Amdocs_Layer 123_ vCDN Business Case_Final
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Transcript of Amdocs_Layer 123_ vCDN Business Case_Final
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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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2Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs
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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Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs3
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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4Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs
Broadcast is dead
“Customers want to watch TV on their terms”
“Broadcast—one to many is efficient”
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Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs5
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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6Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs
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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7Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs
4K TV
“4K/8K/HDR unicast can kill the network”
“Customers love big screen TV”
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8Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs
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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9Information Security Level 1 – Confidential
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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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10Information Security Level 1 – Confidential
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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
(P
B)
Data consumption
Annual multi-cast Other unicast video
Other internet data Total data consumption
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11Information Security Level 1 – Confidential
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59%Reduction in operational costs
16M Tier-1 CSP subscribers
US $2.1BNet benefit from virtualization
A positive virtualization business case
The business case looks at transformation of the video content delivery network over 5 years
Virtualization drivesUS $1.8M savingsReduced delivery cost 31% per subscriber
vSTB/Cloud DVR cut costs by 57% New upsell revenue US $329M
Virtual probes 35% cost reductionProbes enable real-time assurance and improve QoE
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12Information Security Level 1 – Confidential
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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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13Information Security Level 1 – Confidential
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Virtualization impacts key business metrics improving cash-flow and customer experience
US $185Legacy video operations per subscriber
Improved
customer experience
US $75NFV/SDN automated video operations per subscriber
The business impacts of virtualization
77% reduction in O2CFaster service provisioning and activationthrough 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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14Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs
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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15Information Security Level 1 – Confidential
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© 2016 – Proprietary and Confidential Information of Amdocs
Download the vCDN Business Case White Paper at:
Want to learn more?
www.nfvreadyoss.com/
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Thank You
Justin Paul
Head of NFV and OSS Marketing, Amdocs
T: +44 (0) 777 237 9019