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2013 Content Networking Trends - OTT, Global CDN and Operator CDN

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  • 1. Presentation for Samsung Content Networking Trends – OTT, Global CDN and Operator 2013.09.04 Jangwoo Son, CEO Netmanias / NMC Consulting Group www.netmanias.com/www.nmcgroups.com son@netmanias.com 02-3444-5747 / 010 -3460-5747
  • 2. Table of Contents  Introduction  Trend Analysis 1. The First Video Services by Operators: Walled-Garden IPTV Service Concept Case Study Technology Comment 2. The Emergence and Success of OTTs: OTT Internet Video Services Concept Case Study Technology Comment 3. Countermeasure by Operators: Wholesale On-Net CDN Concept Case Study Technology Comment 4. Countermeasure by Operators: Walled-Garden N-Screen Service Concept Case Study Technology Comment 5. Countermeasure by Operators: Transparent Internet Caching (TIC) Concept Case Study Technology Comment 6. Countermeasure by Operators: Mobile Video Optimization (MVO) Concept Case Study Technology Comment 7. Global CDN Providers: Akamai, Limelight Concept Case Study Technology Comment 8. Strategy by Global CDN Providers: Licensed/Managed CDN Service Concept Case Study Technology Comment 9. Strategy by Global CDN Providers: Mobile Cloud Accelerator Concept Case Study Technology Comment 10. Strategy by OTTs (YouTube): Google Global Cache (GGC) Concept Case Study Technology Comment 11. Strategy by OTTs (Netflix): Netflix Cache Concept Case Study Technology Comment 12. Strategy by TIC Vendors: Monetize Concept Case Study Technology Comment  Summary Page 2 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 3. Device Operator Network IP STB provided by TV Stations/ Filmmakers Operator IPTV CDN operator TV PP/CP Service Portal Streaming (RTSP) Operator Network Global OTT CDN Service Portal Any Internet Device Device Origin Encoding Publishing CP CMS HTTP Streaming (without IP QoS) OTT ON-Net Wholesale CDN Request Router Device Streaming (HTTP) OTT BOX Service Portal Edge Cache Reverse Proxy OTT BOX Origin Encoding Publishing Origin TV Encoding Publishing STB IP Backbone IP Backbone IP Backbone IP Edge IP Backhaul IP Backhaul Access BBC HBO Starz IP Edge IP Edge IP Backhaul Access Access IP QoS Device Operator Network Any Internet Contents Distribution STB Device IP QoS Operator Network ON-Net Wholesale CDN Any Internet PP/CP Service Portal Request Router Device Streaming (HTTP) Device Operator Network Global OTT CDN Any Internet Device Streaming (HTTP) Device Any Internet Device Transparent Caching OTT BOX Origin Encoding Publishing Global OTT CDN Mobile Video Optimization TCP Proxy | Video Pacing Transrating | Transcoding Dynamic BW Shaping | Caching TIC MVO ftp,... Edge Cache Operator Network Streaming (HTTP) CP CMS TIC OTT BOX MVO Service Portal IP Backbone Access IP Edge IP Edge PGW MVO OTT BOX TIC Peering Point Service Portal Origin Access IP Edge PGW Peering Point Encoding Publishing IP Backhaul Origin Encoding Publishing Access IP QoS Operator A OTT Operator On-Net CDN Akamai Global CDN OTT BOX IP Backbone Operator A Akamai Global CDN Akamai Edge Server Caching Akamai customers Smart Pipe (Dedicated Bearer) Service Portal Default Bearer Application Acceleration Service Portal OTT Qwilt TIC Server Limelight Global CDN Limelight customers OTT BOX IP Backbone IP Edge IP Edge P-GW Origin Origin Encoding Publishing Encoding Publishing Operator B Operator A Akamai customers (OTT/CSP) Operator B Operator A Operator On-Net CDN Qwilt TIC Server Akamai Edge Server Smart Pipe (Dedicated Bearer) OTT BOX OTT BOX Page 3 Default Bearer P-GW Apple iTunes Louis Vuitton E-Trading IP Backbone IP Edge ... IP Edge Apple iTunes ... IP Backbone NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 4. 1. The First Video Services by Operators Walled-Garden IPTV Service Page 4 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 5. Operator IPTV Service Launching TPS (IPTV) Service to Increase ARPU (in the mid to late 2000s) Device Content service fee 통신사업자 IP STB Operator Network 통신사업자 망 제공 IP by providedSTB operator PP/CP Service Portal Operator IPTV CDN TV User (Operator subscriber) Contents Streaming (RTSP) Operator CDN CP/PP TV 방송국/ TV Stations / 영화사 Filmmakers STB Encoding Publishing CP CMS TV STB IP Backbone IP Edge IP Backhaul Broadband 광대역화 & & IP QoS IP QoS Access Content Delivery Architecture Purpose (Operators) • Video service (Live TV, VoD, Time-Shift TV, nPVR, Relay TV) providers: Operators • Video contents purchaser (TV program, movie) and publisher (transcoding, DRM, etc.), and service portal operator: Operator • Delivery network: Operator’s walled-garden IPTV CDN and operator’s IP network (IP QoS) • Delivery technology: RTSP/RTP/UDP/MPEG2-TS/MPEG2,H.264 • Device: IP STB (provided by operators) • Video service users: Operator subscribers • To secure additional revenue streams (IPTV) by utilizing the broadband access network – ARPU growth • To attract high-speed Internet subscribers by using the IPTV service as bait • To compete with other operators Page 5 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 6. Case Study: Video Delivery Architecture of KT IPTV Key Technologies Select a Movie (http://rp1.kyipmedia.co.kr:8080/vod/…..) Request Router IP Address (Filename=M34E3N6CSGL0800008.mpg, Request Router IP = 125.154.33.5) Request Router RTSP Describe (Filename) to 125.154.33.5 RTSP 200 OK (Streaming Server IP Address = 125.154.33.49) 14.65.50.148 OLT RTSP Streaming N-SW 125.159.2.11 125.154.33.5 • Location-Based/Coverage Zone Routing (Subscriber & Network Aware) • Load-based Routing • Content-Aware Routing RTSP Play (rtsp://125.154.33.49/filename) STB  RTSP Streaming VoD Portal MS VoD Servers 125.154.33.49 STB Suwon Zone 1 L3 SW PE Namsuwon STB Suwon Hyehwa Moran CP ... ... VoD VoD Origin Server (Ingest/Packaging/ ) Yeouido ( / / Busan Distribution) ... PP Guro Static Pre-Positioning ( (App. Level Multicast) VoD Servers STB Zone 31 . Receiving Terrestrial Broadcasting and PP CHs . Channel Encoding and Transmission Guro Guro STB Billing, Authentication, Customer/Device Management Mokdong L3 SW  IP QoS  Broadband Access  Request Routing - Proximity - Racing  Live Encoding  DRM/CAS  Edge Server Reliability  Cache Efficiency  Channel Zapping time  Ad Insertion PE STB IPTV IPTV Subscriber ) (300 (300 million) Page 6 CO (400->200) (400  200) Premium Node (31) (31) Main Relay Node Center Node (2) (14) (14) (2) IPTV IPTV Headend (1) (1) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 7. 