Tuesday, September 26, 2017

Inside Story: How Ormuco Abstracts the Concepts of Private and Public Cloud Across the Globe

Transcript of a discussion on how a Canadian software provider has crafted a standards-based hybrid cloud platform to target global markets using Cloud28+.

Listen to the podcast. Find it on iTunes. Get the mobile app. Download the transcript. Sponsor: Hewlett Packard Enterprise.

Dana Gardner: Welcome to the next edition of the BriefingsDirect Voice of the Customer podcast series. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing discussion on digital transformation success stories. Stay with us now to learn how agile businesses are fending off disruption -- in favor of innovation.

Our next thought leadership interview explores how a Canadian software provider delivers a hybrid cloud platform for enterprises and service providers alike. We will now learn how Ormuco has identified underserved regions and has crafted a standards-based hybrid cloud platform to allow its users to attain world-class cloud services.

Bayter
Here to help us explore how new breeds of hybrid cloud are coming to more providers around the globe thanks to the Cloud28+ consortium, we welcome Orlando Bayter, CEO and Founder of Ormuco in Montréal. Welcome.

Orlando Bayter: Thank you for having us.

Gardner: We are also here with Xavier Poisson Gouyou Beachamps, Vice President of Worldwide Indirect Digital Services at Hewlett Packard Enterprise (HPE), based in Paris. Welcome, Xavier.

Xavier Poisson Gouyou Beauchamps: Good morning.

Gardner: Let’s begin with this notion of underserved regions. Orlando, why is it that many people think that public cloud is everywhere for everyone when there are many places around the world where it is still immature? What is the opportunity to serve those markets?

Bayter: There are many countries underserved by the hyperscale cloud providers. If you look at Russia, United Arab Emirates (UAE), around the world, they want to comply with regulations on security, on data sovereignty, and they need to have the clouds locally to comply.

Ormuco targets those countries that are underserved by the hyperscale providers and enables service providers and enterprises to consume cloud locally, in ways they can’t do today.

Gardner: Are you allowing them to have a private cloud on-premises as an enterprise? Or do local cloud providers offer a common platform, like yours, so that they get the best of both the private and public hybrid environment?

Best of both clouds

Bayter: That is an excellent question. There are many workloads that cannot leave the firewall of an enterprise. With that, you now need to deliver the economies, ease of use, flexibility, and orchestration of a public cloud experience in the enterprise. At Ormuco, we deliver a platform that provides the best of the two worlds. You are still leaving your data center and you don't need to worry whether it’s on-premises or off-premises.

It's a single pane of glass. You can move the workloads in that global network via established providers throughout the ecosystem of cloud services.
It’s a single pane of glass. You can move the workloads in that global network via established providers throughout the ecosystem of cloud services.

Gardner: What are the attributes of this platform that both your enterprise and service provider customers are looking for? What’s most important to them in this hybrid cloud platform?

Bayter: As I said, there are some workloads that cannot leave the data center. In the past, you couldn’t get the public cloud inside your data center. You could have built a private cloud, but you couldn’t get an Amazon Web Services (AWS)-like solution or a Microsoft Azure-like solution on-premises.

We have been running this now for two years and what we have noticed is that enterprises want to have the ease-of-use, sales, service, and orchestration on-premises. Now, they can connect to a public cloud based on the same platform and they don’t have to worry about how to connect it or how it will work. They just decide where to place this.

They have security, can comply with regulations, and gain control -- plus 40 percent savings compared with VMware, and up to 50 percent to 60 percent compared with AWS.

Gardner: I’m also interested in the openness of the platform. Do they have certain requirements as to the cloud model, such as OpenStack?  What is it that enables this to be classified as a standard cloud?

Bayter: At Ormuco, we went out and checked what are the best solutions and the best platform that we can bring together to build this experience on-premises and off-premises.

We saw OpenStack, we saw Docker, and then we saw how to take, for example, OpenStack and make it like a public cloud solution. So if you look at OpenStack, the way I see it is as concrete, or a foundation. If you want to build a house or a condo on that, you also need the attic. Ormuco builds that software to be able to deliver that cloud look and feel, that self-service, all in open tools, with the same APIs both on private and public clouds.

