Scott Puopolo, VP, Cisco Internet Business Solutions, overviews CDN trends and the benefits of CDN federations for service providers.

1. TM
Next-Generation Content Delivery
Services
Case for a CDN Federations
www.cisco.com/go/ibsg/serviceprovider
Scott Puopolo, Vice President and Global Head
Cisco Internet Business Solutions Group (IBSG)
26 October 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 1

2. Agenda
 Market dynamics
 Move to next-generation content services
 CDN federation and feedback from initial trials
 Conclusions
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 2

3. Market Dynamics
Consumer Broadcasters CE/Over The Top Service Provider
Behavior and Media
Video = 91% of consumer New distribution platform & Multi-screen offering
IP traffic by 2014 interactive content –
Sky Sport TV on iPad /
Device proliferation becoming table stakes
RTL on iPhone & iPad
20%
New business models –
Netflix = 20% of US
Hulu 2009 revenue: $100M
downstream internet
1st half 2010 revenue: $100M Building application &
traffic in peak times
content eco-systems
Traffic Explosion
Online Video Snacking
11.4 Hour /month New Streaming
HbbTV subscription services 23 GB/Month per sub online
video
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 3

4. Move to Next-Generation
Content Services
Content Delivery
 SPs are deploying their own content delivery services,
with two objectives:
– To enable media and content providers to offer their customers a better
Quality of Experience
– To reduce network traffic costs generated by over-the-top (OTT) video
 This approach offers SPs advantages over reselling
existing CDN services:
– Enables different business models and differentiated services
– Links to other network and QoS services that the SP offers
– Allows SPs to use same CDN infrastructure for their own video offers
– Provides a platform to sell additional value added services to media and
content providers
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 4

5. Move to Next-Generation
Content Services
Platform for Additional Value-Added Content Services
ExampleServices
Publish and manage Metadata creation, encoding on multiple formats, entitlement
content
Multiscreen delivery Support for multiple players, multiple formats (iPad, Android, PC, TV,
Connected TV, game consoles)
Distribution control Content time-windowing, geographic filtering, URLsigning for
authorization, localization
CDN multicasting Live events and VODcontent andpre-positioning
Video QoS Tiered services with different quality: “best effort,” “premium”, etc,
Adaptive bit rate • Support forproprietary implementation + emerging standards
• Reporting on final delivery for analytics, accounting
Mobile video Optimization; e.g. W-Fi handover, video encoding adaptation, trigger
optimization video encoding quality
Ad insertion • Ads servers, advertising ingestion
• Usage and data collect to enable precision advertising
Reporting and Reconciliation of multiple logs, aggregate and process data, provide
analytics multi-dimension visibility
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 5

6. Move to Next-Generation
Content Services
Videoscape Architecture as an Illustration
Videoscape Enabled Services
Content MGT Live / Linear On-Demand Cloud DVR
TV Schedules
Unified CMS
Cross Screen Companion … …
Entitlement
Home
Unmanaged VOD Publisher Content Distribution STB
Cable,
Edge xDSL,
Routing & Connected
FTTH TV, PC &
Media Acquisition Service / Proximity Routing Caching
Tier Tablet
IP Video Soft Client
Managed VOD Compression CDN Tier CDN Tier
(Data Center) (Core / Aggr
ABR Routing)
OTA/Sat/Network Encoders Virtual On the Go
Linear TV
Origin
Services Notebook &
Encapsulator Tablet
3G/4G
& WiFi Soft Client
DRM CDS Content
Acquisition CDS Cache CDS
Packager Smartphone/
Streamer
Tablet
Mobile Content Mobile Soft Client
Unknown Adaptation Engine Video GW
Advanced Reporting Recommen Social
Advertising & Analytics dations Networks
Conductor
Session Connection Device Client
Alert Manager
Manager Manager Manager Frameworks
End to End System Management
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 6

7. CDN Federation: What Is It?
Issue
 Media and content providers want better content delivery services without
being limited by the footprint of a particular SP
Solution
 Open multi-footprint content delivery capability built from resources
owned and operated by autonomous members
Potential Benefits
 Content providers can deliver better online video/TV services with better
analytics, reporting, and control on the consumer experience
 Federation members can sell Internet-wide delivery
 Federation members can extend their own video service offerings
 Extends SP differentiators (quality, scale) across footprints
 Interconnect model complements IP transit and peering
 Creates platform for value added services
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 7

