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Proven Techniques For Turning Out Profits

                                   Gary Southwell
                                  CTO BTI Systems
Addressing the Content Explosion
Driven by on-demand Video

                                                                       Online Content Availability
                                                                       Ubiquitous Device Access



                                             Content Transfer Requirements (MB)
                                             7000

                                                                                                      6000MB
                                             6000


    Bandwidth drivers                        5000

     - Content duration                      4000
     - Resolution
                                             3000
    Video will account for 90%
    of network traffic by 2012               2000
                                                                                  1500MB
    Cisco Visual Networking Index Forecast
                                             1000

                                                     3MB        38MB
                                                0
                                                     MP3     Youtube 3 minute   iTunes feature-   HD Movie (Netflix)
                                                                  video          length movie
Content Delivery Environment
               Broadcasters   Studios   Others
 Content
 Owners


 Content
 Aggregators


 Content
 Delivery


 Content
 Subscribers
OTT Impact on Network Operators                                                                                  4




                                                                                             Network Utilization
  Rapidly growing Internet                  Increased utilization of owned
 peering utilization charge                 service delivery network                         Subscriber QoE
  Frequent need to upgrade                  Frequent need to upgrade
 connection size                            Routing and transport infrastructure
                                                                                          Poor quality, lower resolution,
                                                                                         extended download time for OTT content
                                                                                          “Slow connection” for Internet and
                                                                                         other services



                                                                                             Content Request
Internet
request
                       Content Served

                            At or near network/connection utilization




           Peering                                    POP                               CO                         Subscriber
             Pt                 Transit                              Core/Aggregation              Access


               Company Confidential. Distribution of this document
               is not permitted without written authorization.
OTT Growth – Impact on Subscriber Experience




                           Users love the “a la carte” content

                           But beware the “Pinwheel of pain !”

                           And low resolution on the 50” HDTV
OTT Growth Drivers – Consumer ease of Access
                         Strengths:
                         - Highly promoted services
                         - Content variety
                            - More current popular content
                         - More screen options
                         - Simple to access & play
                            - Ease of access killed Blockbuster

                         Today’s Challenges:
                         - Time to start-to-play can vary
                             - can take several minutes
                         -Large screen quality can suffer
                              -Blotchy – fuzzy – freezes- jumps
                         - Best efforts delivery
                             – QoE varies
OTT Growth Drivers – Highly Desirable
Services



                           Premium Content
                           Available



                                    + Games & Gaming
                                    + Social Networking
                                    + App Store content
                                    + Ads…
Problem Statement
• High speed internet is the delivery technology for all consumer services
    – Consumers are moving to a-la-carte consumption
    – Wireline and wireless

• Video is leading the growth, but gaming, music, CE updates also
  increasing load

• Networks are designed for shared use
    – Busy hour sizing – constant upgrades &/or overbuilding the network for no
      new Revenue $
    – Typical Access to Core ratio is 100+:1
    – Access providers are not making large profits on today’s Broadband

        A New Approach is needed to Augment Broadband services that
                     improves service and reduces cost
Foundation Service and Building Blocks Approach

• High Speed Internet service
   – HSI Needs to be cost-competitive to offer
       • HSI Needs to be as good as or better than the competition
   – Can’t violate Net Neutrality “Rules”
       • Don’t degrade base service if you offer new services.
       • Gray Area: If you offer a premium service must allow others to be offered over
         your infrastructure
   – Yet Must Provide a path for value add services
       •   To Content Providers
       •   To Subscribers
       •   To advertisers / 3rd parties
       •   Charge for value
             – Direct or indirect methods
Content Aware Networking
• Content requests are repetitive in a
  given served area – many requests
  are made for the same content

• Identify the repetitive content at the
  network edge, cache it and serve it
  locally
                                           Leverage the
• Significantly reduce the bandwidth       “80:20” rule
  impact

• Significantly improve the user
  experience by avoiding network
  congestion
What is a Network Aware Transparent Cache ?
• Policy based Solution
   – that looks at every packet for cacheable content
   – Caches only desired popular content for local play-out
• Addresses all cacheable content
   –   Internet video, music, games
   –   Graphical Images                     BTI’s solution example is
   –   Software updates                     branded WideCastTM
   –   All large objects
• Operationally simple to operate
   –   Automatically updates content
   –   Automatically responds to shifting user trends
   –   No active management of content
   –   No need to negotiate with content owners
   –   A dramatic alternative to the Labor intensive CDN
   –   With up to 10x the top and bottom line impact
Network Aware Cache Location Options

                                Equipment upgrade
                                Savings
          Peering
          Savings    Backhaul
                     Savings


 Origin   Internet                                       Remote
                                        Transit
Content                                                    COs
                                          COs
Servers




                        POP Placement               Remote CO Placement
Solution Value Summary
       Content Aware Networking provides a WIN|WIN

           Internet Access savings           Network Utilization Savings
            Peering savings [MB/month]      Service delivery network OTT
            Peering connection savings      content bandwidth reductions
                                             Network Infrastructure savings
                                                                                         Improved Subscriber
                                                                                         Quality of Experience


