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E-Business

‘Freight Train’ of Added Traffic to Hit ICT Networks Globally

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Two recently published white papers have projected large increases in ICT network traffic over the next five years. 

Each points to a different source of growth, which impacts different parts of the corporate network. Mobile data (of which video will form an increasing part) will affect the WAN and campus network; cloud computing will affect the data centre network.

Tony Munro, Solutions Executive: Dimension Data Africa equated the impact of the added traffic to that of a freight train.

“The network forms the basis for both growth points, so it’s important to consider their combined demand when planning your future capacity.”

Moving to mobility The most recent of the white papers – both published by Cisco – is titled Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2012-2017.

It documents an on-going initiative to track and forecast the impact of visual networking applications on global networks, and is partly based on data published by several well-known research houses.

According to the research, global mobile data traffic grew by a massive 70% in 2012  alone, with mobile video traffic exceeding 50% of total traffic for the first time.

More importantly, the paper projects that mobile video will increase 16-fold between 2012 and 2017 – which means that two-thirds of the world’s mobile data traffic will be video-related by 2017.

Much of this growth is created by additional devices that will be connected to networks, such as smartphones and tablets, but also to large numbers of sensors and monitors such as medical monitoring apparatuses, asset tracking devices, GPS tracking devices, temperature sensors, and so forth. These will generate machine to machine traffic.

Additionally, each connected device will generate more traffic as the applications that run on them become more sophisticated.

These connected devices won’t only increase network traffic for service providers, but also for enterprise networks, as more mobile devices and sensors connect back to business applications, and users on the enterprise network communicate with one another via video, using the wired and wireless network.

Towards a cloudy future
The second research paper, Cisco Global Cloud Index: Forecast and Methodology, 2011-2016, projects the growth of global data centre and cloud-based IP traffic, and describes the trends associated with data centre virtualisation and cloud computing.

One of the white paper’s conclusions reads as follows: ‘Global data centre traffic is firmly in the zettabyte era and will nearly quadruple from 2011 to reach 6.6 zettabytes annually by 2016. A rapidly growing segment of data centre traffic is cloud traffic, which will increase six-fold over the forecast period and represent nearly two-thirds of all data centre traffic by 2016.’

Interestingly, 76% of this traffic remains inside the data centre, which highlights the tremendous pressure exerted on data centre networks today.

The nature of data centre cloud traffic requires specialist network architectures to manage the most basic building block of cloud computing – the virtual machine – in the same way as a physical machine.

Additionally, storage traffic, which makes up 40% of data centre network traffic, becomes an important consideration as it moves to IP, thus adding even more load onto an already stretched network.

Preparing for impact
Munro believes projections like these should concern forward-thinking organisations.

‘When planning your enterprise mobility, visual communications and network infrastructure strategies, you need to be aware of these projected increases and start preparing for their impact. The growth in visual communications and cloud computing combined will require that most businesses double their network capacity at least every three years.

This is, of course, an estimate. Most computing infrastructure has a depreciation cycle of three to four years, while networking has an average depreciation cycle of seven years. It is likely that these trends will reduce the depreciating cycle for networking so that upgrades can be conducted more regularly.

‘In Dimension Data’s experience, many organisations are still unaware of what lies ahead. By far the majority don’t yet have video capabilities on the desktop – an area of almost certain growth in the near future. At the same time, many are already testing private cloud environments and investigating the possibility of moving their least risk-prone business applications to the cloud in order to save costs.

‘Again, the success of a cloud strategy depends on whether the network can handle the traffic,’ said Munro.

‘Only when the adoption of both video and cloud-based applications reaches higher levels, do many businesses realise their network is groaning under the weight, and begin to experience performance issues or, worse, increased outages.’

Partnering with care
What should organisations do to better brace themselves for impact? Munro emphasized the importance of in-depth network knowledge and skills, and understanding the profile of traffic across your network.

‘It’s important that your organisation forms a clear picture of its current state, including which parts of the network demand the most bandwidth. Then you need to project the future state of the network keeping future demands in mind. Lastly, create a roadmap to steer your on-going investment and development.

‘If you don’t have the necessary expertise on board,’ advised Munro, ‘it’s time to partner with the right people. The best networking experts don’t just provide integration and implementation skills where you fall short. They can also offer broader, multi-disciplinary architectural and consulting services to assist you strategically in the long term.

