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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

Amdocs_Layer 123_ vCDN Business Case_Final

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Page 1: Amdocs_Layer 123_ vCDN Business Case_Final

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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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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Broadcast is dead

“Customers want to watch TV on their terms”

“Broadcast—one to many is efficient”

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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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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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4K TV

“4K/8K/HDR unicast can kill the network”

“Customers love big screen TV”

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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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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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—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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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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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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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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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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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

E: [email protected]

T: +44 (0) 777 237 9019