50th

60th

90th

Mean 32.2 Mbps

Median 21.7 Mbps

40

80th

70th

35 30 25 20 15 10 5 0 0

5

10

15

20

25

30

35

40

45

50

55

60

Download(DL) speeds in Mbps Text and IM

Augmented Reality Gaming

65

70

75

80

85

90

Percentiles

Virtual Reality Streaming

Three concurrent sample apps

Source: Cisco Global Cloud Index, 2016

Central and Eastern Europe Speed Test Distribution Country Spotlight: Russia

Figure 14 depicts the distribution of download speeds around the mean/average and median in Russia. The largest occurrences of speeds are between 3 and 13 Mbps, which are the 10th to 40th percentiles, and there are fewer speed test records around the 40 and 77 Mbps (70th to 90th percentiles) range. The distribution has a long tail of higher speeds beyond the 50th percentile. The difference between the mean (average) and the median speeds is nearly 10 Mbps. A large majority of the users are able to experience the concurrent usage of sample applications optimally. Figure 14. Download Speed Distribution Curve: Russia

Thousands

No. of Speed Tests

10th 20th 30th

40th

700

50th

60th

70th

80th

90th

Mean 30.0 Mbps

Median 19.9 Mbps

600 500 400 300 200 100 0 0

5

Text and IM

10

15

20

25

30 35 40 45 50 55 Download(DL) speeds in Mbps

Augmented Reality Gaming

Virtual Reality Streaming

60

65

70

75

80

85

90

Percentiles

Three concurrent sample apps

Source: Cisco Global Cloud Index, 2016

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Western Europe Speed Test Distribution Country Spotlight: United Kingdom

Figure 15 depicts the distribution of download speed tests around the mean/average and median in the United Kingdom. The largest occurrences of speeds are between 4 and 15 Mbps (10th to 40th percentiles), and there are fewer speed test records between 50 and 72 Mbps (80th to 90th percentiles). There is a longer distribution of higher speeds beyond the 60th percentile. The difference between the mean or average speeds and the median is nearly 10 Mbps. A large majority of the users are able to experience the concurrent usage of sample applications optimally. Figure 15. Download Speed Distribution Curve: United Kingdom

No. of Speed Tests

Millions

10th 20th 30th 40th

50th Median 20.0 Mbps

0.9

60th

80th

70th

90th

Mean 29.8 Mbps

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0

10

20

30

40

50

60

70

80

Download(DL) speeds in Mbps Text and IM

Augmented Reality Gaming

Virtual Reality Streaming

90

100

110

120

130

140

Percentiles

Three concurrent sample apps

Source: Cisco Global Cloud Index, 2016

Middle East and Africa Speed Test Distribution Country Spotlight: South Africa

Figure 16 depicts the distribution of download speed tests around the mean/average and median in South Africa. The majority of the download speeds occur here between 1 and 3 Mbps (10th to 40th percentiles). The distribution has a long tail of higher speeds beyond the 60th percentile. The difference between the mean or average speeds and the median is nearly 7 Mbps. A smaller majority of the users are able to experience the concurrent usage of sample applications optimally.

© 2016 Cisco and/or its affiliates. All rights reserved.

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Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Public

Figure 16. Download Speed Distribution Curve: South Africa

Thousands

No. of Speed Tests

10th20th 30th

40th 50th

60th

90th

Mean 10.3 Mbps

Median 3.6 Mbps

70

80th

70th

60 50 40 30 20 10 0 0

1

2

3

4

5

6

7

8

9

10

11

12

Download(DL) speeds in Mbps Text and IM

Augmented Reality Gaming

Virtual Reality Streaming

13

14

15

16

17

18

19

20

Percentiles

Three concurrent sample apps

Source: Cisco Global Cloud Index, 2016

Conclusion Numerous demographic, economic, and network factors lead a country toward better cloud readiness, and all the factors are important. Many private and public entities are involved in the ecosystem for the digitization and evolution of a country’s future cloud networks performance. Fixed networks currently offer better upload and download speeds and latencies than mobile networks. However, the gap in performance between fixed and mobile networks is rapidly narrowing. Given the growing global adoption of advanced mobile technologies, such as third- and fourth-generation (3G and 4G, respectively) Long Term Evolution (LTE), and the worldwide demand for wireless support of next-generation devices such as tablets and smartphones, we expect the performance gap between fixed and mobile networks to continue to narrow over the next few years. The commercial deployment of 5G is underway. Along the prospect of being considerably faster than existing technologies, 5G holds the promise of creating a digital society and economy which will result in many new and updated applications. It could potentially provide scalable and efficient telecommunications infrastructure which integrates processing, storage, and networking. The benefits of 5G and Internet of Things (IoT) will be realized when the cloud and big data is leveraged to its full potential. Several countries have average network performance characteristics that are significantly higher than those of their region. Although an increasing number of countries are currently able to support advanced cloud services, these countries will create significantly greater cloud traffic growth rates because of the highbandwidth services that they can offer over their networks (for example, UHD video streaming). From a business cloud services perspective, many networks currently can support intermediate business applications (such as enterprise resource planning, customer resource management, and basic video conferencing), and some can currently support advanced business applications (such as high definition video and audio conferencing). With the necessary infrastructure in place, businesses and enterprises of all sizes can effectively implement these productivity-enhancing applications and communications services.

For More Information For more information, please visit www.cisco.com/go/cloudindex. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to this URL: 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. (1110R) C11-738089-00 11/16