SOFTWARE-DEFINED VIDEO. A Game-Changing Framework for the Video Marketplace Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 1

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1 WHITE PAPER SOFTWARE-DEFINED VIDEO A Game-Changing Framework for the Video Marketplace Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 1

2 TABLE OF CONTENTS Introduction... 3 Defining The Future of Video... 3 Addressing Market Transformation... 3 Adding Multiscreen Lines of Business... 3 Driving Innovation Through Software... 4 Software-Defined Video Architectures... 5 The Shift to Software in Video Processing... 5 Leveraging Ground and Cloud Resources... 5 Virtualization in Private Clouds... 5 Scaling Up and to the Future... 5 Solutions from Elemental... 6 Software-Defined Video... 6 Flexible Deployment Models... 7 Elemental Key Benefits... 8 Conclusion... 9 Software-Defined Video Processing and the Way Forward... 9 TABLE OF FIGURES Figure 1 Elemental Video Processing Deployments Models... 7 Figure 2 Software-defined Video Architecture... 9 Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 2

3 INTRODUCTION DEFINING THE FUTURE OF VIDEO The video and television industries are changing so rapidly, it s no longer possible for broadcasters, content programmers and pay TV operators to keep pace through capital investments in video processing equipment alone. Shifting demands in consumer behavior, portable devices, streaming formats and encoding standards have raised the bar on what it takes to compete in the video marketplace. Traditional video infrastructure solutions must give way to those that are flexible enough to address new and emerging requirements that are dramatically different from those of the past. Within a highly fragmented technology landscape, the return on investment of new equipment purchases has become harder to assess. Video providers who invest in legacy technologies can find themselves burdened with outdated equipment in need of replacement. Choosing additional infrastructure based on fixed-function hardware might offer good performance initially, but can be quickly surpassed by more cost-effective and adaptive options that keep pace with the industry s rate of change. Software-defined video (SDV) solutions offer a way around the dilemma between long-term investments in technology for video delivery and short-term return on investment. Thanks to Moore s law, software running on general purpose processors can now surpass task-specific video processing equipment in terms of both picture quality and performance while simultaneously adapting to market change. Software-defined video is an infrastructure agnostic approach to implementing flexible, scalable and easily upgradable video architectures. Unlike legacy solutions, this advancement allows video providers to deploy software across an optimal combination of dedicated and virtualized resources in both private and public data centers. A software-defined approach frees video providers from the constraints of dedicated equipment by allowing for the best architecture and processor combination to be used for a particular application, even if that application changes over time. Support for new services and video formats can be integrated seamlessly through simple software upgrades. In order to lead and manage the transition to new video codecs such as HEVC, advanced audio codecs, advanced color spaces, increased color bit depth, object-oriented audio specifications, forensic watermarking and new display formats like 4K Ultra HD, video providers should look to content delivery services built upon a software-based platform. ADDRESSING MARKET TRANSFORMATION ADDING MULTISCREEN LINES OF BUSINESS A video provider s ability to compete successfully in a changing marketplace starts with a video processing and delivery infrastructure that can bring live and on-demand content to viewers on any device. As demand for traditional terrestrial and STB-based TV viewing shifts, multiscreen video presents an opportunity for video providers to expand their offer and build new revenue-generating services. However, a primary challenge that video providers face is how to best address many different types of viewing devices and players simultaneously, including tablets, PCs, smartphones, gaming consoles and connected TVs. To address the need to support multiple codecs and streaming formats to accommodate multiscreen viewing, many video providers have adopted software-defined video solutions. One of the industry s Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 3