2. The Emergence and Success of OTTs OTT Internet Video Services Page 7 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 8. The Emergence of Internet Video Service Operators (OTTs) (in the late 2000s) OTT Internet Video Services (YouTube, Netflix) Operator IP Network Google Global CDN OTT Device Operator Network Global OTT CDN Service Portal Any Internet User (Operator subscriber) Device OTT BOX HTTP Streaming (without IP QoS) Origin Content service fee Operator IP Network User (Operator subscriber) Encoding Publishing IP Backbone Global CDN OTT Akamai/ Limelight IP Edge IP Backhaul Access CDN fee Content Delivery Architecture (YouTube) • Content: UCC, premium contents • Delivery network - Google’s Global CDN - Operator’s IP network (free riding) • Delivery technology: HTTP progressive download (PDL) • Device: Any Internet device Page 8 Content Delivery Architecture (Netflix) • Content: Purchased from CP by OTT • Delivery network - Pure-play CDN service (Akamai, Level3) - Operator’s IP network (free riding) • Delivery technology: HTTP adaptive streaming (HSS) • Device: Any Internet device NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 9. Case Study: YouTube (over Google CDNs) YouTube Portal OTT (YouTube) Origin Server Google Data Center Google Data Center Google Global CDN Google’s own CDN backbone network Google Data Center High-volume duplicate downloads of the same file: Transit/Backbone/ Backhaul Network Cost IX/Transit Peering Router Peering Router Peering Router IP Backbone Operator IP Network IP Edge IP Backhaul Access STB STB Page 9 Poor QoE · No IP QoS · Long Distance (RTT ~ 200msec) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 10. Case Study: Netflix over Akamai CDNs Netflix Portal OTT (Netflix) Origin Server Akamai Parent Cache Akamai Global CDN IX/Transit Akamai Edge Cache HTTP Adaptive Streaming Operator IDC Operator IP Network STB STB Page 10 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 11. Netflix Eco-System Contents Content Encoding & Packaging = Amazon Cloud Service Netflix = Content Aggregator Transcoding (VC1)/Transrating 2.75Mbps 1.52Mbps 350Kbps Platform Fragmented MP4 Global CDN Content Distribution: CDN Caching (Akamai, Limelight, Level3) Network 1. Global CDN - Akamai - Limelight - Level 3 2. Netflix Cache Netflix Cache Content Delivery: HTTP Adaptive Streaming Device Bluray Player 200+ devices Roku Game Console Comcast (MSO, in US) Verizon (IPTV, in US) Netflix (OTT Streaming, in 51 nations) Subscribers: 30 M (Oct. 2012) Page 11 Netflix(OTT Streaming, in US) Smart TV PC iPad iPhone Android Windows Phone 7 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 12. Netflix Subscribers and Global Footprint (Nov. 2012) Netflix streaming paid subscribers totaled over Nov. 2012 30 million after four years of services Paid Subscribers [K] 30,000 25,000  Netflix’s Paid Subscribers Growth Comcast (MSO, 미국내) Comcast(MSO, in US) Verizon (IPTV, 미국내) Verizon (IPTV, in US) Netflix (OTT Streaming, 51개국) Netflix (OTTStreaming, in 51 nations) 20,000 Netflix(OTT Streaming, 미국내) Netflix (OTT Streaming,in US) 15,000 • Oct. 25, 2012: Netflix’s streaming paid subscribers totaled over 30 million • Q3 2012 (Sep. 30): OTT Video Streaming Service - Total paid subscribers: 29,892,000 - US paid subscribers : 26,203,000 - Non-US paid subscribers : 3,689,000 10,000 5,000 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 IR materials Source: 각사 IR 자료 Oct. 2012 (Sweden, Denmark Norway, Finland) 2010 (Canada) 2008 (US) 2008년 (미국) • Q2 2011: Netflix overtakes Comcast (No. 1 MSO in US) in paid US subscribers - Comcast paid subscribers (Q2 2011): 22,525,000 - Netflix paid subscribers (Q2 2011): 23,263,000 • 2008: Launched paid video streaming service in US  Netflix OTT Service Expansion Jan. 2012 (UK, Ireland) • Available in 51 nations as of Oct. 28, 2012 Year Footprint Oct. 2012 43 Latin American nations 2010 Page 12 www.netmanias.com UK, Ireland Sep. 2011 Source: www.netflix.com Denmark, Finland, Norway and Sweden Jan. 2012 Sep. 2011 (43 nations in Latin Am) Canada 2008 US NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com) Netmanias ONE-SHOT
  • 13. Internet Video Trends 1. In US, Netflix and YouTube account for 48% (33% and 15% respectively) of the total Internet traffic (downstream, fixed access)!!! (reported by Sandvine, 2013) 2. A Korean operator, T said YouTube accounts for 36% of its total international line traffic. 3. Another Korean company, K said video contents account for 53% of its total 3G mobile traffic (2012). Others, 20.4 Foreign portals, 3.5 Adult content, 5.8 Google YouTube Akamai/ Limelight Netflix User (Operator Subscriber) Operator IP Network Page 13 Global CDN OTT NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 14. Challenges Faced by Network Operators Increasing OTT subscribers and traffic In US, Netflix and YouTube account for 43% (32% and 11% respectively) of the total Internet traffic (downstream, fixed access) (in 2011) Video Subscribers 1Q09 - 2Q11 [K] Operator Network Walled-Garden IPTV CDN 25,000 23,000 Cord-Cutting/Shaving TV stations /Filmmakers EPG TV Impact of OTTs' emergence and success on network operators: 1) surge in non-profitable traffic 2) decline in their own video service sales Among the total global mobile Internet traffic, 39% was video streaming, and 22% was YouTube (in 2011) Comcast 21,000 19,000 TWC 17,000 15,000 CP CMS STB DISH 13,000 Netflix 11,000 Wi-Fi DSL/FTTH $ 3G/4G $ ER Backhaul $ ER $ Page 14 $ Backbone 1Q09 $ $ 3Q09 4Q09 1Q10 2Q10 3Q10 Access/Backhaul cost Backbone/Transit cost OTT Portal/Origin BR 2Q09 Mainly OTT Traffic Backhaul cost cost Backbone cost 4Q10 1Q11 2Q11 3Q11 4Q11 More incoming OTT (Pure-Play CDN) traffic from outside of the operators’ network Issues with high-volume duplicate downloads of the same file $ Traffic of Free OTT Providers 3G/4G Access cost 9,000 Traffic of Fee-based OTT Providers Transit cost No revenue stream Operators desperate to find ways to reduce costs and create new revenue streams NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 15. 3. Countermeasure by Operators Wholesale On-Net CDN Page 15 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 16. Wholesale On-Net CDN (for Fee-based OTT) Win-Win-Lose Strategy (Operators and OTTs competing with global CDNs) OTT Internet Video Service Device Content service fee Operator IP Network User Global CDN OTT ON-Net Wholesale CDN Request Router Device OTT Streaming (HTTP) Akamai/ Limelight (Operator subscriber) Operator Network Any Internet CP/PP Service Portal Edge Cache Reverse Proxy OTT BOX Origin Encoding Publishing CDN fee Why not do this! (Operator Wholesale On-Net CDN) IP Backbone Content service fee IP Edge OTT User (Operator subscriber) Operator CDN IP Backhaul BBC HBO Starz Access CP/PP IP QoS CDN fee Content Delivery Architecture Purpose (Operators) • Internet Video Service Provider: OTT [CA (Netflix/Hulu), filmmakers (HBOGO/Starz), broadcasters (BBC/MBC)] • Video contents purchaser and publisher (transcoding, packaging, etc.), and service portal operator: OTT • Delivery network: Operator’s On-Net Internet video CDN, operator’s IP network (IP QoS) • Delivery technology: HTTP PDL, HTTP Adaptive Streaming, RTMP/RDS • Device: Any Internet device Page 16 • To create new revenue streams (B2B) by offering wholesale On-Net Internet video CDNs to OTTs NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 17. Case Study: BT and BBC (Before) Akamai Edge Server STB RG .. . STB RG ISP IDC .. . STB RG .. . STB RG RG Akamai Edge Server .. . STB .. .. . . STB RG .. . STB RG ISPs Other ISPs in UK .. . STB RG IXP (LINX) STB RG MSAN Node (1,100) Metro Node (106) Outer Core Node (12/20) ... STB RG ... STB Akamai Edge Server BT IDC RG ... STB RG ... STB BBC Origin Server When BBC used Akamai’s CDN service: - BBC users suffered poor QoE (best-effort delivery in BT network, No IP QoS) - BT suffered higher backbone costs RG ... ... STB RG Inner Core Node (8) ... STB RG ... STB RG Page 17 BT NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 18. Case Study: BT and BBC (After) Akamai Edge Server STB RG .. . STB RG ISP IDC .. . STB RG .. . STB RG RG Akamai Edge Server .. . STB .. .. . . STB RG .. . STB