Cisco has released its 10th annual Visual Networking Index (VNI) Australian results, which indicate Australia is set to continue experiencing exponential growth in Internet usage.
The research points to huge increases in IP traffic, mobile usage, the 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, CTO 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 threefold by 2019 with a compound annual growth rate of 22%. IP traffic will reach 1.4 Exabytes per month in 2019, up from 499 Petabytes 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. This is unparalleled,” said Bloch. “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 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, nearly double the 115.7 million in 2014. Wi-Fi and mobile connected devices will generate 72% of IP traffic by 2019. Wi-Fi will become the dominant form of mobile connectivity and cross the half-way mark (60%) of total traffic. Cellular will comprise 12%. 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 fivefold, and business Internet video will grow more than threefold from 2014 to 2019.
“We are all aware that the Internet of Everything has arrived, yet few businesses have prepared for it,” said Bloch. “The 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 sixfold, or Internet video growing nearly fourfold, 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.”