What’s Next –For “Experience Providers”An Architectural Approach …
Bob McIntyre
CTO - Service Provider Business
Agenda
• Overview – “EP ” Strategy• Market Dynamics• Consumer Trends• Architectural Pillars• Use Case = VideoScape• How do we do it?
$$$ Roadmap …
“Table Stakes”
� IP NGN Network� Triple Play� Bundling� Application Velocity� Competition
History
Growth Opportunities
� Advanced Advertising
� Small Businesses� Wireless
Convergence� Home Networking
Today
“Videoscape”
� My Video”�High - Definition�Symmetrical�Self-provisioned
� Web Video� On Net/Off Net
1-3 Years
Customization of Video is Driving Architectural Change
Experience Delivery Replaces Service DeliveryExperience Delivery Replaces Service Delivery� Broadband speeds and streaming
technology improving
� Internet video increasing in quality
� Consumers have new viewing options
Intensified Competition Coming from all DirectionsIntensified Competition Coming from all Directions� More competition from traditional and
non-traditional sources
� Putting SP margins under severe pressure
� “Cord cutting” becoming a real option for the first time
Personalized Service ChoicesPersonalized Service Choices� Consumers want customizable services and
tailored user interfaces
� 2 billion apps downloaded from Apple, over 40 apps per iPhone/Touch
� Consumers want to watch what they want, when and where they want it
Exponential Growth in Video TrafficExponential Growth in Video Traffic� Video expected to be 90% of consumer
internet traffic by 2013
� Driven by the rapid Growth in HD and VoD Services
Video Ecosystems Realigned with IP and Broadband Networks
Intensified Competition Coming from all Directions
Intensified Competition Coming from all Directions
Personalized Service Choices
Personalized Service Choices
Exponential Growth in Video Traffic
Exponential Growth in Video Traffic
Experience Delivery Replaces Service
Delivery
Experience Delivery Replaces Service
Delivery
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 5
Market Dynamics
Increasing Devices
Video Everywhere
Increasing Services
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 10© 2011 Cisco Systems, Inc. All rights reserved
Consumer Video Trends� Massive Content Expansion
– 1000’s HD “channels” – TV and online
– Massive VOD Libraries (Comcast Xfinity, Netflix)
– 3D coming quickly (DirecTV, ESPN, Comcast)
� Premium Experiences– Increased consumption with HD
– Network assisted QoE
� Any Content to Any Screen– Common user experience across devices
– Format & device aware CDNs
� Open, Flexible, Personalized– Advanced advertising, playlists,
recommendations, social networking
© 2010 Cisco Systems, Inc. All rights reserved. 11
The Challenge & Opportunity Today
Experience Fragmentation
Diminishing SPNetwork Relevance
Evolving Legacy Infrastructure
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 12
Enables any content, any device, any locationfrom a single, open delivery platform.
