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Pacnet News Team

Executive Editor

Lorain Wong

Editor

Roland Lim

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Lynn Tan

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Ampersand

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Lalou Ramos

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CEO’s Message

© 2011 Pacnet Limited All rights reserved CEO’s Message As we cross the halfway mark of

As we cross the halfway mark of 2011, it is becoming clear what the next wave of the Internet will be about – zettabytes of data. From text and photos to videos and software applications, digital content in all forms and sizes, generated by the ever-increasing number of web users all over the world, will become so pervasive that burgeoning traffic volume will burden the Internet backbone tremendously. In this issue of Pacnet News, we throw the spotlight on the massive growth in digital content Asia is seeing and look into how it will reinvent the ways data is delivered to web users in the region (see pages 4–7).

June was an exceptional month for Pacnet. We appreciate the recognition by industry peers as Pacnet was named Wholesale Operator of the Year at the Asia Communication Awards 2011 held in Singapore (see page 1). The awards ceremony was held on the side of CommunicAsia 2011, at which my team and I had the privilege of sharing our perspectives with industry leaders and analysts (see pages 8–9). Around the same time, Pacnet team members also won accolades for living up to our core value of putting customers first. Two of our Hong Kong sales managers were bestowed the prestigious HKMA Distinguished Salesperson Award, the bar of excellence in selling recognized worldwide by sales professionals (see page 3).

To keep up with the demands of our customers, we are continually growing our network in the region through infrastructure enhancements and partnerships (see pages 2–3). Through the launch of our new international gateway in Chennai and the partnership with Philippine telco PLDT, Pacnet is now able to deliver high-speed connectivity solutions to businesses in India and the Philippines. Our partnership with India telco Bharti Airtel and the new link to Vietnam has also expanded our network connectivity (see page 12). The pact strengthens our delivery of enhanced high-speed broadband connectivity to the US via Asia, while increased connectivity through a new direct subsea route to Ho Chi Minh City via Singapore places Pacnet in an advantageous position to handle the growing international connectivity requirements of Vietnamese businesses.

We hope you enjoy this edition of Pacnet News. As always, we look forward to your continued feedback and comments on how Pacnet can better serve your communication and network requirements

Best regards,

your communication and network requirements Best regards, Bill Barney Chief Executive Officer, Pacnet News 01

Bill Barney Chief Executive Officer, Pacnet

News

01
01

Pacnet Named Wholesale Operator of the Year at Asia Communication Awards 2011

Panel of esteemed judges comprising industry professionals, analysts and editors selected Pacnet as the best wholesale telecommunications operator in the Asia Pacific region

SINGAPORE Pacnet has been named Wholesale Operator of the Year at the Asia Communication Awards 2011. The Awards, currently in its first year, recognize and honor the achievements, innovations and outstanding new services of the region’s telecommunications carriers and executives.

“We are extremely honored to receive this award, which recognizes us as Asia’s best in the wholesale telecommunications space,” said Bill Barney, Chief Executive Officer of Pacnet at the awards ceremony held on 22 June 2011 in Singapore, on the side of CommunicAsia 2011, the region’s largest international communications and information technology event.

“This award endorses our strategy of leveraging our unsurpassed subsea network coverage in Asia to deliver innovative, industry- leading wholesale network services packaged with class-leading service delivery, enabling carriers to build the resilient and redundant networks that are core to their business,” added Mr Barney.

Winners of the inaugural Asia Communications Awards were chosen by a panel of independent judges comprising industry professionals and analysts, as well as editors from leading telecommunications trade publication Total Telecom.

Pacnet delivers a wide variety of wholesale capacity services ranging from Indefeasible Rights of Use (IRUs) to private line networks, which is backed by its ownership of 46,420 km of fiber optic submarine cable infrastructure connecting key locations in Asia and across the Pacific Ocean.

One of the key products in its product suite is Pacnet SmartTransport, Asia’s first international private line service to address the growing demand for uninterrupted network connectivity. Pacnet SmartTransport brings to the market a unique protected international private line connectivity service that offers customers the flexibility of choosing between three levels of protection, to meet their need for increased network resilience.

Through the highest grade of protection called “1:1 Protection”, Pacnet SmartTransport enables almost instantaneous automatic network restoration across a dedicated alternative network path should a network segment experience disruption, thus allowing business operations to continue uninterrupted. This premium service is also delivered with Pacnet’s industry-leading availability and latency service level agreements (SLAs).

Pacnet CEO Bill Barney (right), receiving the award from David Kennedy, Telecoms Research Director at Ovum, one of the judges of the inaugural Asia Communication Awards

We are extremely honored to receive this

award, which recognizes us as Asia’s best

in the wholesale telecommunications

space. This award endorses our strategy of

leveraging our unsurpassed subsea network

coverage in Asia.

– Bill Barney, CEO, Pacnet

Pacnet News Jul – Sep 2011

02

News

 
03
03

Pacnet Boosts Capabilities in India with New International Gateway

Pacnet announced on 18 May 2011 the launch of its international gateway in Chennai, enabling the delivery of unprecedented access to high-speed international broadband connectivity and a full suite of advanced communication solutions to businesses in India.

Through the enhanced Pacnet infrastructure in India, carriers and businesses will be able to enjoy Pacnet’s full suite of connectivity solutions designed to meet India’s broadband needs, including Indefeasible Rights of Use (IRU), International Private Lines (IPL), Ethernet International Private Lines (EIPL), IP Virtual Private Networks (IP VPN), IP Transit and Dedicated Internet Access (DIA). Businesses will also be able to tap into Pacnet’s comprehensive hosting and managed services offerings.

