Service Provider Solutions for Growth in Managed and UnManaged Video
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1 Service Provider Solutions for Growth in Managed and UnManaged Video Cisco Knowledge Network November 2014
2 Agenda Video Growth and Impact on Service Provider Profits Existing Solutions for Managed and UnManaged Content CDN Evolution to NFV & Cloud Architectures & Offerings 2
3 Service Providers in the Value Chain for Long Form IP Video Growth 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Long Form Video Will Account for 72% of Internet Traffic by 2018 Long Form Video (64%, 72%) Short Form and Micro Video (34%, 28%) * Figures (n) refer to 2013, 2018 traffic share Source: Cisco VNI Global IP Traffic Forecast, Service Providers need to be in the Video Value Chain offering Multi-screen experiences Broadcast Shift to IP Unicast devices drives Network and CDN costs non-linear with subscriber revenue Service Providers need On- Net CDN for Managed Video to align costs to subscriber revenue 3
4 Service Providers Dealing with OTT UnManaged Video Top 10 Sites Account for 60% of Video Traffic Exabytes per Month OTT UnManaged Video continues Growth, Site Popularity Shifts over Time How many OTT Specific Caches is too many? Top Video Sites Consolidate OTT UnManaged Caching into Common Infrastructure 4
5 OTT Video CDN Costs Not Correlated to Revenue Increasing Bit Rate, Viewing Durations, Devices Per Home, Viewing Concurrency Desired Costs Per Sub OTT Streaming Costs Per Subscriber OTT unicast video traffic is predicted to be 4.6 times traditional multicast by 2018* Average household peak bandwidth poised to increase from 2.9 Mbps in 2014 to 7.3 Mbps in 2018* Shift from viewing TV multichannel video subscription services to Internet video accounts for the majority of the bandwidth *Source: AGC Research Nov
6 Polling Question 6
7 Cisco s Service Provider Solutions for OTT Video Managed and UnManaged Content VDS-IS VDS-TC VDS-SM Flexible CDN Platform with High Performance Servers & ized Cloud Options On-Net CDN with Open Interfaces and Eco-System friendly Multiscreen ABR Commercial Terms to control costs to subscriber revenue Common Transparent Caching Solution for Multi- OTT-Sites Incrementally Scalable from 10 s of Gbps to 100 s of Gbps per Site Transparency to OTT Site for integrity of Advertising, Metrics, Business Intelligence Dashboards for Operational Intelligence Dashboards for Content Distribution Intelligence Dashboards for User Behavior Intelligence 7
8 VDS-IS Multiscreen CDN Capabilities VOD, Live, PDL, HTTP Download, Web-Caching Applications Multi-protocol support of traditional streaming technology and leading ABR Technology Multi-Protocols HDS Wireless/wired networks, physical and virtualized resources Infrastructure Wireless (3G/4G, WiFi) Wired High Performance CDE Appliances, and vstreamers Platforms CDE-250 & CDE- 280 Hypervisors, ization 8
9 VDS-IS Architecture VOD and Live Ingest content to CDN integrate with Dynamic Cache fill or pre-position Programming Published Content Internet Content Intelligent Service Routing mechanism - Geo-Location, proximity, load-based, last resort Service Router CDN Manager CDN Analytics Caching Nodes Content Library Caching Nodes National DC Centralized CDN Manager for service creation and monitoring Regional DC CDN analytics for Business Intelligence, reporting and troubleshooting Streamer Arrays Local POP Non-stop Service Availability through Advanced Resiliency On-Net Entertainment Services On-Net Entertainment Services Home 9
10 VDS-TC OTT Transparent Caching Capabilities Diverse Content Support HTTP Download, HTTP Streaming, Software Updates, and P2P Intelligent Popularity Determination, Self Adjusting Caching Efficient & Flexible Storage Deployment to Optimize Cache-Hit Transparent Flexible and Simple Deployment Transparent to Client Transparent to Origin-Server or CDN Origin Transactions and Hit Metrics unaffected Core Peering Locations to Reduce OTT Transit Edge Caching to Reduce OTT Transit & Improve Q0E Traffic Diversion: Router PBR, Deep Packet Inspection (DPI) Preserves Content Digital Millennium Copyright Act (DMCA) Compliant 10
11 ios 8 Release Transparent Caching Benefits Peak network traffic increased by 23% on average following the ios 8 release. Some operators experienced traffic spikes > 60%. Operators with Transparent Caches based on Cisco technology delivered over 99 percent of the updates from caches 11
12 Cisco Caches VDS-TC Architecture Subscriber 1. Subscriber requests object 4. Object is served from cache Network Element Cisco Cache System 2. Cisco Cache passes request through 3. Content source agrees to the transaction. Internet Content Source Storage Arrays ISP IP transparency Request transparency Content transparency Internet IP access control and user authorization Unique subscribers reporting Scalability Server-side content adaptation for devices, browsers Cached content refreshed in each transaction 12
13 VDS-SM (Service Manager) Capabilities Scorecards and Dashboards Network Perspective Scorecard - Peak bandwidth delivered by CDN, Cache Hit Ratio, Concurrent TCP connections, Average ABR session bitrate, Storage usage and more Content Perspective Scorecard - Top 10/Bottom 10 Assets by request, Top 10/Bottom 10 Assets by bandwidth, Top Bottom Content delivered by Streamer and more Viewer Perspective Scorecard - Geo Distribution of Viewers, Concurrent unique Viewers, Viewers by city, Viewers by session duration and more Reporting Provides Business Intelligence by delivering detailed information to decision-makers Scheduled, available in multiple forms Alerts Alert users based on threshold crossings when reports are run 13