Learn How Cloud 28+
Of Cloud Service Providers

Gardner: What is it about the HPE platform beneath that that supports you? How has HPE been instrumental in allowing that platform to be built?

Community collaboration

Bayter: HPE has been a great partner. Through Cloud28+ we are able to go to markets in places that HPE has a presence. They basically generate that through marketing, through sales. They were able to bring deals to us and help us grow our business.

From a technology perspective, we are using HPE Synergy. With Synergy, we can provide composability, and we can combine storage and compute into a single platform. Now we go together into a market, we win deals, and we solve the enterprise challenges around security and data sovereignty.

Gardner: Xavier, how is Cloud28+ coming to market, for those who are not familiar with it? Tell us a bit about Cloud28+ and how an organization like Ormuco is a good example of how it works.

Poisson Gouyou Beauchamps
Poisson: Cloud28+ is a community of IT players -- service providers, technology partners, independent software vendors (ISVs), value added resellers, and universities -- that have decided to join forces to enable digital transformation through cloud computing. To do that, we pull our resources together to have a single platform. We are allowing the enterprise to discover and consume cloud services from the different members of Cloud28+.

We launched Cloud28+ officially to the market on December 15, 2016. Today, we have more than 570 members from across the world inside Cloud28+. Roughly 18,000 distributed services may be consumed and we also have system integrators that support the platform. We cover more than 300 data centers from our partners, so we can provide choice.

In fact, we believe our customers need to have that choice. They need to know what is available for them. As an analogy, if you have your smartphone, you can have an app store and do what you want as a consumer. We wanted to do the same and provide the same ease for an enterprise globally anywhere on the planet. We respect diversity and what is happening in every single region.

Ormuco has been one of the first technology partners. Docker is another one. And Intel is another. They have been working together with HPE to really understand the needs of the customer and how we can deliver very quickly a cloud infrastructure to a service provider and to an enterprise in record time. At the same time, they can leverage all the partners from the catalog of content and services, propelled by Cloud28+, from the ISVs.

Global ecosystem, by choice 

Because we are bringing together a global ecosystem, including the resellers, if a service provider builds a project through Cloud28+, with a technology partner like Ormuco, then all the ISVs are included. They can push their services onto the platform, and all the resellers that are part of the ecosystem can convey onto the market what the service providers have been building.

We have a lot of collaboration with Ormuco to help them to design their solutions. Ormuco has been helping us to design what Cloud28+ should be, because it's a continuous improvement approach on Cloud28+ and it’s via collaboration.

If you want to join Cloud28+ to take, don't come. If you want to give, and take a lot afterward, yes, please come, because we all receive a lot.
As I like to say, “If you want to join Cloud28+ to take, don't come. If you want to give, and take a lot afterward, yes, please come, because we all receive a lot.”

Gardner: Orlando, when this all works well, whatdo your end-users gain in terms of business benefits? You mentioned reduction in costs, that's very important, of course. But is there more about your platform from a development perspective and an operational perspective that we can share to encourage people to explore it?

Bayter: So imagine yourself with an ecosystem like Cloud28+. They have 500 members. They have multiple countries, many data centers.

Now imagine that you can have the Ormuco solution on-premises in an enterprise and then be able to burst to a global network of service providers, across all those regions. You get the same performance, you get the same security, and you get the same compliance across all of that.

For an end-customer, you don’t need to think anymore where you’re going to put your applications. They will go to the public cloud, they will go to the private cloud. It is agnostic. You basically place it where you want it to go and decide the economies you want to get. You can compare with the hyperscale providers.

That is the key, you get one platform throughout our ecosystem of partners that can deliver to you that same functionality and experience locally. With a community such as Cloud28+, we can accomplish something that was not possible before.

Gardner: So, just hoping to delineate between the development and then the operations in production. Are you offering the developer an opportunity to develop there and seamlessly deploy, or are you more focused on the deployment after the applications are developed, or both?