In January 2010, Pacnet India obtained its National Long Distance (NLD) and International Long Distance (ILD) licenses from the Department of Telecommunications of India (DoT) and has also obtained full security clearance from DoT. This complements its Internet Service Provider (ISP) Class A license, which allows Pacnet India to offer a full suite of Internet connectivity solutions, as well as a range of managed and hosted services in India.

Pacnet also announced recently that it has boosted network connectivity into India by adding additional capacity between India and Singapore that is interconnected to Pacnet’s EAC-C2C subsea cable and Pacnet’s trans-Pacific cable EAC Pacific. This allows businesses in India to get access to high-speed connectivity into Asia, as well as on to the US on a single Pacnet network.

Pacnet Sales Managers Win 43rd HKMA Distinguished Salesperson Award

HONG KONG Pacnet’s Billy Chau Man Lai and Alvin Leung Chi Pong have been named winners of the 43rd HKMA Distinguished Salesperson Award at the award presentation ceremony held on 10 June 2011 at the Hong Kong Convention and Exhibition Center.

June 2011 at the Hong Kong Convention and Exhibition Center. Mr Chau is Assistant Sales Manager

Mr Chau is Assistant Sales Manager at Pacnet Hong Kong and has worked in the telecoms industry for 10 years, while Mr Leung is Account Manager at Pacnet. Both of them shared that paying close attention to the needs of customers, so as to tailor relevant solutions, is an essential requirement in winning them over, as well as keeping them.

The award, which is part of the Distinguished Salesperson Award

Pacnet, through its joint venture Pacific Internet India Pvt. Ltd. (Pacnet India), currently operates points of presence (PoPs) in major cities across India including New Delhi, Gurgaon, Bangalore, Chennai, Mumbai, Pune and Hyderabad.

According to the Telecom Regulatory Authority of India (TRAI), there were 11 million broadband subscribers in India at the end of 2010 and

Program, is given out annually to recognize outstanding sales personnel in the territory. First launched in the United States in 1950, the award is now recognized worldwide by sales professionals as the standard of excellence in selling.

Pacnet Assistant Sales Manager Billy Chau (left) and Account Manager Alvin Leung (right) with Pacnet Greater China Managing Director Alice Ting (center) at the awards ceremony

 

as part of their proposed National Broadband Plan, they are targeting to increase broadband subscriptions to 75 million by 2012 and 160 million by 2014.

 

New Country Heads at Pacnet India and Korea

     

Pacnet has appointed new country heads in India and Korea to lead the company’s growth in these markets.

Sunanda Das has been appointed Managing Director of Pacnet India, where he is tasked with the management and strategic development of the company’s business in India. Based in Bangalore, Mr Das joins Pacnet from Cable and Wireless, where he was Managing Director and oversaw business in India and SAARC as well as provided strategic guidance to offshore operational support from India.

guidance to offshore operational support from India. During his 12 years with Cable and Wireless, Mr

During his 12 years with Cable and Wireless, Mr Das turned the company’s India business around from a project office to a full-fledged business unit with significant market presence. He was instrumental in acquiring its International Long Distance (ILD) and National Long Distance (NLD) licenses, rolling out the company’s NGN platform in India and also building up the Network Operation Center in India to support global customers.

Chun Kyu (CK) Park was recently named Country Manager for Pacnet Korea and is responsible for the strategic growth and expansion of the company’s business in Korea. Since joining the company (Asia Global Crossing) in 2002, Mr Park has contributed significantly to the company’s Carrier business in Korea. He is also a five- times winner of the company’s “President’s Club” (top achievers) honor.

company’s “President’s Club” (top achievers) honor. With more than 25 years of telecom experience, Mr Park

With more than 25 years of telecom experience, Mr Park previously served as Head of Sales at MCI WorldCom, where he

built the company’s business in Korea and won the prestigious “Best Employee of the Year Award” during his two-year tenure. Mr Park also spent 13 years in Product Development, Business Development and Sales roles at Dacom, where he achieved

solid track record in sales and earned numerous accolades.

a

A

native of Korea, Mr Park received his

Pacnet Inks Partnership with India’s Bharti Airtel

Pacnet announced on 7 April 2011 that it has signed agreements with Bharti Airtel Limited to deliver a new high-speed network connecting Chennai to the US.

The US$120 million network, created through the synergy of Bharti Airtel’s i2i cable system and its domestic network in India, together with Pacnet’s EAC-C2C and EAC Pacific submarine cable network, will enable businesses and consumers across India to enjoy enhanced high-speed broadband connectivity to the US via Asia.

Simultaneously, both firms will also benefit from gaining additional complementary fiber capacity, as well as additional network routes to increase the diversity and resiliency of their global IP networks.

Pacnet owns and operates EAC-C2C, Asia’s largest privately-owned submarine cable network at 36,800 km, with a design capacity

Pacnet Thailand Wins Deal with Leading Food Manufacturer

BANGKOK Pacnet Thailand has signed an agreement with Theppadungporn Coconut Co. (TCC), Thailand’s leading manufacturer and exporter of processed food under the brand name “Chaokoh”, to become its network service provider for its operations in the country.

Pacnet Thailand has delivered a suite of managed network services to TCC, including connecting TCC’s offices and factories in Thailand with Multiprotocol Label Switching (MPLS) network connectivity, delivering a

highly stable and secure network to support the company’s business critical applications. Pacnet also manages the company’s redundant backup network connection to ensure that the company’s network, and its business, always stays up.

