Next-Generation Architecture Enables Video Conferencing for the Entire Global Enterprise

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1 WHITEPAPER Next-Generation Architecture Enables Video Conferencing for the Entire Global Enterprise Virtualized Distributed Conferencing System breaks cost, flexibility, and interoperability barriers for large scale, enterprise-wide video conferencing June 2013 Sponsored by: Copyright 2013 Wainhouse Research, LLC Page 1

2 Introduction Today's business environment is often about doing more with less, utilizing existing human and capital resources more efficiently, and speeding decision making up and down the enterprise. For the past 15 years, the conferencing and collaboration industry has introduced a series of enterprise communications solutions designed to address these challenges by delivering voice, video, and data over the ubiquitous Internet Protocol (IP) networks employed by enterprises worldwide. More recently, much of the focus of videoconferencing users has shifted from shared, room-based systems to video-capable personal systems connected over wired, Wi-Fi, and cellular networks. For today's knowledge worker, "always onalways connected" has become a way of life. This study reviews three observations relevant to the current state of the video conferencing market with a special emphasis on multipoint functionality; outlines the challenges associated with scaling an enterprise video conferencing environment to meet future needs; and highlights a next-generation distributed conferencing system that can change the risk/reward profile for any large or small enterprise. Observations 1. The IT department is now firmly in control of video conferencing. Ever since the start of the long and steady migration of video conferencing from ISDN to IP, the responsibility for video conferencing planning, deployment, and support has shifted steadily from AV, facilities, and telephony teams to IT departments. This evolution has been abetted by the Average or Higher IT Priority Cloud Services general movement from traditional telephony to voice-over-ip, and more recently by the interest in unified Support for mobile Unified Communications communications, an initiative largely under the IT domain because of the application's dependency on the Video Conferencing Network security corporate network. In fact, in a recent Wainhouse Research survey of video 40% 50% 60% 70% 80% 90% conferencing end users, when asked Figure 1 Source: Wainhouse Research survey of videoconferencing end users, March 2013 about the IT priority list, video conferencing ranked second in terms of average or higher priority, behind only network security. Within the IT world, server virtualization has become the norm rather than the exception. Virtualization is the practice of creating a virtual version of a device, machine, or resource, and then operating the virtual machine on a physical host. Multiple virtual machines are often created and operated simultaneously on a single piece of hardware, allowing for more efficient utilization of resources. Virtualization enhances the flexibility of the IT department by detaching workloads and data from the physical infrastructure and makes it easier to pool and reallocate infrastructure resources. Copyright 2013 Wainhouse Research, LLC Page 2

3 According to a recent independent report 1, the adoption of server virtualization continues to increase unabated, with 72% of survey respondents now using server virtualization and 80% planning to be using sever virtualization within the next six months. 2. Personal and mobile video is raising concerns about deployment scale. While enterprises continue to invest in room video conferencing, much of the attention has turned to Adoption of Server Virtualization mobile devices and the BYOD 90% movement. Today, many vendors 80% provide video clients compatible with 70% ios, Android, Windows, and Macintosh personal systems. The low cost of 60% these clients, combined with their 50% convenience, ease of use and ability to 40% deliver high quality audio and video, 30% has changed the nature of the problem 2H H H H H H H 2013e facing IT managers and video Figure 2 Server Virtualization, source: conferencing planners. Instead of dealing with scores or even hundreds of video conferencing endpoints, they are faced with the challenge of supporting thousands. With these new deployments, video usage is certain to increase. With so many endpoints deployed, the demand for multipoint capabilities is likely to skyrocket, while the need for infrastructure solutions to manage and monitor devices and to optimize bandwidth utilization will become even more important. 3. Services are newsworthy, but CPE strategies remain in place. With the proliferation of mobile and fixed endpoints, enterprise collaboration managers are turning to the issues of video infrastructure - the devices that support hundreds or thousands of end user clients with End User Deployment Strategies Web Conferencing monitoring, management, and multipoint capabilities. And while many vendors have introduced infrastructure as a service in the past 2-3 years, recent Wainhouse Research Audio Conferencing Video Conferencing IM/presence CPE Managed Hosted Hybrid studies suggest that a large percent of enterprises still rely on on-premises 0% 50% 100% solutions for video conferencing Figure 3: Source: WR survey of UC end users, January 2013 deployments. The Y2013 Wainhouse Research survey showed that for video conferencing, nearly 75% of respondents have CPE equipment that is either self-managed or managed by a managed service 1 Copyright 2013 Wainhouse Research, LLC Page 3

