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Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - SFOOT (SFOOT - Development of single fibre data transport system )

Teaser

Summary

Cloud computing is developing fast. Recent estimates indicate that developments could lead to the growth of the European cloud market from 9,5 billion EUR in 2013 to 44.8 billion EUR by 2020, i.e. almost five times the market size in 2013. Cloud computing could be adding cumulative 449 billion EUR to the EU28 GDP. Every EUR spent on SaaS is replacing 2,30 EUR of expenditure that an organisation would need to spend to achieve the same result through a traditional solution. Yet, in 2014 only 19 % of EU enterprises used cloud computing, mostly for hosting their e-mail systems and storing files in electronic form. In order to achieve the targeted figures people and businesses need fast and cheap access to the infrastructure supporting the development of cloud computing.

The technological aim of SFOOT (Single Fibre Optimized Optical Transport system) project is to develop a novel solution â€“ transport of data by a single optic fibre (opposed to todayâ€™s typical fibre pair solution) that will significantly reduce the costs of transferring small to medium number of high speed data connections.

Fibre Optics is a technology that deals with the transmission of information from one place to another through optical fibres where light acts as a carrier.

The optimized single fibre concept vs. standard fibre pair concept results in lower costs of usage, lower costs of investments or ownership due to:
- Less physical optical fibres (for small to medium number of services)
- Less required installed communication equipment
- Simpler implementation and shorter implementation times â€“ implementation is done by the customer with no third party involved.
- Simplified equipment management and maintenance
- Less human errors due to optimized design and lower complexity
- No: building permits, construction works, extra cables...
- The time: the speed of adding new users does not depend on new infrastructure

Objectives of the project
- Development of optical systems, development of web integration tool and implementation of dissemination, communication and pre-commercial activities with an aim to maximize the exploitation of the product.

Work performed

The SFOOT project started in 2014. The first product was developed at the end of 2015. The result was promising and that was the reason for application to SME Instrument. The work on feasibility study (application to Phase 2) began soon after the positive result from Phase 1 was known. In past month the Xenya team was very active, a big amount of work was performed. Especially in the field of market analysis - due to the lack of coherent data. Also, since the techonology is new the regular and alternative solutions had to be inspected.

Basically, all areas were covered:

1. Definition, description of Products and Services was done.
2. Product/Service Marketplace
Anylysis of the markets for new products Xenya was prepared. It describes who the target markets are, who the competitors are, how products will be distributed, and why customers might choose to buy our products/services. Also, manufacturing (own/outsourced) issues were resolved.
3. Marketing and Selling Strategy
A high level description of how Xenya will market its product or service was prepared. Marketing efforts will be focused on the right target groups in order to yield the greatest return on investment.
4. Organization and Staffing
With new products or services there may be a need for additional staffing or to restructure in order to accommodate the change. These are important considerations as they may result in increased costs or require an organization to change its practices and processes. The HR questions were discussed and resolved (as it could be).
5. Time-frame for implementation
The duration of the project was set - 18 months.
6. Financial Projections
The financial projections for the feasibility study provide a description of the financial projections the new initiative is expected to yield. Financial projections are one key aspect of new project selection (yes/no) criteria. Based on the sales result so far (marketed primarily in Slovenia) the decision is definitely to continue with the project.

Final results

Total savings potential in EU in the period by using of the SFOOT amounts to 140 billion EUR in case no construction works are needed (cables are just added to existing pipes). But, if it was necessary to build (complete excavation, pipe ...) every eighth installation on new savings are doubled from 140 billion EUR to 280 billion EUR.