14 Polling Question 14
15 Entering a New Era in the SP Network Evolution Discontinuity #1: TDM rigidity limits new services, forces architectural shift Discontinuity #2: Commoditization of IP services plus high traffic growth limits profitability, Network rigidity, complexity and integration costs limit innovation, forces architectural shift IP NGN Era Software Defined SP Era Open APIs Open APIs Services Applications and Services Resources Evolved Services Platform SDN Control TDM Era IP unleashes new wave of innovation and service revenues Evolved Programmable Network Infrastructure Cloud Computing, Network Function ization, Software Defined Networking, and Service Orchestration enable - Open and Dynamic - Accelerated innovation - New services & revenues - Reduced costs - Reduced complexity - Optimal resource utilization 15
16 Network Functions ization (NFV) Value Proposition NFV = Transition of network infrastructure services to run on virtualised compute platforms Reduction in CAPEX and OPEX: Common Hardware & Sparing Resource Pooling Dynamic and Elastic Scale Automation and Orchestration ddos CGN SBC DPI Firewall IPS NAT Virus Scan Improved service agility and new revenue From Cabling to Service Chaining Service Provisioning form days to minutes DHCP WLC NMS DNS RaaS Caching PCRF SDN Control CDN Portal BRAS WAAS Cisco and/or its affiliates. All rights reserved. From To Cisco Confidential 16
17 Use cases for NFV and SP ization SP ization NFV for ization of SP Infrastructure NFV for Enterprise Managed Services Route Reflector PE Router BNG CMTS DHCP DNS DHCP PE Router DNS Routing Infra ization BNG Route Reflector CMTS EPC GiLAN Mobile Infra ization CDN Cloud DVR Video Headen d Video Infra ization Cloud Computing Services Private Cloud (VPC) 17
18 NFV Business Driver and Application Use Case It s all about low TCO and the ability to monetize your networks play major role in the decision making about NFV and ized CDN technology adoption CDN application fit perfectly to the NFV architecture What is your company s primary business driver for NFV deployments? Which applications are your organizations primary use cases for virtualization? % of Respondents Opex Savings 46% EPC:MME Broadband Network Gateway IP Routing New Revenue Generation 34% Content Delivery Networks OSS/BSS Carrier Grade NAT % CapEx Savings 0% 10% 20% 30% 40% 50% Survey summary: Respondents -100 SP s, Region: EMEA, NAM, APAC EPC: PGW/SGW Policy Control Service Appliances (firewall, Wan acceleration,security) IMS Mean = Highest 3.74 Possible Score Source Current Analysis, Apr
19 CPU, GB, bps Compute Power Network Functions ization (NFV) Value Proposition of Dynamic and Elastic Scale Today Traditional Network Services After NFV Customer Dissatisfaction No Customer Dissatisfaction No Waste Planned Capacity Waste Actual Usage On Demand Capacity Actual Usage Time Time 19
20 Cisco vcdn Architecture Elastic Auto-Scale Orchestration Engine Service Router CDN Manager ized Management & Analytics CDN Analytics Cisco Cloud Private Cloud Public Cloud National DC POP Appliance POP Appliance Regional DC Local POP 1. Clients generate concurrent capacity which exceeds Streamers capacity in POPs or Data Center and need additional capacity. On-Net Entertainment Services Data Health check Command/Control Home 20
21 Cisco vcdn Architecture Elastic Auto-Scale Orchestration Engine Service Router CDN Manager ized Management & Analytics CDN Analytics Cisco Cloud Private Cloud Public Cloud National DC 2. VDS Service Router detects load exceeds Policy for threshold crossing POP Appliance POP Appliance Regional DC 3. Service Router calls Cloud Orchestration API to create new vstreamer based on Policy for location Local POP On-Net Entertainment Services Data Health check Command/Control Home 21
22 Cisco vcdn Architecture Elastic Auto-Scale Orchestration Engine Service Router CDN Manager ized Management & Analytics CDN Analytics Cisco Cloud Private Cloud Public Cloud National DC POP Appliance POP Appliance 4. Openstack vstreamer is automatically created, enabled, registered to CDN, added to routing table, and ready to receive traffic requests. Regional DC Local POP On-Net Entertainment Services Data Health check Command/Control Home 22
23 Cisco vcdn Architecture Elastic Auto-Scale Orchestration Engine Service Router CDN Manager ized Management & Analytics CDN Analytics Cisco Cloud Private Cloud Public Cloud National DC POP Appliance POP Appliance Regional DC Local POP 4. Clients load balanced to vstreamer in the Cloud based on capacity and location. On-Net Entertainment Services Data Health check Command/Control Home 23
24 Cisco s Cloud First Strategy For Transformation Native Cloud Applications Big Data & Analytics Video HCS Enterprise Workloads Enterprise Private Clouds Portal Collaboration & Video Collaboration WebEx Meraki IaaS PaaS Microsoft Suite aas DRaaS Partner Clouds APIs Intercloud Fabric Public Clouds APIs Cloud Services & Applications APIs Security Analytics HANA aas vdesktop aas VDS CDN 24
25 Polling Question 25
26 Cisco Solutions for Service Providers Lower Costs Shift from expensive and proprietary hardware architectures with low utilization to more efficient cloud architectures with high infrastructure utilization New Revenue Evolving viewing consumption patterns opens new revenue opportunities for IP delivered video across the value chain Increased Agility Accelerate time to market with an agile infrastructure that can flexibly scale and be provisioned on demand to meet dynamic requirements 26
27 Thank you. 27
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