4 provider, while an additional 8% use a hybrid solution of both on-premises and hosted bridging services. For enterprises with more than 50 room systems, these figures are even higher. 2 In the 2013 WR survey, nearly 50% of respondents believed that their current support strategy for video conferencing deployments would not change over the coming year. The task facing videoconferencing / IT managers then, is to provide reliable, cost-effective, high quality, and scalable video conferencing capabilities for their global organizations. Hence, IT departments increasingly will need to focus on the infrastructure that enables video conferencing. Multipoint will be a critical element since multipoint devices are typically the most expensive infrastructure component. Many enterprises, given the option, will choose to move forward with familiar, self-managed support and virtualization strategies. Four items in particular are likely to be top concerns of savvy planners. Enterprise Video Conferencing Infrastructure: Four Challenges 1. Video conferencing compatibility with IT Infrastructure Strategies Video infrastructure has traditionally relied on its own special technologies with extensive use of digital signal processors (DSPs) and custom ASICs. These semiconductors were needed to provide the level of audio and video performance that users expected and served as the foundation for proprietary appliance devices. DSP-and ASIC-based designs are expensive to develop, maintain, and ultimately expensive for the customer to purchase. In addition, managing, monitoring, and configuring these systems typically required custom (and proprietary) tools not familiar to most IT professionals. Recently, video vendors have begun the migration from hardware-based to software-based infrastructure solutions. These run on industry-standard x86 servers, providing cost, flexibility, programming-ease, and time-to-market advantages over proprietary hardware designs. First generation software bridges required customers to purchase servers from the software vendor, but newer solutions are available as software-only and can be deployed on the customer's servers. Even more recently, video infrastructure designers, and multipoint engineers in particular, have begun to introduce software solutions designed for the virtualized environment. Whether deployed on a public or private cloud, virtualized video infrastructure has several advantages over its traditional competition. The deployment strategy is familiar to IT professionals; enterprises can treat video conferencing bridging as they treat many other business applications. Industry standard servers and management tools are lower in cost than custom solutions. Virtual server systems provide flexibility to spin up or spin down capacity as needed and significantly reduce the capacity planning challenge. 2 In a December 2011 Wainhouse Research survey of end users, 90% of respondents with more than 50 room systems used a CPE strategy for their video infrastructure. Copyright 2013 Wainhouse Research, LLC Page 4

5 Software solutions can support flexible licensing arrangements. Server virtualization uses CPU resources more efficiently; saves on energy use. Enterprise video conferencing managers should look for video infrastructure that fits easily into their data center environment and can be managed with common tools. Virtualized applications should be available as pure software solutions that customers can load on their own server hardware. 2. Infrastructure Architectures Designed for Global Deployments Because low capacity video bridges are very expensive on a per port basis, many enterprises centralize their bridging hardware into a small number of locations or even a single location with a large MCU. This means remote users may be a great distance from the video bridge. As a result, some data "hair pinning" will occur. For example, when users in Munich, Berlin, and Frankfurt connect via a bridge located in Chicago, the result is i) increased latency, ii) more high-cost WAN bandwidth consumed, and iii) a less pleasing overall user experience. One option for this example customer would be to deploy a second video bridge in Germany. Then, if a video call involved participants in North America, they could use the Chicago bridge while the Europeans could still use the MCU in Germany. For a call between the four sites, the two bridges could be cascaded (bridge to bridge connection) to provide a single meeting. Cascading reduces WAN bandwidth consumption by sending only a single stream between bridges, but results in degraded video quality due to multiple encode/decode processes, additional MCU latency, and a non-pleasing visual display (images within images). Team leaders and video specialists looking to support users on a global basis should consider bridging solutions that are designed for a distributed architecture and do not cause a degraded user experience. 3. Interoperability between Room and Personal Video Conferencing Systems Successful video adoption requires that video conferencing be available on many types of devices and that end users be able to simply dial a video call and have the call connect. Seamless interoperability between systems is an absolute requirement. Today, well over 1.5M room video conferencing systems are in use. These devices adhere to ITU Recommendations (standards) for signaling protocols and media compression algorithms. Meanwhile, the number of potential personal video conferencing clients is orders of magnitude larger than the number of room systems, but many desktop and mobile solutions do not adhere to ITU standards. Interoperability today requires support for ever more video conferencing protocols, including those used by Skype, Google, Lync, and others. And WebRTC, which could video-enable the hundreds of millions of browsers in use, will add to the mix as well. Savvy managers should pay careful attention to the interoperability offered by their infrastructure vendors and evaluate the ability of those vendors to port future protocols or algorithms onto their hardware or software designs. 4. Affordability and Flexibility Hardware-centric DSP solutions for video bridging are expensive to design, develop, and program, and hence, expensive to purchase. These tradition MCU designs are based on a tight relationship between call capacity and hardware components. These systems are modular, with each module adding a Copyright 2013 Wainhouse Research, LLC Page 5

