Shape Your Business For the Future:

Powering Transformation With Cisco

Monetizing Broadband

Sathya Narayanaswamy
June 12 2012
Agenda

Market Trends

Global Broadband Monetization Examples

Cisco Solutions for Broadband Monetization

Asia Pacific - Data deluge
8.7B
IP traffic 4x Networked
Connections

11
40 1.7B
2011 EB/mo 2016 EB/mo
Internet
Users
Business

>85%
93GB/mo Consumer
traffic Consumer

Internet traffic
per household Source: Cisco Visual Networking Index 2012
 Asia Pacific – Video dominates

Mobile video 12%

Fixed - Live video 14%
Video is 50%
of IP traffic Video calling 15%

Fixed – Long video 35%

2016 Video
Traffic
 Era of selling bandwidth is over
9 Indexed Chart
2012=1

8
Traffic
7

1
Revenues

0
2012 2013 2014 2015 2016

Indonesia Consumer Fixed BB traffic Indonesia Consumer Fixed BB revenue

Source: Ovum & Cisco

 Bandwidth to Services Transition Needed

Basic Superior Ultimate

Downlink speed
ARPU/Profit4 Mbps 10 MBps 50 Mbps

Uplink speed 1 Mbps 2 Mbps 8 Mbps

Monthly cap 20GB None None

Price $44.95 $54.95 $79.95

 Enterprise Machines
Mobility

Video Cloud Gov/Public Sector

Consumer
Edu/Healthcare

New opportunities are market specific, focused services

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
 OTTs are seizing the new
opportunities
Web Services Providers

Financial

Broadcasters

SP
Advertisers

Content
Aggregators

Application
Developers

Retailers

Manufacturers

Communications
Providers
 Use cloud and network intelligence
to create new business models
Web Services Providers

Financial

Broadcasters

CLOUD SP
NETWORK CLIENT
Advertisers

Core
Content
Aggregators

Optical
Edge

Access
Application
Developers Mobile

Retailers

Manufacturers

Communications
Providers
Agenda

Market Trends

Global Broadband Monetization Examples

Cisco Solutions for Broadband Monetization

 CDN

Utilize network intelligence to locate

and route content optimally

Integrated CDN + IP network offering

On-demand content distribution

Real time live events

Dynamic scalability

CDNs to capitalize on video growth

 CDN

Movies & TV Shows On

demand
N-screen – Content delivery to
TVs, PCs, T-Box, Xbox
PVR with T-Box (Set-top box)
Optimal Delivery using Telstra
CDN

CDN based On-demand video

 Videoscape

Optik TV service
Enhanced with Optik On The
Go
– PVR anywhere
– 500+ channels
– 100+ high-definition channelsN-
screen service

Cloud based hosted video

delivery services
~500000 subscribers
Cloud based TV - Anywhere, Any device
 IP NGN

Safety
KiBot - Android powered Kids Education
Robot Learn English

>10000 books, instructional

videos
Video monitoring of children
Powered by Cloud Beam Projector Learn English

Service - US$14/mo
KiBot HW – US$26/mo
Mom’s Guide Writing

Cloud powered E-Learning - KiBot

 IP NGN

Second Trial of Cloud-based Translator

Phone Service
10 languages and 10,000 users

translator phone service utilizes DOCOMO’s “network cloud,” which

integrates the company’s cloud and mobile network resources to
handle the heavy processing required for rapid real-time interpretation

Mobile Cloud – Language translation

Source: http://www.nttdocomo.com/pr/2012/001590.html
 IP NGN

Gardening Social Network

Freemium - Basic service free.
157Y/mo for expert
horticulturist advice and
accurate weather info
N-screen service – Mobile + PC

Mobile Cloud – Long Tail Social Network

 IP NGN

Olleh ucloud
Music, N-screen Network DVR,
Files, Email
Freemium – 50GB packaged
with broadband
Paid upgrade up to 300GB

Personal Cloud
 Unified RAN Packet
Backhaul Core

User wants to watch a video

User is prompted with a SMS
– Watch Ad = Free
– No Ad = Charge

Policy (e.g., QoS) for the Upgrade quality for $.99?

