Video as the next Voice:

How Service Providers Fit

Cisco Knowledge Network for Service Providers
December 7, 2010

Tom Glodowski – US SP Technical Solutions Architect – Telepresence

Kirk Topits – US SP Consulting Systems Engineer - Telepresence

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1
 Agenda

• Introduction, Opportunity & IP NGN Linkage

• Service Architecture
• Question and Answer

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 2
 Pervasive Video: Video as the Next Voice

ƒ IP
IP-based
based voice services and equipment move toward
commoditization
– New revenue and margin services needed by SPs
ƒ Interactive Telepresence and Video is the next generation
communication medium
ƒ Video is on a trajectory
j y to be very
y big
g
– YouTube / FaceTime Generation
– Video’s time has come: Advances in standards, coding, processing
performance, bandwidth, QoS, mobility,
p y business transformation, etc.

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3
 Why Cloud Services for TelePresence?
SP Considerations

Networked
ƒ Decentralized Model
ƒ Network topology aware
ƒ Distributed at the media
handling and network services
levels
Virtualized Fully
y Integrated
g
ƒ Multi-client infrastructure ƒ Efficient management,
and applications provisioning, diagnostic
ƒ Virtualized media Network
ƒ Flexible billing models
resources (e.g. MCUs, Economics ƒ Revenue settlement
Multi-point switches,
switches etc) records
d

Service Operational
Scale Efficiency

Expanded Revenue Opportunities and New Market Segments

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 4
Considerations
ƒ Collaboration is a $35B+ market in 2010
ƒ IP Traffic will increase fivefold 2008 to 2013
ƒ In 2014, 80% of traffic on public and private networks projected to be video related
ƒ $1 in TP spend drives $6-8 in managed services spend for the Service Provider
ƒ SP addresses primary customer concerns impacting broader deployment:
Scale
Quality and reliability
Lack of IT resources
Secure B2B

Source – Cisco, IBSG

Source – Cisco IBSG
Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 5
 Wainhouse Research: Telepresence & Video
Conferencing Market Growth

$5,324 CAGR 09-15

$4,851
+18% $4,387 24%
$3,910
28%
$3,281

$2,580

$1,979
Infrastructure
15%
Personal Video

VC & TP Endpoints

2009 2010 2011 2012 2013 2014 2015

Source: Wainhouse Research Enterprise Videoconferencing Endpoints & Infrastructure Products Forecast, July 2010

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 6
 Enterprise Customers are Changing the way
they
y Collaborate…in a Big
g Way!
y
Global TelePresence 
Service • 20M Webex minutes
per month
60 C‐Suite
C Suite • 1.5M
1 5M video minutes
12 Solution per month
TP
3000
900 Multipurpose
M li
Multi‐Purpose Room
Systems

6000
1700 Executive =3 Years
Desktop Appliances Desktop
=Today

65,000
20,000 PC‐Based
PC Client Desktop
20,000,000 Mins WebEx Per Month

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 7
 Audience Question #1

Our internal use of Telepresence and Videoconferencing is:

ƒ Extensive – many systems installed and used heavily
ƒ Moderate – some systems installed with good use
ƒ Limited – few systems installed with little use
ƒ None – no systems installed but planning to implement
ƒ N
None – no systems
t installed
i t ll d or planned
l d

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 8
 Natural Progression of TelePresence
Step 5
Services in Service Providers SP-to-SP
Interconnect
Step 4 B2B Service

Enhanced
Managed B2B
Step 3 Intercompany
TelePresence
Managed B2B
I t C
Inter-Company
Step 2 TelePresence

Managed Intra-
company
T l P
TelePresence
Step 1 Network Service

Deploy TelePresence
f iinternall SP use
for

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 9
 Why Should SPs Care about Telepresence?
ƒ Drives network bandwidth needs – circuits, traffic levels
Intra-customer VPN
I t
Inter-customer
t VPN
Customer/SP Exchange Access

ƒ Traffic Engineering – interactive latency reduction and

route around failures
ƒ Quality
Q y of Service – p
premium real-time class – latencyy
and jitter control

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 10
 Cisco TelePresence Traffic Characteristics
Resolution
al Resolution
s of Horizonta
1080 lines 1920 lines of Vertical Resolution (Widescreen Aspect Ratio is 16:9)

2,073,600 pixels per frame

x 3 colors per pixel
x 1 Byte (8 bits) per color
Compressed to 4 Mbps per
screen x 30 frames per second

> 99% compression ratio! = 1.5 Gbps per screen

uncompressed !