Development to deployment 

Bayter: With our solution, same as AWS or Azure allows, a developer can develop their app via APIs, automated, use a database of choice (it could be MySQL, Oracle), and the load balancing and the different features we have in the cloud, whether it’s Kubernetes or Docker, build all that -- and then when the application is ready, you can decide in which region you want to deploy the application.

So you go from development, to deployment technology of your choice, whether it’s Docker or Kubernetes, and then you can deploy to the global network that we’re building on Cloud28+. You can go to any region, and you don’t have to worry about how to get a service provider contract in Russia, or how do I get a contract in Brazil? Who is going to provide me with the service? Now you can get that service locally through a reseller, a distributor, or have an ISV deploythe software worldwide.

Gardner: Xavier, what other sorts of organizations should be aware of the Cloud28+ network?

Learn How Cloud 28+
Of Cloud Service Providers

We accelerate go-to-market for startups, they gain immediate global reach with Cloud28+.
Poisson: We have the technology partners like Ormuco, and we are thankful for what they have brought to the community. We have service providers, of course, software vendors, because you can publish your software in Cloud28+ and provision it on-premises or off-premises. We accelerate go-to-market for startups, they gain immediate global reach with Cloud28+. So to all the ISVs, I say, “Come on, come on guys, we will help you reach out to the market.”

System integrators also, because we see this is an opportunity for the large enterprises and governments with a lot of multi-cloud projects taking care, having requirements for  security. And you know what is happening with security today, it's a hot topic. So people are thinking about how they can have a multi-cloud strategy. System integrators are now turning to Cloud28+ because they find here a reservoir of all the capabilities to find the right solution to answer the right question.

Universities are another kind of member we are working with. Just to explain, we know that all the technologies are created first at the university and then they evolve. All the startups are starting at the university level. So we have some very good partnerships with some universities in several regions in Portugal, Germany, France, and the United States. These universities are designing new projects with members of Cloud28+, to answer questions of the governments, for example, or they are using Cloud28+ to propel the startups into the market.

Ormuco is also helping to change the business model of distribution. So distributors now also are joining Cloud28+. Why? Because a distributor has to make a choice for its consumers. In the past, a distributor had software inventory that they were pushing to the resellers. Now they need to have an inventory of cloud services.

There is more choice. They can purchase hyperscale services, resell, or maybe source to the different members of Cloud28+, according to the country they want to deliver to. Or they can own the platform using the technology of Ormuco, for example, and put that in a white-label model for the reseller to propel it into the market. This is what Azure is doing in Europe, typically. So new kinds of members and models are coming in.

Digital transformation

Lastly, an enterprise can use Cloud28+ to make their digital transformation. If they have services and software, they can become a supplier inside of Cloud28+. They source cloud services inside a platform, do digital transformation, and find a new go-to-market through the ecosystem to propel their offerings onto the global market.

Gardner: Orlando, do you have any examples that you could share with us of a service provider, ISV or enterprise that has white-labeled your software and your capabilities as Xavier has alluded to? That’s a really interesting model.

Bayter: We have been able to go-to-market to countries where Cloud28+ was a tremendous help. If you look at Western Europe, Xavier was just speaking about Microsoft Azure. They chose our platform and we are deploying it in Europe, making it available to the resellers to help them transform their consumption models.

They provide public cloud and they serve many markets. They provide a community cloud for governments and they provide private clouds for enterprises -- all from a single platform.
If you look at the Europe, Middle East and Africa (EMEA) region, we have one of the largest managed service providers. They provide public cloud and they serve many markets. They provide a community cloud for governments and they provide private clouds for enterprises -- all from a single platform.

We also have several of the largest telecoms in Latin America (LATAM) and EMEA. We have a US presence, where we have Managed.com as a provider. So things are going very well and it is largely thanks to what Cloud28+ has done for us.

Gardner: While this consortium is already very powerful, we are also seeing new technologies coming to the market that should further support the model. Such things as HPE New Stack, which is still in the works, HPE Synergy’s composability and auto-bursting, along with security now driven into the firmware and the silicon -- it’s almost as if HPE’s technology roadmap is designed for this very model, or very much in alignment. Tell us how new technology and the Cloud28+ model come together.