Cisco Content Delivery System Vision
Content Delivery System
Traditional STB
IP STB
PC / PDA
Mobile
Broadcast TV
On-Demand TV
Games and
Music
Online Video
StartOver / StartOver / LookbackLookback
Internet VideoInternet VideoService/App Service/App AwarenessAwareness
Internet Video Internet Video (Flash, Move, (Flash, Move, WMT, HTTP)WMT, HTTP)
Personalized Personalized VideoVideo
Scalable Scalable National National
VoDVoD
33--Screen Screen DeliveryDelivery
Linear
On Demand
Time Shifted
Personalized
Ad Enabled
Cisco ConfidentialCisco IBSG © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group
� 33% of broadband consumers watch TV programs on the Internet
� Broadband consumers watch more than 4 hours of video on the Internet
� 11% connect their computer to the TV� Another 11% watch video on their mobile
phone� 23% of broadband consumers use their
gaming consoles to watch DVDs� 9% rent a movie online from their gaming
console
In an average month:
Source: Cisco IBSG Connected Life Market Watch, 2010
Consumers Are Aware of Their Many Choices in Video Entertainment
13
Cisco PublicCisco IBSG © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group 14
Our research shows everything from supplementation to replacement of multicast TV viewing
All TV Viewers(Broadband Users)
100%
Online TV as Primary TV
10%
ReplaceFull adoption of online TV replaces need for traditional TV
Online TV Viewers
53%
Online Video Viewers
68%
SubstituteIncrease in online TV usage takes some viewership away from traditional TV
Complement“(Online) contents create more interest, more buzz, and more awareness... drive more people to TV.” –NBC.com
Supplement“More television sets in the home, more channels and content to choose from, and using their DVRs more than ever.”–Nielsen
Percentage of Base
Effect on Traditional TV
Source: Cisco IBSG Connected Life Market Watch, 2010; The Nielson Company, 2010; NBC.com, 2010
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15© 2011 Cisco Systems, Inc. All rights reserved Confidential
B2CBusiness to Consumer
Capitalizing On The Two Sided Market
Differentiated User Experience, Service Velocity and Monetization
$$
Service Providers
TodayToday
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 16© 2011 Cisco Systems, Inc. All rights reserved Confidential
B2CBusiness to Consumer
$$
Service Providers
B2B2CBusiness to Business to Consumer
Capitalizing On The Two Sided Market
Leveraging Network and Data Assets as a Platform
Service Providers
Tomorrow Tomorrow
$$
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$$
$$
$$
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Leverage Network and Data AssetsLeverage Network and Data AssetsSP PlatformSP Platform
$$
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© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 17© 2011 Cisco Systems, Inc. All rights reserved Confidential
Examples of Two -sided MarketsIndustry Side 1 Side 2Platform examples
Source:Telco 2.0
Travel Agencies and Booking CompaniesTravel Agencies and Booking Companies
Consumers and Business UsersConsumers and Business Users
BuyersBuyers
WomenWomen
AdvertisersAdvertisers
CustomersCustomers
Gamblers (punters)Gamblers (punters)
ConsumersConsumers
Job-seekersJob-seekers
End User Console Owners
End User Console Owners
Application DevelopersApplication Developers
SellersSellers
MenMen
End Users SearchingEnd Users Searching
MerchantsMerchants
BoomakersBoomakers
ArtistsArtists
EmployersEmployers
Game DevelopersGame Developers
Operating SystemsOperating Systems
AuctionsAuctions
Dating AgenciesDating Agencies
Internet Search Engines
Internet Search Engines
Credit Card NetworksCredit Card Networks
GamblingGambling
Music/ Record LabelsMusic/ Record Labels
RecruitmentRecruitment
Video Game SystemsVideo Game Systems
Airline Global Distribution Systems
Airline Global Distribution Systems
Airlines – BA, Virgin, Lufthansa, Delta, JALAirlines – BA, Virgin, Lufthansa, Delta, JALGDS
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
Today’s Relationship…
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
Tomorrow’s Relationship…
© 2010 Cisco Systems, Inc. All rights reserved. 22Network Intelligence Ensures the Quality Experience Network Intelligence Ensures the Quality Experience Network Intelligence Ensures the Quality Experience
Client Connects with Cloud, But Quality of Experience Depends on Network
Client Connects with Cloud, But Quality of Experience Depends on Network
NetworkNetwork
Power of Cloud + Network + ClientsQuality of Experience Assurance: SP Network Advantage
Latency...Jitter...Artifacts…
CloudCloud ClientClient
© 2010 Cisco Systems, Inc. All rights reserved. 23
Cisco Videoscape ExperienceIntegrated & Consistent
Infinite Content Sources
Managed &Unmanaged
Networks
Managed &Unmanaged
Devices
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24
Cloud + Network + ClientCloud + Network + ClientQuality of ExperienceQuality of Experience
Introducing Videoscape: An Architectural Case Study…Real World!