6 specific number of ports, typically 8, 15, or 20, depending on the particular vendor. Adding capacity often means adding a board to a chassis or adding an entire chassis. The result is an inflexible solution for video bridging that makes capacity planning more challenging, causing many enterprises to purchase bridge capacity up-front rather than purchasing capacity to match demand as demand grows. MCU cost and capacity become even more serious concerns when IT managers are looking at large scale video rollouts. Enterprise software solutions that run on readily available x86 hardware platforms, on the other hand, can be expanded in small increments typically by merely purchasing additional port or user licenses. Furthermore, in a virtualized environment, server capacity is less of a constraint because CPU resources can be re-allocated on the fly. The use of standard (x86) servers and virtualized software for multipoint video functionality allows enterprises to deploy bridging applications in public or private data centers without the testing and certification processes that accompany custom hardware. Very quickly, a customer could deploy a globally-accessible, distributed bridging architecture without the need for additional hardware. Enterprises should look for infrastructure products that run in a virtual environment and provide flexible licensing agreements so that the enterprise pays for what it needs as it needs it, and no more. Solution Spotlight - Pexip Pexip, the sponsor of this white paper, has taken a fresh look at these challenges. As a startup company, Pexip had the freedom to start with a clean sheet of paper and to focus on technology and market trends, unconstrained by cannibalization worries. In addition, with many years of video conferencing experience within the company's engineering and management teams, Pexip could apply domain knowledge gained from hundreds of customer interactions over the years. Introduced in mid-2013, the company's first product is Pexip Infinity, a distributed, software-only video conferencing bridge (MCU) designed from scratch to take advantage of today's computing technologies. Pexip Infinity is a virtualized and scalable conferencing platform that can provide personal meeting rooms for any number of fixed and mobile users on video and/or voice. The system consists of a Management Node and one or more securely interconnected Conferencing Nodes that customers deploy as Virtual Machines (VMs) on host servers located anywhere around the globe. Collaboration managers can add, remove, or move Conferencing Nodes as user requirements change. Infinity conferences are hosted in virtual meeting rooms (VMRs), each of which can have one or more associated aliases (names of users' meeting rooms, or numbers). All VMRs are created by the Management Node and exist on all Conferencing Nodes. Users access a VMR from their nearest Conferencing Node by dialing a VMR alias. When a Conferencing Node receives a call to a particular VMR alias, the Node creates a conference instance based on that VMR 's settings. If more than one Conferencing Node is involved in a call, the Nodes exchange media between each other over a secure virtual backplane. While in a conference, users can use the Pexip app to control the conference and to view content on a smart phone or tablet. Copyright 2013 Wainhouse Research, LLC Page 6