4 biggest success stories, the BBC iplayer, owes a portion of its success to software-defined video processing implemented in its Video Factory infrastructure, which supports video streaming to over a 1000 different types of devices. As Marina Kalkanis, Core Services Head at the BBC, points out, 1 because it is easier to add in new services, our system is much more flexible in creating content for new devices. DRIVING INNOVATION THROUGH SOFTWARE Though fixed-function hardware may provide high performance and good picture quality once it comes to market, a long product life cycle means that the technology has a low likelihood of keeping pace with market changes. The finite nature of traditional hardware-based infrastructure has defined the video processing industry for decades. A hardware-based encoding solution, typically based on ASICs, can take between two to three years to develop and relies on custom components that require significant time and investment resources. As the pace of market and technology transformation continues to accelerate, it is increasingly difficult for these equipment manufacturers to keep up. The lack of commercially available hardware-based 4K HEVC decoders for set-top boxes eighteen months after the specification was ratified is an obvious example of this in the marketplace today. On the encoding side, development is even more difficult. By choosing the flexibility inherent to software solutions, which offer continual enhancements, video providers can immediately respond to market changes. Support for new features and standards can be added through upgrades and third party integrations. Broadcasters and pay TV operators who choose Elemental Innovation Elemental software-defined video has enabled a number of industry firsts: Live HEVC multiscreen encoding for 50% efficiency gains compared to AVC available three months after specification ratification First live 4K UHD TV HEVC broadcast Integration with Adobe Primetime player, DRM, and ad insertion Support for AES-128 bit Apple DRM and Nielsen ID3 tags Support for 4K MPEG-DASH HEVC encoded streams software-defined video solutions don t have to wait for new hardware releases, they can continually update and enhance their platform in line with technology advancements with simple code changes. Instead of lagging behind consumer trends, they can quickly innovate and create new revenue generating video services. 1 BBC Internet Blog, Video Factory: Transcoding Video for BBC iplayer, October 2013 Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 4

5 SOFTWARE-DEFINED VIDEO ARCHITECTURES THE SHIFT TO SOFTWARE IN VIDEO PROCESSING All video providers must implement a video processing framework nimble enough to compete in a dynamic marketplace. One of the primary advantages of software-defined video solutions compared to dedicated hardware is the level of scalability, flexibility and performance software offers. By leveraging the most powerful general purpose programmable processers, the power and efficiency of a software solution can follow the same rate of performance and cost enhancements as standard IT infrastructure. And from an innovation perspective, there is no hardware lag, meaning that new features can be implemented within days, rather than months or years. LEVERAGING GROUND AND CLOUD RESOURCES Because software-defined video solutions are built to run on general purpose processors that can reside in public or private cloud infrastructures, integrated cloud platforms can ramp resources up and down depending on demand, preventing overinvestment in infrastructure. By using both ground and cloudbased resources, video providers can fine tune the balance between CAPEX and OPEX in deploying video processing capabilities. In many cases, providers may keep core video processing and delivery in an appliance-based deployment with cloud-based resources handling spikes in demand, testing of new services and providing system redundancy. At times, a pure public cloud infrastructure can make sense for a video provider. By choosing a robust Platform-as-a-Service solution (PaaS), video providers do not need to make significant capital investments. Both the underlying infrastructure and the video processing and delivery software are available as a complete package that can be purchased on a variable cost basis. Software-based video processing via a PaaS can be a good solution when managing unpredictable levels of processing, storage and delivery demands as resources can be dynamically allocated in real-time. In the end, deciding on the right combination of ground and cloud platform resources involves both technical and financial planning considerations. VIRTUALIZATION IN PRIVATE CLOUDS Since a software-defined video processing platform is designed to run on standard computing hardware regardless of its location, it is ideally suited for private cloud environments. Furthermore, an optimal platform offers a heterogeneous solution designed to optimize video processing through selection of the most appropriate processor (i.e. GPU or CPU) for the task. Virtual machines can be allocated for video processing and delivery tasks alongside other business applications like CRM and BSS/OSS. As processing and storage capacities of cloud infrastructures improve, video processing can benefit from increased performance while legacy hardware can then be repurposed for less computationally intensive applications. SCALING UP AND TO THE FUTURE Software-defined video solutions can mitigate the risks and costs associated with future system expansion by allowing continual updates and upgrades with minimal impact on physical infrastructure. By using software-based video processing, video providers can take advantage of the continually improving price/performance ratios of off-the-shelf computing hardware as well as virtual cloud resources. Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 5