RG Other ISPs in UK ISPs .. . STB RG IXP (LINX) MSAN Node (1,100) Metro Node Outer Core Node (106) (12/20) Edge Server (CDN-IS) STB RG ... STB RG ... STB BRAS Content Acquirer (CDN-CA) BT IDC RG ... STB BBC Origin Server BT built its wholesale CDN to prevent backbone overload caused by Internet video traffic and create new revenue streams (B2B) RG ... STB RG ... ... STB RG ... STB Inner Core Node (8) RG RG Page 18 BT Wholesale CDN (WCC) ... STB BT NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 19. Page 19 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 20. Problems of Operators’ Wholesale CDNs CSP/OTT Portal CSP/OTT Origin Server CSP/OTT Multiple contracts with operators and time consuming technical Integration >> Such a hassle!! IX/Transit Content Acquirer Operator IP Network CDN Edge Server IP Edge IP Edge IP Edge STB Excellent QoE BT Page 20 · · STB IP QoS (DiffServ) Short Distance (RTT < 10msec) Verizon Comcast NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 21. CDN Interconnection (CDNi) Content Flow Money Flow Content service fee Operator B CDN (UK) User Operator A CDN (US) CDNi CDN fee Operator C CDN (Asia) OTT Operator D CDN (SAmerica) Hey OTT ! 1) See? Our footprint is almost as global as others! 2) Only one contract with our leader! Page 21 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 22. 4. Countermeasure by Operators Walled-Garden N-Screen Service Page 22 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 23. Walled-Garden N-Screen Service (TV Everywhere) Operators vs. OTT OTT Internet Video Service Device Content service fee Operator IP Network User (Operator subscriber) PP/CP ON-Net Wholesale CDN Any Internet OTT Global CDN Operator Network Service Portal Device Request Router Streaming (HTTP) Akamai/ Limelight CP/PP ftp,... Edge Cache OTT BOX Origin Encoding Publishing CDN fee CP CMS Operator Internet Video Service (Walled-Garden N-Screen) Content service fee IP Backbone IP Edge IP Backhaul User (Operator subscriber) Access Operator CDN CP/PP IP QoS Content Delivery Architecture Purpose (Operators) • Internet video service provider: Operator • Video content purchaser and publisher (transcoding, packaging, etc.), service portal operator: Operator • Delivery network: Operator’s On-Net Internet video CDN and operator’s IP network (IP QoS) • Delivery technology: HTTP PDL, HTTP Adaptive Streaming, RTSP/RTMP • Device: Any Internet device (Operator subscriber) Page 23 • To prevent subscriber churn (Cord-Cutting /Shaving) • To create additional revenue streams (B2C) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 24. Case Study: Comcast Streampix (launched on Feb. 21, 2012) Content Delivery Architecture / Business Model • Internet video service provider: Comcast • Video content purchaser and publisher (transcoding, packaging, etc.), service portal operator: Comcast • Delivery network: Comcast’s On-Net Internet video CDN and Comcast’s IP network. • Delivery technology: HTTP Adaptive Streaming (HSS) • Device: PC, iPad, iPhone (2012/02/23) • Free to selective package plans ($$/m or above) subscribers (e.g. Xfinity Triple Play, Xfinity Double Play) • Available at $4.99/m to other plans subscribers • Not available to other operators’ subscribers • Not available to Internet-only subscribers • Only available to Comcast TV subscribers XfinityTV.com Xfinity TV App 75,000 TV Shows & Movies Microsoft IIS Origin Server Microsoft HSS iPad HTTP AS Publishing - Transcoding - DRM - Packaging iPhone Cisco CDS Pre-fetch (Upload) NBC ABC Disney Sony Pictures Warner Bros. PC DSL/FTTH Web Browser (Silverlight) To be available on Xbox360 and Android Page 24 ER ER WiFi 3G/4G BR ER Operator Network Transcoding/Packaging: Elemental CP CMS Public Internet NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 25. The Operators Strike Back to Prevent Cord-cutting/Shaving and to Beat Netflix Internet video service provider: Internet video service provider: Netflix Comcast CP CP Netflix Netflix Cable TV Comcast Cable TV Streampix Comcast • One Stop Shopping • Content quantity and quality • Screen quality (video quality) • Bundling Streampix Live/VoD Live/VoD Streampix Streampix Xfinity Triple Play: $120/mo Netflix: $8/mo Xfinity Streampix: FREE (HD Preferred XF Package) • TV 160 CHs • Internet 20 Mbps • Unlimited Nationwide Calling Page 25 Xfinity Triple Play: $120/mo (HD Preferred XF Package) • TV 160 CHs • Internet 20 Mbps • Unlimited Nationwide Calling 75,000 TV Shows & Movies NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 26. 5. Countermeasure by Operators Transparent Internet Caching (TIC) Page 26 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 27. Operator Transparent Internet Caching (TIC) Less OTT Traffic in Operators’ Network (Save Money) Global CDN OTT Google Akamai/ Limelight Netflix Global CDN User (Operator subscriber) YouTube OTT Operator IP Network Why not do this! (Transparent Cache Vendor) Google User (Operator subscriber) YouTube Akamai/ Limelight Netflix TIC Server Operator IP Network Content Delivery Architecture Purpose (Operators) • Internet video service provider: OTT (Unknown OTT, YouTube) • Video content acquirer and publisher (transcoding, packaging, etc.), service portal operator: OTT • Delivery network: Operator’s On-Net TIC and Operator's IP network (No IP QoS) • Caching objects: HTTP PDL file, HTTP Adaptive Streaming file • Device: Any Internet device • No contract relationship between operators and OTTs (CDN or Content) Page 27 • To reduce transit costs by caching unknown OTT traffic within operators’ network when the traffic cannot be handled using wholesale CDNs • To reduce backbone/backhaul extension costs • To enhance user QoE (faster download) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 28. Why TIC (Transparent Internet Caching)? Increasing network extension costs arising from non-profitable 매출과 무관한 traffic surging OTT OTT Traffic의 폭증으로 인한 네트워크 증설 비용 증가 • Operators suffering from high network costs due to duplicate downloads of contents • Users experiencing poor QoE Google’s own 구글 자체 data center 데이터센터 OLT BRAS GGSN /SAE Access NB/eNB IP Backhaul YouTube (UCC) Transit/IX IP Backbone Google Global CDN IP Edge 통신사업자 TIC Operator TIC TIC OLT BRAS GGSN /SAE Access NB/eNB IP Backhaul YouTube (UCC) IP Backbone Transit/IX Google Global CDN IP Edge TIC OLT BRAS GGSN /SAE Access Page 28 NB/eNB IP Backhaul IP Edge YouTube (UCC) IP Backbone Transit/IX Google Global CDN NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 29. Different Types of Transparent Caching Global CDN OTT Operator IP Network User (Operator subscriber) PC SmartPhone SmartPad Game Console STB SmartTV TIC Key Technologies  Content identification Google YouTube TIC Server  Validity/Freshness check  Prevention of duplicate caching Akamai/ Limelight Netflix  Support of partial caching  Support of resume  Support of jump Different Types of Transparent Caching  ABR handling performance  ABR caching efficiency  Provisioning for new OTTs 1. Content identification  Faster response to changes in Object-based (Content ID = the hash value of a part of the HTTP response header + the first part (≈10 KB) of the content) 2. Network configura tion Page 29 In-Line (PBR, DPI) Out-of-Band (Tapping) URI-based (Parameters that can uniquely identify contents are extracted from URI and used as content identifiers) PeerApp BTI Juniper, Alcatel