7 Pexip Infinity provides four key benefits to enterprise video conferencing infrastructure customers. Sold as virtualized software Pexip Infinity is delivered as software-only for a hypervisor environment (VMware is supported in release 1, with Hyper-V support to follow shortly), a deployment model compatible with the majority of large and small enterprise IT software deployment strategies. With Pexip Infinity, customers gain a video bridge with flexible capacity, high levels of resilience and redundancy common with virtualized servers, and reduced hardware costs compared to custom devices. Photograph of Pexip Infinity's Designed to support distributed deployments dedicated hardware Pexip Infinity was designed to scale beyond a single location, but without the performance drawbacks of cascading. Pexip's distributed conferencing systems (virtual multipoint servers) with intelligent media routing enable customers to reduce bandwidth usage while maintaining high audio-video quality. The Conferencing Node to which the current speaker is connected sends an HD video stream of the current speaker, plus a lower-resolution PIP of each of the other participants. The architecture, combined with the use of smaller video windows and streams for other than the current speaker, leads to a pleasing, continuous presence meeting display with the additional benefit of reduced bandwidth consumption. Provides strong interoperability between room, personal, mobile devices Significant WAN bandwidth savings can be achieved due to fewer and smaller video streams being sent between locations The days of only industry standard H.323 and SIP devices are over. Users today want to connect with a variety of shared and personal devices depending on where they are and the nature of the video call, and the connection has to be seamless. Pexip Infinity supports all the commonly used industry algorithms, protocols, and applications including H.323, SIP, Lync, HTML5, H.264 SVC, H.264, H.263, and VP8/Opus 3. This support is native to the Pexip distributed conferencing system; no gateways are used or needed. 3 WebRTC will be limited to "demo mode" by Pexip until WebRTC matures and becomes available in more browsers. Copyright 2013 Wainhouse Research, LLC Page 7

8 Pexip Infinity running Lync 2013 on ipad. Current speaker switches automatically to large window while others are in bottom, lower resolution strip. Affordable and flexible The advantages of a video bridge running in an x86 virtualized software environment start with capacity flexibility and hardware reliability and extend to scalability and zero or little up-front CapEx compared to dedicated hardware designs. But Pexip Infinity also delivers an affordability story that is simply not possible with custom hardware-based solutions. The software-only product is offered with several licensing models including enterprise-wide licenses, pay-perport, pay-per-user, and pay-as-you-go subscriptions that will appeal to both large and small deployment planners. At any time, customers can increase licenses in any Pexip Infinity screen shot from a PC running Chrome and WebRTC. The conference has two other participants on WebRTC and two on Cisco endpoints. Three-way conference using Pexip Infinity, where room participants have chosen to receive the presentation on the Pexip ipad app rather than having the presentation hi-jack the screen of the videoconferencing system. quantity, beginning with just a single port. And floating licenses enable customers to save more money when deploying multiple Conferencing Nodes (e.g. with follow-the-sun licensing across geographies). Small Deployments: Vendors of traditional multipoint bridges often provide cost comparisons optimized for their bridge capacities. A 32-port MCU has minimized cost when the customer's application calls for 32 ports, but if the customer needs 38 ports or 42 ports, etc., the economics change drastically. Pexip Infinity avoids these quantization problems that stem from modular hardware architectures. The advantages of a video MCU based on virtualized servers become evident when looking at deployments that can be expanded in small steps. Large Deployments: Few customers have yet to deploy video conferencing to thousands of employees, but those days are coming. Making such large scale deployments economical and successful will require infrastructure with a different cost structure as well as solutions optimized for a distributed Copyright 2013 Wainhouse Research, LLC Page 8

