The Internet: Maturing to a Critical Infrastructure SUPERnet January 22, 2002 Fred Chang Fred Chang President & CEO President & CEO SBC SBCTechnology TechnologyResources, Resources,Inc. Inc. Agenda 1. First 30 Years – Historical Perspective & Timeline 2. Broadband Internet – Broadband Adoption, Providers, Use and Applications 3. Critical Infrastructure – Increasing Bandwidth – Network Gets Smarter – Management and Security © SBC Technology Resources, Inc. 2002 Internet Timeline Broadband Internet Netscape IPO World Wide Web Yahoo! IPO TCP/IP Web Browser UUCP 2003 2001 1999 1997 1991 1989 1987 1985 1983 1981 1979 1995 NAPs NSFNET 1977 1975 1973 Ethernet 1993 ARPANET 1971 1969 160 130 100 90 80 70 60 50 40 30 20 10 0 © SBC Technology Resources, Inc. 2002 Residential Broadband Adoption Number of households in millions 28.3 30 23.3 25 17.1 20 15 11.1 10 5 0 2001 2002 2003 2004 Source: Gartner Dataquest © SBC Technology Resources, Inc. 2002 Makeup of Broadband in 2002 62.7 70 60 50 40 29.7 30 20 5.4 10 0 DSL Cable 2.2 Satellite Wireless Source: Gartner Dataquest © SBC Technology Resources, Inc. 2002 Broadband Use Is Exploding Broadband is not just faster, it’s a whole new experience. Users online: DSL Dial-up 25 hours per week 7.5 hours per week © SBC Technology Resources, Inc. 2002 Hooked on Broadband Broadband Users Value DSL % who would give up: 78% daily newspaper 74% AM/FM radio 63% morning coffee 59% cable TV © SBC Technology Resources, Inc. 2002 The Broadband Home Internet Camera Entertainment Center Telephone Jacks Monitor Broadband Home Gateway Network Printer Wireless Pad Internet Phone Digital Picture Frame Phone + DSL Smart Appliances © SBC Technology Resources, Inc. 2002 Home Networking Example Home Network Hub Home Network RioReceiver Central Office Phone + DSL Wireless Laptop Wireless Appliance Broadband Home Gateway © SBC Technology Resources, Inc. 2002 Hosted Network Software Software Delivery “In three to four years, high speed broadband communications will be available everywhere. The notion of software as a packaged product will disappear. That’s a fact.” Steve Ballmer, CEO Microsoft © SBC Technology Resources, Inc. 2002 Peer to Peer Computing Company A Company B P2P will enable ad-hoc inter-company workgroups © SBC Technology Resources, Inc. 2002 Home Monitoring & Automation 1. Sensors monitor home and send notification of any “events” 2. Events flow through PC and to home monitoring system DSL 3. Events are stored in user’s account and are accessible via the web. Pager/email notifications can also be sent. © SBC Technology Resources, Inc. 2002 Increasing Bandwidth • .COM bursting bubble did not throttle demand • Demand will catch up • Applications will fill any given capacity over time © SBC Technology Resources, Inc. 2002 “Big Pipe” Technologies Gigabit Ethernet SONET Fiber Channel OADM OADM Fiber Channel OADM OADM ESCON Gigabit Ethernet SONET ESCON © SBC Technology Resources, Inc. 2002 Ethernet Invades the Core Layer 2 Switching Network Core Network Edge Layer 3 Routing © SBC Technology Resources, Inc. 2002 The Network Gets Smarter © SBC Technology Resources, Inc. 2002 Quality of Service • Peak bandwidth • VoIP • Minimum guarantees • Video telephony • Packet loss metrics • Audio entertainment • Absolute delay limits • Video entertainment • Differential delay limits • Mission-critical © SBC Technology Resources, Inc. 2002 Virtual Networks A A B A B Public Network B B A © SBC Technology Resources, Inc. 2002 Stability • Carrier class elements • Rerouting • No more router reboots • Reliability • Availability • Redundancy © SBC Technology Resources, Inc. 2002 Manageability: SNMP Meets OSS • Capacity planning • Performance monitoring, load sharing • Automated fault detection, isolation, recovery • Usage-based billing • Decision support • Customer network management © SBC Technology Resources, Inc. 2002 Internet Security Malicious Code Worms Session Hijacking Viruses Trojans Buffer Overflows Port Scanning Denial of Service © SBC Technology Resources, Inc. 2002 Problem is Worsening Code Red 60000 50000 Anna Kournikova Melissa & ILOVEYOU 40000 Tequila 30000 Badtrans Nimba Good Times 20000 Jerusalem Michelangelo 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 Source: CERT® Coordination Center Carnegie Mellon 1988 10000 © SBC Technology Resources, Inc. 2002 Core Network Security Most security now at the edge • Firewalls, Hosts, Applications Can we make the core more secure? • Large networks • Broad participation • Novel approaches © SBC Technology Resources, Inc. 2002 Perception Versus Reality Internet Growth (Jan. 2000 through December 2001) 150 5000 130 120 110 3000 100 90 2000 80 1000 Host Count (Millions) 4000 Stock Index 140 70 J F M A M J J A S O N D J F M A M 2000 J J A S O N D 2001 Host Count Nasdaq © SBC Technology Resources, Inc. 2002