subscriber flow is sent down for
enforcement
User accesses the content with
the updated QoS for the time
period
Quality upgraded
Mobile Video Turbo Boost
Instant Gratification with Bandwidth on Demand
 Next Gen Packet
Hotspot Core

Traditional hotspot Next-generation hotspot

Location Mobile 3G
Analytics Offload
$200-500 / $2-5/GB
/month

Guest Guest Managed

Access Access Wireless
LAN
$5-$9 $5-$9 $10 / AP /
/month /month month

Hotspot Hotzone / Hotspot Wi-

Wi-Fi Connectivity Fi Connectivity

NG Hotspot – New Business opportunities

 Next Gen Packet
Hotspot Core

• M2M • Subletting • Advertising • Embedded

Connectivity
• Connecting meter • Large venues access • Access to hotspots • Devices sold with
reading, digital (malls, stadiums • Subsidized by ads & free Wi-Fi access
sinage, sensors... etc.) sponsorships • E.g. Kindle model
• Monthly fees per • Revenues from • CPM-based charge • Charge content /
machine or usage managed Wi-Fi device manufact.
• $0.5-1/user-month
• $2-4/con. /month • $50/AP/month • $0.5/download

• Retail Store Interactions

B2B Service Provider selling
through other businesses

3rd Party Venue

• Targeted market offers
Owners
• Enhanced in-store experience M2M University
• Revenues from set-up, consulting, Concierge Stadium
integration and monthly fees Advertising Municipality

• $100-150/store/month

SP WiFi – Value added services

 Collaboration
Applications

UCaaS
Rich collaboration applications
Easy to use portal to select
profiles for your users
“Pay as you grow" pricing telephony
unified IM &
mobility
messaging presence
No CapEx
Scale up or down based on your
business needs
audio, web contact web
video conferencing center portal
Fully managed cloud solution
End-to-end SLA

Cloud Based UC as a Service

 IP NGN

Subscription fee : $30/mth (2 years Security Security

contract : $10/svc, $20/pad)
KT provides Smart Home Pad(Galaxy Tab
8.9” WiFi)
Home Security($5/mth) : Optional
Telecop service Music Olleh TV now

Smart Home Voice : 100 m free including

video call
Smart Home Play : File Sharing by DLNA
VOIP Video Call
Olleh TV now
11,000 VOD contents
40 Realtime TV channel
Home Automation(on the roadmap)
App

Smart Home
 Public Internet and Applications

Public DCs eCommerce

PCs

Smartphones Email, storage

Tablets Communication

Video OTT Apps

Gaming
 Business Networks and
Business Applications

Private DCs Hybrid DCs

PCs Business Apps
Smartphones
Email, storage

Tablets Communication

MPLS Mobile Apps

3G/4G networks
 Industrial Internet (sensors and M2M)

Home and building Smart & Connected Communities

management Smart devices

Transportation Cars, roads

Retail
Point of sale, vending

Manufacturing Oil & gas RFID

 M2M Market
Mobile Business Services
Telematics

Telemetry

Wireless
Consumer Aftermarket Consumer OEM Vehicle & container Local Loop
Telematics telematics tracking

Automatic Metering
Infrastructure
$20B 1 Fixed Wireless
Terminals

by 2014
ATM/POS Industrial PDAs

Remote Monitoring & Remote Information

Security Telehealth
Automation Displays
1 ABI Research
Agenda

Market Trends

Global Broadband Monetization Examples

Cisco Solutions for Broadband Monetization

 ASR 9922
Cisco ASR 9000 System
Leadership with a Scalable End to End Portfolio

Cisco PRIME Management

ASR 9010

ASR 9006

ASR 9000v
ASR 9001

Lower-End
Aggregation Edge Aggregation Edge Aggregation Large-Scale Edge
ASR 9000 – The “Medianet” BNG
AAA / Policy Mgr.
Subscriber Termination
Scalable PPPoE & IPoE, AAA
v4/v6
AAA RADIUS Multicast Aware PPPoE

Policy
Engine
Home Quality of Experience
Video Monitoring
Highly Scalable QoS,
Subscriber Session:
Identity + Profile MoFRR / Live-Live Lossless Multicast

Lossless
Multicast
Optimized Service Delivery
CDS-TV & Operations
BNG & ISM Integration + Testing
CDS VOD and Internet
CDS-IS Streaming, Caching
VAMS Integration
 Integrating video streaming in the edge

Internet
Content Service Router
Mgmt.

