British Telecom & Cisco Case Study--Customizing Content Delivery

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BT Wholesale presented an overview of its open online video delivery network, Content Connect which it expects to introduce in early 2011. Having Cisco’s award winning Content Delivery System (Cisco CDS) as its ‘backbone’, Content Connect will deliver digital content to any computer, TV or mobile device on behalf of UK internet service providers giving broadcasters access to a large end user base – irrespective of service provider or technology. This case study was presented at the CDN World Summit (Sep 28 & 29, London) by Simon Orme, BT Wholesale's Strategy Director of Content Services, together with Jean-Christophe Dessange from Cisco.

Technology

Next Generation Content Delivery Platforms- Customizing CDN for the marketplace Simon Orme, BT Wholesale Jean-Christophe Dessange, Cisco September 2010 Current thinking. Subject to change.

Global Consumer Internet Traffic GrowthVideo exceeds 91% of traffic by 2014 56% will be video streaming 36% CAGR 2009–2014 15% 27% 10% Growing: ,[object Object]

Live content46% * VoIP, Online Gaming, and Video Calling contribute 1% or less in 2014. Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014 2 © 2010 Cisco Systems, Inc. All rights reserved.

CDN Services Market at 6 B$ by 2014 ,[object Object]

Video CDN reaching 1.7 B$ by 2014Growth Trends in Video CDN Revenues in Total CDN Market (World), 2007-2014 1750 6000 Growing Video CDN Opportunity 1500 5000 1245 4000 980 Revenues $ Million 3000 740 550 2000 400 280 1000 2007 2008 2009 2010 2011 2012 2013 2014 Year Video CDN: incremental revenue opportunity for service providers Source: Frost & Sullivan, Cisco IBSG analysis, 2008-2010

On Top of Executives’ Minds…When it Comes to CDN Should I partner, build, defend or buy to capture my share of the Video CDN business and limit video traffic impact on my bottomline? How to enhance Video CDN business proposition to content providers? How to federate CDN service provider in a fragmented SP market? How to bring value-added video services to market faster? How to scale my network and control delivery costs while enabling a cost effective quality service? How to enable services on multiple screens, anywhere, anytime? How to ensure I securely manage content distribution? How to transform my broadband network into a TV platform?

THE CONTEXT FOR CONTENT CONNECT Generation 1 IPTV ,[object Object],Generation 2 – hybrid IPTV ,[object Object],Enabling broadcasters & media brands to develop their online business Helping end users engage directly with their favourite media brands ,[object Object],Creating an architecture supporting on-net & off-net models Enabling broadcasters to deliver predictable quality, critical to monetisation Developing a sustainable business model for broadcasters & ISPs On-Net Off-Net Content owner Content service platform Content service platform ISP Broadband network Broadband network Consumer …BT Wholesale’s solution - Content Connect

MAKING ONLINE VIDEO ECONOMICS SUSTAINABLE- New model required for managing content delivery ISP ISP From web traffic to video traffic 1 1 Content Delivery Exchange Core:Edge bandwidth ratio for Video Traffic Core:Edge bandwidth ratio for Web Traffic Exchange ,[object Object]

Consumer streaming preference is driving core:edge bandwidth ratio of 1:1 for video

For each % increase in edge capacity, core capacity needs to grow by 30x. This is not sustainable

ISPs are looking manage this cost by managing content delivery at the edge of their networks Home Home 1 30

CONTENT PROVIDERS VALUE CONTROL OVER THE USER EXPERIENCE Examples Requirement for Assured QoS ,[object Object]

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British Telecom & Cisco Case Study--Customizing Content Delivery

1. Next Generation Content Delivery Platforms- Customizing CDN for the marketplace Simon Orme, BT Wholesale Jean-Christophe Dessange, Cisco September 2010 Current thinking. Subject to change.

3. Size

4. Usage (min to hours)

5. Live content46% * VoIP, Online Gaming, and Video Calling contribute 1% or less in 2014. Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014 2 © 2010 Cisco Systems, Inc. All rights reserved.

7. Video CDN reaching 1.7 B$ by 2014Growth Trends in Video CDN Revenues in Total CDN Market (World), 2007-2014 1750 6000 Growing Video CDN Opportunity 1500 5000 1245 4000 980 Revenues $ Million 3000 740 550 2000 400 280 1000 2007 2008 2009 2010 2011 2012 2013 2014 Year Video CDN: incremental revenue opportunity for service providers Source: Frost & Sullivan, Cisco IBSG analysis, 2008-2010

8. On Top of Executives’ Minds…When it Comes to CDN Should I partner, build, defend or buy to capture my share of the Video CDN business and limit video traffic impact on my bottomline? How to enhance Video CDN business proposition to content providers? How to federate CDN service provider in a fragmented SP market? How to bring value-added video services to market faster? How to scale my network and control delivery costs while enabling a cost effective quality service? How to enable services on multiple screens, anywhere, anytime? How to ensure I securely manage content distribution? How to transform my broadband network into a TV platform?

10.

11. Consumer streaming preference is driving core:edge bandwidth ratio of 1:1 for video

12. For each % increase in edge capacity, core capacity needs to grow by 30x. This is not sustainable

13. ISPs are looking manage this cost by managing content delivery at the edge of their networks Home Home 1 30

14.

15. Movies/series

16.

17. Movies/series

18.

19. User-generated video contentLower quality streaming Lead commercial broadcaster: “Once you begin to charge for content, consumers expect a DVD quality experience”` High Low 7

20.

21.

22. Enables ISPs to monetise CDN as a service to the CSP

23. Content Connect will offer:

24. Service Portal

25. Asset Management

26. Network health

27. Self Service

28. Reporting & analytics

29. Billing

30.

31. Build, buy or partner options provide a very different set of outcomesHigh Low

32. N-Screen video service HD/Network PVR On Demand CRM Internet Video to TV Security and Authentication Guaranteed Service Delivery Wholesale CDN Service IP video service delivery platform Ad Distribution 3rd Party Streaming Services Cloud-BasedCDN Metadata Aggregation Online live Premium Channels Cisco CDN Solutions : Enabling New Business Models and Services Value Added Services B2B $ $ $ Wholesale Services Business Models CDN Federation Consumer Services B2C $ $ SP Platform Leverage Network and Data Assets

33. Award-Winning Cisco CDS : Foundation for Massive Scale & Quality of Experience From IP Routing to Intelligent Service Routing Content Providers Content Library Caching Nodes Streamers Customer Ingest once, deploy intelligent caching, distribute at the edge

34. Key Take Aways With growing online video demand fueled by new connected screens and user experience and quality, content providers are looking at regional video CDN providers Video CDN represent an opportunity for service providers to transform broadband into a TV platform CDN success is about a foundational end-to-end network-based content enabled, flexible, scalable and open CDN architecture that can sustain quality of experience and service differentiation Deployed by 4 of the top 5 SPs in Europe, including BT and TI Cisco CDS provides industry-tested and recognized CDN solutions – the best approach for SPs

35. THANK YOU

British Telecom & Cisco Case Study--Customizing Content Delivery

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