                                                                                Content Request
Internet
request

                                                                                Content Served
                                >25% peak bandwidth savings realized
                                 SLOWER GROWTH GOING FORWARD




            Peering                            POP                             CO                        Subscriber
              Pt              Transit                     Core/Aggregation             Access
Real World Results
Results
•   20-40% peak bandwidth savings (Internet sourced vs. subscriber delivered)
     –   Defers network capacity upgrades (aggregation/middle mile, and core)
•   60% reduction in the Bandwidth growth curve slope
     –   Proven real world savings

                                               Bandwidth savings        Bandwidth Growth
                                                                            reduced
Value Beyond Costs savings: Improved QoE & Data
Before: Slow play out – waiting            10 fold faster buffering and downloads




                                                   Quick buffer fills – no waiting
                                                   7x improved screen resolution
                                        Web Site                     Visitors (K)    Bytes played out
     High value information:            1) youtube.com                    397        2,533,534,344
           - Top URLs (sites visited)   2) apple.com                     1512        2,340,070,164
                                        3) mcafee.com                     269        2,094,633,015
                Hour, day, month…       4) netflix.net                   3250        1,715,060,664
           - Top applications           5) symantec.com                  1258        1,663,329,081
                Web, P2P …              6) pandora.com                     398       541,532,590
                                        7) farmville.com                 2772        352,416,430
           - Heaviest users             8) hulu.com                        609       310,521,020
                                        9) photobucket.com                 859       301,090,103
                                        10) xbox.com                       582       262,658,449
Opens up possibility for Premium Services

• Same Content Intelligence can be applied to identify Users who have
  signed up for a Tiered Service
• Accelerates and locally delivers their content
• Provides a Measureable SLA
• Can fit within the Special services loop-hole in Net Neutrality




  Origin   Internet                                      Remote
                                        Transit
 Content                                                   COs
                                          COs
 Servers




                                                      Premium               Tiered
                                                   Content Delivery   Service Subscriber



                        POP Placement             Remote CO Placement
Introduction to BTI Systems
       Addressing the growing needs of broadband telecommunications with
        simplified solutions that deliver customer value, operational savings,
        and scalable capacity with high availability

       Portfolio Offering                                                     Solutions
            Service-Centric Management

                                  Content Aware Networking

                                                                                Content Aware                          Wireless
                                                                                  networks                             Backhaul
                              Packet Optical        Carrier Ethernet
                               Networking                Access

       Certifications
                                                                                 Ethernet Services                  Packet Optical
                                                                                     Delivery                       Infrastructure
       Customers
    –   250+ customers: Service Provider, Enterprise, Government,             Corporate Information
        Utility, Research & Education
                                                                           •   Development facilities: Ottawa, Boston, Belfast, Shanghai
Summary

•   Service demands are driving a
    transition in service delivery

•   Networks are evolving to
    address bandwidth pressures
    and QoE expectations with         Gary Southwell
    Content Aware Networking          CTO
                                      (978) 846 0154
                                      gsouthwell@btisystems.com
•   BTI is on the Forefront working   www.btisystem.com | info@btisystems.com
    with Major Operators world wide
    to Make OTTop a successful
    business model

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Proven Techniques For Turning Out Profits With Content Aware Networking