Bluecoat  Network configuration (In-line Qwilt (Optical Tap, Port Mirroring) Alcatel (Optical Tap, Port Mirroring, 80 Port Mirroring)  Resiliency OTT streaming logic  Transparency  Small form factor vs. out-of-band) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 30. Object-based Cache_IN1, Cache_IN2 Cache Hit and Cache Out Cache_OUT Cache_IN1 The First User The Third User TIC TIC Video File Video File  Hash: 7435d9f0b1be5dc9  Cached Content TCP Session Setup TCP Session Setup GET 200 OK + New content ! No caching, but keep the ID (hash value) Cache_IN1 1. Hash Creation 2. Hash Miss Hash Store 200 OK + Hashing Hash Value = hash(HTTP Res. Header, first part of the content) = 7435d9f0b1be5dc9 GET Had it cached before! Unchanged original content ! Deliver the cached content to users Cache_OUT 1. Hash Creation 2. Hash Hit 3. Cache Hit Cache Out Cached Content 200 OK + TCP Session Termination Validity Check 200 OK + Hashing about 10 packets TCP Session Termination (Terminate transmission from YouTube server) TCP Session Termination Cache_IN2 The Second User TCP Session Setup GET 200 OK + Seen it before!! Download all the bytes set as the content-length and then cache!! Cache_IN2 1. Hash Creation 2. Hash Hit 3. Cache Miss Cache Fill 200 OK + Hashing  Hash: 7435d9f0b1be5dc9  Cached Content  All requests are delivered to the origin server whether the video file is locally cached or not  The hash value of the HTTP response header and the first part of the content are used as a content identifier (for prevention of duplicate caching)  URLs are not used as a hash factor (Unlike proxy cache/caching, contents are identifiable regardless of the URL encoding method of OTT/CSP) TCP Session Termination Page 30 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 31. URI-based 1 Content ID (CID) Creation Content DB Check: Cache Miss 2 Video File Caching Video Request (HTTP GET) Video File Delivery Optical Tap User A Content ID (CID) Creation Content DB Check: Cache Hit 3 User A 4 302 Redirect TCP FIN (YouTube) Video Request (HTTP GET) User B User B 5 6 Video Request (HTTP GET) Video File Delivery TCP FIN User B Page 31 User B NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 32. Caching Logic of an Object-based TIC Server (Cache Hit & Cache Out) OTT 7 TCP FIN 3 2. HTTP GET 200 OK File 4 Router (PBR) 80 port 200 OK File 4 5 Hash Hit 4 Hashing {HTTP header, Beginning of video file} 3794c66660940c51 Hash Value Delivery (Cache Out) 8 200 OK Hash Value List 5f1987696239d87f 17435b0c2f45f52d 2a0c38892909ccbd 3794c66660940c51 77d3d201c0f7391e Cache Engine File 1 File 2 File 3 File 4 File 5 6 Cache Hit Storage File 4 80 port Router (PBR) 1. HTTP GET Page 32 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 33. Caching Logic of a URI-based TIC Server: Cache Hit and Redirect to TIC Server 3 HTTP Request http://r5---sn-i3b76n7e.c.youtube.com/ videoplayback?sver=3&expire=1362565161&itag=22&id=f5b664a7bab5f5fd&upn=8Rxi5Hp5SAY&cp=U0 hVR1VRU19LS0NONV9NS1dCOjZyNWVDVll6cG1o&sparams=cp,gcr,id,ip,ipbits,itag,ratebypass,source,upn,expir e&mt=1362541753&ms=au&gcr=kr&fexp=901470,920704,912806,902000,922403,922405,929901,913605,92 5006,906938,931202,908529,920201,930101,930603,906834,913570,901451&source=youtube&newshard=ye s&ratebypass=yes&ipbits=8&mv=m&key=yt1&ip=118.131.192.220&title=PSY++GANGNAM+STYLE+%28%EA%B0%95%EB%82%A8%EC%8A%A4%ED%83%80%EC%9D%BC%29+M%2FV&signat ure=92287D03F5CB1B43FB9FCF94945816E6E1273F33.AF88318DBACEB5868E0479596F2EB8055ED0D6EC TCP: ScrPort = 4550, DstPort = 80 IP: SrcIP = 210.1.1.2, DstIP = 173.194.51.10 173.194.51.10 4 Flow DB 5 CID Creation CID List Router Hashing {youtube.f5b664 a7bab5f5fd.22} 3794c66660940c51 ScrPort = 4550 DstPort = 80 SrcIP = 210.1.1.2 DstIP = 173.194.51.10 Optical Tap 2 5f1987696239d87f 17435b0c2f45f52d 2a0c38892909ccbd 3794c66660940c51 6 Any matching CID?  Yes?  Redirect File 1 File 2 File 3 File 4 Storage 220.1.1.1 Transparent Cache Server 1 HTTP Request 7 302 Redirect to 220.1.1.1/data/3794c66660940c51 + TCP FIN 210.1.1.2 Page 33 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 34. 6. Countermeasure by Operators Mobile Video Optimization for Unknown OTTs Page 34 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 35. Mobile Video Optimization for Unknown OTTs Less OTT Traffic in Operators’ Network (Save Money) Google Global CDN Operator IP Network User (Operator subscriber) OTT Any Internet 100MB 100MB Device Device Operator Network Global OTT CDN Mobile Video Optimization TCP Proxy | Video Pacing Transrating | Transcoding Dynamic BW Shaping | Caching MVO Streaming (HTTP) MVO OTT BOX Why not do this! (Mobile Video Optimization Vendor) MVO Service Portal Mobile Video Optimizer (Pacing) User (Operator subscriber) Google Global CDN OTT Access 100MB IP Edge PGW Peering Point 100MB Origin Encoding Publishing Operator IP Network Content Delivery Architecture Purpose (Operators) • Internet video service provider: OTT • Video content purchaser and publisher (transcoding, packaging, etc.), service portal operator: OTT • Delivery network: Global CDN and Operator's IP network • Delivery technology: HTTP PDL, HTTP Adaptive Streaming • Device: Any Internet device (Operator subscriber) Page 35 • To reduce transit/backbone/backhaul extension costs • To prevent bandwidth waste in radio links (unwatched video) • To enhance user QoE (buffering eliminated) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 36. Video Delivery Method 1. Operator Walled-Garden IPTV/VOD Service 2. Internet Video (YouTube, Netflix, Hulu, etc.) OTTs using PDL PDL: Simple but problematic Designed for wireline PC environments, and thus network and device conditions are not considered Mobile Video Optimization The bit rates and encoding rates of video files delivered using PDL in operators’ network are modified so that the files can be delivered as in ABR OTTs using ABR ABR: A protocol optimized for video delivery in the Internet Checks the network congestion (response time) and device conditions (CPU/RAM overload, screen resolution, screen mode (background or full-screen)) to determine the video quality level of the next chunk to request. Page 36 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 37. Page 37 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 38. HTTP Adaptive Streaming HTTP Adaptive Streaming a generic web server can be used as a CDN edge server HTTP: not RTMP, RTSP (스트리밍 전용such as RTMP and RTSP) (not required streaming engine 프로토콜), CDN Edge Server가 일반 웹 서버이면 됨 TCP이므로 패킷 Loss시 재전송 받아오면 됨 The device requests chunks with automatically (인코딩율)을 계속 (encoding rates) Adaptive: 네트워크 혼잡 상황과 단말 상황에 적응하여 비트율 adjusted bit rates 자동으로 변경시켜 by adapting 요청함 to the network congestion and device conditions. CDN Server CDN 서버 저화질 파일/청크 Low quality file/chunk 중화질 파일/청크 file/chunk Intermediate quality 고화질 파일/청크 High quality file/chunk Intelligence: Device Intelligence: 단말 No more request 나가면 for chunks if 이상 청크 요청이 나가지 않는다 Streaming: 이용자가 시청 도중is made 단말에서는 더 a user leaves without watching the entire (즉 이용자가 보는 만큼만의 비디오 분량만downloaded) video (i.e. only the watched chunks are 단말에 다운로드됨) CDN Server CDN 서버 저화질 파일/청크 Low quality file/chunk 중화질 파일/청크 file/chunk Intermediate quality 고화질 파일/청크 High quality file/chunk Stop watching 시청중단 Page 38 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 39. Netmanias ONE SHOT Gallery: Mobile Video Optimization for HTTP