Michael Maiorana
MILCOM 2014
October 7, 2014
Introduction by Lieutenant General John R. (Bob) Wood (Ret.), executive vice president, AFCEA International
Introduction
Thank you, General Wood. It's a pleasure to be here this afternoon to address the attendees of MILCOM 2014.
Verizon is a proud member of the team supporting the Department of Defense and the troops that keep America safe and secure our country's interests both here and abroad.
Our support for your efforts extends to those who have ably and admirably served our country. Today, Verizon employs over 11,000 veterans — approximately six percent of our total global workforce. In 2013, we hired nearly 1,100 veterans.
Recognizing the valuable technical skill set and work ethic held by our veterans, Verizon partners with a wide range of agencies to support those returning to civilian employment, including the U.S. Chamber of Commerce, Department of Defense, Joining Forces, and Employer Support of the Guard & Reserves. We are a founding member of the Veterans Employment Advisory Council with the U.S. Chamber of Commerce Foundation and have joined with other large companies to support "100,000 Jobs Mission", an initiative which aims to collectively hire 100,000 transitioning men and women by the end of 2020.
Teamwork and a focus on mission success are values that our organizations share. We understand that no single person or organization can meet its mission alone. We know that we must rely on resources and information from a variety of sources to meet the challenges and the opportunities they present.
Reimagining the Enterprise
Information. Terry Halvorsen, the acting chief information officer for the Department of Defense, was recently quoted as saying that "information is our greatest strategic asset."
Verizon couldn't agree more. The challenge — and the opportunity — is to turn that information into actionable intelligence that drives organizational decision making, enhanced situational awareness and, ultimately, mission success.
Technology is rapidly transforming our world and the organizations in which we work. The digital age that is continually morphing before our very eyes is profoundly changing our personal and work lives, and fundamentally transforming the business of government. The information challenges you face on a daily basis are not dissimilar to those faced by enterprises across every business sector. However, the degree of difficulty and urgency is amplified given our nation's security and defense mission. Getting the right tools and relevant information into the hands of the right people at the right time — reliably, securely and efficiently — is of upmost importance as you protect the United States and its 320 million residents.
A New Normal is Taking Shape
This afternoon, I would like to discuss how technology and a variety of other market forces are fundamentally changing our world. Through a continued focus on our partnership, we can collectively harness the power of these trends to drive innovation and discover new ways of effectively meeting organizational objectives.
Beyond the rapid pace of technological advancement and innovation, there are practical dynamics that are shaping the defense market. Decreasing budgets. Long procurement cycles. Legacy systems. An aging workforce. A shortage of technical expertise. Growing end-user requirements for increasingly sophisticated tools. And, more importantly, a mission that is both global and evolving in its scope and complexity.
From a commercial perspective, many of these same forces are driving a new normal that will ultimately impact how the IT services you require are sold, delivered, consumed and managed. Increasingly, companies across the defense ecosystem will partner in new and different ways to create the solutions needed by the Department of Defense and the various military services and support organizations.
Let's take a brief look at the transforming technology landscape.
Global IP Traffic Growth, 2013-2018
Many, if not all of you, have seen this slide before. Global IP traffic has increased fivefold over the previous five years and will increase threefold over the next five years.
To put this in perspective, this means that global Internet traffic in 2018 will be 64 times greater than the volume of Internet traffic in 2005. This growth in traffic will be driven by the increasing number of devices connected to the Internet. In 2018, the global population is anticipated to grow to 7.48 billion. In the same year, the number of devices connected to IP networks will be nearly twice that number.
The key takeaway is that IP traffic continues to grow and will continue to do so for years to come. The question is how defense networks will keep up with the growing demand for bandwidth to support force structure requirements, applications and increasing numbers of end-user devices.
Mobile Internet Growth, 2013-2018
The growth of mobile Internet traffic also continues to accelerate.
By 2018, over half of all IP traffic will originate from non-PC devices, such as televisions, tablets, smartphones and machine-to-machine modules, with Wi-Fi and mobile devices accounting for 61 percent of all IP traffic.
As the mobility market continues to mature and innovative applications are developed, the increasing number of mobile users and devices will only expand over time.
Within the defense industry this means it's no longer sufficient to deploy robust wireless networks that serve your tactical operations centers. These networks — and the applications and data that run over them — will need to be expanded and extended to the tactical edge so mission-critical information from the field can be delivered, collected and shared quickly and securely.
