Proven Techniques For Turning Out Profits

Gary Southwell

CTO BTI Systems

Addressing the Content Explosion Driven by on-demand Video

0

1000

2000

3000

4000

5000

6000

7000

MP3 Youtube 3 minute video

iTunes feature-length movie

HD Movie (Netflix)

3MB 38MB

1500MB

6000MB

Content Transfer Requirements (MB)

Online Content Availability

Ubiquitous Device Access

Video will account for 90%

of network traffic by 2012Cisco Visual Networking Index Forecast

Bandwidth drivers

- Content duration

- Resolution

Content Delivery Environment

Content Owners

Content Aggregators

Content Delivery

Content Subscribers

Broadcasters Studios Others

4

Company Confidential. Distribution of this document

is not permitted without written authorization.

OTT Impact on Network Operators

Internet

request

AccessCore/AggregationTransit

Peering

Pt

POP CO Subscriber

Rapidly growing Internet peering utilization charge Frequent need to upgrade connection size

Network Utilization Increased utilization of owned service delivery network Frequent need to upgrade Routing and transport infrastructure

Poor quality, lower resolution, extended download time for OTT content “Slow connection” for Internet and other services

Subscriber QoE

At or near network/connection utilization

Content Request

Content Served

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

• 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

Foundation Service and Building Blocks Approach

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

• Significantly reduce the bandwidth impact

• Significantly improve the user experience by avoiding network congestion

Leverage the

“80:20” rule

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

– Software updates

– 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

BTI’s solution example is

branded WideCastTM

Network Aware Cache Location Options

POP Placement

Internet Remote COs

Remote CO Placement

PeeringSavings Backhaul

Savings

Equipment upgradeSavings

TransitCOs

OriginContentServers

Solution Value Summary

Internet

request

AccessCore/AggregationTransit

Peering

Pt

POP CO Subscriber

>25% peak bandwidth savings realizedSLOWER GROWTH GOING FORWARD

Content Request

Content Served

Internet Access savings Peering savings [MB/month] Peering connection savings

Network Utilization SavingsService delivery network OTT content bandwidth reductionsNetwork Infrastructure savings

Improved Subscriber Quality of Experience

Content Aware Networking provides a WIN|WIN

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

Web Site Visitors (K) Bytes played out

1) youtube.com 397 2,533,534,344

2) apple.com 1512 2,340,070,164

3) mcafee.com 269 2,094,633,015

4) netflix.net 3250 1,715,060,664

5) symantec.com 1258 1,663,329,081

6) pandora.com 398 541,532,590

7) farmville.com 2772 352,416,430

8) hulu.com 609 310,521,020

9) photobucket.com 859 301,090,103

10) xbox.com 582 262,658,449

High value information:- Top URLs (sites visited)

Hour, day, month…

- Top applicationsWeb, P2P …

- Heaviest users

Before: Slow play out – waiting 10 fold faster buffering and downloads

Quick buffer fills – no waiting

7x improved screen resolution

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

POP Placement

Internet Remote COs

Remote CO Placement

TransitCOs

OriginContentServers

Premium Content Delivery

Tiered Service Subscriber

Introduction to BTI Systems

Customers– 250+ customers: Service Provider, Enterprise, Government,

Utility, Research & Education

Addressing the growing needs of broadband telecommunications with

simplified solutions that deliver customer value, operational savings,

and scalable capacity with high availability

Ethernet Services

Delivery

Content Aware

networks

Packet Optical

Infrastructure

Wireless

Backhaul

Carrier Ethernet

Access

Service-Centric Management

Content Aware Networking

Packet Optical

Networking

Portfolio OfferingSolutions

Certifications

Corporate Information• 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

Content Aware Networking

• BTI is on the Forefront working

with Major Operators world wide

to Make OTTop a successful

business model

Gary Southwell

CTO

(978) 846 0154

gsouthwell@btisystems.com

www.btisystem.com | info@btisystems.com