Gartner has issued its ‘Emerging Technology Analysis: Cloud-Based Solutions Change Video Delivery for CSPs and MSOs Globally’, which found that ‘by 2018, at least 25 per cent (or over $10 billion) is forecast for the SDV total addressable market for CSP/MSO-hosted and managed CDN services revenue.’ The report adds, ‘ Video delivery within mature markets will have SDV functionality built into CSP and MSOs’ video service offerings.’
‘Software-defined video provides a new way to engage customers using innovative services. Gartner’s nexus and other new competencies are required by CSPs to stay ahead of rivals, and for survival in the fiercely competitive telco market. Newer technologies and processes, will enable the convergence and mutual reinforcement of IT and network trends,’ wrote Akshay Sharma, Gartner research director.
In the analysis issued on 24 April 2015, Gartner said that ‘to escape the commoditization of traditional CSPs and cable multiple services operators are exploring cloud-based solutions’ and noted that ‘these offer customers a better video experience and reduce capital expenditure on newer roaming and timeshifting multiscreen services.’
The report councluded that activities for communications service providers (CSPs) will include addressing digitally enabled consumers and embracing network virtualisation, in a ‘net-neutral world.’ Hypervisor-based solutions with network function virtualisation (NFV), combined with software-defined networking (SDN) and content delivery networks (CDNs) are emerging to provide real-time video services.
Software-defined, video-based solutions are in the early days of transforming core video operations, the report concluded, and will coexist with edge routers, mobile packet core solutions, and newer cloud radio access networks (RANs). CSPs and CDN providers are placing more focus on end-user quality of experience (QoE) for video due to the increased interest in on-demand services, and to reduce capital expenditure (capex).
Sam Blackman, CEO and co-founder of Elemental, commented: “Gartner is known to identify disruptive technologies that media enterprises need to confidently launch new services and successfully engage with the consumer viewing trends that are transforming the video industry as we’ve known it. We feel the Gartner CSP forecast confirms the end of the traditional hardware-based video processing era and that software-defined video’s time has arrived.”
The document includes a number of recommendations for CIOs, CTOs, network architect CSPs, and MSOs. Recommendations include the development of competencies in each element of the Nexus of Forces (cloud, social, big data and mobility), with newer software video technologies as they offer more digital services; the confirmation of the viability of video solutions by moving from legacy, siloed hardware platforms to software-based products with innovative and converged service features; and embracing digital business transformation with software-defined video services by leveraging DevOPs models for network and IT operations to improve service agility.