  • 1. Proven Techniques For Turning Out Profits Gary Southwell CTO BTI Systems
  • 2. Addressing the Content Explosion Driven by on-demand Video Online Content Availability Ubiquitous Device Access Content Transfer Requirements (MB) 7000 6000MB 6000 Bandwidth drivers 5000 - Content duration 4000 - Resolution 3000 Video will account for 90% of network traffic by 2012 2000 1500MB Cisco Visual Networking Index Forecast 1000 3MB 38MB 0 MP3 Youtube 3 minute iTunes feature- HD Movie (Netflix) video length movie
  • 3. Content Delivery Environment Broadcasters Studios Others Content Owners Content Aggregators Content Delivery Content Subscribers
  • 4. OTT Impact on Network Operators 4 Network Utilization  Rapidly growing Internet  Increased utilization of owned peering utilization charge service delivery network Subscriber QoE  Frequent need to upgrade  Frequent need to upgrade connection size Routing and transport infrastructure  Poor quality, lower resolution, extended download time for OTT content  “Slow connection” for Internet and other services Content Request Internet request Content Served At or near network/connection utilization Peering POP CO Subscriber Pt Transit Core/Aggregation Access Company Confidential. Distribution of this document is not permitted without written authorization.
  • 5. OTT Growth – Impact on Subscriber Experience Users love the “a la carte” content But beware the “Pinwheel of pain !” And low resolution on the 50” HDTV
  • 6. OTT Growth Drivers – Consumer ease of Access Strengths: - Highly promoted services - Content variety - More current popular content - More screen options - Simple to access & play - Ease of access killed Blockbuster Today’s Challenges: - Time to start-to-play can vary - can take several minutes -Large screen quality can suffer -Blotchy – fuzzy – freezes- jumps - Best efforts delivery – QoE varies
  • 7. OTT Growth Drivers – Highly Desirable Services Premium Content Available + Games & Gaming + Social Networking + App Store content + Ads…
  • 8. Problem Statement • High speed internet is the delivery technology for all consumer services – Consumers are moving to a-la-carte consumption – Wireline and wireless • Video is leading the growth, but gaming, music, CE updates also increasing load • Networks are designed for shared use – Busy hour sizing – constant upgrades &/or overbuilding the network for no new Revenue $ – Typical Access to Core ratio is 100+:1 – Access providers are not making large profits on today’s Broadband A New Approach is needed to Augment Broadband services that improves service and reduces cost
  • 9. Foundation Service and Building Blocks Approach • High Speed Internet service – HSI Needs to be cost-competitive to offer • HSI Needs to be as good as or better than the competition – Can’t violate Net Neutrality “Rules” • Don’t degrade base service if you offer new services. • Gray Area: If you offer a premium service must allow others to be offered over your infrastructure – Yet Must Provide a path for value add services • To Content Providers • To Subscribers • To advertisers / 3rd parties • Charge for value – Direct or indirect methods
  • 10. Content Aware Networking • Content requests are repetitive in a given served area – many requests are made for the same content • Identify the repetitive content at the network edge, cache it and serve it locally Leverage the • Significantly reduce the bandwidth “80:20” rule impact • Significantly improve the user experience by avoiding network congestion
  • 11. What is a Network Aware Transparent Cache ? • Policy based Solution – that looks at every packet for cacheable content – Caches only desired popular content for local play-out • Addresses all cacheable content – Internet video, music, games – Graphical Images BTI’s solution example is – Software updates branded WideCastTM – All large objects • Operationally simple to operate – Automatically updates content – Automatically responds to shifting user trends – No active management of content – No need to negotiate with content owners – A dramatic alternative to the Labor intensive CDN – With up to 10x the top and bottom line impact
  • 12. Network Aware Cache Location Options Equipment upgrade Savings Peering Savings Backhaul Savings Origin Internet Remote Transit Content COs COs Servers POP Placement Remote CO Placement
  • 13. Solution Value Summary Content Aware Networking provides a WIN|WIN Internet Access savings Network Utilization Savings  Peering savings [MB/month] Service delivery network OTT  Peering connection savings content bandwidth reductions Network Infrastructure savings Improved Subscriber Quality of Experience Content Request Internet request Content Served >25% peak bandwidth savings realized SLOWER GROWTH GOING FORWARD Peering POP CO Subscriber Pt Transit Core/Aggregation Access
  • 14. Real World Results Results • 20-40% peak bandwidth savings (Internet sourced vs. subscriber delivered) – Defers network capacity upgrades (aggregation/middle mile, and core) • 60% reduction in the Bandwidth growth curve slope – Proven real world savings Bandwidth savings Bandwidth Growth reduced
  • 15. Value Beyond Costs savings: Improved QoE & Data Before: Slow play out – waiting 10 fold faster buffering and downloads Quick buffer fills – no waiting 7x improved screen resolution Web Site Visitors (K) Bytes played out High value information: 1) youtube.com 397 2,533,534,344 - Top URLs (sites visited) 2) apple.com 1512 2,340,070,164 3) mcafee.com 269 2,094,633,015 Hour, day, month… 4) netflix.net 3250 1,715,060,664 - Top applications 5) symantec.com 1258 1,663,329,081 Web, P2P … 6) pandora.com 398 541,532,590 7) farmville.com 2772 352,416,430 - Heaviest users 8) hulu.com 609 310,521,020 9) photobucket.com 859 301,090,103 10) xbox.com 582 262,658,449
  • 16. Opens up possibility for Premium Services • Same Content Intelligence can be applied to identify Users who have signed up for a Tiered Service • Accelerates and locally delivers their content • Provides a Measureable SLA • Can fit within the Special services loop-hole in Net Neutrality Origin Internet Remote Transit Content COs COs Servers Premium Tiered Content Delivery Service Subscriber POP Placement Remote CO Placement
  • 17. Introduction to BTI Systems  Addressing the growing needs of broadband telecommunications with simplified solutions that deliver customer value, operational savings, and scalable capacity with high availability  Portfolio Offering Solutions Service-Centric Management Content Aware Networking Content Aware Wireless networks Backhaul Packet Optical Carrier Ethernet Networking Access  Certifications Ethernet Services Packet Optical Delivery Infrastructure  Customers – 250+ customers: Service Provider, Enterprise, Government,  Corporate Information Utility, Research & Education • Development facilities: Ottawa, Boston, Belfast, Shanghai
  • 18. Summary • Service demands are driving a transition in service delivery • Networks are evolving to address bandwidth pressures and QoE expectations with Gary Southwell Content Aware Networking CTO (978) 846 0154 gsouthwell@btisystems.com • BTI is on the Forefront working www.btisystem.com | info@btisystems.com with Major Operators world wide to Make OTTop a successful business model