IDATE Net-Neutrality during DigiWorld Summit 2011


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IDATE Net-Neutrality during DigiWorld Summit 2011

  1. 1. CDN and Transparent Caching in Net Neutrality Context November 2011, Digiworld Summit The research leading to these results has received funding from the European Union's Seventh Framework Programme ([FP7/2007-2013]) under grant agreement n° 248775. Vincent BONNEAU, Head of Internet Unit, IDATE
  2. 2. Introduction <ul><li>Numerous new non-exclusive models with revenue transfers will be investigated by telcos beyond just traffic management </li></ul>Retail « Wholesale » Telco Content & Service End-user Volume QoS Service & Content #1: Pay per use / UBB #2: Pay per quality or throughput #3: New interco #4: Performance-based #6: Bundles traffic/service #5: Traffic wholesale Pricing based on
  3. 3. What is a CDN? <ul><li>A technical solution for delivery </li></ul><ul><ul><li>Caching </li></ul></ul><ul><ul><li>Switching </li></ul></ul><ul><ul><li>Load balancing </li></ul></ul><ul><ul><li>Other techniques for Dynamic Site Acceleration </li></ul></ul><ul><ul><li>Taking into account many non-delivery aspects </li></ul></ul><ul><li>A dynamic market </li></ul><ul><ul><li>Benefiting from both video and e-commerce </li></ul></ul><ul><ul><li>Cloud also as a driver </li></ul></ul><ul><ul><li>Trusted so far by Akamai </li></ul></ul>DSA CDN principles
  4. 4. Is CDN different from Traffic Management ? <ul><li>Differences in the network </li></ul><ul><ul><li>So far mostly within backbones and close to core networks (but outside) </li></ul></ul><ul><ul><li>Can be operated by third parties including content providers </li></ul></ul><ul><ul><ul><li>Google Global Cache </li></ul></ul></ul><ul><li>Positive differentiation </li></ul><ul><ul><li>Key Instrincal assets bringing QoS </li></ul></ul><ul><ul><ul><li>Better routing </li></ul></ul></ul><ul><ul><ul><li>Caching to avoid resending </li></ul></ul></ul><ul><ul><ul><li>Shorter paths </li></ul></ul></ul><ul><ul><li>But not at the expense of other services like DiffServ </li></ul></ul><ul><ul><ul><li>No degradation </li></ul></ul></ul><ul><ul><ul><li>Can still be congested anyway </li></ul></ul></ul><ul><ul><li>Some services may combine priority and CDN </li></ul></ul>DiifServ Google global cache principles
  5. 5. CDN is already at the heart of some Net Neutrality debates <ul><li>CDN directly linked to the debate of QoS : Is CDN already a form of two-speeds Internet? </li></ul><ul><ul><li>Small players have less access to it (financial reasons) and pay more (per unit basis) </li></ul></ul><ul><ul><li>Large players build their own </li></ul></ul><ul><ul><li>Can be linked with traffic management (BT case) </li></ul></ul><ul><li>CDN is directly linked to the transit/peering/paid peering debate </li></ul><ul><ul><li>Economics of CDN based earlier on free peering with ISPs (saving transit that way) </li></ul></ul><ul><ul><li>Economics of CDN directly linked with transit bought to enable the CDN </li></ul></ul><ul><ul><li>Transit providers becoming competitors with major impacts (Comcast Level3 Netflix case) </li></ul></ul>BT Wholesale CDNs
  6. 6. What’s next for CDNs : Telco CDN <ul><li>Telco CDN principles </li></ul><ul><ul><li>CDN inside the telco network </li></ul></ul><ul><ul><ul><li>Going deeper in the network </li></ul></ul></ul><ul><ul><li>Telco CDNs focusing mostly on video content and big files rather than non-video traffic </li></ul></ul><ul><ul><ul><li>Looking more at caching solution </li></ul></ul></ul><ul><ul><li>Tackling the video issue </li></ul></ul><ul><ul><ul><li>Not just a volume issue, but also a problem of asymetry and impact on the core network </li></ul></ul></ul><ul><li>Hybrid solutions </li></ul><ul><ul><li>Can work for both OTT and managed services </li></ul></ul><ul><ul><li>A few telcos even deploying it for only internal use </li></ul></ul>Ratio of core-edge traffic Comcast network description Source: Comcast