Progressive Download HTTP Progressive Download If the available bandwidth (i.e. download speed) is greater than the source encoding rate Download pattern according to the available bandwidth HTTP Progressive Download with Mobile Video Optimization If the available bandwidth (i.e. download speed) is less than the source encoding rate, or variable HTTP PDL with video pacing HTTP PDL with dynamic bit rate adaptation Source Encoding Rate: 2Mbps Source Encoding Rate: 2Mbps Download Speed = Available BW Shaping Rate = Encoding Rate = 2Mbps Playback Rate: 2Mbps Client Source Encoding Rate: 2Mbps Download Speed = Available BW Playback Rate: 2Mbps Playback Rate: 2Mbps OTT Origin Video Playback Duration: 10 Min. HTTP GET (/…/avatar2Mbps.flv) HTTP Response (OK) Client OTT Origin HTTP GET (/…/avatar2Mbps.flv) HTTP Response (OK) Client Web Server HTTP GET (/…/avatar2Mbps.flv) HTTP Response (OK) Source Encoding Rate: 2Mbps Available BW (btwn a user device and MVO equipment) Trans-x-ed & Delivered Video Bitrate Client OTT Origin HTTP GET (/…/avatar2Mbps.flv) HTTP Response (OK) 240p 360p 480p 360p HTTP Payload (avatar2Mbps.flv) HTTP Payload (avatar2Mbps.flv) 240p HTTP Payload (avatar2Mbps.flv ,480p) 360p HTTP Payload (avatar2Mbps.flv) MVO (DBRA) equipment MVO (Pacing) equipment HTTP Payload (avatar2Mbps.flv, 480p) QoE (Loading…) Issues Loading… Bandwidth wasted (unwatched video downloaded) Page 39 www.netmanias.com QoE deterioration (Loading…) No BW wasted QoE enhancement (no Loading…) NMC Consulting Report, Mobile Video Optimization for Mobile Operators, Jan. 2010. Source: NetmaniasGroup Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 40. What is Video Optimization? Problems with YouTube’s Progressive Download handled by MVO (similar effect to HAS) Operator Network 통신 사업자 망 OTT 10 10분 minutes HTTP Adaptive Streaming 1분 1m HTTP Progressive Download TIC 100 MB, 10 min 100MB, 10분 480p, 11Mbps 480p, Mbps Transparent Caching MVO MVO (실시간 최적화) (real-time optimization) Only watched전달 본 만큼만 chunks delivered Video Pacing Download Rate (10 Mbps) Charging issues solved 과금 이슈 해결 No BW wasted 대역폭 낭비 해결 Packet Push Rate (1 Mbps) Resolution transcoded to best suit 스크린 사이즈에 size 단말 the device screen맞는 Online Transrating/ Transcoding 해상도로 가공하여 전달 Transcoding (1 Mbps) 600MB, 10분 600 MB, 10 min 720p, Mbps 480p, 13Mbps Less buffering 버퍼링 이슈 경감 Variable Dynamic Bit Rate Adaptation (DBRA) No buffering 해결 버퍼링 이슈 Bit rates adjusted to adapt to 망network congestion 혼잡상황에 적응하여 비트율을 가변시킴 Page 40 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 41. Changes in YouTube’s Streaming (2013) 1. Now Chunk-based HTTP Streaming Delivery in a Selected Resolution BEFORE: Gangnam Style, 720p , 2012.0x.0x Progressive Download Red Dot: HTTP GET • Downloading a whole file by a single request • The whole file downloaded in 40 seconds • No automatic resolution change • A single TCP session A file (88.8MB) 40s Video playback time: 4 minutes 12 seconds AFTER: Gangnam Style, 720p , 2013.08.12 Streaming (Chunk-base) Blue Dot: HTTP GET (Video) Red Dot: HTTP GET (Audio) • Requesting next chunk constantly while watching • Each video chunk size: Fixed 4.25MB • Each audio chunk size: Fixed 0.48MB • No automatic resolution change • aA single TCP Session • No additional request when the user presses Pause or stops while watching A video chunk (4.23MB) An audio chunk (0.48MB) 220s Video playback time: 4 minutes 12 seconds Page 41 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 42. Changes in YouTube’s Streaming (2013) 1. Now Chunk-based HTTP Streaming Delivery in a Selected Resolution Before media file 1080p 720p 480p 360p 240p 144p Page 42 Single File (Video & Audio) Single File (Video & Audio) Single File (Video & Audio) Single File (Video & Audio) Single File (Video & Audio) Single File (Video & Audio) id f5b664a7bab5f5fd f5b664a7bab5f5fd After itag Delivery media file Video File f5b664a7bab5f5fd 137 37 HTTP Progressive Download (the whole file request) Audio File f5b664a7bab5f5fd 141 Video File f5b664a7bab5f5fd 136 22 HTTP Progressive Download (the whole file request) id itag f5b664a7bab5f5fd f5b664a7bab5f5fd f5b664a7bab5f5fd 35 34 5 17 f5b664a7bab5f5fd 141 Video File f5b664a7bab5f5fd 135 Audio File f5b664a7bab5f5fd 141 Chunk-based HTTP Streaming Video File f5b664a7bab5f5fd 134 (Chunk size: 1.78MB) f5b664a7bab5f5fd Audio File Audio File f5b664a7bab5f5fd 140 HTTP Progressive Download (the whole file request) Video File f5b664a7bab5f5fd 133 Audio File f5b664a7bab5f5fd 140 Video File f5b664a7bab5f5fd 160 Audio File f5b664a7bab5f5fd 140 HTTP Progressive Download (the whole file request) HTTP Progressive Download (the whole file request) Delivery Chunk-based HTTP Streaming (Video Chunk size: 7.934MB) Chunk-based HTTP Streaming (Audio chunk Size: 0.479MB) Chunk-based HTTP Streaming (Video Chunk size: 4.23MB) Chunk-based HTTP Streaming (Audio chunk Size: 0.479MB) Chunk-based HTTP Streaming (Video Chunk size: 2.101MB) Chunk-based HTTP Streaming (Audio chunk Size: 0.479MB) Chunk-based HTTP Streaming (Video Chunk size: 0.897MB) Chunk-based HTTP Streaming (Audio chunk Size: 0.238MB) Chunk-based HTTP Streaming (Video Chunk size: 0.467MB) Chunk-based HTTP Streaming (Audio chunk Size: 0.238MB) Chunk-based HTTP Streaming (Video Chunk size: 0.217MB) Chunk-based HTTP Streaming (Audio chunk Size: 0.238MB) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 43. Changes in YouTube’s Streaming (2013) 2. Default: Auto Mode (Adaptive Streaming) By default, the quality setting is on “Auto (360p)”. The initial bit rate (encoding rate) is 360p, and then different rates are requested for the next chunk depending on network conditions. (bits/s) 720P 360P 720P & 1080P itag 3418524 237568 Low Quality Audio 14537504 1167360 360P 141 6861765 479232 High Quality Audio 53785636 4255744 720P 141 6861765 479232 High Quality Audio 53785636 4255744 720P 137 Page 43 140 136 Green Dot Quality 136 Blue Dot range 134 Red Dot clen 100773420 8171520 1080P NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 44. Why did YouTube switch? 1. Chunk-based Streaming 2. Adaptive Streaming Before (Progressive Download) After (Chunk) • User QoE enhancement - Buffering eliminated (by adjusting resolutions) - No more inconvenient manual Watching another video after 40 sec Watching another video after 40 sec User PC High network costs (Too bad) Page 44 (automatic adjustment) Watching another video after 40 sec YouTube Server Internet or operator’s network adjustment of video quality Watching another video after 40 sec BIG ($$$) User PC YouTube Server Internet or operator’s network Small ($) Low network costs (Not too bad) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 45. Why MVO? • , the world No. 1 fee-based OTT, adopted HTTP Adaptive Streaming from day 1 • , the world No. 1 free OTT, used HTTP Progressive Download – Suffered various issues (e.g. radio bandwidth waste and billing issues in a non-congested network, and buffering and QoE deterioration in a congested network) – Introduced MVO technology/equipment – In 2013, YouTube switched to HTTP Adaptive Streaming HTTP Adaptive Streaming (intrinsically optimized) Then why MVO? What is it for? Page 45 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 46. 