Additionally, Pacnet Thailand also introduced Voice over IP (VoIP) solutions to TCC, enabling the company to reduce its phone expenses substantially by tapping on its robust network.

The decision to choose Pacnet as our service provider was made after a thorough assessment as well as a trial run to test out its proposed solution, where Pacnet’s solution proved to be best-in-class.” – Dr Koranuth Theppadungporn, Managing Director of Accounting and Finance of TCC

Managing Director of Accounting and Finance of TCC Pacnet and PLDT Team Up on Ethernet Service

Pacnet and PLDT Team Up on Ethernet Service

MANILA Pacnet and Philippine telecommunications provider PLDT, through its business group PLDT ALPHA Enterprise, announced on 25 May 2011 a partnership to deliver an enhanced high-speed international Ethernet network service to businesses in the Philippines.

Through the partnership with Pacnet, businesses in the Philippines will be able to enjoy a new Global Ethernet International Private Leased Line (EIPL) service that simplifies the network requirements of enterprises by providing high-speed, end-to- end international Ethernet connectivity.

The new Global EIPL service is available now and is offered as a Point-to-Point or Point-to- Multipoint service connecting the Philippines with Australia, China, Europe, Hong Kong, Japan, India, Indonesia, Korea, Malaysia, New Zealand, Singapore, Taiwan, Thailand, Vietnam and the United States.

PLDT is the only Philippine telecommunications provider to be awarded

of 17.92 Tbps to 30.72 Tbps to and from each of the landing countries, as well as EAC Pacific, which spans 9,620 km across the Pacific Ocean and delivers up to 1.92 Tbps of capacity between Asia and North America.

 

Mr Das is a Chartered Accountant who attended St. Xaviers College in Calcutta.

Bachelor of Micro Electronics degree from Myung Ji University in Seoul.

 

the coveted Metro Ethernet Forum (MEF) 9 and 14 certification.

Pacnet News Jul – Sep 2011

Pacnet News Jul – Sep 2011

04 05 Cover Story The Digital Network Transformation Digital content is experiencing unprecedented growth in
04
05
Cover Story
The Digital
Network Transformation
Digital content is experiencing unprecedented growth in Asia and is set to change the face of
data delivery architectures in the region

From the 2008 Games of the XXIX Olympiad in Beijing, billed as the first digital Olympics, to the recent Royal Wedding of the decade, which saw United Kingdom’s Prince William and Kate Middleton tie the knot at Westminster Abbey in London, technology observers have been keeping a close watch on the global Internet infrastructure to see just how much mass consumption of live streaming video it would be able to handle.

As history has recorded, neither events – nor any to date – have caused networks to buckle under the pressure of a significant surge in web traffic volume. However, fears of an impending meltdown continue to be confounded in the face of a global Internet traffic boom, which is driven largely by a ravenous hunger for online video.

The Transformational Impact of Digital Video

Watching video content over the Internet has grown in popularity because of video-sharing sites such as YouTube, which has made available the abundance of free video clips on the web. To get a sense of the scale of the online video universe, Cisco puts into perspective this scenario: four years from now, one million minutes of video content will be streamed or downloaded each second - an amount which would take a person over five years to finish watching.

This comprises of all forms of video criss-crossing the Internet, which will continue to be approximately 90% of global consumer traffic by 2015, according to Cisco’s latest report 1 .

1 “Visual Networking Index: Forecast and Methodology, 2010 – 2015” report, Cisco, 1 June 2011

The increase in video content, coupled with more mobile phones and other Internet-connected gadgets, more Internet users and faster broadband speeds, will cause the demand for bandwidth to skyrocket. Cisco says global IP traffic will hit a staggering 80.5 Exabytes per month in 2015, growing four-fold at a compound annual growth rate of 32% from 20.2 Exabytes per month in 2010. That is equivalent to 241 billion DVDs per year, 20 billion DVDs per month, or 28 million DVDs per hour!

Asia Works Up Appetite for More Bandwidth

Leading the massive global Internet traffic growth is Asia Pacific, which is forecast to be the highest IP-traffic generating region with 28.9 Exabyte’s per month by 2015. Of that, video will devour approximately half of all bandwidth on regional networks.

Exacerbating the problem is an exponentially growing amount of user-generated content birthed from a variety of flavors of social media websites across Asia, causing intra- Asia Internet to expand at break-neck speed and placing tremendous burden on the already stressed Internet backbone.

To Internet users, a stressed Internet backbone will mean poor web performance, as seen through long download times for everything from e-mails and web pages, to software applications, music files and even digital magazines.

“Like the Asian economic growth story, the boom seen in intra-Asia Internet traffic is here to stay,” said Bill Barney, Chief Executive Officer of Pacnet. “As the volume of digital content within Asia and originating from Asia to the rest of the world rises unabated, there has never been a more important time to address the constraints on Asian network infrastructure.”

The region’s most populous countries are driving the need to expand the region’s digital pipes, observed John Hibbard, President & Chairman of the Pacific Telecommunications Council’s Board of Governors and CEO of Hibbard Consulting. “China, India and Indonesia are the three big growth areas in Asia,” he said.

In the case of China, Mr Hibbard says, the country has been bumping up capacity to meet requirements that come mostly from the domestic market at present, but that is set to change. “At some stage, there will be a need for a massive increase in international connectivity,” he said. The country to keep an eye on is Indonesia, the world’s fourth-largest nation with a population of 240 million, which has the latent potential to unleash greater connectivity demands, Mr Hibbard noted. “In my view, the sleeper is Indonesia. For its population and potential, it is way underdone for international capacity.”