Investment ProtectionExtended to Legacy InfrastructureInvestment Protection
Extended to Legacy Infrastructure
Videoscape
Integrated TV ExperiencesAcross Devices, Networks & Content Integrated TV ExperiencesAcross Devices, Networks & Content
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 25
Customer Examples
Onet TV Catch Up
Bell TV Online
Paramount Media StoreDisney Movies Online
AT&T U-verse Online Verizon FlexView
© 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 26
IP Infrastructure
VideoEnabler
Cloud/ManagedEnabler
MobileEnabler
Consumer/Business Experiences
Applications
Service Innovation
VideoServices
Cloud/ManagedServices
MobileServices
The Connected Life
IP NGN 2.0
SP Architectures: “The 4 Pillars ”
Managed Services Managed Services
WebEx/CollaborationWebEx/CollaborationCloud ServicesCloud Services
Unified Computing Unified Computing Content CachingContent Caching
VNVN--Link, VDC/SDR Link, VDC/SDR in Nexus/CRSin Nexus/CRS --11
Cloud/Managed:Cloud/Managed:Unified ServiceUnified Service
DeliveryDelivery
Video:Video:MedianetMedianet
CATV / IPTV / SATVCATV / IPTV / SATVCisco TelePresenceCisco TelePresence
Flip Video/UGCFlip Video/UGC
Targeted Advertising Targeted Advertising PersonalizationPersonalization
Video Monitoring,Video Monitoring,Visual Quality Visual Quality
Experience (VQE)Experience (VQE)
NGN InfrastructureNGN InfrastructureFocus: CostFocus: Cost --Optimized, Ethernet TransportOptimized, Ethernet Transport
Converged wireline and wireless aggregation network s being drivConverged wireline and wireless aggregation network s being driv en by Mobile Internet growthen by Mobile Internet growth
HighHigh --value packet processing value packet processing →→ general purpose processorsgeneral purpose processors
Mobile VideoMobile VideoLocationLocation --Based Based Services VPN Services VPN
ClientClient
3G/4G 3G/4G GatewaysGateways
IP RANIP RAN
Mobility:Mobility:Mobile InternetMobile Internet
Content DistributionContent Distribution
Media AcquisitionMedia Acquisition
On the GoOn the Go
Videoscape Videoscape HomeHome
Smartphone/ Tablet
Soft Client
Smartphone/ Tablet
Soft Client
Notebook & Tablet
Soft Client
Notebook & Tablet
Soft Client
Media GW
Media GW
Connected TV, PC &
TabletSoft Client
Connected TV, PC &
TabletSoft Client
Videoscape
IP Endpoint
Videoscape
IP Endpoint
Legacy HomeLegacy Home
LegacySTB
LegacySTB
3G/4G & WiFi3G/4G & WiFi
Cable, xDSL, FTTH
Cable, xDSL, FTTH
ConductorConductorSession ManagerSession Manager
Connection Manager
Connection Manager
Service / Proximity RoutingService / Proximity Routing
TV SchedulesTV Schedules
Managed VODManaged VOD
Linear TVLinear TV
Unmanaged VODUnmanaged VOD
Media SuiteMedia Suite
Workflow Control
BillingBillingSubscriber Mgmt
Subscriber Mgmt
EPG/Catalog
CDN Tier(Core / Aggr
Routing)
CDS Cache
CDN Tier(Core / Aggr
Routing)
CDS Cache
CDN Tier(Data Center)
CDS Content Acquisition
CDN Tier(Data Center)
CDS Content Acquisition
ABR Encoders
ABR Encoders Virtual
Origin Services
Virtual Origin
Services
Edge Routing & Caching
Tier
CDS Streamer
Edge Routing & Caching
Tier
CDS Streamer
Mobile Content Adaptation Engine
Mobile Content Adaptation Engine
Unified CMSUnified CMS
PublisherPublisher
EntitlementEntitlement
End to End System ManagementEnd to End System Management
Store FrontStore Front
UnknownUnknown
Device ManagerDevice
ManagerAlert ManagerAlert Manager Client Frameworks
Client Frameworks
Mobile Video GW
Mobile Video GW
Virtual STB (Cloud UI)Virtual STB (Cloud UI)
Live / LinearLive / Linear On-DemandOn-Demand
……
