Latin America isn't ready for intermediate cloud services, says Cisco

Wednesday, November 30, 2011

Latin America is unprepared in terms of infrastructure for the expected leap in demand for intermediate and advanced cloud services, and the task of improving network capacity will fall largely on the telecoms operators, Christian Onetto, sales manager for service providers with Cisco Systems (Nasdaq: CSCO) Chile, told BNamericas.

Onetto was speaking in reference to a new study published by Cisco called the Global Cloud Index, which predicts that cloud-based traffic worldwide will increase twelvefold by 2015 from 130 exabytes to 1.6 zetabytes, or a CAGR of 66%.

That volume of data in 2015 will be equivalent to 22tn hours of music streaming, 5tn hours of business web conferencing or 1.6tn hours of HD video streaming.

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But all of that will require a certain amount of readiness in terms of infrastructure.

"Latin America is below average in terms of latency and download speeds. Chile is actually above average, especially in the business segment," Onetto said.

Onetto said that he expected service providers to rise to the task and make the necessary investments over the next few years.

To assess readiness, various attributes were analyzed: broadband ubiquity, average upload and download speeds, and average latency.

All the regions studied are currently ready for basic cloud-computing applications, such as social networking and web conferencing.

For intermediate cloud-computing applications such as video chat and HD video streaming, Asia-Pacific, Western Europe, Central and Eastern Europe, and North America were considered as having average network capabilities strong enough to support these services.

No region was assessed as being able to support advanced cloud applications such as HD video conferencing and advanced gaming. But certain countries within each region - such as South Korea and Japan - are currently able to do so.