Making 4K Video a Reality

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The rollout of advanced broadband technologies will usher in 1Gbps bandwidth to the home, enabling multi-screen 4K/UHD video. The internet traffic growth will challenge traditional content delivery models and require big changes for CDNs, carriers, and content providers. Learn about next-generation edge delivery and what it means to subscriber growth and time spent.

Technology

Making 4K Multiscreen Video a Reality
Keao Caindec, Chief Commercial Officer
kcaindec@365datacenters.com, 415-307-7324, Twitter: @kcaindec

365 Data Centers Confidential 7
15Mbps
Stream 3 Mbps

9
How Real is 4K UHDTV?
Mainstream
63%
in 7 years
Source: 4K UHDTV Adoption, Intelsat

10
Concerns: Economics Is the Primary Issue
ROI and the Extra Cost of Transmission
Source: 4K UHDTV Adoption, Intelsat

The 365 Data Centers National Sales and Operations Summit 11
THE INTERNET
WON’T SCALE
FOR VIDEO
LONG-HAUL
NETWORKS
PUBLIC
PEERING
CONTENT
DISTRIBUTION

12
Long Haul Circuits and Transit Are Too Expensive
Transmission Costs Increase 5x to Support 15Mpbs Streams
Atlanta Data Center
Tampa Market
Multiple 100 G (IP Transit or Backhaul)
100 G = $45,000 MRC each
CDN
Provider
Carrier
Carrier
Upgraded
to
DOCSIS 3.1
to Offer
1Gbps
Internet

13
Bandwidth to the Home Will Increase 40x
As Telcos and MSOs Aggressively Roll Out 1Gbps to the Home
U.S. spectrum auction raises more
than $30 billion
Bright House to Build
Ultrafast Broadband
Network March 12, 2014
Google Fiber hiring for key positions in
Nashville
AT&T Eyes 100 U.S. Cities and
Municipalities for its Ultra-Fast Fiber
Network
HBO to Launch
Stand-Alone
Streaming ServiceApril 21, 2014
November 21, 2014
May 29, 2014
October 15, 2014
The percentage of service providers planning
to offer an average bandwidth speed of 1
Gigabit (1G) to residential subscribers grows
from 15% in 2015 to 40% by 2017.
– Jeff Heynen, Principal Analyst, Infonetics Research
March 2, 2015

14
Public Peering Infrastructure Is Inadequate
Limited to 1Gbps and Eight Major Peering Markets

15
Distributing Content from Tier 1 Markets Won’t Scale
CDNs Will Need to Expand to Major MSAs - “The Edge”

16
Why Moving Content to the Edge Makes Sense
Case Study: Streaming Media Provider Moved Content to the Edge
Equinix Atlanta AT2
365 Tampa TA1
CDN
Provider
100 G

17
Why Moving Content to the Edge Makes Sense
Significantly Lowered Operating Cost and Increased Revenue 3x
365 Tampa TA1
3-Year TCO
$1M CapEx
Avoided $7.5M OpEx for Backhaul
Limitless Scale through Local Peering
Traffic grew from 80 Gbps to 240 Gbps in 4 months
Multiple 100 G X-connects
CDN
Provider

18
Making 4K Multiscreen Video a Reality
Cautions and Predictions
• Streaming content from major peering cities won’t scale
• Content will move closer to the edge
− Proliferation of devices + DOCSIS 3.1 will force content to move even closer to
subscribers and more markets
− Peering will proliferate in tier 2 markets
• 4K will be adopted faster than we think
• 4K won’t matter in the short term because DOCSIS 3.1 rollouts will usher
in 40x growth across all devices anyway

Emeryville
San Jose
Phoenix
Seattle
St. Louis
Chicago
Detroit
Cleveland
Indianapolis
Nashville
Tampa
Reston
Pittsburgh
Buffalo
Philadelphia
New York
Emeryville
Headquarters
(Backup CSC/NOC)
Customer Service/
Network Operations Center
365 Data Centers Local Presence
Nationwide footprint reaching 82M people & 500+k businesses
• 16 locations in 16 US markets
• 60+ carriers and local access providers
• 100% uptime track record
• 10 out of the top 10 carriers
• 8 out of the top 10 cable providers
• Compliance across 100% of facilities
Tampa
19

Our Ecosystem & Customers
Building Their Businesses Inside Ours
20
60+ Carriers Content Businesses