‘Your network forms the basis of ICT in your business. Changes to it will affect every area, including information security, data centres, software applications, communications and collaboration, and more. Due to the critical nature of a well-prepared network, businesses can no longer face the future without it.’


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OpenAI Eyes Chrome Acquisition if Google is Forced to Sell

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Nick Turley, OpenAI’s Head of Product, testified in Washington that the company would be interested in acquiring Google’s Chrome browser if antitrust enforcers succeed in forcing Alphabet to sell the popular web browser.

This testimony was part of a high-profile trial in which the US Department of Justice is pushing to break up Google’s monopoly in the online search and advertising markets, Reuters reported on Tuesday.

The DOJ’s case centres on Google’s dominance in online search, which it argues unfairly stifles competition. A key aspect of the DOJ’s proposed remedies includes requiring Google to divest assets, including its Chrome browser, to restore a more competitive search environment.

According to the report, Turley’s statement provided insight into OpenAI’s competitive positioning within the generative AI space.

He noted that Google’s refusal to partner with OpenAI for access to its search technology within ChatGPT had pushed the company to explore alternative partnerships, particularly with Microsoft’s Bing.

Turley had previously written that ChatGPT leads the consumer chatbot market and did not consider Google its biggest competitor, according to an internal OpenAI document presented by Google’s lawyers during the trial.

He clarified that the document was meant to inspire OpenAI employees and emphasised that the company would still benefit from distribution partnerships, Reuters reported.

Earlier in the day, Turley testified that Google rejected OpenAI’s bid to use its search technology within ChatGPT.

OpenAI had reached out to Google after experiencing issues with its own search provider, Turley said, though he did not identify the provider. ChatGPT currently uses Microsoft’s Bing for search.

“We believe having multiple partners, and in particular Google’s API, would enable us to provide a better product to users,” OpenAI had told Google in an email shown at the trial.

OpenAI first reached out in July, but Google declined the request in August, citing concerns about competition. “We have no partnership with Google today,” Turley said.

The trial also highlighted Google’s internal strategy, including efforts to secure exclusive search agreements with major Android device manufacturers like Samsung.

According to Turley, such exclusivity could hinder the development of competing AI technologies, like ChatGPT, which depend on a range of search and data sources.


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Digital Consumers are Driving a New Era of Online Shopping, Transforming how Nigerian Youth Buy

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The digital revolution is hitting Nigeria’s retail scene fast, and it’s being powered by the country’s youth. Armed with smartphones and a demand for affordability, they’re shaping the e-commerce industry where convenience reigns supreme.

Nigeria’s internet users, reaching more than half its population, creates a strong foundation for e-commerce growth. This growth is significantly fueled by the nation’s youth, a substantial 160 million (70% of the population), whose tech-forward nature drives the popularity of platforms like Temu, satisfying their demand for accessible and budget-friendly online retail.

This generation has flipped the retail script. Value is their compass, price comparisons their weapon, social media their guide, and convenience their non-negotiable. This isn’t just shopping; it’s a calculated pursuit of savvy options, the widest selection, and the best value-for-money deals.

The power of finding a good deal is undeniable, especially for these shoppers watching their wallets. Social media is a testament to this, filled with posts celebrating the newfound ability to purchase items once considered luxuries.

Take Anwulika Udanoh (@Anwulika Udanoh on Facebook), for example. Her recent post, detailing her shopping experience on Temu, is a perfect snapshot of this online shopping revolution. She stumbled upon affordable jewelry on the platform, swayed by glowing reviews, and took a chance. What followed was a delightful surprise: customised earrings bearing her name, a feat once thought impossible.

Even her son’s friend jumped on the personalisation trend with custom pendants. ‘Their prices will shock you,’ she wrote, with genuine excitement. And despite any concerns about longevity, the sheer joy of affordable, personalised style at good quality won her over. That’s the power of this shift.

This goes beyond mere bargain hunting; it’s about empowerment. It’s about unlocking the ability to express your unique style without sacrificing your financial stability. It’s about finding those small sparks of joy, like personalised jewelry that feels uniquely yours. For many, these platforms are a portal to a more colourful and individually tailored life.

Then there’s the spirit of adventure, captured in a simple tweet by Steph (@steph on X): ‘ordered a couple of desk items, wish me luck.’ It’s the essence of a generation eager to discover new ways to elevate their everyday life.

