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Engines for The New Internet
Caching – Bucking the Trend
Proprietary and Confidential to Oversi
Agenda
About Oversi
Market Trends
Bandwidth Challenge
Caching Solution
Summary & Questions
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Proprietary and Confidential to Oversi
About Oversi
Solution provider for ISPs
Technology leader in caching solutions for Internet Video, P2P &
other media applications
Field operation since 2004
50 employees
Investors
Carmel Ventures, Cisco®:
Global deployments & channels base EMEA, Americas, LATAM
Global distribution partners
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Agenda
About Oversi
Market Trends
Bandwidth Challenge
Caching Solution
Summary & Questions
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Impact of Financial Downturn – Operators
12/08
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“Stay-at-Home Economy”
“With less money to spend, consumers will undoubtedly
be spending more time at home” Nielsen 2009 Industry Outlook
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Just the Beginning….
In 3 years, users will source most of their video
content from the Internet and in HD
Traffic
(PB/month)
20,000
Internet
video
- Web, E-mail, data
- Internet Video & P2P to
PC / TV
10,000
Today
Web
100
0
Source: Cisco
2006
7
2009
Proprietary and Confidential to Oversi
2012
Impact of Financial Downturn
“Telecom can't escape the fallout of the credit
crunch… there is growing evidence that the
financial crisis is going to depress the debtheavy telecom industry”
Spencer E. Ante, telecomasia.net – October 2008
"It will even create the first real opportunity to
either gain or lose significant market share
that we've had in tech in the last 20 years,"
‘Surviving a Tech Market Nuclear Winter: A Planner's Handbook to Tech Success in Today's Challenging Financial Times’,
Industry Analyst and Consultant Tom Nolle, President of CIMI Corporation, November 2008
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QoE Becomes a Major Target for ISPs
P2P with no
limits
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Agenda
About Oversi
Market Trends
Bandwidth Challenge
Caching Solution
Summary & Questions
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Internet OTT Video Challenge
ABC - full seasons online, selected shows in HD
Operators'
broadband
infrastructure
Hulu - “Watch your favorites anytime, for free”
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Network
Bottleneck
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Gridlock on ISPs’ Networks
Service Providers will need to expand network capacity x
1000 to support the Internet video explosion1000
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New Solutions Required
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The Need
1. Reduce costs & defer investments
Defer Opex & Capex investments
Squeezing more from existing infrastructure
2. Build brand equity and improve
customer experience, indirectly
reducing acquisition and retention
costs
THE PARADOX – How to achieve cost
reduction without compromising QoE?
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Agenda
About Oversi
Market Trends
Bandwidth Challenge
Caching Solution
Summary & Questions
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Operators’ Dilemma
Improve QoE
Vs.
Reduce Capex/Opex
Interments
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2009 - Operators Re-discover Caching
Because Caching:
Deliver MORE bandwidth over
EXISTING infrastructure
Reduce bandwidth costs
Improve Users’ QoE
Reduce Access network pressure
Net Neutrality clear
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The Network Limitation
Over The Top
HD Content Providers
Interconnect
Core
Metro
Available network
bandwidth
Access
NETWORKMissing bandwidth
Missing bandwidth
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The Solution: Generating the Bandwidth from
Internal Sources
Over The Top
HD Content Providers
Interconnect
Core
Metro
ca etw
ch o r
in k
g
k
or g
w ng
et i in
N cahch
ac
C
N
Available
bandwidth
Access
NETWORKMissing bandwidth
Missing bandwidth
Clients
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The Solution: Network Caching
Over The Top
HD Content Providers
Interconnect
Core
Metro
ca etw
ch o r
in k
g
k
or g
w ng
et i in
N cahch
ac
C
N
Available
bandwidth
Access
NETWORKMissing bandwidth
Missing bandwidth
Clients
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The Solution: Network Caching
Users’
QoE
Over The Top
HD Content Providers
Network
status
Cache
CNTRL
Interconnect
Core
Metro
Access
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Growth in Caching Market
In the current financial downturn, caching forecast to be one of
the hottest segments in networking in 2009
Expected growth - from more than $100 million in 2008 to $1.5
billion in 2012
Source: 3rd party market analysis
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Relieves Network Load / Improves QoE

Cache delivers more
bandwidth to end-users
over existing network
resources

Cache guarantees QoE
Out of band technology
Users demand
better QoE
Other
OTT/P2P
VoIP
Other
OTT/P2P
Cache
delivers
requested
files
OTT
redirection
Increase in
demand for
OTT/P2P is met
from Cache
Cache
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Benefits:
Saves on
international/interconnect
bandwidth
Clears network congestion
Increases user satisfaction
Reduces call center
support calls
Reduces churn, increases
user base
Better QoE = Increased ARPU
Service
Level
Other
OTT
ARPU
Gold - HD
$$$
Silver - SD
$$
Bronze
$
OverCache

Relates users’ experience
to their broadband
package

Migration of packages
enabled by cache
acceleration

Can match cache service
to special premium
services (FiOS, DOCSIS3)

Supports OTT HD (not
possible without cache)
Benefits:
√
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Net Neutrality
clear
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
Small % of migration to
higher BB packages= $$$

Service provider can offer
different bundles e.g.
assured QoE for HD
The ARPU Business Case of Caching
With cache
No cache
BB
Package
2Mbps
5Mbps
15Mbps
Price % of users
$ 25
45%
$ 45
50%
$ 65
5%
ARPU =
$
37
BB
Package
2Mbps
5Mbps
15Mbps
ARPU =
Price % of users
$ 25
20%
$ 45
60%
$ 65
20%
$
Customer Value:
Operator Value:
Value for 1 million users
25
$
8 per user per month
$ 96,000,000 per year
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Agenda
About Oversi
Market Trends
Bandwidth Challenge
Caching Solution
Summary & Questions
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Summary
Caching is the operators’ choice for the downturn
economy
1. Reduces Costs &
Defers Capex/Opex
investments
2. Improves end-users’ QoE,
driving brand & market
share
3. Increases operators ARPU
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Questions ?
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Energize Your Network
Thank you for listening
www.oversi.com
Eitan Efron, VP BD
[email protected]
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