U.S. M2M Connections, 2013-2018
The Internet of Things, or machine-to-machine communications, will account for a growing percentage of Internet traffic. By 2018 in the U.S. alone, the number of M2M connections is expected to reach more than 78 million.
Connectivity is increasingly being integrated into the physical world. Intelligent chipsets are now embedded into our electronics, buildings, cars and systems, to name a few examples. These in turn are connected to the Internet through secure wireless networks, ushering in an unfolding era of innovation and productivity through automated solutions, such as fleet and asset management, supply chain, smart buildings and even environmental and situational monitoring.
The key to unlocking the potential of M2M is automation, minimizing force demands and leveraging this technology to drive organizational efficiency and transformation initiatives.
Enterprise Cloud Spending, 2013-2017
By 2017, governments and enterprises are expected to spend nearly $24 billion on cloud, including public, hybrid and, increasingly, private cloud computing solutions.
These organizations view this on-demand IT consumption model as an efficient and effective way to organize work in our highly globalized and digitized world — one that enables the secure storage and sharing of information, whether it be media, personal data, intellectual property and sensitive government data.
For a defense organization faced with seemingly conflicting objectives of meeting increased IT demands and shrinking budgets, the cloud offers the benefit of a robust and secure infrastructure that minimizes capital requirements without degrading the availability of information and organizational readiness.
Big Data & Analytics
The final piece of this new computing paradigm is the emerging field of big data and analytics. Harvard Business Review, in a recent study sponsored by Verizon, found only 13 percent of public sector organizations are using big data and analytics extensively.
This nascent and promising field combines the capabilities of IP and wireless networks, M2M and cloud with analytics and predictive modeling to turn huge pools of data into actionable intelligence to drive strategic decision making.
Underscoring our belief in the potential of big data, last year Verizon hired its first chief data scientist. This former principal scientist from NASA now leads our new research and development center that is focusing on the development of advanced technologies based on large-scale machine learning and analytics.
Big data and analytics have applications that extend to the military. You possess a plethora of institutional information that can be analyzed and mined to identify trends in multiple functional areas, including maintenance, logistics, healthcare, cybersecurity and the analysis of intelligence.
Digital Delivery Creates Challenges
These technologies are driving new end-user expectations.
Consumers, citizens and employees and in the case of the military, soldiers and their families, expect digital service delivery. In the workplace, this means they have an expectation that they will receive the same level of digital service from the military that they have come to expect from interactions with their bank, retail outlets, social media and other businesses and organizations they deal with on a daily basis in their civilian lives.
With these expectations come heightened IT demands in terms of access, the security of personal information and the ability to easily perform everyday personal tasks and work duties. Within the enterprise, the adoption of technology and self-service models will drive the need for process reengineering and the reallocation of personnel and resources to other mission-critical initiatives.
Shift in Consumption Models & Delivery
Transformation and reimagining the enterprise truly take place when all of these trends come together to spur innovation and new ways of thinking.
Evolving technology, increasing IT demands and shrinking budgets are driving a shift in consumption models, and how services are delivered and supported.
Our future will be defined by an approach to IT procurement where services are delivered "as-a-service," a usage-based model where everything from the network and cybersecurity to cloud and applications will be provided on an on-demand basis. Ultimately, this approach will evolve to an "as-a-managed service" model with a focus on outcomes and increased value of to the customer.
The hallmarks of this approach will be minimal up-front investment, customer flexibility and a shift from capex to opex. For the military this will provide an effective way to help break long procurement cycles, keep ahead of technology obsolescence and focus on its mission while transitioning non-core activities to trusted partners.
What Does this Mean to DoD and the Defense Community?
The Department of Defense understands these technology trends and market forces.
Nothing speaks to this more clearly than the strategic plan developed by the Defense Information Systems Agency. DISA is moving forward on all these fronts and industry is poised to assist in making these plans a reality.
In fact, for many years Verizon has been investing with this future in mind and it's the reality we are prepared to deliver to our customers.
Verizon Networks
Verizon operates some of the most sophisticated and powerful networks on the planet which serve as the foundation for all that we do. We also have a long and proud legacy of network innovation and excellence.
Verizon has one of the world's most interconnected IP backbones, operating in more than 150 countries on six continents and monitored from five global network operations centers and a purpose-built government and security facility tailored to meet specific federal requirements. This network global IP network comprises more than 800,000 route miles and Verizon has investments in 80 submarine cable systems and operates satellite facilities worldwide. We launched the industry's first commercial 100G ultra-long haul network and we were the first to deploy undersea mesh technology. In addition, we have successfully trialed 200 gigabit speeds on our long-haul route between New York City and Boston.