“I suspect that within 10 years we will see numerous new cables emanating from Indonesia direct to the Pacific and Indian Oceans with reduced focus on interconnection in Singapore and Malaysia,” he predicted. “In fact, by moderating the use of the South China Sea and the Straits of Malacca, Indonesia could arguably develop one of the more robust networks in the region.”

Souping Up the Digital Highway

To keep up with escalating bandwidth demands, telecommunications carriers have beefed up their pipes across the region. But is simply bolstering network

capacity sufficient to relieve congestion on the digital

superhighway?

According to Mr Barney, “Internet users in Asia are snapping up data fast, and we need to get creative in the ways we deliver and distribute content to them.”

One such strategy to optimize network capacity is through content distribution network (CDN) technologies, which have gained prominence with the flood of media-rich websites on the World Wide Web which are all fighting to grab the attention of visitors.

A

CDN is made up of a system of servers containing copies

of

the same content, and these computers are housed at

edges of the network that are closer to Internet users. The distance content takes to travel over networks to the user

is reduced, resulting in lower latency access and enhanced

redundancy.

Consequently, Internet users would experience an overall improvement in web performance and the volume of traffic being carried over international networks will be reduced. A broad range of content types are cached in CDNs, and examples include documents, software and media files including streaming audio and video files.

A CDN also helps to manage a spike in traffic to a website

by spreading out the large number of client requests at any one time across its network of distributed servers. This not only accelerates the transportation of content, but also ensures the success of the delivery.

Pacnet News Jul – Sep 2011

Pacnet News Jul – Sep 2011

06 Cover Story 07 Speed is Still King Scaling Up as the Zettabyte Beckons A
06 Cover Story
07
Speed is Still King
Scaling Up as the Zettabyte Beckons
A Gartner report published last year 2 noted that the
speed of website responses is a key determinant of user
experience quality. If a web page does not load completely
“As the shift toward online video gains momentum, it is
imperative to prep our pipes for the age of zettabytes.
Alternative strategies, such as CDNs, work hand-in-hand
with cloud, as well as colocation and hosting infrastructure
to brace Asia for this mighty digital transformation,” Mr
Kwan added.
“Through our fully meshed optical network across Asia, we
are able to deliver additional bandwidth and redundancy
to support future growth, while staying cloud and video-
centric,” Mr Kwan said.
in four to five seconds, a user is more likely to abandon
the website, as the person’s attention shifts to other
matters. This, the research says, is attributed to the human
Data centers will complement content delivery services
in alleviating network infrastructure constraints in the
region. “The rollout of data centers in every country in the
region can contain the need for hosting in another country,
hence reducing slightly the demand for international
connectivity,” Mr Hibbard noted.
attention span and the visual processing of information.
“Speed and reliability are essential to keep users satisfied
with their Internet experience,” said Wilfred Kwan, Chief
Technology Officer of Pacnet. “ The average users do not
know, nor care, how the content is delivered. All they want
is raw speed that gets them to their destination.”
According to Cisco, the annual global IP traffic will reach
the zettabyte threshold by 2015, largely driven by the
consumption of video over the Internet. A zettabye is
approximately 1 sextillion bytes, or 1 trillion gigabytes.
In tangible terms, 1 zettabyte is equivalent to about 250
billion DVDs.
In anticipation of the robust growth in bandwidth demand
and rapidly changing online consumption habits in Asia
Pacific, Pacnet has continuously invested into growing
its network infrastructure. Last year, the company added
capacity on EAC Pacific, its subsea cable spanning 9,620
km across the Pacific Ocean and connecting Chikura,
Japan, to Los Angeles.
This next-generation technology, Mr Hibbard noted, has
helped to cushion the impact on the network in the face
of natural disasters such as earthquakes and tsunamis.
“The telecommunications carriers of Asia Pacific have
done a fantastic job in responding to enhanced networking
techniques since the Taiwan earthquake in 2006,” he said.
“The adoption of mesh networking has resulted in a vastly
increased number of paths by diverse routes, and this
benefit was clearly demonstrated in both the 2009 Taiwan
typhoon and the recent Japan earthquakes.”
2 “Q&A: Website Performance and User Experience”, Gartner, 2010
Getting to a zettabyte
More recently, Pacnet has also launched two Data Landing
Stations (DLSs) in Asia Pacific. These DLSs, which are
backed by an extensive 46,420 km of fiber optic subsea
cable network which ensure data hosted there is delivered
as fast as possible through direct access to Pacnet’s
subsea network.
“At some stage, there will be a need for a
massive increase in international connectivity.”
– John Hibbard, President & Chairman of
the PTC’s Board of Governors and CEO of Hibbard Consulting,
referring to China’s connectivity needs

Pacnet News Jul – Sep 2011

Pacnet News Jul – Sep 2011

08

Events

   
09
09

Explore New Ways to Connect Asia

Pacnet View On The Cloud Services Opportunity SINGAPORE Pacnet’s Vice President of Product Strategy &

Pacnet View On The Cloud Services Opportunity

SINGAPORE Pacnet’s Vice President of Product Strategy & Management, Enterprise Services, Sanjay Nayak (first from right), joined executives from Arthur D Little Austria, Starhub, Reliance Communication

Pacnet North America at NANOG52

SINGAPORE Pacnet CEO Bill Barney (above left) underscored the need for new approaches to keep

SINGAPORE Pacnet CEO Bill Barney (above left) underscored the need for new approaches to keep up with the growing demand for connectivity in Asia Pacific in a CommunicAsia Summit 2011 address he delivered on 22 June 2011, at Marina Bay Sands. His presentation was part of the “Next Generation Broadband Infrastructure”

Also speaking at the same conference was John Garrett (above right), Pacnet’s Vice President of Product Strategy and Management, Carrier Services. In a session on 21 June 2011 dedicated to Cloud Computing, Mr Garrett shared that consumers, instead of enterprises, are behind the explosive traffic growth, notably through online video.