Bayter: So HPE New Stack is becoming the control point of multi-cloud. Now what happens when you want to have that same experience off-premises and on-premises? New Stack could connect to Ormuco as a resource provider, even as it connects to other multi-clouds.

With an ecosystem like Cloud28+ all working together, we can connect those hybrid models with service providers to deliver that experience to enterprises across the world.

Learn How Cloud 28+
Of Cloud Service Providers

Gardner: Xavier, anything more in terms of how HPE New Stack and Cloud28+ fit? 

Partnership is top priority

Poisson: It’s a real collaboration. I am very happy with that because I have been working a long time at HPE, and New Stack is a project that has been driven by thinking about the go-to-market at the same time as the technology. It’s a big reward to all the Cloud28+ partners because they are now de facto considered as resource providers for our end-user customers – same as the hyperscale providers, maybe.

At HPE, we say we are in partnership first -- with our partners, or ecosystem, or channel. I believe that what we are doing with Cloud28+, New Stack, and all the other projects that we are describing – this will be the reality around the world. We deliver on-premises for the channel partners.

Gardner: I’m afraid we will have to leave it there. We have been exploring how a Canadian software provider delivers a hybrid cloud platform for enterprises and service providers alike. We have also learned how Cloud28+ offers an ecosystem and network for global distribution of providers like Ormuco. And we certainly heard about the runway to the future for such multi-cloud management capabilities as HPE New Stack.

Please join me in thanking our guests, Xavier Poisson Gouyou Beachamps, Vice President of Worldwide Indirect Digital Services at HPE, based in Paris. Thank you so much, Xavier.

Poisson: Thank you.

Gardner: We have also been here with Orlando Bayter, CEO and Founder at Ormuco in Montréal. Thank you.

Bayter: Thank you.

Gardner: And a big thank you as well to our audience for joining this BriefingsDirect Voice of the Customer digital transformation success story discussion. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this ongoing series of Hewlett Packard Enterprise-sponsored interviews.

Thanks again for listening. Please pass this along to your IT community, and do come back next time.

Listen to the podcast. Find it on iTunes. Get the mobile appDownload the transcript. Sponsor: Hewlett Packard Enterprise.

Transcript of a discussion on how a Canadian software provider has crafted a standards-based hybrid cloud platform to target global markets using Cloud28+. Copyright Interarbor Solutions, LLC, 2005-2017. All rights reserved.

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Tuesday, September 19, 2017

How Nokia Refactors the Video Delivery Business With New Time-Managed IT Financing Models

Transcript of a discussion on new video delivery architectures and the creative ways that media companies are paying for the technology that supports IP video streaming. 

Listen to the podcast. Find it on iTunes. Get the mobile app. Download the transcript. Sponsor: Hewlett Packard Enterprise.

Dana Gardner: Welcome to the next edition of the BriefingsDirect Voice of the Customer podcast series. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing discussion on digital transformation success stories. Stay with us now to learn how agile businesses are fending off disruption -- in favor of innovation.

Our next thought leader interview examines how Nokia is refactoring the video delivery business. We will now learn about new video delivery architectures and the creative ways media companies are paying for the technology that supports them.

Larbey
Here to describe new models of Internet Protocol (IP) video and time-managed IT financing models is Paul Larbey, Head of the Video Business Unit at Nokia, based in Cambridge, UK.

Paul Larbey: Hey, Dana, it’s great to be here.

Gardner: It seems that the video-delivery business is in upheaval. How are video delivery trends coming together to make it necessary for rethinking architectures? How are pricing models and business models changing, too? 

The mobile video decade

Larbey: We sit here in 2017, but let’s look back 10 years to 2007. There were a couple key events in 2007 that dramatically shaped how we all consume video today and how, as a company, we use technology to go to market.

It’s been 10 years since the creation of the Apple iPhone. The iPhone sparked whole new device-types, moving eventually into the iPad. Not only that, Apple underneath developed a lot of technology in terms of how you stream video, how you protect video over IP, and the technology underneath that, which we still use today. Not only did they create a new device-type and avenue for us to watch video, they also created new underlying protocols.