Verizon also operates the nation's largest and most reliable 4G LTE wireless network. Launched in December 2010, our 4G LTE network now covers more than 500 markets across the country and is available to 98 percent of the U.S. population — nearly 308 million people — including those served by our LTE in Rural America partners. Additional bandwidth, what we call 4G XLTE, is being deployed and is currently in more than 400 markets. 4G LTE has proven to be the game changer than we anticipated, increasing mobile speeds by a factor of 10, cutting latency in half and stimulating a wave of wireless innovation that shows no signs of slowing down.
The FiOS network, our all-fiber residential network that we began deploying 10 years ago, now passes 19.3 million households and small businesses. Our faster FiOS Quantum service has proven to be popular, with more than 55 percent of FiOS customers signing up for broadband speeds of up to 500 megabits per second. This fiber network lays the foundation for the big broadband era and the next wave of innovative consumer services, such as 3D video, digital home monitoring and home-based digital healthcare services.
An Unprecedented Data Set
Any discussion of networks logically extends to cybersecurity and how we protect our greatest asset of the digital age — data.
Increasingly, the threats facing our nation are virtual, with the perpetrators often far from our shores. On a daily basis, the very networks that power our hyper-connected society are subject to attack. Thankfully, most of the attacks are stopped before they result in disruption or damage.
Verizon has a unique vantage point when it comes to analyzing — and preventing — security breaches in cyber space. A significant percentage of public Internet traffic routes through our networks, and we successfully detect and prevent attempted attacks on our networks and those of our clients every day.
Our Data Breach Investigations Report, which this year contains data on actual breaches from 50 contributing organizations around the globe, has become the industry standard bearer for insights into the evolving cyber threats that we all face. This year's report found that within public sector 79 percent of all security incidents can be assigned to one of three incident classification patterns — miscellaneous errors (34 percent), insider misuse (24 percent) and crime ware (21 percent).
Ultimately, the protection of our nation's critical infrastructure — everything from our communications networks, power grids, water and sewer utilities, transportation systems and financial networks, to name a few — will require the collective efforts of the public and private sectors.
Verizon Public Sector
Secure and powerful networks only provide a foundation.
For the past decade, Verizon has transformed itself through a series of strategic mergers and acquisitions so that we can serve the needs of the digital economy.
In 2012, we purchased Hughes Telematics and now have a vast portfolio of machine-to-machine capabilities that will be a catalyst for innovation for years to come.
Terremark and CloudSwitch, acquired in 2011, provide Verizon with a network of world-class cloud data centers and one of the industry's most advanced cloud-computing platforms that will enable the processing of big data and the delivery of information anytime, anywhere and from any device.
Our 2007 acquisition of Cybertrust propelled Verizon into the top tier of managed security services providers.
By expanding our footprint both nationally and globally, and steadily investing in the technologies that will underpin our future, we have assembled an unsurpassed collection of assets that will enable us to provide the integrated solutions all our customers require to meet increasingly complex objectives.
Driving Transformation Through Innovation
Doing more with less to meet increasingly complex objectives opens the door for innovative thinking and the application of technology to achieve success and solve challenges. Technology and innovation combined with expertise can fill the void of limited budgets and scarce staffing to propel organizations to think of new ways to accomplish critical missions.
Our people are working with a variety of partners ranging from large manufacturers to small entrepreneurs on ways to leverage our combined capabilities and knowledge to find new ways of unlocking the potential of technology. We have worked to create an ecosystem of innovation that will touch every industry and are committed to being a catalyst for change to help our clients such the Department of Defense and the broader defense industry harness the innovation process to meet their strategic needs.
Conclusion
In closing, I would like to stress the importance of our ongoing partnership.
Through close collaboration we can fully understand your strategic imperatives and how you measure mission success. In the same vein, close collaboration will enable you to fully understand our capabilities and how they can help you meet your mission.
Today's information ecosystem is highly complex and fast changing. Fully leveraging our collective strengths and assets will help us tap the vast potential of the technologies that are at our disposal.
As we work together to reimagine the enterprise by using technology to unlock opportunities and overcome challenges, we can help the defense community fully leverage information — that single greatest strategic asset — to protect our nation today and for future generations.
Thank you again for the opportunity to address you this afternoon.