Streaming Edge

Published
Content

Content Library /
Acquirer Arrays
Caching Node

Programming

Streaming Edge

Efficiencies of the Datacenter

Closer to the Edge

• Highly optimized,
Unified environmental specific
Fabric
Cisco CDEs Cisco CDEs
platforms AND

• Integration of streaming
Datacenter Cisco UCS functions within Cisco
Storage
edge Routers
•Storage, shared infrastructure, management,
virtualization

ASR9000 with ISM

Integrated Service Module – ISM
Feature ISM-IS Capabilities
Applications Ultra-Dense Internet Streamer for
VoD and Live

Bandwidth 30 – 40 Gbps streaming capacity,

protocol dependant

Compatibility Interoperates with CDE appliances

Content Cache 3.2 TBytes at FCS - Modular Design

Video Formats Windows Media RTSP, Adobe Flash

RTMP, QuickTime RTSP, HTTP PDL,
HTTP ABR (Apple, Microsoft, Adobe)

Advanced Unicast Error Repair (future release)

Features

Physical Single slot of ASR9000

Environmental NEBS / ETSI compliant

CDS-IS with ASR9K ISM
Vault Arrays

Programming Internet
Cache Fill
Protocol
Caching Nodes
Streaming

SHE Streamer Arrays

(2)

• Integrated application
VHO (15)
ASR9K with
Converged intelligence into the ASR 9000
ISM
System
• Reduced footprint, power and
AGGCO (40) cooling

• Use with existing CDS deployments

Flexible • Integrated with NPS
CO (~2000) • Enable CGv6
• Ultra-Dense VoD, TV,
• Internet Streaming, Error Repair, NPS

Homes • Pay as you grow modular

investment
Scalable • 3.2TBytes Contents Cache
• 30-40 Gbps streaming capacity
• ~3 Gbps cache fill rate
• Up to 8,000 SD equivalent
 Edge - Integrated Video Monitoring
CAPEX: No need for DPI probe
deployment all over network
OPEX: Leverage the shared,
“expert” analysis equipment
in the NOC
Video Ops

Regional Backbone
Regional Network
Headend
Video Flow ASR9000 CRS-3
trapped and
cloned

ASR9000

Hub
ASR9000

CRS-3

• In-line monitoring Trap or Customer calls in and opens trouble ticket

• Service personnel trap the Video flow and clone it
• Video Flow transported to Video Operations Site for detailed codec level Analysis
/ Troubleshooting
 Superior Multicast Architecture
Simple, Efficiency, Scale, Line-Rate Multicast for TV
LC2 IGMP joins
T0 LC1 T0
Multicast
B0 B0

Interface
Source

Fabric
T1 1 T1
Interface
T2 Fabric 2 B1 T2
B1 IGMP joins
Switch 3
IGMP joins
T3 Fabric T3
4

LC3
 Efficient Multicast Replication
T0
– Replicate the packet ONLY if it is necessary
B0

Interface
Fabric
– Fabric and egress replication T1
 Line Rate Multicast Replication with Scale
B1 T2
– All replication ASICs can do line rate mcast replication in HW IGMP joins
without any bottleneck
T3
– Line rate Multicast replication and performance is independent
of the number of mroute, interface, or system load
 Architecturally Simple
– Uniform mcast forwarding for both L2 and L3 mcast
– Uniform mcast forwarding independent of the source and
receiver LC/port (ex, no local switching)
BNG Hierarchical QoS (4-level)
L1=Port L2=VLAN L3=PPP/IP L4=Class
Session*

Access
Node

Per Per subscriber:

subscriber: 1x Strict Priority Q –
• Hierarchical SLA for all subscribers in the system Shaper, BW, level 1
BRR 1x Strict Priority Q –
level 2
• 8 queues/subscriber 6x WFQs

