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NFV, SDN and cloud are critical to the multi-screen, OTT and 4K video business case

Gorkem Yigit Senior Analyst, Research

NFV, SDN and cloud critical for OTT and videoThis latest white paper by Analysys Mason evaluates quantifiable business benefits of implementing network function virtualisation (NFV), software-defined networking (SDN) and cloud-enabled video services for fixed communications service providers (CSPs).

Commissioned by Amdocs, the white paper discusses the key findings of our businesses case model, which analyses potential cost savings and revenue generation and protection benefits that can be achieved through a virtualisation-led transformation of the video management and delivery networks and operations.

More about the white paper

Analysys Mason built a business case and return on investment (ROI) model for a developed market Tier 1 fixed operator that moves from a legacy IPTV service to multi-screen, over-the-top (OTT) and ultra-high definition (UHD/4K) services by transforming its existing video delivery systems and networks.

The report analyses the cost and revenue benefits of implementing NFV, SDN and cloud-based video delivery solutions and processes in comparison to traditional physical solutions across a video service delivery platform (SDP).

The video SDP comprises back-end content management system, head-end and digital rights management (DRM) systems; a content delivery network (CDN); and customer premises equipment/set-top boxes (CPE/STB).

The report further analyses the benefits of using NFV and SDN in the underlying CSP network, namely the backhaul and access networks (the transport elements and OLT and routers/switches, respectively), the service edge (BRAS) and probe systems.

For the ROI analysis, we modelled a scenario wherein a North American CSP implements NFV, SDN and cloud-enabled multi-screen 4K video services to execute a value differentiation strategy.

This strategy would aim to slow down the CSP's accelerating video subscriber churn and capture new revenue from its own OTT video service targeted at those ('cord-nevers' and 'cord-cutters') who do not want traditional pay-TV services.

Figure 1.1 summarises the key findings from this business case ROI analysis.

NFV, SDN and cloud

Figure 1.2 illustrates the main benefits of virtualisation compared with traditional physical solutions and operations, highlighting the crucial role of virtualisation in increasing competitiveness and service innovation in a rapidly changing and highly competitive video services market. 

SDN, NFV and cloud investment in telecoms