6 A platform built upon a modular software design allows for even further flexibility and scalability. In dedicated hardware environments, trying to integrate third-party ad messaging or forensic watermarking capabilities means enabling communication with legacy video processing equipment. By supporting third party integrations, a software platform can allow watermarking, ad servers, analytics and other video functions to be fully integrated into a unified system. Modular software-based platforms can also support a multitude of optional add-ons including video processing specific to device profiles, just-in-time packaging, or audio transcoding. Live-to-VOD features such as npvr and catch-up TV can also be supported through modular software components. Perhaps most significantly, software-based platforms can be easily upgraded to support new encoding standards such as HEVC, also referred to as H.265. HEVC promises over 50% bandwidth efficiency gains, enabling new video formats such as 4K Ultra HD or LTE Broadcast. Since it is too early to predict with precision how quickly and successfully these new formats will be adopted, those who decide to purchase completely dedicated HEVC processing equipment early in the game take a huge risk. A software-based approach allows for a more flexible range of future options allowing the solution to follow changes in industry trends around bit depth, color space and content resolution. As H.264 and HEVC video processing can share off-the-shelf and cloud-based processor resources, this can greatly mitigate the risks associated with a new service launch. SOLUTIONS FROM ELEMENTAL SOFTWARE-DEFINED VIDEO Elemental s video processing solutions are built from the ground up as a software stack of functional layers capable of running on dedicated infrastructure, virtualized machines and cloud-based deployments. The core technology resides in the Elemental Video Engine (EVE), which is comprised of patented video algorithms and dramatically accelerates computationally intensive video processing operations such as encoding, transcoding and pixel processing on general purpose processors. Unlike its competitors, Elemental develops and maintains its own codecs with support for all the major compression formats including MPEG-2, VC-1, AVC (H.264), and HEVC. Core codecs reside in the Elemental Video Engine and are designed to run on both serial and parallel processing architectures. The video engine is highly flexible, allowing for rapid innovation and incorporation of new compression standards as they become available. It also provides for continuous improvements to existing standards, such as MPEG-2, for which Elemental supplies significant bandwidth optimization. Elemental can bring more processing power to bear on such legacy standards and can apply algorithm advancements used in implementing new codecs to improve efficiency across all codecs. On top of the video engine sits the Elemental Media Engine (EME) which enables specific applications such as audio encoding, metadata analysis, statistical multiplexing, and content protection. Like the video engine, the media engine is highly flexible and available for rapid innovation and support for third party integrations. The Elemental Services Engine (ESE) sits at the top of the software stack and enables Elemental solutions in a variety of deployment models. Elemental initially ported its video processing technology to the Amazon Web Services platform to leverage the flexibility of public cloud computing and to give video providers the ability to launch new features, scale up existing services, or bolster system redundancy. Elemental subsequently extended its software to run on virtual instances. Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 6

7 Elemental software-defined video processing offers an optimal balance between hardware performance and software flexibility. Customers can leverage a unified workflow to execute all live and on-demand video processing, packaging and delivery functions across ground and cloud-based resources with the full assurance that they will be able to adapt to new requirements without incurring the costs of forklift changes in hardware infrastructure. With ownership of the entire software stack, Elemental takes advantage of the latest generation chipsets and can quickly port its software to new multi-core processor architectures. This ensures that, going forward, the advantages available with Elemental s video processing software, including its patented image filtering and compression algorithms, will be available on all types of infrastructure, including turnkey appliances, virtualized data centers and the public cloud. FLEXIBLE DEPLOYMENT MODELS Dedicated Appliance Deployments Elemental makes its software available on turnkey appliances in wide array of form factors. Elemental video processing is available on 1RU, 2RU and 5RU racked-mounted systems and in multiple desktop configurations. Elemental software may also be deployed on blade systems or existing legacy servers. Processing power is scalable: Elemental offers CPU-only encoding for applications that require a moderate number of adaptive bitrate streams and appliances with combined CPU and GPU encoding for large-scale video processing applications where additional horsepower is needed, such as for HEVC and 4K Ultra HD video delivery. Appliances powered by Elemental software integrate seamlessly with Elemental Cloud deployments to automatically provision and dynamically scale virtual Elemental instances, as well as integrate those resources with on-site infrastructure to expand video processing capacity. Figure 1 Elemental Video Processing Deployments Models Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 7

