CDNs and Managed Traffic versus Unmanaged Traffic

For network operators, there are two kinds of content according to Qwilt's VP of Product and Marketing Mark Fisher: Managed and Unmanaged. Managed content is that which network operators carry as part of an agreement with a content provider. Unmanaged content is that which is coming from an OTT video provider, which can't really be planned for or predicted. Qwilt's “Transparent Caching” solution takes both managed and unmanaged content and saves a copy at the neighborhood level based on its popularity—meaning how likely it is to be downloaded multiple times in an effort to cut the number of times a particular video is transported. So, with Qwilt's solution, a server in the neighborhood will see that a new series of House of Cards has just premiered and identify and cache copies of the videos in real time to drive down network traffic demand. Fisher adds that, with the Qwilt Transparent Caching solution, operators can cut down 50 percent of the video traffic from their stream.

Operator CDNs and OTT Video

Robust CDN offerings from telecommunications network operators provide a critical entry point into the OTT, unmanaged video value chain. OTT content providers need a CDN to improve QoE, network operators that can woo the very bandwidth hungry media services to their CDN services find themselves, finally, with a way to make revenues off of the traffic. Of course, that's no sure bet.

Netflix, widely accepted as the largest bandwidth consumer online, opted to built its own CDN, Open Connect to handle their traffic. When asked about additional details about the impetus for Netflix to built its own propietary CDN, spokesperson Joris Evers responded with a link to the Open Connect page on the Netflix site.

“ISPs can directly connect their networks to Open Connect for free,” Netflix says about its CDN program. “ISPs can do this either by free peering with us at common Internet exchanges, or can save even more transit costs by putting our free storage appliances in or near their network.”

Netflix adds that major (Internet Service Providers) ISPs, including Frontier, British Telecom, TDC, Clearwire, GVT, Telus, Bell Canada, Virgin, Cablevision, Google Fiber, Telmex, and more have already hooked up to Open Connect.

“As part of Open Connect, we are also sharing our hardware design and the open source software components of the server,” The Netflix Open Connect statement adds. “These designs are suitable for any other provider of large media files, and are very cost efficient. We welcome commentary and improvements, which will be shared with the community with the goal of a faster, less expensive internet for all.”

With the potential to get revenues from the video content they're caching on CDNs, ISPs could find a means to recoup some of the cost of carrying the behemoth amount of video traffic traversing their networks every moment. Qwilt's Fisher says, ultimately operators will likely manage a “universal cache” of content from every content provider. Content providers can't realistically reach the customer without the help of the service provider, and a fragmented CDN cache leads to more network inefficiency.

“This functionality (caching) will ultimately be built into their networks,” Fisher says. “It's the right thing to do.”

CDNs are the unsung heroes of online video. They've transformed online video from a clunky, jumpy, frustrating viewing experience, to a slick and satisfying one that puts an ocean of content at the fingertips of anyone with a broadband connection—all at a competitive price. CDNs allow operators to handle OTT video traffic in an efficient and cost effective way and provide a means to enhance the viewing experience across any device. And as operators look to the future of CDNs, its important to plan for a day when the world's traffic sits on your servers in every neighborhood across the globe.