9 environment. In the table below, we consider the case of a global company rolling out a video deployment that embraces the enterprise's existing room systems as well as thousands of new users with personal devices. In this example, the company has decided to deploy to 5,000 employees in three continents and believes a concurrent capacity equal to a ratio of 10 users per multipoint port will suffice. Traditional Approach Pexip Number users to support 5,000 5,000 users per multipoint port (1) # ports needed # ports/server (7) # servers needed 6 16 Server street price ($K) (2) $390.0 $4.2 Total Server CapEx ($K) $2,340.0 $67.2 Capex/month for 36 months ($K) $65.00 $1.87 Maintenance/ month ($K) (3) $35.10 $0.00 HVAC, power, real estate/month ($K) (4) $4.32 $2.50 VMware per month ($160/port) ($K) (5) $0.00 $2.22 Subtotal per month over 3 years ($K) $ $6.59 Subtotal per user per month over 3 years ($) $20.88 $1.32 Pexip sw per user per month ($)(8) $0.00 $10.00 Total per user per month over 3 years ($) $20.88 $11.32 Up front capital requirements ($K) (6) $2,340 $67 Ability to start small and grow No Yes Ability to scale down if needed No Yes Fully distributed architecture No Yes (1) Ratios commonly vary with scale from 5:1 to 30:1 today (2) Discounts will vary by vendor and deal size. The Pexip server example is based on a Dell PowerEdge R620 with 16 cores, 32GB RAM, and 250GB hard drive (3) Maintenance is assumed to be 18% of street price per year (4) Data center costs with power and real estate are assumed to be $8/port for a traditional MCU and $5/port for Pexip (5) The cost of VMware vsphere 5 Enterprise is $336 per CPU core. In some cases VMware is paid as an up front cost, which would increase the CapEx for the Pexip solution. (6) Up front expenses include all the server hardware but not first year's maintenance contract which is often paid up front as well. (7) Pexip currently achieves at least two 720p ports per CPU core. This will improve as chip performance advances according to Moore's Law. (8) Enterprise licensing for large scale deployments As the simple analysis shows, using a traditional approach with legacy MCU devices would require an upfront capital expense of $2.34M. The virtualized server approach, on the other hand, reduces risk by eliminating nearly all up-front costs. Note that in this model, the customer pays per user, not per port, providing an additional operational advantage: if video usage increases, driving the need for more concurrent capacity, the company can easily add capacity by adding servers or VMs running Pexip. This requires no additional Pexip licenses. As an example, the company may decide that a 10:1 ratio of users to concurrent capacity is too high, in which case adding capacity to lower the ratio to 9:1 or 8:1 is a very smooth process. Pexip's distributed conferencing system, furthermore, fits cleanly into the distributed deployment model that any large scale rollout like this will likely require. Copyright 2013 Wainhouse Research, LLC Page 9

10 Summary Server virtualization is a mature technology that has gained overwhelming acceptance in the IT world. Drivers include the need for better enterprise server efficiency and the accompanying reduction in operational and energy costs. Moving video conferencing infrastructure into the virtualized server world is a huge step towards bringing video conferencing into the enterprise main stream, making video just another application running in the data center. New infrastructure products, designed from the ground up to operate in a distributed, virtualized deployment, combined with the wide-scale availability of software clients for mobile and fixed personal devices, promise enterprises cost, flexibility, and performance metrics that make it technically feasible and financially possible to video-enable any and all workers. About Wainhouse Research Wainhouse Research, is an independent market research firm that focuses on critical issues in unified communications, visual collaboration, and rich media conferencing technologies and applications. The company conducts multi-client and custom research studies, consults with end users on key implementation issues, publishes white papers and market statistics, and delivers public and private seminars as well as presentations at industry conferences. Wainhouse Research also publishes a free newsletter, The Wainhouse Research Bulletin that covers all aspects of rich media enterprise communications. About the Author Andrew W. Davis is a researcher, analyst, and opinion leader in the field of collaboration and conferencing. He is a co-founder of Wainhouse Research and currently focuses on covering the video side of the collaboration market as well as strategy consulting and new business development activities. A well-known industry guest speaker, Mr. Davis holds B.S. and M.S. degrees in engineering from Cornell University and a Masters of Business Administration from Harvard University. More about Andrew. About Pexip(text provided by the company) Pexip is an exciting newcomer with strong traditions, determined to revolutionize the Unified Communications industry. Our founders and team are industry veterans from Tandberg and Cisco who are all experts in their fields, giving us a unique insight into professional video collaboration and conferencing. Our culture is built on a strong foundation of solid values, and our passion and experience is unequaled. We all love what we do, we all believe in the power of video communication, and together we will exceed industry expectations and lead the revolution to provide video to everyone. Pexip is based in Oslo, Norway, with offices in the USA and the United Kingdom. Copyright 2013 Wainhouse Research, LLC Page 10

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