8 Virtualized Deployments The capabilities of Elemental s software-based approach can also be applied to on-premise virtualized datacenters running VMware and Citrix XenServer. This capability is especially important for video providers with large-scale video processing applications, which are rapidly shifting to a datacenter model for headend operations. Large headends must manage constant fluctuations in video processing requirements for on-demand and live video streaming. Elemental video processing can be managed to allocate resources across on-demand and live applications, applying the same types of automated workflow management configurations that are used with the public cloud. Cloud Deployments Elemental Cloud is a Platform-as-a-Service solution (PaaS) for automatically provisioning processing and delivery of live and VOD content. Elemental Cloud can fully integrate with ground-based turnkey appliances or it can allow providers to manage end-to-end video processing and delivery tasks in the cloud. Some Elemental customers are using Elemental Cloud to manage spikes in demand, others are dedicating cloud resources for a few specific channels or services, and many have decided to run their entire video infrastructure using Elemental Cloud. Through the use of Elemental Cloud, video providers can orchestrate flexible utilization of public cloud and in-house resources, independently or in hybrid modes, to execute all the capabilities embodied in Elemental s software-based approach for both on-demand and live services. Because Elemental Cloud is seamlessly integrated with on-premises video operations, providers can elastically scale capacity in response to rapidly changing consumer behavior patterns and digital media market shifts such as the introduction of new devices and the availability of new content libraries with complete feature parity and transparent redundancy across all resources. ELEMENTAL KEY BENEFITS Elemental s implementation of a software-defined video architecture provides a number of key benefits to pay TV operators, content programmers and broadcasters seeking to provide traditional broadcasts, implement multiscreen services, and lay a foundation for the delivery of future formats such as 4K Ultra HD in a video ecosystem that is rapidly shifting to IP streaming. In enabling customers to use CPU-based configurations as well as GPU-accelerated video processing in appliance, virtual and cloud-based deployments, Elemental solutions establish the benchmark in software-defined video by: Allowing less compute-intensive applications, such as single-stream encoding, to take advantage of Elemental s software without the assist of graphic processors; Providing broad geographical coverage with cloud-based deployments, independent of available infrastructure in a specific region or market; Enabling virtualized operations for video processing where shared hardware resources and blade-based systems are a critical customer requirement; and Saving operational costs by reallocating legacy systems to meet future video processing requirements. In addition, the flexibility of Elemental software means that the costs associated with adding new revenue generating services can be kept to a minimum as existing datacenter or cloud-based resources can be utilized. In addition, cable and satellite operators can enhance core services with catch-up TV and multiscreen video delivery and content owners can add value to back-catalogues with video on demand Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 8

9 offerings. By integrating ad insertion capabilities, these new services can also help generate additional revenues through targeted advertising. Figure 2 Software-defined Video Architecture CONCLUSION SOFTWARE-DEFINED VIDEO PROCESSING AND THE WAY FORWARD The current marketplace for video has greatly changed from the traditional linear TV model of the past. Both consumer and business technology continues to drive changes in the way that content is viewed. Those video providers who manage to fully leverage the power, flexibility and scalability of softwaredefined video processing will be able to continue wowing their viewers and subscribers with compelling and competitive services. Software-defined video processing is implicitly future-proofed. With the Elemental platform, portability of algorithms from generation to generation means that systems used to process MPEG-2 video today can migrate seamlessly to H.264 or HEVC/H.265 in the future. As recently demonstrated, the Elemental platform currently offers full frame rate 4K Ultra HD video encoding with its HEVC codec, ensuring that customers will be able to continually support new video compression standards as they arrive. The possibilities are only constrained by lines of code in the software and not by chip designs as within traditional hardware systems. Elemental is leading the way with its software-defined video processing approach, across both ground and cloud infrastructures. With more than 400 customers around the world, including most of the leading media brands, Elemental understands that video providers want the same thing as their customers: more choice. As new software features continue to be introduced in line with changes in consumer habits and technology, the benefits of adopting a software-defined approach will become even greater. Copyright 2014 Elemental Technologies, Inc. Software-Defined Video 9

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