Introducing ViBE Cloud Solving Cloud Based Applica6on Latency Issues
Introducing ViBE Cloud Solving Cloud Based Application Latency Issues Global Corpora6ons and other Enterprise Customers are experiencing two growing problems as everyone moves to the Cloud. • Longer and frustra.ng delays in accessing global Cloud based solu.ons • Rapidly increasing costs for ever increasing amounts of bandwidth
Two important factors to consider in solving this ever growing problem • For many Tier 1 bandwidth providers this is good for business – More Bandwidth driven to the corporate clients. BUT MORE BANDWIDTH IS NOT THE SOLUTION • Not everyone accessing the same CLOUD has the same user experience. IF your CLOUD based applica.on is hosted in Chicago with a redundant server in London, England. The user accessing the Corporate HR System in Miami will have a very different experience than a person in Johannesburg.
Why the different experience
Miami, Florida – accessing accoun.ng system -
Access took -36 ms- to Chicago Cloud Server – 5mgbs of Bandwidth assigned.
Latency of the Internet handshaking determines Bandwidth allocated to a user’s session. This is managed by: Transmission Control Protocol (TCP).
Zurich, Switzerland – accessing Accoun.ng System Access took -80 ms took two hops to Chicago Server- 3.2 mgbs of bandwidth assigned.
Johannesburg, SA –accessing Accoun.ng system Access took 360 ms - took 5 hops to London Server- 800 kbs of bandwidth assigned.
Costs for Bandwidth Globally
Europe has lowest rates - everything else compared to Europe at a base rate at $10/Mbps
% Peered
Eec6ve Rate /Mbps / Month
Rela6ve to Lowest Rate
Europe
50
$5
1 X
North America
20
$8
1.6 X
Asia
55
$32
6.4 X
La.n America
60
$32
6.4 X
Australia
50
$100
20 X
Africa
20
$420
84 X
Note: these numbers represent comparisons of rates between regions of the World, only. The rates can, of course, be nego.ated by each Corporate en.ty based on volumes, rela.onship with providers and numerous other factors.
IT Department says “add 100Mbps to each office” Tradi6onal Solu6on – ADD Bandwidth Effec6ve Rate /Mbps / Month
Rate /1Mbps / Year
Rate for 100Mbps
Europe
$5
$60
$6,000
North America
$8
$96
$9,600
Asia
$32
$384
$38,400
La.n America
$32
$384
$38,400
Australia
$100
$1,200
$120,000
Africa
$420
$5,040
$504,000
Adding Bandwidth can be very expensive Unless your offices and employees are located in Europe or North America or other select regions of the world, adding bandwidth can be a very expensive proposi.on. BUT we are here to say: “ Bandwidth is NOT the problem ”
The Culprit is TCP Unless you are accessing a CLOUD applica.on
(your firm’s Accoun.ng applica.on, or any other Cloud based app) from a loca.on that is physically close
to the HOST site of your Corpora.on’s Cloud Server. The TCP control process in your device tests Latency to the Host applica.on. Based up on this Latency decides how much Bandwidth is required for this session.
“The larger the Latency – the smaller the Bandwidth window allocated for the connecGon”
SOLUTIONS 1) Add more Bandwidth – May work in Europe and N.A. but not best in rest of the world.
2) Enterprise needs to Host their Cloud based applica.on close to each access point globally - defeats purpose of Cloud based applica.ons. 3) NxGen Communica6ons – ViBE Cloud deployment
The ViBE Cloud or SD-WAN Solution •
NxGen in concert with hardware providers has wriden and tested a new protocol that when implemented through soeware installs on exis.ng Internet connec.vity devices, Routers, Switches achieved drama.c bandwidth op.miza.on results.
•
Tes.ng has been completed on Interna.onal Routes and domes.c Fiber backbone rings inside country. The results demonstrate that by implemen.ng VIBE SD-WAN on Interna.onal voice and data traffic, an increase of between 10 to 18 .mes the data volume can be achieved, based on type of data transmided.
•
These results provide very large cost savings to Enterprise Corpora.ons and to global Cloud Based Applica.ons.
•
The impact is not just on data throughput but also delivers enhanced redundancy and path op.miza.on op.ons through the ViBE install.