• 3 Strict Priority queues / 4 priorities

• Aggregate Traffic Policers for capacity planning and

disaster insurance RADIUS provisioned
• Scalable WRED Per VLAN:
Shaper, BW
• 64k subscribers per linecard BRR

• 2R3C policers, hierarchical policing

CLI
CLI provisioned
• 4 layers H-QOS provisioned
Multicast
• Voice and Video grade Priority scheduling with priority Classes
propagation for minimum latency & jitter
 Enabling Large-Scale Distributed
Data Centers

Perf  High 10GE density with line rate perf

 Cost effective and energy efficient

Geographically Disperse Data Centers Scale  L2: MAC, VLAN, Bridge Domain, PW
 L3: FIB, ARP/ND Scale, MPLS-TE

DCI: Make many physical data

centers look like one logical data Resilient  Fast convergence & fault isolation
center  Load balancing: per VLAN/per flow
 Distributed applications closer
to users
 Business continuity
 Seamless workload mobility Mobility  Seamless workload mobility
 L2 mobility (L2 Extension) & L3 (LISP)
 Pool and maximize global
resources
ASR 9000: The NG DCI Platform
 720x10GE in CY’12
Ultra-High  48T system capacity
10GE/40GE/100GE  Up to 2.4T/slot (2x1.2T)
Density  Flexible system portfolio
(2~44 RU)

 Distributed OS: IOS-XR

Ultra-High MD  Scalable L2/L3 VPN, BNG,
Service Scale Video Services

 Granular Modular OS
 Advanced Fabric QoS &
Carrier Class Multicast Replication
 Superior Resilience
Solutions
 CRS Evolution
A Future-proof Architecture

2010 2011 2012 2013 2014

CRS-3 SC CRS-3 MC CRS-3 B2B 400G SC 400G B2B 400G MC

140Gbps/slot 9+1 2+0 400Gbps/slot 2+0 9+1
4.48 Tbps 40.3 Tbps 8.96 Tbps 12.8 Tbps 25.6 Tbps 115.2 Tbps

• Cisco continues to invest in CRS and driving to 400G density on the platform

• Future-proof architecture (forwarding-, switching-, control-plane separation) allows hitless evolution from
40G/140G/400G and from single-chassis to B2B and multi-chassis

• Co-existence of three LC generations in the same chassis leveraging CRS future-proof architecture
CRS B2B & N+1 Multi-Chassis

B2B MC CRS3 CRS3 CRS1 CRS1 CRS3

FCC LCC0 LCC1 LCC2 LCC3
• 2+0 Multi chassis system without a Fabric
Chassis
• Fabric chassis must have all CRS-3 Fabric
• SuperStar Asic in S13 mode instead of S1S3 cards
mode

• Fabric Connections are made back to back from • Backward compatibility with CRS-1 MC
one LCC to another LCC.
• Line card chassis can have all CRS-1 or all
• Hitless upgrade from B2B to 2+x system for CRS-3 fabric cards.
future expansion and without having to replace
the fabric cards
 CRS Carrier-Grade Services Engine
Enabling IPv6 Transition and SP Services
• 20Gbps of throughput, 20M NAT states,
1M connections per second on 1st gen
CGSE
CGv6
• 80Gbps of throughput 60M NAT states on
2nd gen CGSE (planned for 4.3.1, Q1
CY2013)
• CGv6 toolbox of IPv6 transition
DPI NPS
technologies
• Translation (NAT44, NAT64, XLAT64)
• Tunneling (6rd, DS-Lite, 4-6-4)
CGSE
• NPS for traffic optimization across the
network
• CCN for tying clouds and Data Center
DDoS CCN
• DDoS: for distributed threat mitigation
(planned for 4.2.3, Sept’12)
• DPI: for distributed traffic analysis (under
investigation)
Data Center Services System
Intelligence Spanning Networks & DC/Clouds

Network Positioning System (NPS)

L3-L7 info for best path to content
Improves Experiences, reduces costs

Cloud VPNs for IaaS

CRS + Nexus automate Inter-DC connections for UCS
‘Pay-as-you-go’ for compute, storage, network

Tight Linkages Between DC/Cloud and Core

CRS Carrier-Grade Services Engine
IaaS: Data Center services system
Content at
National National
Multiple DCs Data Center
Data Center
National 1
Data Center