Cloud DVRCloud DVR
CompanionCompanionCross ScreenCross Screen
Videoscape Enabled Services
IP Video Compressio
n
IP Video Compressio
n
EncapsulatorEncapsulator
Advanced AdvertisingAdvanced Advertising
Social Networks
Social Networks
Recommendations
Recommendations
Reporting & AnalyticsReporting
& Analytics
……
Provider systems
DRM Packager
DRM Packager
OTA/Sat/Network
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 29
SPs at CrossroadsCompetitiveness Vs Investment Protection
VoD SystemMonolithic legacy systemsLacks scale & multi-screen
Backend SystemExisting high investment in backend and middleware
IP InfrastructureHuge traffic growthMulticast to Unicast
STBs Existing high investment
In legacy STBs
CloudCloud ClientClientNetworkNetwork
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 30
Cisco Videoscape Value Add for EvolutionCompetitiveness + Investment Protection
VoD SystemMonolithic legacy systemsLacks scale & multi-screen
Backend SystemExisting high investment in backend and middleware
IP InfrastructureHuge traffic growthMulticast to Unicast
STBs Existing high investment
In legacy STBsVideoscape Media Suite
Cisco Conductor Multiscreen & integrated
experiences integration with existing backend
Cisco CDS platform Multiscreen offer, scale efficiency, bandwidth
savings pays off for new investment
Videoscape Migration PortfolioExperience on legacy STB
Videoscape IP STB & Gateways: For new markets &
consumers
CRS, ASR, DOCSIS 3.0 Investment protection is synonymous with Cisco
( common SPAs, IOS-XR)
CloudCloud ClientClientNetworkNetwork
Building on the Value of Current Investment5 Phase Deployment Blueprint:
Expand the Reach Beyond TV, Gain EfficienciesExpand the Reach Beyond TV, Gain Efficiencies
Jump-start Integrated ExperiencesJump-start Integrated Experiences
NG Devices, Service Management and NG Real-time App s NG Devices, Service Management and NG Real-time App s
New Lifestyle Applications New Lifestyle Applications
Migration WorkshopsMigration WorkshopsService Definition - Identify key legacy application s; 5+ year service outlookHeadend Architecture - Deep-dive to identify upgrade and optimization needsService Definition - Identify key legacy applications; 5+ year service outlookHeadend Architecture - Deep-dive to identify upgrade and optimization need s
Videoscape Media Suite & Videoscape Soft Clients - O ffer TV Everywhere:DLNA, Streaming, 5 DRM, Ad Portals, Widgets, Apple Integration, etc…
CDS-IS/AVSM - Gain CDN distribution efficiency, Bett er experience
Videoscape Media Suite & Videoscape Soft Clients - Offer TV Everywhere:DLNA, Streaming, 5 DRM, Ad Portals, Widgets, Apple Integration, etc…
CDS-IS/AVSM - Gain CDN distribution efficiency, Better experienc e
STB - Unmanaged & managed content to TV with hybrid IP STBVideoscape Migration Portfolio - Support key legacy applications STB - Unmanaged & managed content to TV with hybrid IP S TBVideoscape Migration Portfolio - Support key legacy applications
Videoscape Media Gateways - Efficient media distribu tion inside home Enter adjacent markets with lifestyle applications
Nexus & UCS - Virtualization for scale & efficiency
Videoscape Media Gateways - Efficient media distribution inside home Enter adjacent markets with lifestyle applications
Nexus & UCS - Virtualization for scale & efficiency
Cisco Conductor for Videoscape - Higher resiliency & Ultra-scale Next Generation Applications - With real-time infoCisco Conductor for Videoscape - Higher resiliency & Ultra-scale Next Generation Applications - With real-time info