Build Up Networks for Expanding Asian Cloud

SINGAPORE Pacnet’s Vice President of Product Strategy & Management, Data Center Services, Martin Slater, shared how service providers in Asia could cope with growing network requirements brought about by accelerating adoption of cloud computing, in a presentation he gave to telco leaders, vendors and industry observers at the Commsday Singapore Summit held on 20 June 2011 at M Hotel.

Mr Slater noted that businesses and consumers in Asia are snapping up cloud resources fast to cope with massive Internet traffic growth, which in turn places greater pressure on networks and hosting

infrastructures in the region. Asia thus needs

DENVER Richard Kahn, Technical Director of Pacnet North America, spoke on undersea cable operations in Asia and their impact to IP Backbone Design at the recently concluded North American Network Operators’ Group (NANOG52) held over 12 –15 June 2011, at the Sheraton Downtown Denver Hotel.

In his presentation, Mr Kahn shared about how geographical limitations of the Asia Pacific region drive the dependency on submarine cables systems to provide both inter- and intra-regional cross-border connectivity He further elaborated on the factors that impact the design, reliability, outage susceptibility, and how repair schedules of these systems have downstream affects on the networks reliant on their availability.

NANOG52, which was held in Denver this year, is an educational and operational forum for the coordination and dissemination of technical information related to backbone/enterprise networking technologies and operational practices. Pacnet North America also supported the event as a sponsor.

a

network of interconnected, high-speed,

 

series of talks focusing on highlighting the challenges and trends encountered in the region’s broadband deployments.

Mr Barney threw the spotlight on several factors affecting the rollout of broadband projects in the region, among which Asia’s dependency on subsea cables for web connectivity topped the list. Subsea cables are susceptible to natural catastrophes and damage caused by ship anchors and fishing trawlers, Mr Barney noted.

A majority of the Internet traffic moving into and out of Asia is sent through subsea cables, Mr Garrett noted, and as such, telecommunications service providers in the region should place greater focus and emphasis on the investments into their backend systems.

hosting infrastructures as additional network capacity and hosting infrastructure is critical

to support future growth of the cloud, he emphasized.

Mr Slater also highlighted trends in the technology industry at the New Zealand Tech Connect 2011 held on the same day at Grand Copthorne Waterfront Hotel. The annual event was hosted by the New

Zealand Trade and Enterprise, and attendees included technology companies from New Zealand and members of the ICT community

and Rackspace Hosting in a panel discussion titled “The Cloud Services Opportunity

Debate: Telecom Operators vs Non- Telecom Players – Threat Or Opportunity” at CloudAsia 2011.

Issues discussed during the session included whether telecom operators should compete in public Infrastructure as a Service (IaaS)/ Platform as a Service (PaaS), the competitive advantage of being a local provider of cloud services, synergies between telecom operators and non-telecom players and the challenges ahead.

Pacnet Japan at Major IT Industry Trade Shows

TOKYO Pacnet Japan showcased its range of products and services at two major IT trade shows in the second quarter of 2011.

In May, Pacnet reached out to more than 120,000 IT professionals at Cloud Japan Spring 2011, one of Japan’s largest and most influential IT industry trade shows featuring cloud computing products and services.

Over 7 – 10 June 2011, Pacnet Japan showcased services for business and technology leaders at the INTEROP Tokyo 2011 that was held at Makuhari Messe. Pacnet Japan also shared perspectives on how to improve application performance while optimizing network bandwidth at a seminar at the Riverbed booth. INTEROP

 

in

Singapore.

The three-day expo was held at Tokyo Big Sight from 11–13 May 2011 and gave the Pacnet Japan Sales team an opportunity to introduce our cloud related services including Pacnet DataVault, Pacnet’s Data Landing Stations and Pacnet’s key cloud initiatives in Chongqing, China.

Tokyo is the leading business technology event and attracted over 130,000 attendees from over 75 countries, representing every industry and across all sizes of companies.

Migrating Asian Networks to IPv6

Migrating Asian Networks to IPv6 SINGAPORE Pacnet’s Vice President of Product Strategy & Management, IP &

SINGAPORE Pacnet’s Vice President of Product Strategy & Management, IP & Cloud Services, Hideo Ishii (first from right), shared observations gleaned from Pacnet’s transition to Internet Protocol version 6 (IPv6) at ICANN 41 Singapore, which was held on 23 June 2011 at the Raffles City Convention Center.

Part of a panel of speakers talking about the IPv6 deployment through the eyes of different stakeholders of the Internet, Mr Ishii noted that IPv6 currently has a considerably lower volume of traffic, compared to the current version IPv4. This is set to change with the exhaustion of the IPv4 addresses, which is fueling demand for IPv6 in Asia Pacific, Mr Ishii observed.The ICANN meeting, hosted by the Infocomm Development Authority of Singapore (IDA), brought together business leaders, technology officers and Internet experts to discuss issues relating to domain names, IP addresses and website registration.

to domain names, IP addresses and website registration. CloudAsia 2011, co-organized by IDA & ITM Asia,

CloudAsia 2011, co-organized by IDA & ITM Asia, was held in Singapore at the Grand Copthorne Waterfront Hotel from 31 May – 1 June 2011. This event provided a platform for the regional and international computing

industry to address both enterprise and telecom cloud services.

industry to address both enterprise and telecom cloud services.
industry to address both enterprise and telecom cloud services.
 

