Content Delivery Technology:

current practice and future trend

24th, June, 2013

Table of Contents

q Issues in Global Content Delivery market

q Content Delivery based on Contents type

q Transparent Internet Cache for Unmanaged Contents

q CDN for Managed Contents

q End User requirements

q Telco CDN based on Smart Content Delivery

q Status of Telco CDN interconnection

3

Conflict in Content Delivery Biz.

o OTT’s own Cache in Telco network

o Is Hyper Giant OTT, paying any fee for their Cache installation and usage?

¡No line fee, No space fee, No power usage fee

¡No intervention and No regulation against Hyper Giant’ Cache in Telco network

o Which Menace by free acceptance of OTT’s own Cache ?

¡ Is Telco philanthropist?

¡ OTT’s high quality application including TPS directly to End-User

,without any delivery fee over Telco’s dumb pipe internet.

End-User

USA

Global Transit

High Speed / Good QualityOTT’s

Origin Server

OTT’s own cache in Telco network

4

OTT’ Strategy in Content Delivery Biz.

o TPS over Google Fiber (‘10.Feb.~: as the one of ‘Think big with a gig’ project)

o For Global Google’s TPS, Collaboration with 2nd or 3rd place Telco, in the world

o Google’s world-wide virtual internet Backbone with SDN

¡Efficient usage of SDN for managing of two different BB, I-scale BB for end-user and

G-scale BB for global synchronization of global Google DC.

Network Box TV Box Storage Box

5

OTT’ Strategy in [ Content Delivery Biz. + Platform Biz.]

o Case1: G-TV + Google DC with SDN + GGC in Telco

o Case2: Google Glass as the Next generation Wearable Device

¡ [More Platform Controllability] Monopolization of Personal BigData market with the Cloud

based Wearable Device

¡ [Information Hub/Service Hub] Personal Secretary service with “Google Now”

¡ [New Ecosystem] Contents and Application Hub with “Google Play”

6

OTT’ Strategy in Platform Controllability

o 단말/플랫폼/콘텐츠 등 전방위 적인 OTT 시장 지배력 강화

¡ OTT 클라우드를 이용한 서비스 전달 구조

à 높은 OTT 플랫폼 의존성

¡ 커넥티드 서비스 기반의 Telco 경쟁력 약화 가속화

¡ 퍼스널 빅데이터를 이용한 개인화 서비스 및 정보 독점 가능성

단말

플랫폼

앱/서비스

단말

플랫폼

앱/서비스

단말

플랫폼

앱/서비스

1세대피쳐폰 2세대스마트폰 Ex. 3세대구글안경

?

o Platform Controllability를 바라보는 OTT의 Strategy

7

Trend of Traffic pattern change and Contents type

o Traffic Pattern Change

à Video Traffic is main portion

o Unmanaged Contents vs. Managed Contents

Expected Portion of Video Traffic

End-User

Managed Contents (Charged)Managed Contents (Charged)

High QualityPremium Delivery

Origin Server

Unmanaged Contents (Free)Unmanaged Contents (Free)

ISP BBCP

In Network Cache

• Whole free acceptance of each CP’s Cache in ISP BB for High Quality delivery?

ISP BBCP1

CP1 CacheCP2

CP3

CP2 Cache

CP3Cache

?Vs.Vs.

8

Transparent Internet Cache for Unmanaged Contents

o TIC for unmanaged contents

End-User

USA

W/O CacheW/O Cache

Global Transit

Low Speed / Poor QualityGlobal OTT

Origin Server

12

End-User

USA

With TICWith TIC

Global Transit

High Speed / Good QualityGlobal OTT

Origin Server

Content from TICto End-User

TIC

4

1

2 3

9

CDN market status and expectation

oGlobal CDN market status and

Revenue analysis

• 디지털 콘텐츠 유통 증가에 따라 지속적으로 성장

• Akamai : 글로벌1위, ‘12년 전년대비 19% 매출증가(약 1.5조원 매출), Verivue 인수

10

CDN market status and expectation

q2015 Global CDN Expectation

mFrost & Sullivan Research: ~6B$

mCisco IBSG: Premium Contents Delivery and Telco CDN Federation: ~12B$

11

Global CDN Market Expectation

qCDN Market Big 3 Parties

mGlobal CDN Providers: Akamai, Limelight Networks, CDNetworks, Level3

mGlobal CPs: Google, Microsoft, Yahoo,…

mTelco CDN and Telcos: Telco CDN federation, IETF CDNi wg

mAnd, Others : BitTorrent, P2P CDN providers, …

qCDN market possible 3 scenarios

mTelco Last mile + Global CDN Providers

mTelco Last mile + Global CPs

mTelco CDN interconnection/Federation based on ‘Smart Pipe Concept’

q Key issues in CDN market

mMobile optimized ? : Acceleration, Mobile CDN

mGlobal Coverage ?

mLow Cost, High Quality, and Premium Delivery ?