  7. 7. Transparent caching : the other way to do telco CDN <ul><li>Principles </li></ul><ul><ul><li>Same principles than CDNs in terms of caching, but without agreements with content providers </li></ul></ul><ul><ul><li>Free for content providers but no control </li></ul></ul><ul><ul><li>Caching on reverse engineering (should be less efficient) </li></ul></ul><ul><li>Big questionmark on legal framework </li></ul><ul><ul><li>Unclear legal framework about storing/hosting third party content in Europe </li></ul></ul><ul><ul><ul><li>DMCA seems more in line with it </li></ul></ul></ul><ul><ul><li>Telcos avoiding Europe for now but developing it in emerging countries </li></ul></ul>Transparent caching principles
  8. 8. Telcos arbitrages for CDN development <ul><li>CAPEX/OPEX savings as the first driver </li></ul><ul><ul><li>Savings in most situations (especially if the telco was buying transit) </li></ul></ul><ul><ul><li>Very depending on the arbitrage (depth, high end/low servers) </li></ul></ul><ul><li>But also looking for new revenues </li></ul><ul><ul><li>From both connectivity and VAS </li></ul></ul><ul><ul><li>Sending a signal to content providers </li></ul></ul><ul><ul><li>Grabing a share of the CDN market </li></ul></ul><ul><li>Different options to go for it </li></ul><ul><ul><li>Buy/Build/Resell </li></ul></ul>Telcos options regarding CDN and Transparent caching
  9. 9. The big question behind telco CDN : CDN interconnection <ul><li>A necessary step for telco CDNs </li></ul><ul><ul><li>A market under the control of a few global CDNs </li></ul></ul><ul><ul><li>Scope issues : Too many contracts from a content provider point of view (a telco CDN offering QoS only towards its eyeballs) </li></ul></ul><ul><li>Some big technical challenges for interconnection </li></ul><ul><ul><li>CDN rules : What to cache? For how long? Where to cache? </li></ul></ul><ul><ul><li>Different equipment in different networks </li></ul></ul><ul><ul><li>Not allowing a third party in its own network </li></ul></ul><ul><li>A few solutions in discussion </li></ul><ul><ul><li>OCEAN solutions </li></ul></ul><ul><ul><li>Standardization in progress (CDNI working group at IETF, ETSI, etc…) </li></ul></ul>Cisco exchange proposition OCEAN (an approach for interconnection)
  10. 10. The telco dilemma with telco CDN <ul><li>Two objectives in contradiction when setting the price </li></ul><ul><ul><li>Reduce the costs </li></ul></ul><ul><ul><ul><li>Implies getting as much traffic as possible (even for free as in transparent caching) </li></ul></ul></ul><ul><ul><li>Increase the revenues </li></ul></ul><ul><ul><ul><li>Implies additional costs for content providers/global CDNs not necessarily to pay </li></ul></ul></ul><ul><ul><ul><li>Implies less traffic </li></ul></ul></ul><ul><li>Which depth in the network? </li></ul><ul><ul><li>Big server costs already when addressing the backhaul, but more efficient </li></ul></ul><ul><li>Raising some questions on other interconnection products </li></ul><ul><ul><li>Will ISP push it and influence peering/transit markets? </li></ul></ul>
  11. 11. New business models <ul><li>A need for new business models </li></ul><ul><ul><li>Situation is risky with status quo which would imply less incentives for deployment </li></ul></ul><ul><li>In line with new interconnection models being discussed </li></ul><ul><ul><li>Paid peering </li></ul></ul><ul><li>Everyone may benefit </li></ul><ul><ul><li>Higher QoS should be bring more traffic </li></ul></ul><ul><ul><li>At least better margins for many players </li></ul></ul><ul><li>Examples of potential models </li></ul><ul><ul><li>Pay per cache </li></ul></ul><ul><ul><li>Cascading CDNs </li></ul></ul>
  12. 12. Open Questions <ul><li>Is CDN fully Net Neutrality compliant? </li></ul><ul><li>What telco CDN will change in the interconnection models? </li></ul><ul><li>Should telco CDN be regulated? </li></ul><ul><li>Should CDN interconnection be regulated? </li></ul>