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Cisco Warns Australian businesses to Prepare For Hyperconnectivity

Based on results from its new Visual Networking Index (VNI), Cisco predicts hyperconnectivity will arrive in Australia sooner than expected.

Hyperconnectivity refers to connectivity as a cultural condition, as our lives become more intertwined with technology. This is brought on by the ever-evolving internet, mobile devices, and applications that are forcing businesses to either adapt or perish! Although it sounds dramatic, the fact is we need to be prepared for not only how hyperconnectivity will change the future of online communication, but also the opportunities that will arise from person-to-person and person-to-machine communication – both of which could mean success or failure for your business.

The Index has established that Australia is experiencing, and will continue to experience, significant growth in internet usage, due to increases in IP traffic, mobile use, total connected devices per user, consumption of data per capita, and video consumption.

Cisco CTO, Kevin Bloch, explains, “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.”

IP traffic in Australia to grow threefold

Growth is predicted to rapidly continue, with IP traffic in Australia increasing threefold by 2019 on a compound annual growth rate (CAGR) 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 it in perspective, this is 154 times the amount of traffic than seen in 2005.

Bloch continues, “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.”

More users, more devices, more data

Many factors contribute to growing connectedness, but the basic idea is that there will be more people online for longer, using more devices to connect. Naturally, we can expect to see an increase in the number of people online in Australia by 2019; VNI research suggests there will be 219.6 million networked devices – almost double the 115.7 million in 2014. Consequently, the number of connected devices will increase; VNI predicts Wi-Fi- and mobile–enabled devices will generate 72% of IP traffic by 2019. Cisco also estimates that more than half of mobile traffic will be transferred from conventional cellular systems to Wi-Fi and small cell networks.

By then, mobile device traffic will be equivalent to 19 times the entire volume of the Australian Internet in 2005. Business IP traffic is set to double in size: a compound annual growth of 14%. Business mobile data traffic will grow fivefold, and business Internet video will grow more than threefold.

The time is now – connect or miss out

“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.”

With such large growths expected, it is clear that we are headed for hyperconnectivity, whether we like it or not. According to Cisco, it is time for businesses to either fully embrace the online world or suffer the consequences. 

The opportunities for online communication are endless, if you don’t connect expect to miss out!