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 11
 Cisco TelePresence Traffic Characteristics
Max Bandwidth Consumption Per Second

Not Applicable to 720p Lite

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 12
 Cisco TelePresence Traffic Characteristics
Average Call vs. Max Consumption
VBR Traffic
CTS-3010
BW Consumption v.s Time Graph
15Mbps
5 bps
abit

11Mbps
Mega

5 10 second
“Average Call” Bandwidth Consumption Per Second
Resolution 1080p 1080p 1080p 720p 720p 720p 720p
Motion Handling Best Better Good Best Better Good Lite

CTS-500/1X00 average bandwidth

4 Mbps
p 3.5 Mbps
p 3 Mbps
p 3 Mbps
p 2.5 Mbps
p 1.5 Mbps
p 1 Mbps
p
(Mbps) includes Layer 2
2- 4 overhead

CTS-30X0/32X0 average bandwidth

11 Mbps 10 Mbps 8 Mbps 8 Mbps 6 Mbps 3 Mbps -
(Mbps) includes Layer 2- 4 overhead

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 13
 Cisco TelePresence Traffic Characteristics
One-Way Latency,
Latency Jitter and Loss Targets & Thresholds

Service
CE PE Provider PE CE

Campus Branch

Codec Campus CE-PE PE-PE PE-CE Codec

Serialization,
S i li ti P li i
Policing, Serialization,
Encoding, De-Jitter Buffer,
Queuing, Shaping Queuing, Queuing, Queuing,
Packetization Shaping Decoding
Shaping Propagation
SLAs Only Relate to Network Flight Time
Codec Codec

Thresholds Triggered Action on Threshold

Metric Target
1st 2nd 3rd 4th 1st 2nd
Latency 150 ms 250 ms 400 ms None None

Jitter 50 ms 85 ms 125 ms 165 ms 245 ms None None

1. Reduce Quality
Loss 0.05% 1% 10% Network Bar Change
2. Drop Call
Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14
 Cisco TelePresence Traffic Characteristics
Queuing Delay vs. Video Frame Jitter
ƒ The secondary contributor to video frame jitter is the queuing and shaping
algorithms on every interface along the path
ƒ Weighted-Fair Queuing produces higher jitter than Priority Queuing
ƒ Example RFC 4594 queuing policy on an OC3 circuit (fully-congested, no
shaping)
Observed Video Jitter Values for TelePresence in LLQ: 3 to 13 ms
Observed Video Jitter values for TelePresence in CBWFQ: 5 to 29 ms
ƒ Slower links would need to buffer and queue more, resulting in much higher
jitter

TelePresence Î LLQ TelePresence Î CBWFQ

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15
 Before You Begin
C
Converged
d vs. O
Overlay
l D Deployment
l tMModels
d l

Converged
C d Overlay
O l
Network Network

ƒ Maximum Return on Investment, ƒ Quicker, tactical option

lowest Total Cost of Ownership
in the long run ƒ Easier, cheaper in the short run

ƒ Must follow network design ƒ Less concern of impact

p on current
guidelines network
ƒ Switch platforms, line cards ƒ Relaxed network design
ƒ Router platforms guidelines
ƒ WAN bandwidth/queuing ƒ Overlay now, converge when
policies you’re ready
ƒ Shaping, queuing policies

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 16
 Cisco TelePresence Traffic Characteristics
Summary

Traffic Network
Characteristics Requirements
dth
Bandwid

IP

Time ƒ Ultra-high
g bandwidth
ƒ Multiple channels of 1080p (or ƒ Very low latency, jitter and loss
720p) resolution video and wide- SLA targets and thresholds
band audio @ 30 frames/sec
ƒ Highly-reliable,
g y e ab e, redundant
edu da t
ƒ Variable video frame sizes
ƒ Latest generation switching and
ƒ Large packets, high packets/sec routing platforms and IOS queuing
and shaping policies
ƒ Very low latency, jitter and loss
targets and thresholds ƒ End-to-end Quality of Service

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 17
 Why Should SPs Care about Telepresence? (Cont.)

ƒ Services attach revenue

Sell, Plan, design implement customer premise equipment
Maintenance and break/fix
Managed router/network services
Managed Telepresence services – Concierge,
Concierge VNOC
VNOC,
Scheduling, endpoint management
B2B Communication (intra-carrier and inter-carrier)
Advanced
Ad d services
i iin th
the cloud
l d – multipoint,
lti i t security,
it addh
hoc,
scheduled

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 18
Service Provider Revenue Opportunity
New revenue opportunities for SP

SP managed service deployment TelePresence
Service Provider
Y

Cust_X site 1 

Cust_X VPN
TelePresence
Exchange
SP
SP  D l
Deploymentt
Cust_X site N  IP/MPLS network

Public Suites TelePresence
Transport Service Provider
Z
Public Suites
Public Suites
• hotels
• airports etc…

Customer Premise SP network SP  Exchange Services Inter‐SP  

• TP endpoint s, TP Infra • B2B , Hosted TP Exchange service • Offnet charge for B2B
• High QOS  & high BW service • Federated
• PDI services • Value added APP services
• Overlay/Converge network design
Overlay/Converge network design Session Switch 
• Endpoint mgmt svcs • API for Svc differentiation
• Custom design services or Bridge services
• Ent network upgrade • Fixed  / usage billing schemes
• Public Suites  • Info/directory svcs

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 19
 Audience Question #2

Telepresence and Videoconferencing Service Offerings:

ƒ Currently offer Telepresence services
ƒ Currently
Cu e t y offer
o e Videoconferencing
deoco e e c g seservices
ces
ƒ Currently offer Telepresence and Videoconferencing services
ƒ No current services offered but interested and planning to
implement
ƒ No current services offered or planned