7. Global CDN Providers Akamai Limelight Page 46 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 47. Global CDN Service Provider: Akamai (Distributed Approach) 127,000 edge servers operated by 1,150 ISPs in 81 nations OTT/CSP OTT/CSP Operator Data Center Akamai Global CDN (120,000 servers all around the workd) Akamai Edge Server ISP ISP ISP ISP IP backbone ISP IP edge ISP ISP ISP Global Internet CSP Portal STB RG STB KT RG Akamai DNS STB RG KT IDC Akamai CDN CSP STB RG STB RG Public Internet STB RG STB RG STB LG U+ Origin Server STB RG STB RG STB RG RG STB Akamai Edge Servers LG U+ IDC RG BT IDC STB STB RG RG RG RG RG RG STB STB STB Page 47 STB BT NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 48. Akamai CDN Core Technology Mapping System (centralized) HL-DNS (centralized) Monitoring Agent (distributed/located in Cluster) High Level DNS Mapping Table HL-DNS Update High Level Map 3 Mapping System (Map Maker) Origin Server User LL-DNS (distributed/located in Cluster) Edge Server (distributed, totally 119,000 servers) 2 1 1 Reporting Periodically Update Low Level Map 2 DNS 2 Low Level DNS Mapping Table 1 LL-DNS ents Cont Monitoring Agent DNS Deliv ery ... 2 1 Cluster 1,000 a a a Check Server Load & Health Measure Network Performance (RTT, Loss) b ... Cluster 1 Low Level DNS Mapping Table Local DNS DNS b Measure Network Performance (RTT, Loss) User 1 Reporting Periodically ... LL-DNS ... HL-DNS server’s selecting LL-DNS server: by mapping client to a cluster based on client’s local DNS server IP address, network proximity and cluster health Cluster 5,000+ Monitoring Agent a Check Server Load & Health Updated every 15~20 min ... Cluster geographically close to local Local DNS Server DNS server (LL-DNS server) Cluster 2 2 Low Level Map Update: Every 2~10s (China) 3 High Level Map Update: Every 15~20m (Monitoring Agent to Mapping System) (Mapping System to Low-Level DNS) (Mapping System to High-Level DNS) 1. Health & Load of Clusters and Edge Servers a 2. RTT & Packet Loss between Clusters and Local DNS Servers b 3. RTT & Packet Loss between Akamai Clusters 1. Edge Server Status in a Cluster: Health & Load of Edge Servers 2. RTT & Packet Loss between Clusters and Local DNS Servers Cluster Health 1. Mapping between LL-DNS Servers and Local DNS Servers 2. Cluster Status: Health & Load of Cluster 3. RTT & Packet Loss between Clusters and Local DNS Servers Japan IDC (210.252.57.244-246) China IDC (125.26.214.70-79) China IDC LL-DNS server’s selecting the optimized edge server : by assigning client to specific server (through selecting a non-overloaded edge server in the cluster nearest to the user’s local DNS) * TTL (30 min ~ 1 hour) Updated every 2~10 sec Latency between local DNS server and cluster Edge servers Edge server load User Cluster 3 (Japan IDC) Cluster 4 (China Telecom IDC) Cluster 4 (China CT IDC) Request Routing Procedure Page 48 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 49. Reference Page 49 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 50. Limelight CDN Architecture: Super PoP Approach Equinix Zurich G 60 Telx Atlanta ISP FranceIX LINX G 10 60 G FT 30 G 10 G AMS-IX ISP ISP 60 G Equinix Zurich ISP SuperPoP Approach - Limelight - Level3 - CloudFront 20 G Equinix Paris LAIIX KT G 10 ISP Equinix LAX 10 G SKT Equinix CHI(Chicago) Limelight’s Fiber Backbone 50 G LG U+ 20 G Level3 Comcast TORIX (Toronto) G 10 (Seattle) 10 G Qwest Equinix SGP 50 G 30 G SIX JPIX PIX (Vancouver) Equinix SJO (San Jose) 90+ Limelight Super PoPs Page 50 589 Access Networks (ISP, IX) OTT/CSP NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 51. 8. Strategy by Global CDN Providers Licensed/Managed CDN Service for Operator Page 51 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 52. Licensed/Managed CDN Service by Global CDN Service Providers Expand Global CDNs through Penetrating the Operators’ Networks Content service fee Operator A OTT Operator On-Net CDN CDN fee User (Operator subscriber) Operator IP Network Global CDN Akamai Global CDN OTT (Akamai) OTT BOX IP Backbone Akamai customers Service Portal IP Edge Origin Installing CDN edge servers of global providers at the IP network edges of telecom operators Why not do this! Encoding Publishing Operator B Operator On-Net CDN Content service fee CDN S/W license fee (Operator subscriber) Operator IP Network CDN fee Global CDN (Akamai) IP Backbone IP Edge OTT Content Delivery Architecture Purpose (Akamai) • Internet video service provider: OTT • video content purchaser and publisher (transcoding, packaging, etc.), service portal operator: OTT • Delivery network: Akamai global CDN + Operator’s On-Net Akamai CDN • Delivery technology: HTTP PDL, HTTP Adaptive Streaming, RTSP/RTMP • Device: Any Internet device (Operator subscriber) Page 52 Apple iTunes ... User OTT BOX • To enhance the video QoE of its customer OTTs - by delivering OTT traffic right to the IP edges of operators’ network (Low RTT) • To significantly reduce IDC costs - by delivering OTT traffic right to the IP edges of operators’ network, drastically reducing Akamai’s traffic in IDC NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 53. Licensed/Managed CDN Service Akamai Managed CDN User Operator IP Network Global CDN Akamai customers Operator Data Center Akamai edge servers OTT Akamai Global CDN OTT L Operator: Higher backbone costs Heavy traffic from Akamai customers (e.g. Netflix) resulting in costly IP backbone expansion IP edge L Akamai: OTT customers' video QoE degraded IP backbone Too long distance between Akamai's edge servers and users (High RTT) L Akamai: Higher IDC costs Netflix traffic is delivered from operator’s IDC. So, the more Netflix users or the higher encoding rates, the higher IDC costs  Introducing Akamai edge servers at operator’s IP edges Operator On-Net CDN Operator Data Center Akamai Global CDN OTT Akamai edge servers J Operator: Lower backbone costs IP backbone IP edge Less costly IP backbone expansion required to cover traffic from Akamai customers (e.g. Netflix) J Akamai: OTT customers' video QoE enhanced Netflix traffic delivered directly from IP edges of the operator (Low RTT) J Akamai: Drastically lower IDC costs Netflix traffic is delivered from operator’s IP edges, drastically reducing Akamai’s traffic within IDC Page 53 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 54. Licensed/Managed CDN Service User Operator IP Network Global CDN Global User Operator Customers Domestic CP/OTT /Cloud Operator On-Net CDN Operator Headend Operator Data Center Akamai Global CDN (127,000 edge servers across the world) ISP ISP Off-Net Akamai edge servers ISP ISP IP backbone ISP IP edge ISP ISP ISP Global Internet J Operator: Creating CDN profit streams Rapid CDN network deployment Winning domestic CP/OTT customers using its own branded CDN J Operator Customers: Reaching out to customers locally and globally Enabling fast contents delivery to global users through federation with Akamai global CDN Page 54 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 55. 