The Pacnet booth at Cloud Japan Spring 2011

Pacnet Japan at INTEROP Tokyo 2011

 

Pacnet News Jul – Sep 2011

Pacnet News Jul – Sep 2011

10 Events

Pacnet Recognizes Hong Kong Channel Partners

HONG KONG Pacnet Hong Kong organized an exclusive reception on 1 April 2011 at Manchester United Restaurant Bar in Tsim Sha Tsui, Hong Kong, to recognize the outstanding sales performance of top channel partners.

Alice Ting, Managing Director, Pacnet Greater China, presented the awards to Pacnet’s top 20 channel partners.

Yan Chi Tat, Deputy General Manager of Pacnet Business Solutions (China) also took the opportunity to give an update on China’s Cloud Computing market, while Becky Wong, Channel Sales Manager of Pacnet Hong Kong, introduced Pacnet DataVault, a cloud-based backup and recovery service.

Pacnet’s Top Channel Partners

Diamond Partners

- Dual Layer IT Solutions Ltd

- EC-Connect Ltd

- KGP Computer Consultants Company Ltd

Platinum Partners

- Alliance Technology Consultancy

- I Consulting Group Ltd

- Infocan Computer (HK) Ltd

- Media World Co., Ltd

Gold Partners

- Eastech Systems Ltd

- Epochsoft Consultants Ltd

- Greatsky Information Technology Ltd

- Healthy Win Technology Enterprises Ltd

- Hong Kong Mediacast Ltd

- I4HK Internet Solutions Company

- Login Us (Hong Kong) Ltd

- Muchinfo Consulting Ltd

- Quick Time Networking Ltd

- Sky Systems Ltd

- Televoice Technology Systems Ltd

- Time Rise Engineering Ltd

- Velocity Solutions Ltd

Pacnet Greater China Managing Director Alice Ting (left) presenting the Diamond Partner Award to Ravi
Pacnet Greater China Managing Director Alice Ting (left) presenting the Diamond
Partner Award to Ravi Nagdev of Dual Layer IT Solutions Ltd
Partner Award to Ravi Nagdev of Dual Layer IT Solutions Ltd Pacnet Australia Helps Grow Partners’

Pacnet Australia Helps Grow Partners’ Skills

SYDNEY, MELBOURNE Pacnet recently held two unique workshops in Sydney and Melbourne in conjunction with Green Ant Marketing for members of their Partner Program. The one- day interactive workshops allowed partners to hone sales and marketing techniques to gain more leads and to close more sales for their businesses. Nine partners signed up to a Pacnet sponsored education program that will expand on the techniques taught at the workshops over the coming months.

The workshops also featured networking sessions with high-profile guests including Ron Gauci, CEO of Melbourne Storm Rugby League Football Club.

Gauci, CEO of Melbourne Storm Rugby League Football Club. Enhancing Partnerships in the Hospitality Industry BANGKOK

Enhancing Partnerships in the Hospitality Industry

BANGKOK Pacnet Thailand hosted an exclusive IT Workshop for The Erawan Group, a leading developer and operator of luxurious hotels, office buildings and shopping centers in the heart of Bangkok, at Ibis Pattaya Hotel on 19 May 2011 (top picture). Pacnet Thailand provided an update to the IT department of The Erawan Group on the company’s latest products and services.

Group on the company’s latest products and services. Pacnet Thailand also participated in the hospitality’s

Pacnet Thailand also participated in the hospitality’s innovation forum (bottom picture) organized by Pyramid Solutions Co. Ltd., one of Pacnet Thailand’s Official Partner, that was held on 15 June 2011 at Nora Buri Resort & Spa Hotel on Koh Samui.

At the forum, Pacnet Thailand introduced Pacnet’s capabilities to over 80 IT executives from the hospitality industry in Thailand.

Pacnet Thailand introduced Pacnet’s capabilities to over 80 IT executives from the hospitality industry in Thailand.

Case Study

11
11

Japanese Machine Parts Maker Increases Productivity with IP VPN

Machine Parts Maker Increases Productivity with IP VPN Founded in 1985, Japan-based fabricated metal products and

Founded in 1985, Japan-based fabricated metal products and precision machine parts maker Parts Seiko has established a reputation for producing high-quality components for a broad range of products across verticals in domestic and overseas markets.

The company specializes in low-volume and fast turnaround manufacturing of customized components using unconventional materials, and these metal products are found in the gears of automobiles, as well as printing and medical equipment. The company’s other product lines include semiconductor and optical components, industrial assembly parts and various surface treatments such as electroplating.

To develop new products and boost local and global sales, Parts Seiko set up its wholly-owned Hong Kong subsidiary, Hong Kong Parts, in 2000, followed by its first China factory in Shenzhen a year later to capitalize on the country’s cost-effective labor force, to meet its accelerating production demand.

The expansion was initially to support the export sales of domestic customers, but Japanese companies that had entered the East Asia and Southeast Asia markets were subsequently included. In May 2008, the company grew its footprint in China by building a second plant in Shenzhen to keep up with demand.

