The utilization of cloud services by corporate users is increasing year after year. According to the Ministryof Internal Affairs and Communications’ FY 2014 Information and Communications White Paper, the ratioof companies using cloud services stood at 33.1% at the end of 2013, which is about a 5% increase over the
28.2% ratio at the end of 2012. This shows that cloud services are on the threshold of going mainstream,with approximately a third of all companies using them in some form or other.

Executive Summary

Executive Summary

Meanwhile, the white paper also states that 37.4% of companies opting not to use cloud services cite
security concerns as their reason. In August, there was an incident in which the private photos of a large
number of famous celebrities leaked. These leaks occurred when users’ cloud accounts were logged into
through account hackings after they had taken photos on a smartphone that were automatically saved
to the cloud. Because this was due to accounts being hacked, and did not involve the exploitation of avulnerability in the system, responsibility for the leaks lay with the victims themselves. According to thewhite paper, smartphone ownership in Japan has reached 53.5%, and it is conceivable that these will be
used for work purposes in more and more cases. To prevent leaks of confidential information such as theexample above, it will be increasingly important for each user to have the up-to-date knowledge required
to ensure the security of the data they handle, and take appropriate measures to protect it themselves.
This report discusses the results of the various ongoing surveys and analysis activities that IIJ carries out tosupport the Internet infrastructure and enable our customers to continue to use it safely and securely. We
also regularly present summaries of technological development as well as important technical information.
In the “Infrastructure Security” section, we give a month-by-month chronological summary of major
incidents observed during the three months from July 1 to September 30, 2014, and report on the resultsof our statistics gathering and analyses for the entire period. We also present our focused research forthis period, including discussion of the Bash vulnerability known as Shellshock that was disclosed in
September, and a look at a new method for attacking SSLv3 called the POODLE attack that was announcedin October. Additionally, we give an overview of the account hacking techniques known as list-based
attacks, and examine countermeasures for them.
In the “Content Delivery” section, we explain the current state of video streaming, which has been growing
more prevalent in recent years, and is expected to account for around 80% to 90% of consumer traffic
worldwide by 2018. We place particular focus on the characteristics of the H.265 codec standard thatenables video streaming in ultra-high resolutions such as 4K, as well as MPEG-DASH that makes stableand efficient delivery over the Internet possible. We also present a case study based on the live streamingof the high school baseball summer championship that IIJ carried out this year.
In the “Cloud Computing Technology” section, we cover the basics of how SDN and the OpenFlow
protocol enable the virtualization and software-based control of networks. We also introduce the Lagopus
OpenFlow-compatible software switch that was open sourced this year as part of the O3 strategic R&D
project funded by the Ministry of Internal Affairs and Communications to promote SDN. In particular, we
discuss the dramatic performance improvements it achieves over conventional software switches, andhow it enables packet transfer at a wire-rate of 10GbE.
Through activities such as these, IIJ continues to strive towards improving and developing our services ona daily basis while maintaining the stability of the Internet. We will keep providing a variety of solutions
that our customers can take full advantage of as infrastructure for their corporate activities.
Author:Toshiya Asaba
President and CEO, IIJ Innovation Institute Inc. President and CEO, Stratosphere Inc. Mr. Asaba joined IIJ in its inaugural yearof 1992, becoming involved in backbone construction, route control, and interconnectivity with domestic and foreign ISPs.
He was named IIJ director in 1999, and executive vice president in charge of technical development in 2004. When the IIJ
Innovation Institute Inc. was founded in June 2008, Mr. Asaba became its president and CEO. When Stratosphere Inc. wasfounded in April 2012, he also became president and CEO of that organization.

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