It was also 10 years ago that Netflix began to first offer a video streaming service. So if you look back, I see one year in which how we all consume our video today was dramatically changed by a couple of events.

If we fast-forward, and look to where that goes to in the future, there are two trends we see today that will create challenges tomorrow. Video has become truly mobile. When we talk about mobile video, we mean watching some films on our iPad or on our iPhone -- so not on a big TV screen, that is what most people mean by mobile video today.

The future is personalized 

When you can take your video with you, you want to take all your content with you. You can’t do that today. That has to happen in the future. When you are on an airplane, you can’t take your content with you. You need connectivity to extend so that you can take your content with you no matter where you are.

Take the simple example of a driverless car. Now, you are driving along and you are watching the satellite-navigation feed, watching the traffic, and keeping the kids quiet in the back. When driverless cars come, what you are going to be doing? You are still going to be keeping the kids quiet, but there is a void, a space that needs to be filled with activity, and clearly extending the content into the car is the natural next step.

And the final challenge is around personalization. TV will become a lot more personalized. Today we all get the same user experience. If we are all on the same service provider, it looks the same -- it’s the same color, it’s the same grid. There is no reason why that should all be the same. There is no reason why my kids shouldn’t have a different user interface.

There is no reason why I should have 10 pages of channels that I have to through to find something that I want to watch.
The user interface presented to me in the morning may be different than the user interface presented to me in the evening. There is no reason why I should have 10 pages of channels that I have to go through to find something that I want to watch. Why aren’t all those channels specifically curated for me? That’s what we mean by personalization. So if you put those all together and extrapolate those 10 years into the future, then 2027 will be a very different place for video.

Gardner: It sounds like a few things need to change between the original content’s location and those mobile screens and those customized user scenarios you just described. What underlying architecture needs to change in order to get us to 2027 safely?

Larbey: It’s a journey; this is not a step-change. This is something that’s going to happen gradually.

But if you step back and look at the fundamental changes -- all video will be streamed. Today, the majority of what we view is via broadcasting, from cable TV, or from a satellite. It’s a signal that’s going to everybody at the same time.

If you think about the mobile video concept, if you think about personalization, that is not going be the case. Today we watch a portion of our video streamed over IP. In the future, it will all be streamed over IP.

And that clearly creates challenges for operators in terms of how to architect the network, how to optimize the delivery, and how to recreate that broadcast experience using streaming video. This is where a lot of our innovation is focused today.

Gardner: You also mentioned in the case of an airplane, where it's not just streaming but also bringing a video object down to the device. What will be different in terms of the boundary between the stream and a download?

IT’s all about intelligence

Larbey: It’s all about intelligence. Firstly, connectivity has to extend and become really ubiquitous via technology such as 5G. The increase in fiber technology will dramatically enable truly ubiquitous connectivity, which we don’t really have today. That will resolve some of the problems, but not all.

But, by the fact that television will be personalized, the network will know what’s in my schedule. If I have an upcoming flight, machine learning can automatically predict what I’m going to do and make sure it suggests the right content in context. It may download the content because it knows I am going to be sitting in a flight for the next 12 hours.

Gardner: We are putting intelligence into the network to be beneficial to the user experience. But it sounds like it’s also going to give you the opportunity to be more efficient, with just-in-time utilization -- minimal viable streaming, if you will.

How does the network becoming more intelligent also benefit the carriers, the deliverers of the content, and even the content creators and owners? There must be an increased benefit for them on utility as well as in the user experience?

Larbey: Absolutely. We think everything moves into the network, and the intelligence becomes the network. So what does that do immediately? That means the operators don’t have to buy set-top boxes. They are expensive. They are very costly to maintain. They stay in the network a long time. They can have a much lighter client capability, which basically just renders the user interface.

The first obvious example of all this, that we are heavily focused on, is the storage. So taking the hard drive out of the set-top box and putting that data back into the network. Some huge deployments are going on at the moment in collaboration with Hewlett Packard Enterprise (HPE) using the HPE Apollo platform to deploy high-density storage systems that remove the need to ship a set-top box with a hard drive in it.

