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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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22
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