What is ViBE and ViBE Cloud? •
ViBE has been around for 10 years and successfully deployed into various global markets to more than 40,000 end points, helping SME end users to more efficiently manage their bandwidth and MPLS services.
•
ViBE is delivered today, by installing proprietary ( ViBE ) soeware onto customer's routers and simultaneously on their ISP's hardware at each data center.
•
ViBE Cloud is this exact implementa.on but with the new CLOUD bandwidth opGmizaGon code installed on global CLOUD servers and the Interconnect providers equipment that manages global Internet traffic.
•
ViBE Cloud is delivered as a Soeware Driven Cloud based service. NxGen provides: • • •
ViBE Cloud soeware; and personnel to install ViBE Cloud onto global servers and gateways; as well as support services to exis.ng Internet Infrastructure providers (ISPs) to manage their customer's accounts and bandwidth requirements.
Deploying VIBE Cloud! •
NxGen is embarking on a global deployment to strategic markets where bandwidth is at a premium.
•
NxGen will ini.ally be perceived as compe..on to the incumbent Tier 1 telecos. (Their objec.ve is
to sell more Bandwidth- ViBE Cloud op.mizes Bandwidth useage) . The ISPs will be our deployment partners.
•
NxGen can roll this out slowly across three target market groups ( see below ) but management is convinced that due to the size of savings and resul.ng revenues to NxGen and it's funding partners, ViBE CLOUD must be deployed quickly and aggressively.
•
ViBE Cloud provides economic benefits to three groups; • • •
a) Interna.onal Interconnect providers; b) Internet Service Providers (ISPs); c) Enterprise and corporate clients delivering Cloud based services (WhatsApp, Facebook, SalesForce, etc)
How to Deploy VIBE Cloud! •
Deployment strategies include; 1) acquire select ISPs and implement ViBE Cloud; 2) Partner with Select ISPs to deploy across their networks; 3) purchase data center equipment and implement with partners to expedite service deployment.
•
NxGen is seeking $25m USD for Phase I deployment, which is an aggressive launch with Interna.onal Interconnect providers, which will allow NxGen to earn a por.on of all Bandwidth channels provided by the Interconnect providers. Simultaneously, NxGEN will acquire several strategically placed ISPs to allow for the ac.va.on of several global Cloud based applica.on service providers, as models for other industry players to examine and compare service levels.
How to Deploy VIBE Cloud! (cont'd) •
ViBE installa.ons with strategic Interconnect partners have been factored in on a 50/50 basis. NxGen covering 50% of costs of hardware upgrades or installa.on and training support for Interconnect providers.
•
Cash flow from bandwidth revenue sharing will allow NxGen to generate significant EBITDA, however it is planned to do a follow on $50m financing in 2018 to rapidly expand global reach of the ViBE Cloud service
Where to Deploy ViBE Cloud! •
NxGen will begin in markets where BANDWIDTH has been priced excessively high. - Asia – Africa – Australia – South and Central America.
•
Several strategic ISPs have been iden.fied, based upon customer base for specific Cloud based applica.ons. These ISP acquisi.on costs are spread out over 3 years, as nego.ated. In priority order these markets are South America, India, Africa, Asia.
•
ViBE installa.ons with strategic Interconnect partners have been factored in on a 50/50 basis. NxGen covering 50% of costs of hardware upgrades or installa.on and training support for Interconnect providers.
•
Cash flow from bandwidth revenue sharing will allow NxGen to generate significant EBITDA, however it is planned to do a flow on $50m financing, within 3 years, to rapidly expand global reach of the ViBE Cloud service
Revenue Projections – 3 Years 3- ISPs in 2016 and 5- ISPs in 2018 2016 Acq. Capital Invest.
2017
$25m
2018
2019
$50m
Revenue from 3- Acquired ISPs. 3- (55%)
$65m
$84m
$96m
ViBE Cloud
$34m
$118m
$342m
Gross Sales
$99m
$202m
$438m
35
64
88
COGS - ISPs
$43m
$52m
$63m
COGS- ViBE Cloud
$9m
$32m
$68m
Gross Profits
$47m
$118m
$307m
Staff
12
G&A
$.36m
$1.4m
$2.2m
$3.6m
EBIDTA
($.36m)
$45.6m
$115.8m
$303.4m
Next Steps Interested par6es should contact NxGen Communica6ons Corp. 1-866-778-0440 Info@nxgencom.com