8. CDN Federation Deployment Models
Bilateral Agreements CDN Exchange
ONnet ONnet
Consumer Consumer
Content Prime Prime
Content
Provider CDN Provider CDN
CDN
Sub Exchange
CDN Sub
CDN
Sub Sub
CDN CDN
ONnet
Consumer ONnet
ONnet ONnet Consumer
Consumer Consumer
Enables billing, routing
Hybrid models
 Bilateral agreements between “Tier1” players, CDN Exchange used with “Tier 2” players
 Multiple CDN federations: e.g. International players could build a CDN Federation
between their own affiliates
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 8

9. CDN Federation Pilot
 Gathered an informal group of customers to collaborate
 Gives participants practical experience through a labs approach
 Will accelerate CDN federation initiatives
 Will nurture and accelerate standardization (IETF, ATIS, etc.)
– Strong involvement in the IETF CDNI WG
– Collaboration established between IETF CDNI WG and other
bodies (ATIS, ETSI), aiming at alignment
 Includes a business track and a technical/lab track
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 9

10. CDN Federation Pilot
CDN Labs Interconnection Meshing
Delivery Content Provider CDN Interconnect
HTTP static & HTTP Progressive
Source: Cisco IBSG,Adaptive Streaming (HLS)
Apple 2011
Microsoft Smooth Streaming (Silverlight)
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 10

11. Phase 1: What Did We Learn?
CDN federations will result in significant growth of overall
content delivery market
1. Enable each participant to have a mix of Prime/Sub roles
2. Require that the Exchange be a neutral party in the CDN Federation
3. Enable multiple CDN Federations cases: international distribution,
country/domestic distribution, Fixed/Mobile distribution…
4. Need to be designed with openness in mind to support various SP CDN
architectures
5. Become platform to deliver added value services by a third party provider,
or by the CDN federation itself
6. Deliver differentiated services complementing existing CDNs
7. Offers robust alternative to proprietary CDNs
8. Will stimulate innovative, video-rich applications
9. Increases revenue for federation participants
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 11

12. Global CDN Market forecast (M$)
A Market of ~6B$ by 2015 with a A Market of ~12B$ by 2015, with a
“status-quo” CDN approach market push from SP “OnNet” CDNs
CAGR(2010-2015) CAGR(2010-2015)
17% 46%
47% 47%
46% 46%
11% 11%
26% 53%
• CDN marketkeeps its structure as today • SP’s build OnNet CDNs delivering better
quality, more video is consumed
• No major disruption on the way CDNs
handle video or work with content providers • Content Providers migrate their premium
content to benefit from this guaranteed quality
• Some content providers prefer DIY CDNs
to better control their content quality. More • SPs drive paid peering agenda: DIY CDNs
than 50% of the Internet video traffic is not become less attractive for Content Providers
going over commercial CDNs
• SP CDN Federations scale Onnet
Source: Frost & Sullivan, Akamai, Limelight, Cisco VNI, IBSG analysis
*CDN VAS: Storage, Transcoding, Security, Ad Insertion, Analytics, Consulting... differentiators
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 12

13. Phase 1: What Did We Learn?
Moving from concepts to trial
Laboratory-based CDN federation validated a number of
technical concepts:
1. Support for multiple streaming protocols
− (static and progressive HTTP, Apple adaptive streaming, and
smooth streaming Microsoft Silverlight)
2. Testing of various CDN topologies
3. Dynamic content acquisition across CDNs
4. Purging of content across CDNs for security purpose
5. Exchange of logging and reporting information across CDNs
6. Prototype CDN Exchange performing log mediation
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 13

14. Conclusions
 SPs have opportunity to deliver more content services to
media and broadcasters, as more customers demand
premium video content and have higher expectations
 CDN federations are gaining momentum as a way for SPs
to generate revenues and lower costs
 Several innovative SPs are working with Cisco to validate
key concepts and fundamentals required to make CDN
federations a reality
 Open CDN federations will become a viable approach to
help SPs contribute to the content delivery value chain
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 14

15. • www.cisco.com/go/ibsg/serviceprovider