Proprietary and Confidential to Oversi Engines for The New Internet Caching – Bucking the Trend.

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Proprietary and Confidential to Oversi Engines for The New Internet Caching – Bucking the Trend

Transcript of Proprietary and Confidential to Oversi Engines for The New Internet Caching – Bucking the Trend.

Page 1: Proprietary and Confidential to Oversi Engines for The New Internet Caching – Bucking the Trend.

Proprietary and Confidential to Oversi

Engines for The New Internet

Caching – Bucking the Trend

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Agenda

About Oversi

Market Trends

Bandwidth Challenge

Caching Solution

Summary & Questions

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About Oversi

Solution provider for ISPs

Technology leader in caching solutions for Internet Video, P2P &

other media applications

Field operation since 2004 50 employees

Investors Carmel Ventures, Cisco®:

Global deployments & channels base EMEA, Americas, LATAM

Global distribution partners

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Agenda

About Oversi

Market Trends

Bandwidth Challenge

Caching Solution

Summary & Questions

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Impact of Financial Downturn – Operators

12/08

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“Stay-at-Home Economy”

“With less money to spend, consumers will undoubtedly

be spending more time at home” Nielsen 2009 Industry Outlook

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Just the Beginning….

Traffic

(PB/month)

Source: Cisco

Web

Internet

video

- Web, E-mail, data- Internet Video & P2P to PC / TV

In 3 years, users will source most of their video content from the Internet and in HDIn 3 years, users will source most of their video content from the Internet and in HD

2006 2009 2012

0

10,000

20,000

Today

100

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Impact of Financial Downturn

“Telecom can't escape the fallout of the credit crunch… there is growing evidence that the financial crisis is going to depress the debt-heavy telecom industry”Spencer E. Ante, telecomasia.net – October 2008

"It will even create the first real opportunity to either gain or lose significant market share that we've had in tech in the last 20 years," ‘Surviving a Tech Market Nuclear Winter: A Planner's Handbook to Tech Success in Today's Challenging Financial Times’, Industry Analyst and Consultant Tom Nolle, President of CIMI Corporation, November 2008

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QoE Becomes a Major Target for ISPs

P2P with no limits

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Agenda

About Oversi

Market Trends

Bandwidth Challenge

Caching Solution

Summary & Questions

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Operators' broadband

infrastructure

Internet OTT Video Challenge

Hulu - “Watch your favorites anytime, for free”

ABC - full seasons online, selected shows in HD

Network Bottleneck

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Gridlock on ISPs’ Networks

Service Providers will need to expand network capacity x

1000 to support the Internet video explosion1000

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New Solutions Required

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The Need

1. Reduce costs & defer investments

Defer Opex & Capex investments

Squeezing more from existing infrastructure

2. Build brand equity and improve

customer experience, indirectly

reducing acquisition and retention

costs

THE PARADOX – How to achieve cost

reduction without compromising QoE?

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Agenda

About Oversi

Market Trends

Bandwidth Challenge

Caching Solution

Summary & Questions

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Operators’ Dilemma

Improve QoE

Vs.

Reduce Capex/Opex Interments

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2009 - Operators Re-discover Caching

Reduce bandwidth costs

Deliver MORE bandwidth over EXISTING infrastructure

Improve Users’ QoE

Reduce Access network pressure

Because Caching:

Net Neutrality clear

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The Network Limitation

Core

Metro

Access

NETWORK

Interconnect

Over The TopHD Content Providers

Missing bandwidth Missing bandwidth

Available network bandwidth

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The Solution: Generating the Bandwidth from Internal Sources

Core

Metro

Access

NETWORK

Interconnect

Clients

Over The TopHD Content Providers

Missing bandwidth Missing bandwidth

Available bandwidth

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The Solution: Network Caching

Core

Metro

Access

NETWORK

Interconnect

Clients

Over The TopHD Content Providers

Missing bandwidth Missing bandwidth

Available bandwidth

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The Solution: Network Caching

Core

Metro

Access

Interconnect

Over The TopHD Content Providers

Cache CNTRL

Users’

QoE

Network

status

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Growth in Caching Market

In the current financial downturn, caching forecast to be one of

the hottest segments in networking in 2009

Expected growth - from more than $100 million in 2008 to $1.5

billion in 2012

Source: 3rd party market analysis

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Relieves Network Load / Improves QoE Cache delivers more

bandwidth to end-users over existing network resources

Cache guarantees QoE

Benefits:• Saves on

international/interconnect bandwidth

• Clears network congestion• Increases user satisfaction• Reduces call center support

calls• Reduces churn, increases

user base

OTT/P2P

OtherOTT/P2POther

VoIP

Cache

OTTredirection

Cache delivers

requested files

Increase in demand for

OTT/P2P is met from Cache

Users demand better QoE

Out of band technology

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Relates users’ experience to their broadband package

Migration of packages enabled by cache acceleration

Can match cache service to special premium services (FiOS, DOCSIS3)

Supports OTT HD (not possible without cache)

Benefits:

Small % of migration to higher BB packages= $$$

Service provider can offer different bundles e.g. assured QoE for HD

Better QoE = Increased ARPU

Service Level ARPU

$$$

$$

$

OTT

Other

OverCache

Net Neutrality clear √

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The ARPU Business Case of Caching

BB Package Price % of users

BB Package Price % of users

2Mbps $ 25 45% 2Mbps $ 25 20%5Mbps $ 45 50% 5Mbps $ 45 60%15Mbps $ 65 5% 15Mbps $ 65 20%

ARPU = $ 37 ARPU =

$ 45

Customer Value:

Operator Value: $ 8 per user per month

Value for 1 million users $ 96,000,000 per year

No cache With cache

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Agenda

About Oversi

Market Trends

Bandwidth Challenge

Caching Solution

Summary & Questions

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Summary

1. Reduces Costs & Defers Capex/Opex investments

2. Improves end-users’ QoE, driving brand & market share

3. Increases operators ARPU

Caching is the operators’ choice for the downturn economy

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Questions ?

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www.oversi.comEitan Efron, VP BD

[email protected]

Thank you for listening

Energize Your Network