12

End User wants Freemium Service !

q Ready for providing ‘Freemium’ Service ?

mEnd User’s need: ‘Freemium = Free + Premium’è Low Cost/High Quality Premium

Content Delivery Service

Ø Any content + With Low Cost and High Quality + In Any time + On N-Screen terminal

mBut current status of Content Delivery market

Ø EUs: No Freemium service environment à They usually use ‘illegal Web hard download’, and

they think ‘Every service from internet is Free’. But it’s not convenient and complex. [Time

consuming + So many terminals and contents to manage]

Ø Content Producers: 1~2B$ annual loss in Korean Contents exchange market by illegal download

Ø Content Providers/Aggregators: They have their own interest only in getting Money instead of

providing Freemium service for End-user with the collaboration of NSP

Ø NSPs: NSP is philanthropist ?

q Network issue point for Freemium service

Gold $$$

Silver $$Silver $$

Bronze $Bronze $

FreeRidingFree

Riding

Operator BB

3G/4G Radio area

3G/4G MBH

Wired Access net

IX/Overseas area

: Big point for Premium CD

: Small point for Premium CD

13

Mobile CDN for Premium CD

o Mobile CDN Design issue for Premium Content Delivery

¡The optimization of mobile data traffic transmission

¡Highway for premium mobile data traffic in mobile area to provide QoS guarantee

¡Automatic and Dynamic Caching for premium mobile data traffic in the MBH for

overcoming the QoS issue of IX/Overseas area

Operator BBGold $$$

Silver $$Silver $$

Gold $$$

Silver $$Silver $$

Bronze $Bronze $

FreeRidingFree

RidingWired Access net

IX/Overseas area

Highway for Gold, Silver mobile data

Low Cost, High Quality, Premium DeliveryBy automatic and dynamic caching of

premium mobile content

o How to make ‘Automatic/Dynamic caching of Premium mobile contents’ in MBH?

¡With the collaboration of Global CDN Provider like Akamai, but..

¡With the collaboration of Global CP like Google, but…

¡With Telco CDN interconnection based on Smart Pipe

14

Essential features for Mobile Content Delivery

qWhich features for Mobile Content Delivery?

mHow2get better TCP performance

from poor Radio resource ?

mAcceleration

mPrioritized Connectivity

mJust in Time Delivery

mTranscoding and Translating

mDevice Aware Optimization

mAdaptive Streaming

mSmart Cache for Mobile CDN

Just in Time Delivery

Adaptive Streaming

* 출처: http://gojump0713.blog.me/140080464213

15

Telco CDN based on Smart Pipe

Cache

Transcoder

URLRequest

RequestRedirect

Contents Origin (Network adaptive Content Delivery)

Static Routing

Path

No more than QoS!

• Network-adaptable• Pre-published• Single-streamed

• Bandwidth Saving• Quick response• …

ServiceRequest

ContentResolution

Contents Publisher(Content Aware Network)

Content-aware

Routing

TRUE QoE!

• User-context aware• Dynamically composable• Multi-streamed

• Optimized delivery• Support emerging

services (Multi-view, Collaborative performance)

• …

ServiceMediator

ResourcePlanning

ContentCapableNode

qContent Aware Capable Network

m Content-capable Node (in-network cache, transcoding, encryption, Content-

Aware, Dynamic Content Routing)

m Telco CDN 구현 및 Telco간 CDN상호 연동으로 Traffic Monetization

16

Telco CDN : Benefits

AS-ISAS-IS TO-BETO-BE

benefits As-Is To-Be

End UserPerspectives

•Just BE internet access à No Killer App

•Quality degradation of HD Emerging

Service à QoS needs !

•Enjoy Huge # & various Emerging Service

•Prosumer, Open, Freemium Service

•Target Ad can save internet access fee.

Service OrientedSmart Pipe

CPCP

AmazonAmazon

OTTsOTTs

AppleApple

QoS, Big Profit

QoS, Big Profit

B2B2C, Two-side market based on Smart pipe

In-NetCacheIn-NetCache

In-NetCache

Dumb pipe

internet

CPCP

OTTsOTTsNo QoS,

Small ProfitNo QoS,

Small Profit

B2C, One-side market based on Dumb pipe

$$ $$Small subscriber group

(limited market)

$$$$$$

Big subscriber groups(Economies of scale)

-Online Ad-Target Ad-Online Ad-Target Ad $$$$$$$$$$$$

$$$$$$

$$$$$$

17

Telco CDN : Benefits

benefits As-Is To-Be

CP/OTT/Cloud

ProviderPerspectives

•Only B2C, Retail business for limited user

group from Current BE IP network (W/O

QoS guarantee)

•BE Internet à No Killer Service

•B2B2C business possible(Two-side market)

with QoS guarantee Smart network

•Comparing with Retail business, SN can

make Opex saving effect > 50% à Big

Margin[Amazon case study]

Network Provider

Perspectives

•Dumb pipe environment: Traffic increase,

Revenue decrease

•No more investment from NSP??

