1 MIKE NIELSEN DIRECTOR SP MARKETING. CONTENT DELIVERY NETWORKS.

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MIKE NIELSEN DIRECTORSP MARKETING

CONTENT DELIVERY NETWORKS

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RICH CONTENT DRIVES BANDWIDTH

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

20212017201420112008200520021999199619931990

Worldwide internet traffic, 1990-2020 PB/month

+32%Video

+20%Non-video

17x 17x GrowthGrowth2008-20202008-2020

Forecast Model

Source: Juniper, Cisco, MINTS

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Session and bandwidth capacity of carrier networks is showing weakness

Media providers moving aggressively into Internet delivery

Value chain in upheaval

Pure players– Akamai, Limelight,

Edgecast… New entries

– Intl telcos and NSPs– 22 of the top 23 SPs plan

CDNs New interests

– BW optimization, advert

WORLD WIDE CDN ADJACENT SEGMENTS*

The CDN opportunity 2013

Approx 70% opportunity in Americas

Massive Tier-2/3 carrier market

Ingest transcoding Reporting/analytics Content mgmt Video monitoring

$3.5B $1.6B

CDN MARKET: WW REVENUE 2008-2013 ABOUT THE MARKET

THE CDN BUSINESS

* Mobile optimization opportunity excluded from the adjacent segments

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-

50,000

100,000

150,000

200,000

250,000

2007 2008 2009 2010 2011 201265.0%

70.0%

75.0%

80.0%

85.0%

90.0%

Source: RCBG analysis, eMarketer 2008 Source: RCBG analysis, eMarketer 2008

US online video viewers

% o

f Inte

rne

t Us

ers

Vie

we

rs (

‘00

0’)

ONLINE VIDEO USHERED IN A NEW PARADIGM IN MEDIA DISTRIBUTION

ONLINE VIDEO IS NOW MAINSTREAM

Increasing portion of time & money US subscriber > 4 hrs/month viewing

online video content Streaming provides a best effort

experience today

Source: RCBG analysis; CIBCSource: RCBG analysis; CIBC

US Video market revenue ($M)AND IMPACTING ESTABLISHED VIDEO REVENUE STREAMS

Internet video revenues forecast to reach $20B in 2012

Online video is impacting existing video markets

Both media companies and service providers were ill-prepared for this shift to online video distribution

2007 2012

Video Rentals & Sales

$21,000

TV Advertising$83,000

Pay TV$73,000 Pay TV

$99,100

Internet Video$20,235 TV Advertising

$69,600

Video Rentals& Sales $25,000

Internet Video$710

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THE EVOLVING CONTENT VALUE CHAIN

CD

N M

odel

CreationAggregationSourcingDistributionDevices

Carrier displaces online distributorOnline

DistributorsCDNISP

Devices Production Content/UGC

Devices ISP CDN Online Distributors

Production Content/UGC

Carriers Today

Carrier displaces CDN provider

CDNISPCarriers

1-2 years

Online Distributors

Production Content/UGC

Devices

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WHERE DO YOU START?

11VIDEO TRAFFIC OPTIMIZATION

Advanced multiprotocol Caching

22 CONTENT AWARE NETWORKING

Link QoE to Network behavior

33NETWORK MONETIZATION

Build network value for content players

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OPTIMIZED 3-SCREEN DELIVERY

Value AddedServices Center

PacketCore

RAN Backhaul GGSNSGSN

VPN

Media FlowMedia Flow

Offloading 70% of traffic

Value Added

Services Center

PacketCore

RAN Backhaul

GGSNSGSN

VPN

MX 3D

ENHANCE USER EXPERIENCE11 REDUCE TRAFFIC

CONGESTION22 BYPASS SERVICE COMPLEX33

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CapEx OpEx Power+++ IP transit

Infinite possibilities

QUANTIFIED TCO REDUCTION

5-year TCO model for traffic direct and media flow*

Total cost of ownership reduced 70%

* IDC TCO study February 2010

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Juniper Media Flow captures the investments addressed to the low value traffic (Caching)

BENEFITS FOR THE JUNIPER SPI PARTNER

EXPONENTIAL TRAFFIC GROWTH

OPEN NEW REVENUE OPPORTUNITIES

Juniper Media Flow provides content monetization bringing the NSP to the value chain

INCREASE THE UP SELL OPPORTUNITY

Integrated network portfolio including CDN solution Router, Switching, Firewall and now CDN

SERVICES Professional services and consulting

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