The Future is Video

The Future Is Video
Cisco Internet Business Solutions Group (IBSG)
June 10, 2011

Global Consumer Internet Traffic Growing 500% Between 2009 and 2014
36% CAGR 2009–2014
15%
27%
10%
46%
* VoIP, Online Gaming, and Video Calling contribute 1% or less in 2014
Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014 - www.cisco.com/go/vni

Mobile data traffic will increase 39-fold from 2009 to 2014
4%
5%
108% CAGR 2009–2014
8%
17%
Exabytes/mo
66%
Mobility An Even Faster Growing Subset

Video Driving Explosive Network Growth
Global Consumer Internet Video CompositionVideo traffic increasingly driven by live video and TV
52% CAGR 2009–2014
16%
16%
17%
42%

If All Video Minutes Were 3D in 2014, the Video Forecast Would Be 3X Higher

Consumers Are Widely Embracing Internet Video Content
Watching Internet Video (by Age)
Watching Internet Video (by Content)
93%
80%
81%
67%
61%
55%
52%
51%
38%
25%
User-created Short Clips (youtube)
TVPrograms
Professional Short Clips (news)
Movies
Sporting Events
2.6 hours
1.1 hours
47min
43min
1.7hours
Time per week
Base: U.S. Broadband Consumers
Source: Cisco IBSG Connected Life Market Watch, 2010
Consumer Behavior Is Fueling the Growth

Lifestyle is also Driving Adoption
Living Situation
Employment Status
Base: US Broadband Consumers
Source: Cisco IBSG Connected Life Market Watch, 2010

Rise of “On-Demand” Models The Consumer Cloud
For the Consumer: Capabilities that enable consumers to easily & securely access the content, applications, and infrastructure they seek from any location or device.
For the Service Provider: Capabilities that provide companies with a re-usable, expandable, and agile common services engine for quick time to market and better insight & control over consumers’ end-to-end experience.

The CDN ImperativeThe Case for Federation
Definition
A multi-footprint, CDN capability built from resources that are owned and operated by autonomous members.
Objectives
Allow individual members to sell Internet wide delivery
Extend ONnet differentiators (quality, scale ...) across footprints
Simplify contracting with content providers
New interconnect model to complement IP transit & peering
Reduce local transport costs
Platform for value added services and SP retail services

Which CDN Components Need to Be Interconnected?
Request-Routing system:
Redirecting client requests to an “appropriate” federated CDN/Cache for delivery
Content Distribution* system:
Distributing content from one CDN to another
Accounting system:
Moving accounting data between CDNs for billing and reporting purposes (both Retail and Wholesale)
*Not to be confused with “Delivery” of content from a Cache to the client

CDN Federation Market OpportunityFoundation for Retail and Wholesale Services
Content, Service & Application Revenues
Public Cloud
Mobile Services
TVEverywhere
nScreen Services
Saas
Virtual Private Cloud
Application Stores
Content Stores
Digital Locker
Content Management & VAS Revenues
Syndication
Storage
Metadata Mgt
Transcoding
Analytics
Customizable Players
Security
Payments
Hosting
Ad Insertion
Authentication
Enhanced Delivery Revenues
Apps Acceleration
Cloud Acceleration
Site Acceleration
Multicast
Qos
HD
Proximity
On-demand
Delivery Revenues
Object Delivery
Live
Streaming
Download
IP Transit
Peering
IP Core
Network Cost Reduction
IP Aggregation
CDN
CDNI
Gateway
CDNI
Gateway
Content Provider
CDN
CDN
CDNI
Gateway
CDNI
Gateway

Current CDN Market Scope Mostly Basic/Enhanced Delivery + Some VAS
Content, Service & Application Revenues
Public Cloud
Mobile Services
TVEverywhere
nScreen Services
Saas
Virtual Private Cloud
Application Stores
Content Stores
Digital Locker
Content Management & VAS Revenues
Syndication
Storage
Metadata Mgt
Transcoding
Analytics
Customizable Players
Security
Payments
Hosting
Ad Insertion
Authentication
Revenues
Enhanced Delivery Revenues
Apps Acceleration
Cloud Acceleration
Site Acceleration
Multicast
Qos
HD
Proximity
On-demand
Delivery Revenues
Object Delivery
Live
Streaming
Download
IP Transit
Peering
IP Core
Network Cost Reduction
IP Aggregation
CDN
CDNI
Gateway
CDNI
Gateway
Content Provider
CDN
CDN
CDNI
Gateway
CDNI
Gateway

Global CDN Market Forecast (M$)
A Market of ~6B$ by 2015 with a “status quo” CDN approach
A Market of ~12B$ by 2015, with a market push from SP “OnNet” CDNs
CDN VAS
Application acceleration
Dynamic Site acceleration
Other Object delivery
Video delivery
CDN VAS
Application acceleration
Dynamic Site acceleration
Other Object delivery
Video delivery
CDN market keeps its structure as today
No major disruption on the way CDNs handle Video or work with Content Providers
Some Content Providers prefers DIY CDNs to better control their content quality. More than 50% of the Internet Video traffic is not going over commercial CDNs
SP’s build OnNet CDNs delivering better quality, more video is consumed
Content Providers migrate their premium content to benefit from this guaranteed quality
DIY CDN is a less attractive option for Content Providers
Source: Frost & Sullivan, Akamai, Limelight, Cisco VNI, IBSG analysis
*CDN VAS: Storage, Transcoding, Security, Ad Insertion, Analytics, Consulting...

Key Considerations
Massive video growth drives both operating challenges, but also new revenue opportunities
Determine what your strategy will be for content management and distribution
Content management (CDNs) key to handle the increased traffic of video and provide basis for wholesale VAS
Emerging federated CDN models may have both regulatory and anti-trust considerations

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The Future is Video

by Cisco Systems on Jun 15, 2011

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The Future is Video — Webinar Transcript