1. Virtual TV
Why virtualization of fixed
video content delivery networks
is essential for success
Justin Paul
Head of NFV and OSS Marketing, Amdocs
Wednesday 12 October, 2016

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There won’t be…
Boredom
A sales pitch
Detailed technical insights
Health warnings and guidance
There will be…..
Audience participation
Genuine market insights
A free give-away of value

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Audience participation #1
How many of you own a TV?1
How many of you regularly watch
scheduled TV programs (in real-time)?2
And if you exclude news and sports…
how many of you regularly watch
scheduled TV programs in real-time?
3

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Broadcast is dead
“Customers want to watch TV on their terms”
“Broadcast—one to many is efficient”

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Audience participation #2
How many of you own a smartphone,
tablet, or personal computer?1
How many of you regularly watch video
(TV, VoD, downloads, web, etc.)
content on those devices?
2
How many of you watch more video
on your device(s) than on TV?3

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Multi-screen is here to stay
Live
Sports
Live
Children’s TV
Streaming
Drama Series
“Video streaming can kill the network”
“Customers love multi-screen”

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4K TV
“4K/8K/HDR unicast can kill the network”
“Customers love big screen TV”

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Virtualization of the video content delivery network
Amdocs commissioned Analysys Mason
Business Case research
Positive business case?
Impact of HD (4K/8K/HDR)?
Impact of virtualization?
Impact of cloud DVR?
Impact of virtual probes on quality of experience?

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Introducing—
NXT—Tier-1 North American CSP
Voice, Broadband, and TV
16 million subscribers
• 7 million “triple-play”
• 9.4 million STBs
• 3.5 million “active devices”
Monthly ARPU
• US $90 “triple-play”
• US $45 “slim-bundle”
• US $20 “OTT video services”

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—Data consumption profile
Steady growth in data usage
Average bandwidth per
unicast streaming session
• 2.69Mbps—year 0
• 8.21Mbps—year 5
Cloud DVR storage
• 213PB—year 0
• 2589PB—year 5
1Petabyte = 233,000 DVDs
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Data(PB)
Data consumption
Annual multi-cast Other unicast video
Other internet data Total data consumption

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59%
Reduction in operational costs
16M
Tier-1 CSP subscribers
US $2.1B
Net benefit from virtualization
A positive virtualization business case
The business case looks at transformation of the video content
delivery network over 5 years
Virtualization drives
US $1.8M savings
Reduced delivery cost 31% per subscriber
vSTB/Cloud DVR cut costs by 57%
New upsell revenue US $329M
Virtual probes 35% cost reduction
Probes enable real-time assurance
and improve QoE

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Virtualization of the content delivery network
$121
$43
$29
Traditional on-premises deployment
COST PER SUB US $193
$90
$24
$19
NFV, SDN, and Cloud-enables video
COST PER SUB US $133
Video management and delivery (SDP,CDN,CPE) Operations (service creation, O2C, P2P, T2R) Networks (Probes, OLT, and backhaul)

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Virtualization impacts key business metrics improving cash-flow
and customer experience
US $185
Legacy video operations
per subscriber
Improved
customer experience
US $75
NFV/SDN automated video
operations per subscriber
The business impacts of virtualization
77% reduction in O2C
Faster service provisioning and activation
through NFV/SDN automation
65% P2P cost reduction
Closed loop, continuous, just-in-time network
capacity management and optimisation
59% reduction T2R
Remote orchestration, vProbes, and closed
loop automation impacts fault resolution

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Is there a positive business case for vCDN?
Compelling events putting pressure
on video content delivery
The business case for virtualization
of the CDN is US $2.1Bn positive
Virtualization enables new
non-traditional offers
Virtualization enables differentiation
on quality
Virtualization drives new
revenue streams

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Download the
vCDN Business Case
White Paper at:
Want to learn more?
www.nfvreadyoss.com/

16. Thank You
Justin Paul
Head of NFV and OSS Marketing, Amdocs
E: Justin.Paul1@amdocs.com
T: +44 (0) 777 237 9019