Challenges

As with any company expanding abroad, Parts Seiko was aware of the importance of efficient connectivity to ensure reliable communications and fast data access between its branch offices and its headquarter. That prompted the company to develop a proprietary Enterprise Resource Planning (ERP) system linking its Japan and China sites.

“Consolidated information is critical to our production efficiency, which is why our remote sites must be supported by a reliable international telecommunications network that will ensure the availability of our production management system,” said Satoshi Okuyama, Assistant Manager, Systems Department, Parts Seiko.

The ERP system manages the company’s inventory and production information using an efficient production model and processes large volumes of data. “That is why we need a powerful network capable of scaling bandwidth capacity according to our business demands and secures our connectivity. Adequate bandwidth is also necessary to support our real-time communication tools and bandwidth-hungry Computer-Aided Design (CAD) applications,” Mr Okuyama explained.

Why Pacnet?

When the company began searching for a service provider to support their requirements, one of their key criteria was solid experience in delivering Japan-China network connections. “We needed a service provider familiar with the current telecom situation in China to help us identify our actual connectivity requirements as well as our future demands,” Mr Okuyama said.

Parts Seiko’s plan to deploy IP VPN to facilitate the execution of business processes between China and Japan eventually led the company to choose Pacnet over local carrier partners, which usually managed the China section of the Japan-China network.

“Pacnet is the only provider that can deliver one-stop solutions to China among all others we considered. We wanted a reliable and secure network with scalable bandwidth capacity to maintain the security of our network, and ensure the smooth and stable operation of our ERP system. We knew Pacnet’s IP VPN services are the perfect solution to our needs, as Pacnet is well-positioned to support the demands of our business with its expanded and upgraded network infrastructure throughout China,” Mr Okuyama said.

Pacnet supported the rollout of Parts Seiko’s ERP system to China with its MPLS IP VPN service. Parts Seiko’s network went live in February 2009 and the company is happy with the results, Mr Okuyama said.

“The seamless operation of our ERP system has radically improved our production efficiency. We benefit from quicker lead time and flexible support that comes from Pacnet’s ability to control and manage service delivery and customer service. I consider it a huge advantage,” Mr Okuyama said.

The Future

Parts Seiko will continue its business expansion in China and plans to tap its enhanced production model to support both domestic and global demands. The company is looking to deploy an enterprise-wide accounting system linking its Japan, China and Hong Kong operations next, Mr Okuyama said. Pacnet is positioned to continue to support the company’s Asian market expansion through its extensive IP network solutions.

Pacnet News Jul – Sep 2011

Pacnet News Jul – Sep 2011

12 Product Updates

Pacnet Builds New Link to Vietnam

As part of the company’s strategy to further enhance presence in Asia’s emerging economies, Pacnet has recently increased connectivity to Vietnam through a new direct subsea route to Ho Chi Minh City via Singapore, complementing the existing terrestrial link from Hong Kong.

Having diverse routes to Ho Chi Minh City puts Pacnet in a better position to handle the growing international connectivity requirements of Vietnamese businesses and explore opportunities in Vietnam’s burgeoning economy.

Business analysts see huge potential in Vietnam, the easternmost country on the Indochina Peninsula in Southeast Asia and home to over 90 million people. Goldman Sachs in a 2005 report predicted that the Vietnamese economy will become

the 17th largest economy in the world with nominal GDP of $436 billion and nominal GDP per capita of $4,357 by 2025. PricewaterhouseCoopers in 2008 forecast that Vietnam will be the fastest growing of emerging economies by 2025 with a potential growth rate of almost 10% per annum in real dollar terms, to about 70% of the size of the UK economy.

The 2000 signing of Bilateral Trade Agreement (BTA) between the US and Vietnam has been an important milestone in the country’s march for long-term sustainable growth. The agreement paved the way for the entry of Vietnamese goods in the US market, which is expected to accelerate the country’s transformation into a manufacturing-based, export- oriented economy and attract more foreign investments to the country.

Adding Mobile to Fixed Voice-Data Bundle in Australia

Pacnet has launched Pacnet Mobile Voice in Australia, adding mobility services to its existing business-grade broadband and fixed- line voice services bundle.

The bundling enables Pacnet to offer cost- effective business communication packages to answer the demand of Australia’s mobile workforce who appreciate the ease and efficiency of having one service provider handling all their communication needs.

By partnering one of Australia’s largest mobile communications providers, Pacnet is able to offer advanced 3G mobile service which covers 97% of the Australian population. The bundling covers both 2G and 3G services with support for single- and dual-band handsets.

Pacnet’s flexible package includes standard call credit, as well as Pacnet-to-Pacnet call credit, with the option to order additional data or BlackBerry support.

As with all Pacnet services, Pacnet Mobile Voice is supported by Pacnet’s award-winning technical support team that has a long history of service excellence. Mobile Voice customers will also get access to the Pacnet Account Toolkit. This gives them access to administer all Pacnet services through a convenient, web-based portal, including managing mobile voice usage, monitoring office broadband traffic and reviewing fixed voice consumption.

Pacnet formally established presence in Vietnam in 2010 when the company deployed

a Point of Presence (PoP) in Ho Chi Minh City,

offering IP VPN and IPL services to the country via a terrestrial North-bound link from Hong Kong. Having two routes to Ho Chi Minh City not only enhances network redundancy but also allows Pacnet to provide lower-latency connectivity to Vietnam through a shorter South-bound Singapore route.