9. Strategy by Global CDN Provider Mobile Cloud Accelerator Page 55 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 56. Akamai Mobile Cloud Accelerator (MCA) Expand Global CDNs through Penetrating the Operators’ Networks Content service fee Operator A Akamai Global CDN Akamai Edge Server Operator IP Network Caching Akamai Global CDN Application Acceleration Smart Pipe (Dedicated Bearer) User OTT (Operator subscriber) Akamai customers (OTT/CSP) Service Portal Default Bearer P-GW CDN fee Origin Why not do this! Encoding Publishing Operator A Content service fee Acceleration fee: $5 Operator IP Network Akamai Edge Server Smart Pipe (Dedicated Bearer) Akamai Global CDN User OTT Default Bearer P-GW Apple iTunes Louis Vuitton E-Trading ... (Operator subscriber) Smart Pipe fee: $1 CDN fee Smart Pipe fee: $3 Content Delivery Architecture Purpose • Internet video service provider: OTT/CSP • Video content purchaser and publisher (transcoding, packaging, etc.), and service portal operator: OTT/CSP • Delivery network: Operator’s dedicated bearer + On-Net Akamai server + Akamai Global CDN • Delivery technology: HTTP • Device: Any Internet device (Operator subscriber) Page 56 • OTT/CSP: To create new revenue streams (acceleration fee) • Operator: To create new revenues streams (B2B) • Akamai: To generate revenues from Smart Pipe Broker • Ericsson: To boost the sales of LTE equipment NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 57. MCA Procedure Mobile Operator Network Mobile Cloud Accelerator (MCA) RAN Acceleration Internet Acceleration Mobile Network Rx PCRF SPC 3 Gx HSS/ SPR PCRF SPC Akamai EC MCA 1 Akamai CDN Local DNS Akamai DNSs OTT DNS OTT Origin Cache IP 1.1.1.1 Default Bearer Establishment Attach REQ/ PDP Connectivity REQ UE ID Authentication OTT Origin Location Update 1 2 1 Internet PGW MME UE IP 192.168.1.100 Akamai Global CDN Akamai Edge Server/ Cache RAN UE Create Session REQ Akamai DNS IMSI, Cell ID, Subscribed Profile Allocate IP addr. Local DNS Ind. of Session Establ. OTT DNS IMSI, UE IP, Cell ID, Subscribed Profile 4 Profile Ack. of Session Establ. Operator BB DPI Public Internet IMSI, PCC Rule Attach Accept/ Activate Default Bearer REQ UE IP, Authorized QoS 5 Dedicated Bearer (NW-init. Secondary PDP Context) Mobile Device RAN Sniffing Diameter Signaling UE IP, IMEI, Cell ID, QoS Profile, .. Identify device type Internet Overview of MCA Operation Configuration: IP adresses of MCA edge servers Distinguishment between MCA and RAN acceleration flow 3 Transfer of information on the RAN acceleration flows 4 Transfer of RAN acceleration rule 2 PGW/GGSN UE IP, Authorized QoS Default Bearer Estab. 1 Default Bearer (Primary PDP Context) Create Session RSP 5 Detection MBB Turbo Flow DNS Query DNS Query UE IP, OTT hostname (origin.example.com) UE IP, OTT hostname (origin.example.com) DNS Query Local DNS IP, OTT hostname DNS Reply CNAME = origin.example.edgesuit.net DNS Query Creation of a dedicated bearer Local DNS IP, origin.example.edgesuit.net Select Best Edge Cache DNS Reply UE IP, Cache IP Local DNS IP, edge1.g.akamai.net DNS Query CNAME = edge1.g.akamai.net DNS Reply 1 Sniffing DNS Reply A = Cache IP DNS Reply A = IP of Akamai MCA edge cache Detect MBB turbo flow Detection method 1 Extract UE IP and Cache IP in DNS Reply destined to UE If the Cache IP matches any IP in “IP Range (MBB Turbo)”, create a Dedicated Bearer to the UE Content REQ GET http://OTT URL 2 UE IP, Destination IP Detect MBB turbo flow Detection method 2 Extract Destination IP in the First Content REQ If the Destination IP matches any IP in “IP Range (MBB Turbo)”, create a Dedicated Bearer to the UE Default Bearer Page 57 Internet NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 58. 10. Strategy by OTTs (YouTube) Google Global Cache (GGC) Page 58 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 59. Google Global Cache Expand OTTs’ CDNs by Penetrating the Operators’ Networks with their own CDNs Google Global CDN OTT Google Global Cache (GGC) o Google Global Cache Servers (H/W & S/W) provided by Google: FREE o Remotely managed by Google (remote monitoring and technical support): FREE o Rack spaces, power and GE ports provided by operators: FREE User (Operator subscriber) Operator IP Network Why not do this! (Google) Google Global Cache (GGC) User (Operator subscriber) Operator IP Network Google Global CDN Operators deployed GGC  North America: most operators  Europe: most operators  Korea: LG U+, SK, KINX (2012.02)  Japan: KDDI, SoftbankBB, So-Net Content Delivery Architecture Purpose • Internet video service provider: OTT (YouTube) • Video content purchaser and publisher (transcoding, packaging, etc.), and service portal operator: YouTube • Delivery network: Google Global CDN + operator’s On-Net Google cache (GGC) • Delivery technology: HTTP PDL, HTTP Adaptive Streaming • Device: Any Internet device (Operator subscriber) Page 59 • To expand Google’s CDNs in operators’ network at no cost • To enhance QoE of YouTube users (Low RTT) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 60. Benefits of GGC Users Operator IP Network Transit/IX Global CDN OTT L Operator: increased backbone cost L Google: hard to deliver high resolution video without Higher costs for transit and IP backbones due to YouTube traffic buffering Due to long RTT between its datacenter and users L Operator: more complaints from its Internet subscribers about buffering Google Datacenter Google Global CDN Transit/IX IP Edge IP Backbone Google Datacenter Operator Datacenter Google Cache Google Global CDN Transit/IX IP Edge IP Backbone J Operator: reduced transit costs J Operator: no costs for building or operating caching solution (operator CDN or transparent cache) J Google: improved YouTube video QoE for its user YouTube traffic delivered from GGCs in the network of operators, providing low RTT J Google: expanded its CDN throughout the world, J Operator: improved YouTube QoE for its Internet subscriber even into the networks of telecom operators at no IDC Page 60 cost NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 61. Google Global Cache 173.194.56.82 (USA) Average download speed for YouTube = 2Mbps, RTT = 200msec GL-HUB KT subscriber OLT L3 SW BRAS Router KT IP network Page 61 Center node KT IDC 211.181.65.15 Average download speed for YouTube = 90 Mbps, RTT < 10msec KT-IX DIX LG IDC LG U+ IP network LG U+ Subscriber NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 62. Google Global Cache Watching YouTube through LG U+ Internet line 173.194.56.82 (USA) Video data pre-downloaded in my PC 100 Mbps 100 Mbps Current playback position Watching YouTube through KT Internet line Download Graph YouTube video download speed 97.4 Mbps YouTube video download speed 2.1 Mbps Download Graph Average download speed for YouTube = 2Mbps, RTT = 200msec GL-HUB KT subscriber OLT L3 SW BRAS Router KT IP network Page 62 Center node KT IDC 211.181.65.15 Average download speed for YouTube = 90 Mbps, RTT < 10msec KT-IX DIX LG IDC LG U+ IP network LG U+ Subscriber NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 63. Reference Page 63 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 64. 