The document discusses the evolution of internet traffic, particularly video traffic, and the increasing demand for bandwidth and content delivery networks (CDNs) at the network edge. It outlines Telefónica's approach to deploying CDN technology, emphasizing the shift towards software-defined networking and edge computing to meet customer demands and improve service delivery. The document also highlights the challenges of collaborating with large content providers and the necessity for innovative solutions in content distribution and security.

1. Razón social
00.00.2015
Product Innovation
Customer Centric Networks
September 2017
Deploying CDN at the Edge of the
Network
Propriety and confidential

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Propriety and ConfidentialProduct Innovation . Customer Centric Networks
Agenda
• What the future might look like?
• TEF experience delivering CDN
@ the edge
• Understanding the challenges
associated with working with
large content providers

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What the
future might
look like?

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Propriety and ConfidentialProduct Innovation . Customer Centric Networks
Evolution of traffic

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Propriety and ConfidentialProduct Innovation . Customer Centric Networks
Evolution of Video traffic (Global)
Peak Internet traffic will grow at a compound annual growth rate of 35% from 2016 to 2021, compared to 26% for average Internet
traffic.
+20pp
CDNized content will grow to 70% globally

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Evolution of Video traffic (Europe)
Peak Internet traffic will grow at a compound annual growth rate of 34% from 2016 to 2021, compared to 24% for average Internet
traffic.
+20pp
CDNized content will grow to 84% in Western Europe

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Network Capacity Deployment is not sustainable
Our customers are demanding more and more traffic
0
20
40
60
80
2013 2014 2015 2016
Average traffic per fixed access line at Telefónica España
(GB/month)1
1- Source: Telefónica WTAC Global Traffic Report
2- Source: Telefónica GCTO
This situation will accelerate…
5G
A change is needed in how…
Pushing Service Operators to adopt new technologies
Cooper GPON XGSPON NGPON2
x1,9
50% YoY2
Build
Networks
Deploy
Services
Deliver
Content
Industry is moving in that direction…
Video Unicast
OTT
2G 3G 4G 5G

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TEF experience
delivering CDN
@ the edge

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Propriety and ConfidentialProduct Innovation . Customer Centric Networks
Explaining OnLife Networks
Connectivity Softwarisation Edge Computing
Proprietary appliance OCP equipment
• Creating more controllable and programmable
connectivity
• Sharing hardware resources, less obsolesces
• Technology upgrade is quicker, easier.
• Low latency services unlocked
• Serverless off premise services now possible
• Reduction in transfer and transport traffic
OnLife Networks transforms Telefonica central office
infrastructure into software defined data centres using
virtualization and SDN (CORD)
Programmable networks improve the customer
experience and provide a programmable platform at
the edge, for 3rd party services and content

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Why ? the EDGE
Personalization
5G ready
True Fusion
Edge experience
Any cloud service deployed at the edge can be
customized granularly for location, enterprise…
Many 5G services require low / guaranteed latency,
which can only be achieved deplopying infrastructure at
the edge
We can deploy a unique network for cellular and fixed,
enabling a coherent and integrated service experience.
Edge capabilities (Latency, compute, storage,
Bandwidth) will improve customer experience and will
enable TEF to extract value from OTT services.
OnLife Platform aims to be an Open Platform for
Network Services enabling TEF to capture new revenue
streams that are out of reach today
Truly Open
Developing services and architecture for the edge of the network

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Central Office (R-CORD): OCP+Open Source SW
Madrid Peñuelas
Open Rack 2.0
Whiteboxes Switches in
CLOS Fabric
OCP GPON vOLT 48 Optical
ports
-48 DC Converter
OCP Servers (2x28 Cores)
JBOD 3x3x2 TB
Management
Switch

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Voice
Data
Vídeo
vCDN @ EDGE

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…TV Content is just the beginning
+80% Traffic
OTT
We are targeting today only the Telefonica OTT TV content (Unicast),
but it is only the tip of the iceberg
1,7 Tbps
Unicast

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Understanding
the challenges
associated with
working with large
content providers

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Access
Aggre
gation
Core Peering
Access
Access
Aggre
gation
Aggre
gation
Aggre
gation
X.000.000 X00 X0 2-4>10
CDNs Today…

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Propriety and ConfidentialProduct Innovation . Customer Centric Networks
Access
Aggre
gation
Core Peering
Access
Access
Aggre
gation
Aggre
gation
Aggre
gation
X.000.000 X00 X0 2-4>10
CDNs Zoo tomorrow…

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Is there room for Neutral CDN @ Edge?
Source: https://qwilt.com/products/edge-cloud-architecture/
Massively Distributed Single Integration – Many ISPs

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Challenges deploying 3rd Party CDNs
Security
Smarter Edge
Softwarization
Definition of boundaries between Cloud platforms
and CDN solutions. Security is a big concern!
Edge Computing + AI/ML is required to provide
intelligence to CDNs and optimize resource
consumption
SW based solutions are needed for Automation and to
provide required elasticity to absorb peaks efficiently
CDN providers wants to deploy solutions once for
multiple Service Providers
MultiTenancy