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Making 4K Video a Reality

1. Making 4K Multiscreen Video a Reality Keao Caindec, Chief Commercial Officer kcaindec@365datacenters.com, 415-307-7324, Twitter: @kcaindec

2. 365 Data Centers Confidential 2 4K/UHD

3. 365 Data Centers Confidential 3 4K/UHD

4. 365 Data Centers Confidential 4

5. 365 Data Centers Confidential 5

6. 365 Data Centers Confidential 6

7. 365 Data Centers Confidential 7 15Mbps Stream 3 Mbps

8. 8 4K Means Bigger TVs

9. 9 How Real is 4K UHDTV? Mainstream 63% in 7 years Source: 4K UHDTV Adoption, Intelsat

10. 10 Concerns: Economics Is the Primary Issue ROI and the Extra Cost of Transmission Source: 4K UHDTV Adoption, Intelsat

11. The 365 Data Centers National Sales and Operations Summit 11 THE INTERNET WON’T SCALE FOR VIDEO LONG-HAUL NETWORKS PUBLIC PEERING CONTENT DISTRIBUTION

12. 12 Long Haul Circuits and Transit Are Too Expensive Transmission Costs Increase 5x to Support 15Mpbs Streams Atlanta Data Center Tampa Market Multiple 100 G (IP Transit or Backhaul) 100 G = $45,000 MRC each CDN Provider Carrier Carrier Upgraded to DOCSIS 3.1 to Offer 1Gbps Internet

13. 13 Bandwidth to the Home Will Increase 40x As Telcos and MSOs Aggressively Roll Out 1Gbps to the Home U.S. spectrum auction raises more than $30 billion Bright House to Build Ultrafast Broadband Network March 12, 2014 Google Fiber hiring for key positions in Nashville AT&T Eyes 100 U.S. Cities and Municipalities for its Ultra-Fast Fiber Network HBO to Launch Stand-Alone Streaming ServiceApril 21, 2014 November 21, 2014 May 29, 2014 October 15, 2014 The percentage of service providers planning to offer an average bandwidth speed of 1 Gigabit (1G) to residential subscribers grows from 15% in 2015 to 40% by 2017. – Jeff Heynen, Principal Analyst, Infonetics Research March 2, 2015

14. 14 Public Peering Infrastructure Is Inadequate Limited to 1Gbps and Eight Major Peering Markets

15. 15 Distributing Content from Tier 1 Markets Won’t Scale CDNs Will Need to Expand to Major MSAs - “The Edge”

16. 16 Why Moving Content to the Edge Makes Sense Case Study: Streaming Media Provider Moved Content to the Edge Equinix Atlanta AT2 365 Tampa TA1 CDN Provider 100 G

17. 17 Why Moving Content to the Edge Makes Sense Significantly Lowered Operating Cost and Increased Revenue 3x 365 Tampa TA1 3-Year TCO $1M CapEx Avoided $7.5M OpEx for Backhaul Limitless Scale through Local Peering Traffic grew from 80 Gbps to 240 Gbps in 4 months Multiple 100 G X-connects CDN Provider

18. 18 Making 4K Multiscreen Video a Reality Cautions and Predictions • Streaming content from major peering cities won’t scale • Content will move closer to the edge − Proliferation of devices + DOCSIS 3.1 will force content to move even closer to subscribers and more markets − Peering will proliferate in tier 2 markets • 4K will be adopted faster than we think • 4K won’t matter in the short term because DOCSIS 3.1 rollouts will usher in 40x growth across all devices anyway

19. Emeryville San Jose Phoenix Seattle St. Louis Chicago Detroit Cleveland Indianapolis Nashville Tampa Reston Pittsburgh Buffalo Philadelphia New York Emeryville Headquarters (Backup CSC/NOC) Customer Service/ Network Operations Center 365 Data Centers Local Presence Nationwide footprint reaching 82M people & 500+k businesses • 16 locations in 16 US markets • 60+ carriers and local access providers • 100% uptime track record • 10 out of the top 10 carriers • 8 out of the top 10 cable providers • Compliance across 100% of facilities Tampa 19

20. Our Ecosystem & Customers Building Their Businesses Inside Ours 20 60+ Carriers Content Businesses

21. Making 4K Multiscreen Video a Reality Keao Caindec, Chief Commercial Officer kcaindec@365datacenters.com, 415-307-7324, Twitter: @kcaindec

Making 4K Video a Reality

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