11. Strategy by OTTs (Netflix) Netflix Cache Page 64 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 65. Netflix Cache Expand OTTs’ CDNs by Penetrating the Operators’ Networks with their own CDNs (Bypassing Global CDNs) Content service fee Operator IP Network User Netflix Cache Global CDN o Netflix Cache Servers (H/W & S/W) provided by Netflix: FREE o Remotely managed by Netflix (remote monitoring and technical support): FREE OTT Akamai/ Limelight (Operator subscriber) o Rack spaces, power and GE ports provided CDN fee by operators: FREE Why not do this! (2012.06) Content service fee OTT User (Operator subscriber) Operator IP Network Content Delivery Architecture • Internet video service provider: OTT (Netflix) • Video content purchaser and publisher (transcoding, packaging, etc.), and service portal operator: Netflix (Amazon) • Delivery network: Operator’s On-Net Netflix Cache • Delivery technology: HTTP Adaptive Streaming • Device: Any Internet device (Operator subscriber) Page 65 Operator deployed Netflix Cache (Jan. 2013)  North America: Cablevision (US), Clearwire (US), Google Fiber (US), Telus (Canada)  Europe: British Telecom (UK), Virgin Media (UK), TDC (Denmark)  Latin America: Telmex, GVT Purpose (Netflix) • To reduce global CDN fees (or no fee) • To expand its own CDNs within operators’ network at no IDC cost • To provide higher quality video (HD 7Mbps, 3D 12Mbps) services • To enhance the video QoE of Netflix users by delivering its traffic right to the IP edges of operators’ network (Low RTT) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 66. Netflix Cache Cost Netflix Cache Netflix Cache Internal Architecture Netflix Cache Cost (based on market prices as of Dec. 2012) Redundancy Memory Processor 10GbE 10GbE 1 200,000 200,000 Supermicro X9SCMF 1 250,000 250,000 Processor Intel E3-1260L 1 350,000 350,000 8GB ECC 1333MHz 4 80,000 320,000 Hard Drive Hitachi Deskstar 7K3000 1TB 40 90,000 3,600,000 Solid State Drive Crucial m4 512GB 1 600,000 600,000 Controller LSI SAS 9201-16i 16 port 2 500,000 1,000,000 Network card Super micro AOCSTGN-i2S 1 550,000 550,000 Redundant Power Supply Unit Zippy MRW5600V4V/DMRW5600V4V 1 1,000,000 1,000,000 Total SSD OS, Log, Popular Content LSI SAS 9201-16i 16Port Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Total [₩] 7,870,000 Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar • HTTP Streaming Capacity: 10Gbps TST custom Memory LSI SAS 9201-16i 16Port Price[₩] Mainboard Supermicro X9SCM-F Crucial m4 512GB # 10GbE NIC Raid Controller (Onboard) Crucial m4 512GB Vendor & Model Motherboard Supermicro AOC-STGN-i2S Intel E3-1260L Description Chassis 8GB ECC 1333MHz Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Hitachi 3TB Deskstar Content Storage • Hard Disk: 3TB x 36 (100TB) • Unique Content Size: 48 TB • Network Interface: 10Gbps Content Storage (Mirror) Content Storage Content Storage (Mirror) • OS: FreeBSD v9.0 • Web Server: nginx • Request Router: BIRD Internet Routing Daemon • Content Placement: Push (Pre-Fetch) Page 66 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 67. Without Netflix Cache Users Operator IP Network Netflix, accounting for 33% of ISP network traffic in US Global CDN Operator Datacenter Akamai Edge IP Edge OTT Akamai Global CDN Limelight Datacenter IP Backbone Transit/IX Limelight Global CDN L Operator: increased transit costs Higher costs for transit and IP backbones due to Netflix traffic L Netflix: CDN cost CDN services currently provided by Akamai, Limelight and Level3 L Netflix: hard to deliver high resolution video without buffering Average resolution in US – 2~3 Mbps Page 67 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 68. With Netflix Cache Users Operator IP Network Operator Datacenter OTT Public Internet Netflix Cache IP Edge IP Backbone Public Internet NB/eNB Operator Datacenter Netflix Cache J Operator: reduced transit costs J Operator: no costs for building or operating caching solution (operator CDN or transparent cache) J Operator: improved Netflix QoE for its Internet subscriber Page 68 J Google: improved Netflix video QoE for its user YouTube traffic delivered from IP edge of operator IP network, providing low RTT J Netflix: started high resolution video service ( 7 Mbps HD, 12 Mbps 3D) in Jan 2013 J Netflix: expanded its CDN throughout the world, even into the networks of telecom operators at no IDC cost NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 69. 12. Strategy by TIC Vendors Monetize Page 69 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 70. Limelight + Qwilt Proposed a Solution for Operators to Monetize OTTs through Interlocked Global CDNs and TIC Operator A Content service fee Operator IP Network LimeLight Global CDN User OTT Qwilt TIC Server OTT Limelight Global CDN Limelight customers OTT BOX (Operator subscriber) IP Backbone IP Edge Streaming fee Why not do this! Operator B Content service fee Qwilt TIC LimeLight Global CDN Qwilt TIC Server OTT OTT BOX User (Operator subscriber) IP Backbone IP Edge Operator Caching fee IP Network Streaming fee Content Delivery Architecture • Internet video service provider: OTT • Video content purchaser and publisher (transcoding, packaging, etc.), service portal operator: OTT • Delivery network: Operator’s On-Net TIC & Limelight global CDN • Delivery technology: HTTP PDL, HTTP Adaptive Streaming, RTSP/RTMP • Device: Any Internet device (Operator subscriber) Page 70 Purpose • Limelight: To improve its profit structure by reducing streaming costs • Limelight: To enhance the video QoE of its OTT customers (Low RTT) • Operator: To create a new revenue stream (caching fees) • Qwilt: To propose a solution for operators, TIC equipment purchasers, to monetize OTTs and thus boost TIC sales (higher TIC sales) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 71. Summary: The Trends - Unlimited Competition Carrier Cloud (2012-) Pure-Play CDN ISP ISP ISP ISP ISP ISP ISP ISP ISP ISP ISP • Amazon CDN (CloudFront) for Amazon Cloud Service (AWS, EC2, S3) OTT (Netflix, YouTube) Amazon • Apple iTunes ISP ISP • AT&T, ALU CloudBand, Ericsson Dumb Pipe Amazon Cloud (IaaS: EC2, S3) Amazon Cloud CDN Amazon Virtual Private CLoud CDN OTT Shock (2010-) Amazon Cloud (IaaS) Amazon Instant Video ISP ISP ISP CDN Federation (CDNi) (201x-) Wholesale CDN (2011-) CSP Origin Saleforce Walled-Garden IPTV CDN (2005-) Office365 Operator 통신사업자 Headend CSP (OTT) Origin ISP ISP ISP STB ISP ISP • BT, Comcast, Verizon, Orcon, PT, etc. Google CDN (2007-) Walled-Garden MS CDN (2011-) Operator 통신사업자 Headend Transparent Caching (2010-) ISP YouTube ALTO Google Google Global CDN SDN CP Global CSP Telecom Operator TV ISP ISP CP SDN ISP ISP ISP ISP ISP YouTube • TWC, Verizon, KT ISP ISP ISP Google Global Cache (2012-) • SKB, LG U+, KINX Netflix OTT Origin (Netflix) Netflixl Cache (2012-) • Sprint, Verizon, Level 3, Frontier (PeerApp) Global Cloud Provider Cloud Operator Global Global Telco CDN Operator On-Net OTT CDN (2008-) Global CDN (1999-) Global CDN ISP ISP WalledGarden Mobile Video Optimization (2011-) ISP Federation ISP CDN S/W License ISP Cloud CDN (2011-) Global CDN ISP ISP ISP ISP ISP ISP ISP ISP ISP Akamai MCA (2012-) Page 71 Global CDN ISP Cloud (SaaS) YouTube • Sprint, Verizon Wireless ISP ISP CSP ISP ISP ISP • Limelight LCDN: Bell Canada • Akamai LCDN (Aura) ISP ISP ISP ISP • Akamai, Limelight, Level 3 Akamai Global CDN Provider CSP Origin Licensed CDN (2011-) NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)
  • 72. Netmanias Research and Consulting Scope 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 eMBMS/Mobile IPTV CDN/Mobile CDN Transparent Caching BSS/OSS Services Cable TPS Voice/Video Quality IMS Policy Control/PCRF IPTV/TPS LTE Mobile Network Mobile WiMAX Carrier WiFi LTE Backaul Data Center Migration Carrier Ethernet FTTH Wireline Network Data Center Metro Ethernet MPLS IP Routing Visit http://www.netmanias.com to view and download more technical documents. Page 72 NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

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