HPE Rethinks
And Use IT

Now, what are the advantages of that? Everybody thinks it’s costly, so you’ve taken the hard drive out, you have the storage in the network, and that’s clearly one element. But actually if you talk to any operator, their biggest cause of subscriber churn is when somebody’s set-top box fails and they lose their personalized recordings.

The personal connection you had with your service isn’t there any longer. It’s a lot easier to then look at competing services. So if that content is in the network, then clearly you don’t have that churn issue. Not only can you access your content from any mobile device, it’s protected and it will always be with you.

Taking the CDN private

Gardner: For the past few decades, part of the solution to this problem was to employ a content delivery network (CDN) and use that in a variety of ways. It started with web pages and the downloading of flat graphic files. Now that's extended into all sorts of objects and content. Are we going to do away with the CDN? Are we going to refactor it, is it going to evolve? How does that pan out over the next decade?

Larbey: The CDN will still exist. That still becomes the key way of optimizing video delivery -- but it changes. If you go back 10 years, the only CDNs available were CDNs in the Internet. So it was a shared service, you bought capacity on the shared service.

Even today that's how a lot of video from the content owners and broadcasters is streamed. For the past seven years, we have been taking that technology and deploying it in private network -- with both telcos and cable operators -- so they can have their own private CDN, and there are a lot of advantages to having your own private CDN.

You get complete control of the roadmap. You can start to introduce advanced features such as targeted ad insertion, blackout, and features like that to generate more revenue. You have complete control over the quality of experience, which you don't if you outsource to a shared service.
There are a lot of advantages to having your own private CDN. You have complete control over the quality of experience which you don't if you outsource to a shared service.

What we’re seeing now is both the programmers and broadcasters taking an interest in that private CDN because they want the control. Video is their business, so the quality they deliver is even more important to them. We’re seeing a lot of the programmers and broadcasters starting to look at adopting the private CDN model as well.

The challenge is how do you build that? You have to build for peak. Peak is generally driven by live sporting events and one-off news events. So that leaves you with a lot of capacity that’s sitting idle a lot of the time. With cloud and orchestration, we have solved that technically -- we can add servers in very quickly, we can take them out very quickly, react to the traffic demands and we can technically move things around.

But the commercial model has lagged behind. So we have been working with HPE Financial Services to understand how we can innovate on that commercial model as well and get that flexibility -- not just from an IT perspective, but also from a commercial perspective.

Gardner:  Tell me about Private CDN technology. Is that a Nokia product? Tell us about your business unit and the commercial models.

Larbey: We basically help as a business unit. Anyone who has content -- be that broadcasters or programmers – they pay the operators to stream the content over IP, and to launch new services. We have a product focused on video networking: How to optimize a video, how it’s delivered, how it’s streamed, and how it’s personalized.

It can be a private CDN product, which we have deployed for the last seven years, and we have a cloud digital video recorder (DVR) product, which is all about moving the storage capacity into the network. We also have a systems integration part, which brings a lot of technology together and allows operators to combine vendors and partners from the ecosystem into a complete end-to-end solution.

HPE Rethinks
And Use IT

Gardner: With HPE being a major supplier for a lot of the hardware and infrastructure, how does the new cost model change from the old model of pay up-front?

Flexible financial formats

Larbey: I would not classify HPE as a supplier; I think they are our partner. We work very closely together. We use HPE ProLiant DL380 Gen9 Servers, the HPE Apollo platform, and the HPE Moonshot platform, which are, as you know, world-leading compute-storage platforms that deliver these services cost-effectively. We have had a long-term technical relationship.

We are now moving toward how we advance the commercial relationship. We are working with the HPE Financial Services team to look at how we can get additional flexibility. There are a lot of pay-as-you-go-type financial IT models that have been in existence for some time -- but these don’t necessarily work for my applications from a financial perspective.
 Our goal is to use 100 percent of the storage all of the time to maximize the cache hit-rate.

In the private CDN and the video applications, our goal is to use 100 percent of the storage all of the time to maximize the cache hit-rate. With the traditional IT payment model for storage, my application fundamentally breaks that. So having a partner like HPE that was flexible and could understand the application is really important.