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 20
 Agenda

• Introduction, Opportunity & IP NGN Linkage

• Service Architecture
• Question and Answer

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 21
 Classification of Managed Service
Provider Solutions

Physical Shared vs.

vs Outsourced vs
vs. Primary Service Level Model Type
Location Dedicated Self-Managed Business Agreement
Model
Hosted Shared Outsourced Service fees Availability of Exchange
service
i

Dedicated Outsourced Leasing and/or Availability of MSP

service fees service or
quality-defined
q y
Self-managed HW & license & Availability of Hosted
service fees hardware/ Enterprise
application
Customer s
Customer’s Dedicated Outsourced HW & license & Custom MSP
Site professional
services
Self-managed HW & license Internally defined Enterprise
if at all

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 22
 Telepresence Exchange High Level Architecture

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 23
 The New Cisco TelePresence Portfolio
I t
Integrated
t d Architecture
A hit t
Any to Any Interoperability

Cloud Services
Endpoints Infrastructure

Scalable
S l bl and
d Reliable,
R li bl Secure
S
Complete Portfolio
Comprehensive and Global Reach

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24
Cloud Solutions: SP Service Creation Platform
Cisco TelePresence Exchange System (CTX)
Integrated media, service control
Apps ƒ Scheduling Portal & hosted application sol
solution
tion
ƒ Directory Services platform for SPs:
Layer ƒ Vertical Applications
• Enables portfolio of new
TelePresence cloud services
• Enhanced service velocity
ƒ Service Orchestration • Scalable for regional & global
ƒ Resource Management deployment
Service & SLA
ƒ Inter-SP Control g
• Reduce TCO: integrated p
platform,
Control
ƒ Integration APIs ops tools, flexible licensing
ƒ Management /
Provisioning tools Benefits for Enterprises:
• As-a-service model improves ROI
Network & ƒ Edge Routing • Rapid
R id scalel & global
l b l reach
h
Media ƒ Routing / Switching
• Extend collaboration benefits via
ƒ Multipoint
Session Switching hosted video communities
Handling SP A SP B ƒ IVR
ƒ Interoperability

Industry’s first service creation platform for TelePresence solutions
Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 25
 Cisco TelePresence Exchange System
Telepresence Service Creation Platform Strategy

BUSINESS MEETME PERMANENT INTERCONNECT STREAMING

SERVICES CONFERENCE BRIDGE (SP – SP)

SERVICE ORCHESTRATION

CALL CONTROL LINE SIDE

WEB SERVICES INTEROP SERVICES
SERVICES REGISTRATION
TMS

POLICY SERVICES SCHEDULING DIRECTORY

SERVICE AUDIO SERVICES

MANAGEMENT
SERVICES SERVICES
CREATION
Experience
CONTROL BILLING Mgmt & Network
RECORDING IVR
SERVICES SERVICES SERVICES
Service

SDK DEVELOPMENT MULTI REGION SUBSCRIBER

ROUTING IDENTITY
SERVICES SERVICES
SERVICES SERVICES

MEDIA TRANSCODING MULTI POINT OBTP TIP

SERVICES
CTS-MAN
END POINT
SD - HD MEDIA FORMATS GATEWAY
REGISTRATION

CALL CONTROL MEDIA SWITCHING / SERVICES ROUTING SECURITY

INFRASTRUCTURE

CUC CUBE
SBC VCS CTMS MSE TCS MXE ASR NAT/ FW
M
Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 26
 High Level Architecture Overview
Scheduling Portal
Application
SIP Line
SIP Trunk
Plane
Physical Access

CTX Deployment

Admin Portal
Hosted Controller
CTX
Control
Cisco
TelePresence
Scheduling
Middleware
Plane
Exchange
VCSc CUCM CTS-Man System CUCM CTS-Man

East Coast
Media Sub‐System Media Sub‐System West Coast

Media
Pl
Plane
Session IVR MSE MSE IVR
CTMS Routing / Routing / CTMS Session Routing /
Border
Pool Switching Pool Pool Pool
Switching Pool Pool Border Switching

Customer Access

Customer A Customer B Customer C Customer …

TMS VCSc

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 27
 Managem Interop Architecture using Telepresence Server
g and
ment
ol Scheduling

Other Functions
• FWT/SBC
Outlook
• Gateways
CT Manager TMS • Transcoders
• Recordingg&
an
Call Contro
and Dialpla

SIP Trunk Streaming

VCS
CUCM
dpoints

MOVI E20
Profile 52 T1
End

CTS 3010
CTS CTS 500
1100/1300
T3
ng
Conferencin
Multipoint

Telepresence Server or HD MCU -

CTMS MSE 8000 with TIP 4500/8510

Media/
Protocols

SIP Enhanced SD
720p

H.323 Outlook Integration

SIP or H.323
Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 28
 Agenda

• Introduction, Opportunity & IP NGN Linkage

• Service Architecture
• Question and Answer

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 29
 Question and Answer

Presentation_ID © 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 30