Launched in the country in November 2024, Temu offers a diverse selection that aligns with the dynamic needs of young Nigerians. The direct-from-factory online marketplace is known for cutting out layers of middlemen and their associated markups and costs, passing on savings to consumers. Serving more than 90 markets globally, Temu has become one of the most visited e-commerce sites worldwide and a top Apple-recommended app of 2024.

Let’s be real: budgets matter. In a country where every naira is carefully considered, competitive pricing and accessible payment methods, aided by partnerships like Temu and Verve, empower Nigerian shoppers with greater choice and freedom to embrace trends while making the budget go beyond. It’s like opening up a world of possibilities.

Adding to the appeal is a user experience designed for the mobile age. With 193.9 million cellular connections, smartphones are the gateway to this digital world, and intuitive platforms allow for seamless browsing and purchasing on the go, perfectly aligning with the dynamic rhythms of young Nigerian life.

This mobile-first approach is further amplified by the power of social proof. In a nation of 31.60 million social media users, reviews and recommendations carry significant weight, transforming satisfied shoppers into passionate brand advocates.

A growing digital environment, particularly in urban areas, presents a rich opportunity for platforms that resonate with the aspirations of young people. They seek more than just products; they want to build online communities, create digital identities, and shape their lifestyles.

Real stories like those of Anwulika and Steph show that Temu isn’t just a place to shop, but a platform that’s unlocking joy, creativity, and financial freedom for Nigeria’s youth. Whether it’s personalised jewellery, playful desk accessories or everyday essentials, Temu is turning everyday purchases into moments of empowerment — proving that with the right platform, anything is possible.


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Gold Hits Record High Amid U.S. Dollar Weakness and Trade Tensions

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Gold prices surged to a fresh record high on Monday, April 21, while the dollar weakened and global stock markets presented a mixed picture, as concerns mounted over former President Donald Trump’s escalating tariff strategy and his ongoing confrontation with the Federal Reserve.

Amid subdued activity due to continued Easter holiday closures in several markets, investors focused on the potential fallout from Trump’s latest trade moves and looked ahead to key economic data releases later this week that may shed light on the broader impact of the evolving U.S.-led trade war.

The administration’s tariff campaign has triggered swift responses from major economies. While some, like Japan, are reportedly seeking accommodations to ease Washington’s trade levies, China issued a sharp warning to governments not to negotiate at the expense of its interests. A spokesperson for China’s commerce ministry said Monday that appeasement and compromise would fail to win peace or respect, calling on nations to avoid sacrificing broader interests for temporary gains.

Beijing’s tone contrasted with Trump’s comments last Thursday in which he signaled ongoing discussions with China, expressing optimism about reaching a deal. However, tensions remain high, with China facing tariffs of up to 145 percent on some goods, and retaliating with duties of 125 percent on U.S. exports.

The growing uncertainty over the global economic outlook has driven investors toward safe haven assets. Gold climbed above $3,384 per ounce, buoyed both by the geopolitical instability and a weakening U.S. dollar. The dollar’s decline has been exacerbated by concerns over Trump’s comments directed at Federal Reserve Chair Jerome Powell, who warned that the tariffs could lead to a temporary rise in inflation and downplayed prospects for interest rate cuts.

Trump criticized Powell for his remarks and hinted at the possibility of removing him from office, stating: “If I want him out, he’ll be out of there real fast, believe me.” Powell has maintained that he will not step down and emphasized the legal foundation of the central bank’s independence.

The dollar fell against major currencies, with the yen and euro gaining strength. France’s finance minister Eric Lombard said Trump’s tariff policies had already damaged the credibility of the U.S. currency and warned that undermining the Federal Reserve would further shake investor confidence. Chicago Fed President Austan Goolsbee underscored the importance of central bank independence, calling it a near-universal principle among economists.

Asian stock markets reflected the uncertainty, with Tokyo’s Nikkei falling 1.2 percent, while gains were seen in Shanghai, Seoul, Singapore, Manila, and Jakarta. Oil prices declined amid renewed fears over global demand, with West Texas Intermediate and Brent crude both dropping 1.7 percent.

Investors are now watching closely for April manufacturing data from key economies, which are expected to provide early signals about the tangible effects of the tariffs. Analysts warn that U.S. fiscal and monetary policy are increasingly being viewed as volatile geopolitical forces rather than stable economic anchors. Stephen Innes of SPI Asset Management said the reputational damage to the U.S. economic brand is becoming entrenched, with global markets and allies adjusting expectations accordingly.


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