We also needed flexibility of compute scaling. We needed to be able to deploy for the peak, but not pay for that peak at all times. That’s easy from the software technology side, but we needed it from the commercial side as well.

And thirdly, we have been trying to enter a new market and be focused on the programmers and broadcasters, which is not our traditional segment. We have been deploying our CDN to the largest telcos and cable operators in the world, but now, selling to that programmers and broadcasters segment -- they are used to buying a service from the Internet and they work in a different way and they have different requirements.

So we needed a financial model that allowed us to address that, but also a partner who would take some of the risk, too, because we didn’t know if it was going to be successful. Thankfully it has, and we have grown incredibly well, but it was a risk at the start. Finding a partner like HPE Financial Services who could share some of that risk was really important.

Gardner: These video delivery organizations are increasingly operating on subscription basis, so they would like to have their costs be incurred on a similar basis, so it all makes sense across the services ecosystem.
Our tolerance just doesn't exist anymore for buffering and we demand and expect the highest-quality video.

Larbey: Yes, absolutely. That is becoming more and more important. If you go back to the very first the Internet video, you watched of a cat falling off a chair on YouTube. It didn’t matter if it was buffering, that wasn't relevant. Now, our tolerance just doesn’t exist anymore for buffering and we demand and expect the highest-quality video.

If TV in 2027 is going to be purely IP, then clearly that has to deliver exactly the same quality of experience as the broadcasting technologies. And that creates challenges. The biggest obvious example is if you go to any IP TV operator and look at their streamed video channel that is live versus the one on broadcast, there is a big delay.

So there is a lag between the live event and what you are seeing on your IP stream, which is 30 to 40 seconds. If you are in an apartment block, watching a live sporting event, and your neighbor sees it 30 to 40 seconds before you, that creates a big issue. A lot of the innovations we’re now doing with streaming technologies are to deliver that same broadcast experience.

HPE Rethinks
And Use IT

Gardner: We now also have to think about 4K resolution, the intelligent edge, no latency, and all with managed costs. Fortunately at this time HPE is also working on a lot of edge technologies, like Edgeline and Universal IoT, and so forth. There’s a lot more technology being driven to the edge for storage, for large memory processing, and so forth. How are these advances affecting your organization?

Optimal edge: functionality and storage

Larbey: There are two elements. The compute, the edge, is absolutely critical. We are going to move all the intelligence into the network, and clearly you need to reduce the latency, and you need to able to scale that functionality. This functionality was scaled in millions of households, and now it has to be done in the network. The only way you can effectively build the network to handle that scale is to put as much functionality as you can at the edge of the network.

The HPE platforms will allow you to deploy that computer storage deep into the network, and they are absolutely critical for our success. We will run our CDN, our ad insertion, and all that capability as deeply into the network as an operator wants to go -- and certainly the deeper, the better.

The other thing we try to optimize all of the time is storage. One of the challenges with network-based recording -- especially in the US due to the content-use regulations compliance -- is that you have to store a copy per user. If, for example, both of us record the same program, there are two versions of that program in the cloud. That’s clearly very inefficient.

The question is how do you optimize that, and also support just-in-time transcoding techniques that have been talked about for some time. That would create the right quality of bitrate on the fly, so you don’t have to store all the different formats. It would dramatically reduce storage costs.

The challenge has always been that the computing processing units (CPUs) needed to do that, and that’s where HPE and the Moonshot platform, which has great compute density, come in. We have the Intel media library for doing the transcoding. It’s a really nice storage platform. But we still wanted to get even more out of it, so at our Bell Labs research facility we developed a capability called skim storage, which for a slight increase in storage, allows us to double the number of transcodes we can do on a single CPU.

That approach takes a really, really efficient hardware platform with nice technology and doubles the density we can get from it -- and that’s a big change for the business case.

Gardner: It’s astonishing to think that that much encoding would need to happen on the fly for a mass market; that’s a tremendous amount of compute, and an intense compute requirement. 