•Revenue sharing from New & Big business

market, which is providing Open,

Collaboration business environment

•CAPEX/OPEX saving architecture with

Distributed Computing technologies

$

Time

Traffic

Revenue

$

Time

TrafficRevenue

18

o For the QoS guarantee of inter ISP Content Delivery, we need Telco CDN

interconnection.

o Economy of scale for content exchange market

¡No economy of scale in Walled Garden content delivery market, but Big economy of

scale in Open content exchange market

¡Big economy of scale for ‘Not only CP/OTT, but also for micro CP’

o Revenue sharing between Telcos from content exchange

¡Best Effort internet interconnection in Dumb Pipe à Free of Charge status à ‘Traffic

Increase, Revenue Decrease’ This miserable status keeps going!

¡With Telco CDN interconnection, we can make ‘Revenue Sharing and Traffic saving’ from

dumb pipe interconnection’.

CP kt Telco CDN

NTT

CT

IXIX

IXIX

IXIXTelco CDN Interconnection

Content exchange($$$)

Low Cost/ QoS guarantee

Low Cost/ QoS guarantee

Economy of Scale

Economy of Scale

Revenue SharingRevenue Sharing

($)

($)

Why Telco CDN interconnection ?

19

o Low Cost & High Quality Content Delivery with Telco CDN PoC

o Actively participating in CDNi Pilot Phase2(Dec ’11~Jun ‘12), Phase3(Dec ’12~)

KT Telco CDN PoC and Global Telco interconnection status

Smart Pipe: $$

Phase1 Feb ‘11 –Oct ’11

BT, KDDI, Orange, SFR, Telecom Italia

Phase2 Dec ‘11 –Jun ’12

KT, SFR, Telecom Italia, Swisscom, Telstra, Bytel, BICS

Phase3 Dec ‘12 – planned

20

CiscoCDS-IS

Global Telco CDN interconnection use case

o BT is providing Telco CDN Wholesale service(WCC: Wholesale Content Connect)

for some Operators in UK.

o What is BT WCC Service ?

¡BT’s own cache in BT network Edge for Inter ISP content delivery

¡QoS guarantee between end-user point and cache server point, by using of network QoS.

User1

CP1(Origin)

ISP1’s Backbone

BT IP/MPLSBackbone

CiscoCDS-IS

Internet(IX/Transit)

CachingCaching

§ Better quality of CD service from ‘BT CD platform and QoS guaranteed network’§ Each ISPs can reduce video traffic increase in their BB and provide better quality of CD service for customers.

§ Better quality of CD service from ‘BT CD platform and QoS guaranteed network’§ Each ISPs can reduce video traffic increase in their BB and provide better quality of CD service for customers.

User2

CP2(Origin) .

.

21

Global Telco CDNi use case (Vendor compatibility)

o Telco CDN interconnection between FT-Orange and Poland PT with different

vendors

¡FT-Orange is using Cisco’s CDS solution for Telco CDN Service

¡PT(TPSA) is using Coblitz’s CDN solution for Telco CDN Service

o Successful trial case of Telco CDN interconnection by using of different Vendors

¡No special issues even in different vendors for Telco CDN interconnection

OriginServer

FT CDN(CDS-IS)

CDS-ISCache

PT CDN(Coblitz)

CoblitzCache

CP

22

o Conflict between Level3(CDN provider) and Comcast

¡Level3 is making originally ‘free peering contract’ with Comcast for the Global CDN

service and CDN traffic transmission.

¡After Netflix was changing their CDN provider from Akamai to Level3, Level3 CDN traffic

is making explosive increase. It is making Big burden and Big Load to Comcast

¡So, Comcast is asking another Payment for that Traffic increase to Level3. But Level3

claim that they can’t pay from the FCC’s Open Internet Rule. è This is making Another

type of Big issue of Network neutrality.

¡Charging issue of Content Delivery Inter ISPs è Time critical issue !

Global Telco CDNi issue [Another Network Neutrality]

Transit Division

CDN Division Free Peering

Transit

Paid Peering25% in US total traffic Vol.

Huge traffic injection with Free peering

23

Legacy CDN vs. Telco CDN

l No QoS (need network QoS)

l Inefficient static caching

(Prepositioning)

l Global load balancing &

Synchronization

l Traffic Monetization from Telco

CDN Alliance

l Need to define ‘standard &

open interface’ for CDN

interconnection

Overlay content routing based

on Network Proximity

Intelligent dynamic caching

Cooperative content delivery

from caching nodes

KT Telco CDN

24

Closing Comment