3
NPS

Core 1 Content at Multiple DCs

Offloads single content source

2
2 Inefficient Access
To non-optimal destination

National
Data Center
3 NPS informs best path
L3-L7 intelligence in CRS improves
experience

Improves Experiences, Reduces Costs

 CRS Carrier-Grade Services Engine
CGv6: IPv6 adoption and growth
Public
Public IPv6 Internet
IPv4 Internet

IPv4/IPv6 Backbone
Infrastructure

NAT64
Network

CGN 6rd
DS-Lite NAT64

Small IPv6
Dual-Stack

Dual-Stack
Public
IPv4

Private
IPv4 Big IPv6
NAT44 6rd
B4

Host
Stack
v4 v4 v4 v4 V4/6 V4/6 v6 v4 V4/6 v6 v6 v6 v6 v6 v6

2011 2012 2013 2014 2015

 Cisco Videoscape
A unique and innovative medianet platform

Immersive Experience
Across devices, networks and content

High Value High Quality

Experience Experience
Videoscape
Revenue-generating Cloud + Network + Client
services
 One Architecture for All Services
Carrier-grade Videoscape infrastructure leverages your existing network
Videoscape components
Media Suite software, data center, core & edge, gateways, set-top-boxes

IP Next-Generation Network

End-to-end video management

 VIDEOSCAPE ARCHITECTURE

Provider Systems CloudVerse (B2B) In the Home

Subscriber Mgmt
Videoscape Enabled Services Legacy RF STB
Billing
Live/Linear On-Demand Cloud DVR

Cross Screen Companion SP/Partner Enabled

Cable STB with Videoscape
Voyager Vantage
TV Schedules Media Suite Content Distribution Multiscreen
GW
Unified CMS EPG Catalog Cable,
Edge Routing & Caching xDSL, Videoscape IP STB
Entitlement Service/Proximity Routing Tier FTTH,
Store Front
Unmanaged VOD 4G
Publisher Virtual STB
(Voyager Virtual)
Connected TV, PC &
Workflow Control Tablet Soft Client
CDS Streamer
Media Acquisition
CDN Tier CDN Tier
Managed VOD (Data Center) (Core/Aggr Routing)
Digital Content Virtual Origin
Manager Services
OTA/Sat/Network 3G/4G
ASR9K & WiFi
Linear TV (Video Service
CDN Content Acquirer CDS Cache Module)
On the Go
Cisco Transcode AS Series Media
Manager Processors Notebook/PC/Mac Soft Client

Encapsulator/ Mobile Content

ABR Packager Adaption Engine Smartphone/ Tablet Soft Client
Content Providers ASR5K
Mobile
Video GW

Unknown Advanced Advertising Recommendations Social Networks

Conductor with
Alert Manager Session Manager Connection Manager Device Manager Client Frameworks Reporting & Analytics
Back Office

End to End System Management

 Collaboration Service Portfolio

Immersive Collaboration
Social Media B2B,B2C
Show/Share
TelePresence
Business Video
Transform
Borderless Collaboration
Revenue Opportunity

Desktop Video Conferencing

Web Conferencing
Mobile Collaboration
Customer Care
Extend
Unified Communications
Connectivity
IP Communications
Messaging, Presence and IM
Audio Conferencing
Migrate Mobility

Customer Requirements
Cisco Unified Computing System
The foundation for the next-generation data center
Pre-integrated compute, network, and
virtualization technologies in a single, cohesive
solution:
 Combines innovative technology with an
open architecture
Virtualization
 Radically reduces number of devices
Platform
that must be purchased, configured,
powered, cooled, managed
 Reduces total cost of ownership (TCO)
Reduces CapEx up to 20% Compute Network
Platform Platform
Reduces OpEx up to 30%
 Improves enterprise application
availability and performance
 Summary

• Data deluge is coming in APAC

• Profitability will be driven by, SPs moving to

services

• Exploit service monetization opportunity in

Video, Cloud and Mobility

• Cisco solutions – NGN, Mobility, Cloud, and Video

– are monetization enablers
Thank you.