Making 4K Video a Reality

Making 4K Multiscreen Video a Reality

Keao Caindec, Chief Commercial Officer

[email protected], 415-307-7324, Twitter: @kcaindec

2365 Data Centers Confidential

4K/UHD

3365 Data Centers Confidential

4K/UHD

4365 Data Centers Confidential

5365 Data Centers Confidential

6365 Data Centers Confidential

7365 Data Centers Confidential

15MbpsStream 3 Mbps

8

4K Means Bigger TVs

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How Real is 4K UHDTV?

Mainstream

63%in 7 years

Source: 4K UHDTV Adoption, Intelsat

10

Concerns: Economics Is the Primary IssueROI and the Extra Cost of Transmission

Source: 4K UHDTV Adoption, Intelsat

11The 365 Data Centers National Sales and Operations Summit

THE INTERNETWON’T SCALE

FOR VIDEOLONG-HAULNETWORKS

PUBLICPEERING

CONTENTDISTRIBUTION

12

Long Haul Circuits and Transit Are Too ExpensiveTransmission Costs Increase 5x to Support 15Mpbs Streams

Atlanta Data Center

Tampa Market

Multiple 100 G (IP Transit or Backhaul)100 G = $45,000 MRC each

CDNProvider

Carrier

Carrier

Upgraded to

DOCSIS 3.1 to Offer 1Gbps

Internet

13

Bandwidth to the Home Will Increase 40xAs Telcos and MSOs Aggressively Roll Out 1Gbps to the Home

U.S. spectrum auction raises more than $30 billion

Bright House to Build Ultrafast Broadband NetworkMarch 12, 2014

Google Fiber hiring for key positions in Nashville

AT&T Eyes 100 U.S. Cities and Municipalities for its Ultra-Fast Fiber Network

HBO to Launch Stand-Alone

Streaming Service

April 21, 2014

November 21, 2014

May 29, 2014

October 15, 2014

The percentage of service providers planning to offer an average bandwidth speed of 1

Gigabit (1G) to residential subscribers grows from 15% in 2015 to 40% by 2017.

– Jeff Heynen, Principal Analyst, Infonetics Research

March 2, 2015

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Public Peering Infrastructure Is InadequateLimited to 1Gbps and Eight Major Peering Markets

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Distributing Content from Tier 1 Markets Won’t ScaleCDNs Will Need to Expand to Major MSAs - “The Edge”

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Why Moving Content to the Edge Makes SenseCase Study: Streaming Media Provider Moved Content to the Edge

Equinix Atlanta AT2

365 Tampa TA1

CDNProvider

100 G

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Why Moving Content to the Edge Makes SenseSignificantly Lowered Operating Cost and Increased Revenue 3x

365 Tampa TA1

3-Year TCO$1M CapExAvoided $7.5M OpEx for BackhaulLimitless Scale through Local PeeringTraffic grew from 80 Gbps to 240 Gbps in 4 months

Multiple 100 G X-connects

CDNProvider

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Making 4K Multiscreen Video a RealityCautions and Predictions

• Streaming content from major peering cities won’t scale• Content will move closer to the edge

− Proliferation of devices + DOCSIS 3.1 will force content to move even closer to subscribers and more markets

− Peering will proliferate in tier 2 markets

• 4K will be adopted faster than we think• 4K won’t matter in the short term because DOCSIS 3.1 rollouts will usher

in 40x growth across all devices anyway

Emeryville

San Jose

Phoenix

Seattle

St. Louis

ChicagoDetroit

Cleveland

Indianapolis

Nashville

Tampa

Reston

Pittsburgh

Buffalo

PhiladelphiaNew York

EmeryvilleHeadquarters(Backup CSC/NOC)

Customer Service/ Network Operations Center

365 Data Centers Local PresenceNationwide footprint reaching 82M people & 500+k businesses

• 16 locations in 16 US markets• 60+ carriers and local access providers• 100% uptime track record• 10 out of the top 10 carriers• 8 out of the top 10 cable providers• Compliance across 100% of facilities

Tampa

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Our Ecosystem & CustomersBuilding Their Businesses Inside Ours

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60+ Carriers Content Businesses

Making 4K Multiscreen Video a Reality

Keao Caindec, Chief Commercial Officer

[email protected], 415-307-7324, Twitter: @kcaindec