Business <strong>Life</strong>: Finance Business <strong>Life</strong> Processing future won’t be left up in the ‘Cloud’ I have watched the ongoing debate about the National Broadband Network and its rollout for some time now. What seems to be taking place is that the more people get connected, the more people complain about their low speeds and frustration. But consider this. Due to the fact there is a Coworking business (ours) in the middle of Newport offering flexible desk space, with required highspeed internet capacity, there was a need to think outside the box. Some time ago we figured that the convergence of Artificial Intelligence, big data, and low-cost processing power would fundamentally transform computing. For the first time in history, real world data is being collected in real time (vision, location, temperature, etc), using an exponentially growing sensor network – so underscored Peter Levine in his presentation: The End of Cloud Computing. Every AI network-connected device, whether self-driving cars, robots, immersive AR / VR, or Internet of Things sensors will use huge amounts of processing power, becoming its own small data centre. The current cloud architecture of sending all data to a centralised location for processing is obsolete and won’t work for AI-driven applications, because there is simply not enough bandwidth, resulting in significant latency issues. Self-driving cars can generate 10 gigabytes of data per mile, requiring single-digit millisecond response times to avoid collisions, communicate with nearby vehicles for optimising traffic flow and finding the best routes. Assuming there is a strong wireless signal, it takes 150-250 milliseconds to communicate with a data centre. However, at 60mph, a 250-millisecond delay corresponds to 21 feet – potentially the difference between being able to dodge an obstacle or not. This means more processing will be done at the “edge” of the network, rather than in huge data centres and therefore require increasing connectivity. So, the need will be for everincreasing amounts of bandwidth; this can be achieved by fibre, or a hybrid model of fibre and wireless. The technology is advancing rapidly, in fact so rapidly that Google is currently conducting trials with Nascar in the US to see how fast a car can go whilst still maintaining an uninterrupted wireless signal. But back to the NBN. The top tier 5 is 100 mbps down and 40 up, known as asymmetrical. Sign up and depending on how many others sign up the following will happen. If you are on it by yourself at 2.34am you may get a reasonable download, BUT, add in a contention ratio – which means that the connection is shared among others – and it’s a different ball game. Say the contention ratio with Simon Bond is 30, and all those 30 are on at the same time watching Netflix, or on Facebook or Snapchat, Instagram, Twitter, You Tube or whatever. That means you divide 100 by 30 to get an average download of 3.33 mbps and an upload of 1.33 mbps. Hmm, not so future proof. Here in Newport we invested heavily in getting our own “dark fibre” connection to the building, initially lit to a gig – that is 1,000 mpbs down and 1,000 mbps up. Symmetrical, which means it’s ours. And all ours. Any on-site resident can theoretically participate in that 1,000 mbps connection. If you “google” speedtest you can easily check your own connection speed. Then compare it to the one illustrated here. From my research, I can state that at this time, ‘Sandara’ in Newport Beach, Sydney, has the fastest residential internet connection in Australia. Imagine what that connection does for real estate value? NewportNet co-director Simon Bond has been actively involved in all aspects of Stockbroking since 1987. His focus is on how technology is changing the investment landscape, demographic trends and how they influence equity markets. 52 NOVEMBER <strong>2017</strong> The Local Voice Since 1991
Business <strong>Life</strong> The Local Voice Since 1991 NOVEMBER <strong>2017</strong> 53
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