Content popularity

Larbey: Absolutely, and you have to be intelligent about it. At the end of the day, human behavior works in our favor. If you look at most programs that people record, if they do not watch within the first seven days, they are probably not going to watch that recording. That content in particular then can be optimized from a storage perspective. You still need the ability to recreate it on the fly, but it improves the scale model.

Gardner: So the more intelligent you can be about what the users’ behavior and/or their use patterns, the more efficient you can be. Intelligence seems to be the real key here.

Larbey: Yes, we have a number of algorithms even within the CDN itself today that predict content popularity. We want to maximize the disk usage. We want the popular content on the disk, so what’s the point of us deleting a piece of a popular content just because a piece of long-tail content has been requested. We do a lot of algorithms looking at and trying to predict the content popularity so that we can make sure we are optimizing the hardware platform accordingly.

Gardner: Perhaps we can deepen our knowledge about this all through some examples. Do have some examples that demonstrate how your clients and customers are taking these new technologies and making better business decisions that help them in their cost structure -- but also deliver a far better user experience?

In-house control

Larbey: One of our largest customers is Liberty Global, with a large number of cable operators in a variety of countries across Europe. They were enhancing an IP service. They started with an Internet-based CDN and that’s how they were delivering their service. But recognizing the importance of gaining more control over costs and the quality experience, they wanted to take that in-house and put the content on a private CDN.

We worked with them to deliver that technology. One of things that they noticed very quickly, which I don’t think they were expecting, was a dramatic reduction in the number of people calling in to complain because the stream had stopped or buffered. They enjoyed a big decrease in call-center calls as soon as they switched on our new CDN technology, which is quite an interesting use-case benefit.

When they deployed a private CDN, they reached costs payback in less than 12 months.
We do a lot with Sky in the UK, which was also looking to migrate away from an Internet-based CDN service into something in-house so they could take more control over it and improve the users’ quality of experience. 

One of our customers in Canada, TELUS, when they deployed a private CDN, they reached costs payback in less than 12 months in terms of both the network savings and the Internet CDN costs savings.

Gardner: Before we close out, perhaps a look to the future and thinking about some of the requirements on business models as we leverage edge intelligence. What about personalization services, or even inserting ads in different ways? Can there be more of a two-way relationship, or a one-to-one interaction with the end consumers? What are the increased benefits from that high-performing, high-efficiency edge architecture? 

VR vision and beyond

Larbey: All of that generates more traffic -- moving from standard-definition to high-definition to 4K, to beyond 4K -- it all generates more network traffic. You then take into account a 360-degree-video capability and virtual reality (VR) services, which is a focus for Nokia with our Ozo camera, and it’s clear that the data is just going to explode.

So being able to optimize, and continue to optimize that, in terms of new codec technology and new streaming technologies -- to be able to constrain the growth of video demands on the network – is essential, otherwise the traffic would just explode.

There is lot of innovation going on to optimize the content experience. People may not want to watch all their TV through VR headsets. That may not become the way you want to watch the latest episode of Game of Thrones. However, maybe there will be a uniquely created piece of content that’s an add-on in 360, and the real serious fans can go and look for it. I think we will see new types of content being created to address these different use-cases.

Gardner: I look forward to that. I’m afraid we will have to leave it there. We have been examining how Nokia is refactoring the video delivery business. And we have heard about new video-delivery architectures and creative ways that media companies are paying for them. It all adds up to a very auspicious future for providers of content and consumers as well.

So please join me in thanking our guest, Paul Larbey, Head of the Video Business Unit at Nokia, based in Cambridge, UK.  Thank you, Paul.

Larbey: Thanks, it was great to chat.

Gardner: And thanks as well to our audience for joining this BriefingsDirect Voice of the Customer digital transformation success story. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this ongoing series of Hewlett Packard Enterprise-sponsored interviews. Thanks again for listening, and please come back next time.

Listen to the podcast. Find it on iTunes. Get the mobile app. Download the transcript. Sponsor: Hewlett Packard Enterprise.

Transcript of a discussion on new video delivery architectures and the creative ways that media companies are paying for the technology that supports IP video streaming. Copyright Interarbor Solutions, LLC, 2005-2017. All rights reserved.

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