Anticipating the country’s increased international connectivity demand, Pacnet has deployed a new Layer 1 PoP in Ho Chi Minh City early this year, which enabled Pacnet to provide full E1 (2048bkps) IPL services with two different route options for protected services. Having two routes to Ho Chi Minh City also results in dramatic latency enhancements for our IP VPN service to Vietnam.

Singapore Boosts Business Broadband

To win new customers and explore up-sell opportunities among Pacnet’s broadband subscribers in Singapore, Pacnet has enhanced its copper-based Business Broadband service to offer 4 Mbps and 10 Mbps bandwidth.

The service targets SMEs that require fast,

reliable, yet cost-effective access to support bandwidth-hungry applications. With a simple upgrade, customers will immediately benefit from enhanced access speeds, which means

a faster Internet connection and more reliable performance of web-based applications.

The service is targeted for customers who want faster access but whose premises are not within the coverage area of Singapore’s Next Generation Nationwide Broadband Network (NGNBN), a nationwide initiative to deploy fiber- based high-speed broadband in Singapore.

Tech Q&A

13
13

Future-Proofing Networks with 10 Gigabit Ethernet LAN PHY

Network infrastructures are under tremendous pressure as exploding Internet traffic volumes consume bandwidth capacity fast. To maneuver this challenging landscape, enterprises and service providers are now turning to more cost-effective solutions, such as the 10 Gigabit Ethernet Local Area Network Physical Layer (10GbE LAN PHY). This growing preference is reflected in the dramatic increase in recent shipments of LAN PHY ports. What exactly is 10GbE LAN PHY and why are customers opting to future-proof their network with it? Hui Chun Yim, Pacnet’s Senior Manager, Product Strategy and Management – Carrier, weighs in.

Product Strategy and Management – Carrier, weighs in. Pacnet News (PN): What is 10GbE LAN PHY?

Pacnet News (PN): What is 10GbE LAN PHY? How does it differ from 10GbE WAN PHY? Hui Chun Yim (CY): LAN PHY and WAN PHY are networking specifications that allow data transfer of 10 Gigabits (10G) per second in LANs and Wide Area Networks (WANs) respectively. They are among different PHY specifications of the IEEE 802.3ae 10GbE standard ratified in 2002, which is part of the 10G transport.

LAN PHY is commonly used in aggregated switches, operates at line rate of 10.3 Gbps, and is 10 times faster than a Gigabit Ethernet interface. It encapsulates Ethernet data using 64B/66B line coding. WAN PHY, differentiated from LAN PHY only by the WAN Interface Sublayer (WIS), provides a simplified Synchronous Digital Hierarchy (SDH)/ (Synchronous Optical Network ) SONET framer function. It is commonly used for core routers, operates at line rate of 9.95 Gbps, and is compatible with OC-192c/SDH VC-4-64c interfaces.

and is compatible with OC-192c/SDH VC-4-64c interfaces. Architectural components of LAN PHY and WAN PHY PN:

Architectural components of LAN PHY and WAN PHY

PN: What drives the demand for 10GbE? CY: Traffic growth in corporate and carrier networks. The latest statistics from TeleGeography indicate that Intra-Asia and Trans-Pacific bandwidth will increase at a compound annual growth rate (CAGR) of 77% and 50% respectively, between 2010 and 2016. Carriers need 10G transport to support and monetize video and other bandwidth-hungry applications, while enterprises need high-speed transport to support increasingly complex internal applications and increasing server and storage workload.

PN: What is 10GbE’s biggest advantage over traditional 10G network? CY: Its ability to lower significant equipment cost and ongoing maintenance. Customers are adopting 10GbE service for traffic aggregation. However, 10GbE is not necessarily a replacement for Wavelength as there are customers that still prefer 10G Wavelength for its transparency and manageability.

PN: Why do enterprises achieve better return on investment (ROI) on LAN PHY than WAN PHY? CY: Since most companies have an existing Ethernet-based network, the LAN PHY interface is more cost-effective for network upgrades. WAN PHY’s cost is significantly higher as it uses more proprietary technologies, equipment and interfaces produced by limited vendors. LAN PHY, however, uses more open systems supported by a growing number of equipment and interface vendors. For instance, a 24-port 10GbE LAN PHY switch costs about $4,000, while a 10G-port core router costs $70,000.

PN: Which type of companies will benefit most from LAN PHY? Why? CY: Content Delivery Networks and Internet Service Providers that need to aggregate large traffic volumes. They are also the early adopters of LAN PHY. Multinational companies and large corporations will follow when their traffic volume exceeds their network capability.

PN: Where do you see a demand for LAN PHY? CY: Asia. It is leading the adoption of 10GbE LAN PHY, as Asian countries are separated by water and aggregating 10G traffic requires the extension of LANs over subsea cable networks. US and European customers are also looking for a similar solution using their terrestrial networks. Building a LAN PHY network is challenging for subsea cable operators as additional equipment, or major network enhancements, may be required. Pacnet has the advantage in this area, because we have full ownership and control of our network. We can upgrade and configure our network to support our customers’ requirements, if necessary.

PN: Tell us more about Pacnet’s 10GbE LAN PHY offering? CY: It is the latest addition to our 10G portfolio, created to address the demands of our customers that are looking for a cost-effective way to upgrade their networks. We also offer 10G Wavelengths and end-to-end Ethernet through our WAN PHY services.

Different types of customers have varying business needs, but all of them demand speedier transport. We offer customers more choices to support their growing bandwidth requirements and our key differentiator across all our 10G services is the ability to offer high- availability and protected bandwidth.

Pacnet News Jul – Sep 2011

Pacnet News Jul – Sep 2011

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